San Rafael City Council
November 4, 2024

CAO Contract Log #_______________ COUNTY OF MARIN

PROFESSIONAL SERVICES CONTRACT
2015 - Edition 1
THIS CONTRACT is made and entered into this day of , 2024, by and between the COUNTY OF MARIN, hereinafter referred to as "County" and City of San Rafael, hereinafter referred to as "Contractor.” RECITALS:

WHEREAS, County desires to retain a person or firm to provide the following service: Mahon Creek Path Area (MCA) Emergency Encampment Operations ; and
WHEREAS, Contractor warrants that it is qualified and competent to render the aforesaid services; NOW, THEREFORE, for and in consideration of the Contract made, and the payments to be made by County, the parties agree to the following:

1. SCOPE OF SERVICES:

Contractor agrees to provide all of the services described in Exhibit A attached hereto and by this reference made a part hereof.

2. FURNISHED SERVICES:

The County agrees to:

A. Guarantee access to and make provisions for the Contractor to enter upon public and private lands as required to perform their work.

B. Make available all pertinent data and records for review.

C. Provide general bid and Contract forms and special provisions format when needed.

3. FEES AND PAYMENT SCHEDULE:

The fees and payment schedule for furnishing services under this Contract shall be based on the rate schedule which is attached hereto as Exhibit B and by this reference incorporated herein. Said fees shall remain in effect for the entire term of the Contract. Contractor shall provide County with his/her/its Federal Tax I.D. number prior to submitting the first invoice.

4. MAXIMUM COST TO COUNTY:

In no event will the cost to County for the services to be provided herein exceed the maximum sum of $1,000,000.00 including direct non-salary expenses. As set forth in section 14 of this Contract, should the funding source for this Contract be reduced, Contractor agrees that this maximum cost to County may be amended by written notice from County to reflect that reduction.

5. TIME OF CONTRACT:

This Contract shall commence on July 1, 2024, and shall terminate on July 31, 2027. Certificate(s) of Insurance must be current on day Contract commences and if scheduled to lapse prior to termination date, must be automatically updated before final payment may be made to Contractor. The final invoice must be submitted within 30 days of completion of the stated scope of services.

6. INSURANCE:

Commercial General Liability:

The Contractor shall maintain a commercial general liability insurance policy in the amount of $1,000,000 ($2,000,000 aggregate). The County shall be named as an additional insured on the commercial general liability policy.

Commercial Automobile Liability:

Where the services to be provided under this Contract involve or require the use of any type of vehicle by Contractor, Contractor shall provide comprehensive business or commercial automobile liability coverage, including non-owned and hired automobile liability, in the amount of $1,000,000.00.

Workers’ Compensation:

The Contractor acknowledges the State of California requires every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of the Labor Code. If Contractor has employees, a copy of the certificate evidencing such insurance, a letter of self-insurance, or a copy of the Certificate of Consent to Self-Insure shall be provided to County prior to commencement of work.

Errors and Omissions, Professional Liability or Malpractice Insurance.

Contractor may be required to carry errors and omissions, professional liability or malpractice insurance.

All policies shall remain in force through the life of this Contract and shall be payable on a "per occurrence" basis unless County specifically consents to a "claims made" basis. The insurer shall supply County adequate proof of insurance and/or a certificate of insurance evidencing coverages and limits prior to commencement of work. Should any of the required insurance policies in this Contract be cancelled or non-renewed, it is the Contractor’s duty to notify the County immediately upon receipt of the notice of cancellation or non-renewal.

If Contractor does not carry a required insurance coverage and/or does not meet the required limits, the coverage limits and deductibles shall be set forth on a waiver, Exhibit C, attached hereto.

Failure to provide and maintain the insurance required by this Contract will constitute a material breach of this Contract. In addition to any other available remedies, County may suspend payment to the Contractor for any services provided during any time that insurance was not in effect and until such time as the Contractor provides adequate evidence that Contractor has obtained the required coverage.

7. ANTI DISCRIMINATION AND ANTI HARASSMENT:

Contractor and/or any subcontractor shall not unlawfully discriminate against or harass any individual including, but not limited to, any employee or volunteer of the County of Marin based on race, color, religion, nationality, sex, sexual orientation, age or condition of disability. Contractor and/or any subcontractor understands and agrees that Contractor and/or any subcontractor is bound by and will comply with the anti discrimination and anti harassment mandates of all Federal, State and local statutes, regulations and ordinances including, but not limited to, County of Marin Personnel Management Regulation (PMR) 21.

8. SUBCONTRACTING:

The Contractor shall not subcontract nor assign any portion of the work required by this Contract without prior written approval of the County except for any subcontract work identified herein. If Contractor hires a subcontractor under this Contract, Contractor shall require subcontractor to provide and maintain insurance coverage(s) identical to what is required of Contractor under this Contract and shall require subcontractor to name Contractor and County of Marin as an additional insured under this Contract for general liability. It shall be Contractor’s responsibility to collect and maintain current evidence of insurance provided by its subcontractors and shall forward to the County evidence of same.

9. ASSIGNMENT:

The rights, responsibilities and duties under this Contract are personal to the Contractor and may not be transferred or assigned without the express prior written consent of the County.

10. LICENSING AND PERMITS:

The Contractor shall maintain the appropriate licenses throughout the life of this Contract. Contractor shall also obtain any and all permits which might be required by the work to be performed herein.

11. BOOKS OF RECORD AND AUDIT PROVISION:

Contractor shall maintain on a current basis complete books and records relating to this Contract. Such records shall include, but not be limited to, documents supporting all bids, all income and all expenditures. The books and records shall be original entry books with a general ledger itemizing all debits and credits for the work on this Contract. In addition, Contractor shall maintain detailed payroll records including all subsistence, travel and field expenses, and canceled checks, receipts and invoices for all items. These documents and records shall be retained for at least five years from the completion of this Contract. Contractor will permit County to audit all books, accounts or records relating to this Contract or all books, accounts or records of any business entities controlled by Contractor who participated in this Contract in any way. Any audit may be conducted on Contractor's premises or, at County's option, Contractor shall provide all books and records within a maximum of fifteen (15) days upon receipt of written notice from County. Contractor shall refund any monies erroneously charged.

12. WORK PRODUCT/PRE-EXISTING WORK PRODUCT OF CONTRACTOR:

Any and all work product resulting from this Contract is commissioned by the County of Marin as a work for hire. The County of Marin shall be considered, for all purposes, the author of the work product and shall have all rights of authorship to the work, including, but not limited to, the exclusive right to use, publish, reproduce, copy and make derivative use of, the work product or otherwise grant others limited rights to use the work product.

To the extent Contractor incorporates into the work product any pre-existing work product owned by Contractor, Contractor hereby acknowledges and agrees that ownership of such work product shall be transferred to the County of Marin.

13. TERMINATION:

A. If the Contractor fails to provide in any manner the services required under this Contract or otherwise fails to comply with the terms of this Contract or violates any ordinance, regulation or other law which applies to its performance herein, the County may terminate this Contract by giving five (5) calendar days written notice to the party involved.

B. The Contractor shall be excused for failure to perform services herein if such services are prevented by acts of God, strikes, labor disputes or other forces over which the Contractor has no control.

C. Either party hereto may terminate this Contract for any reason by giving thirty (30) calendar days written notice to the other parties. Notice of termination shall be by written notice to the other parties and be sent by registered mail.

D. In the event of termination not the fault of the Contractor, the Contractor shall be paid for services performed to the date of termination in accordance with the terms of this Contract so long as proof of required insurance is provided for the periods covered in the Contract or Amendment(s).

14. APPROPRIATIONS:

The County's performance and obligation to pay under this Contract is contingent upon an annual appropriation by the Marin County Board of Supervisors, the State of California or other third party. Should the funds not be appropriated County may terminate this Contract with respect to those payments for which such funds are not appropriated. County will give Contractor thirty (30) days’ written notice of such termination. All obligations of County to make payments after the termination date will cease.

Where the funding source for this Contract is contingent upon an annual appropriation or grant from the Marin County Board of Supervisors, the State of California or other third party, County's performance and obligation to pay under this Contract is limited by the availability of those funds. Should the funding source for this Contract be eliminated or reduced, upon written notice to Contractor, County may reduce the Maximum Cost to County identified in section 4 to reflect that elimination or reduction.

15. RELATIONSHIP BETWEEN THE PARTIES:

It is expressly understood that in the performance of the services herein, the Contractor, and the agents and employees thereof, shall act in an independent capacity and as an independent Contractor and not as officers, employees or agents of the County. Contractor shall be solely responsible to pay all required taxes, including but not limited to, all withholding social security, and workers’ compensation.

16. AMENDMENT:

This Contract may be amended or modified only by written Contract of all parties.

17. ASSIGNMENT OF PERSONNEL:

The Contractor shall not substitute any personnel for those specifically named in its proposal unless personnel with substantially equal or better qualifications and experience are provided, acceptable to County, as is evidenced in writing.

18. JURISDICTION AND VENUE:

This Contract shall be construed in accordance with the laws of the State of California and the parties hereto agree that venue shall be in Marin County, California.

19. INDEMNIFICATION:

Contractor agrees to indemnify, defend, and hold County, its employees, officers, and agents, harmless from any and all liabilities including, but not limited to, litigation costs and attorney’s fees arising from any and all claims and losses to anyone who may be injured or damaged by reason of Contractor’s negligence, recklessness or willful misconduct in the performance of this Contract.

20. COMPLIANCE WITH APPLICABLE LAWS:

The Contractor shall comply with any and all Federal, State and local laws and resolutions: including, but not limited to the County of Marin Nuclear Free Zone, Living Wage Ordinance, and Board of Supervisors Resolution #2005-97 prohibiting the off-shoring of professional services involving employee/retiree medical and financial data affecting services covered by this Contract. Copies of any of the above-referenced local laws and resolutions may be secured from the Contract Manager referenced in section 21. In addition, the following NOTICES may apply:

1. Pursuant to California Franchise Tax Board regulations, County will automatically withhold 7% from all payments made to vendors who are non-residents of California.

2. Contractor agrees to meet all applicable program access and physical accessibility requirements under State and Federal laws as may apply to services, programs or activities for the benefit of the public.

3. For Contracts involving any State or Federal grant funds, Exhibit D must be attached. Exhibit D shall consist of the printout results obtained by search of the System for Award Management at www.sam.gov.

Exhibit D - Debarment Certification
By signing and submitting this Contract, the Contractor is agreeing to abide by the debarment requirements as set out below.
 The certification in this clause is a material representation of fact relied upon by County.  The Contractor shall provide immediate written notice to County if at any time the Contractor learns that its certification was erroneous or has become erroneous by reason of changed circumstances.  Contractor certifies that none of its principals, affiliates, agents, representatives or contractors are excluded, disqualified or ineligible for the award of contracts by any Federal agency and Contractor further certifies to the best of its knowledge and belief, that it and its principals:
 Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded by any Federal Department or Agency;
 Have not been convicted within the preceding three-years of any of the offenses listed in 2 CFR 180.800(a) or had a civil judgment rendered against it for one of those offenses within that time period;  Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State, or Local) with commission of any of the offenses listed in 2 CFR 180.800(a);  Have not had one or more public transactions (Federal, State, or Local) terminated within the preceding three-years for cause or default.
 The Contractor agrees by signing this Contract that it will not knowingly enter into any subcontract or covered transaction with a person who is proposed for debarment, debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction.

 Any subcontractor will provide a debarment certification that includes the debarment clause as noted in preceding bullets above, without modification.

21. NOTICES:

This Contract shall be managed and administered on County’s behalf by the Department Contract Manager named below.

All invoices shall be submitted and approved by this Department and all notices shall be given to County at the following location:

Contract Manager:

Gary Naja-Riese
Homelesness & Coordinated Care Division
Dept./Location:
1177 Francisco Blvd E. Ste B
San Rafael, CA 94901
Telephone No.: 415-473-6265 [email protected] Notices shall be given to Contractor at the following address:

Contractor: City of San Rafael
Address:
1400 Fifth Ave
San Rafael, CA 94901
Telephone No.: [email protected]

22. ACKNOWLEDGEMENT OF EXHIBITS
Check applicable Exhibits CONTRACTOR’S

INITIALS
EXHIBIT A. Scope of Services
EXHIBIT B. Fees and Payment
EXHIBIT C. Insurance Reduction/Waiver
EXHIBIT D. Contractor’s Debarment Certification
EXHIBIT E. Subcontractor’s Debarment Certification

OTHER REQUIRED

EXHIBITS (HHS

USE ONLY)
IN WITNESS WHEREOF, the parties have executed this Contract on the date first above written.

CONTRACTOR: APPROVED BY
COUNTY OF MARIN:

By: __________________________________
Name: _______________________________
Title: ________________________________ By:__________________________________ Dennis Rodoni, President, Board of Supervisors
COUNTY COUNSEL REVIEW AND APPROVAL (required if template content has been modified) County Counsel: _______________________________________ Date: ____________________________________

EXHIBIT A

SCOPE OF WORK
07/01/24 – 06/30/2027
Mahon Creek Path Area (MCA) Encampment
McGuire Funding
Introduction:

Contractor will utilize one-time funding from the State of California/State Senator Mike McGuire in the amount of $500,000 matched with funding from the County in the amount of $500,000 for a total of $1,000,000.00 to invest in expanded homeless housing opportunities and services/programs by June 30, 2027.

Overview:

In this collaborative endeavor, the City and County are united in their commitment to providing temporary shelter to individuals experiencing homelessness in San Rafael. Both entities share equal responsibility for the success of this project, working hand-in-hand to address the needs of our community. It is important to note that whenever this document outlines tasks or responsibilities assigned to the City, it is understood that the County will also be actively involved in successfully carrying out these duties as well. This includes, but is not limited to, program development and execution, shelter operations, community engagement, and securing additional funding.

The City of San Rafael proposes to establish a sanctioned camping area on city-owned property to improve conditions and provide essential support services for individuals experiencing homelessness within the Mahon Creek Area encampment. This project aims to create a safer, more structured environment with enhanced services for participants. The City plans to contract with FS Global as the program management partner to oversee operations of the sanctioned area, and with Defense Block Security to provide 24/7 security services.

The City will also manage the development and site preparation for the sanctioned camping area. This includes contracting for necessary ground and electrical improvements and the installation of temporary facilities, such as office trailers for on-site management, portable restrooms, and sanitation services.

The scope of work addresses the second and third eligible use categories of the emergency funds:

1. The purchase or rehabilitation of housing, including the purchase of land for housing for homeless residents.

2. Operations associated with an emergency encampment including emergency housing.

3. Direct assistance programs or services for homeless residents

1. Health and safety improvements to the Mahon Creek Area encampment, the largest of existing encampments within the City
City proposes to create a sanctioned camping area for unhoused individuals focused on supporting and accelerating transitions to permanent housing. The City intends to enhance the support to the encampment to address individual and community safety and sanitation concerns. These enhancements include:
• Mobile bathrooms and showers will be regularly available, starting on a weekly basis with review to assess increasing frequency.
• The City will also contract a professional program management operator and security contractor trained in de-escalation and harm reduction for the protection of unhoused individuals and their personal property. This operator will provide on-site staffing and will assist individuals in the governing of the site via a Code of Conduct established to protect the safety of participants and staff.
• These contractors will also provide a fire watch, working to limit or eliminate ignition sources to mitigate fire risks.
• The sanctioned camping area will provide unhoused individuals with convenient access to case managers and other service providers, while providing a service team with capacity to navigate every individual in the current encampment on their housing pathway, and transition assistance such as security deposits, subsidies, and furniture assistance.

Participation in the secure camping area and support services will be voluntary. The City is committed to using a trauma-informed, harm reduction approach; this focus has been and continues to be paramount to the City’s ongoing support of individuals experiencing homelessness and the development of related regulations.

2. Permitting
City and its contractors will manage the necessary permitting processes required for the construction and operation of the sanctioned encampment. This includes obtaining approvals from relevant authorities, ensuring compliance with building codes and zoning regulations, and addressing any legal or regulatory requirements.

3. Community Engagement Process
City and its program management partner will facilitate a community engagement process to involve local stakeholders, residents, and community organizations in the operation of the sanctioned camping area. This process may include public meetings, workshops, surveys, engagement with residents with lived experience of homelessness, and other mechanisms to gather input, address concerns, and build community support.

4. Publicizing and Incorporating Public Feedback
City will develop a comprehensive public outreach and communication plan to publicize the sanctioned camping area project. This includes disseminating information through various channels, addressing concerns, and fostering an open dialogue with the community including individuals with lived experience of homelessness. The city will also establish mechanisms to receive and respond to public feedback, ensuring transparency and accountability throughout the project's lifespan. The city will collect and incorporate best practices research into project design and will work with community social services providers to facilitate strong social services.

5. Coordination with County's System of Care
City will ensure collaboration and alignment with the County's Continuum of Care to establish a participant eligibility determination process that prioritizes individuals residing in the Mahon Creek Area encampment prior to the time of the Encampment Resolution Funding Round 3 (ERF-3) grant application. The City will work closely with the County to ensure that outreach services and participant enrollment into the program through the Homeless Management Information System (HMIS) comply with AB 977 requirements, as mandated by the ERF-3 grant administrators.

The County is also providing housing-based case management and outreach staff under the ERf3 grant award dedicated exclusively to individuals residing in the Mahon Creek Area encampment and eligible for the Encampment Resolution Funding Round 3 (ERF-3) grant, including participants of the sanctioned camping area.

6. Service Plan Coordination
City will collaborate with community agencies to develop a comprehensive site services plan for the sanctioned camping area. This plan should outline the range of support services to be provided, leveraging, and coordinating with existing services including case management, healthcare access, mental health support, job training, and other relevant resources. The city will coordinate with relevant agencies to ensure seamless integration of these services into the camping area’s operations.

7. Project Operator Selection
City will select a program management operator responsible for providing on-site staffing and operational management of the sanctioned camping area. The operator should have experience in managing similar facilities and ensuring the safety, security, and well-being of site participants. The selection process may involve issuing a request for proposals, evaluating proposals, conducting interviews, and making a final selection.

8. Ongoing Operations Monitoring
City will monitor the ongoing operations of the sanctioned camping area to ensure compliance with established standards, regulations, and service provisions. City will establish timelines and deliverables for occupancy and outcomes. This includes regular inspections, performance evaluations of the project operator, and feedback collection from site participants and the surrounding community. Any necessary adjustments or improvements identified during the monitoring process will be addressed promptly.

9. Reporting and Documentation
City will maintain thorough documentation of all aspects of the development of the sanctioned camping area, including program participation agreements, contracts, permits, service plans, community engagement records, monitoring reports, and relevant correspondence. This documentation will serve as a comprehensive record of the project and aid in accountability, future planning, and potential audits. All services activities at the project will be documented according to standards of Marin County’s system of care and applicable state and federal standards for programs addressing homelessness.

All contractors under the Division of Homelessness and Coordinated care are required to abide by the following in accordance with U.S. Department of Housing and Urban Development (HUD), State of California, and Count of Marin Housing First requirements.

A. Underlying philosophies
The following four philosophies underlie the program’s design and must be central to all services delivered:

Housing First
Evidence from communities across the country indicate that the most effective solution to homelessness is to place people in permanent housing without preconditions, and then provide the wraparound services necessary for them to stabilize. This philosophy is called “housing first” and is applicable to not just permanent housing, but also to outreach, shelter, and services programs. https://endhomelessness.org/resource/housing-first/ Trauma-Informed Care
Trauma-informed care realizes the widespread impact of trauma and understands potential paths for recovery; recognizes the signs and symptoms of trauma in clients, families, staff, and others involved in the system; responds by fully integrating knowledge about trauma into policies, procedures, and practices, and seeks to actively resist retraumatization. (https://www.samhsa.gov/nctic/trauma-interventions) Person-Focused Care
A person-focused approach decentralizes and integrates services across the spectrum of care, to cross-train staff from different agencies to implement shared strategies, and to simplify and redesign work while increasing enrollees’ involvement in their care. The priority is to design and align systems to reach and serve the client and communities, rather than requiring target populations to overcome systemic structural or cultural barriers.

Social Determinants of Health
Contractor will universally screen enrollees for the non-clinical barriers that may be interfering with their ability to lead healthy, productive lives. (https://www.cdc.gov/socialdeterminants/)
B. Cultural competency
• Contractor agrees to comply with HHS’s Equity Strategic Plan (https://www.marinhhs.org/sites/default/files/libraries/2019_02/mc_hhs.stratplan18_v7.p df)
• https://www.marinhhs.org/sites/default/files/equity_progress_report_2022.pdf). • Contractor shall be responsible for providing services that incorporate the cultural background of the client, including the language, family structure, religion and belief system of the client.
• Contractor shall ensure that the quality of care provided to non-English-speaking individuals or to individuals with Limited English Proficiency (LEP), meets the same standards and is not substandard to the care provided to English-speaking clients. • Contractor shall take all steps necessary to develop and maintain an appropriate capability for communicating, including providing sufficient qualified translators or translation service, in any necessary second language, including American Sign Language. • Contractor shall be responsible for providing services to non-English/LEP speaking individuals in their own language. Contractor will have staff that are linguistically proficient in the threshold language(s) at key points of contact and during regular operating hours. • All necessary steps will be taken to provide services in any language which is the primary language of at least 5 percent (5%) of either the community potentially served by the contractor or contractor’s client population. Spanish is currently the only threshold language for Marin.

All staff used to carry out the reimbursable services in this contract must be trained and/or experienced in the delivery of housing first oriented, trauma informed, culturally competent services.

C. Definitions
Contractors shall be familiar with HUD definitions of homelessness and associated recordkeeping requirements for documenting if clients meet the definition. At a Glance Criteria and Recordkeeping Requirements for Definition of Homeless (hudexchange.info) D. Equity Statement
The COUNTY is committed to achieving diversity, inclusion and racial equity for all. To that end, COUNTY requires its CONTRACTORS to include efforts aimed at achieving equity.

CONTRACTOR’s Scope of Services shall include at least one (1) outcome that focuses on advancing equity. CONTRACTOR’s reporting system shall include monitoring of equity outcomes.

Some examples of racial equity outcomes might include:
• Changes in underlying conditions that promote equity (i.e., increase access to food security, etc.)
• Improvements in health outcomes by race, determining if there is a gap between different racial groups, and taking actions to decrease the gap. • Improvements in service outcomes by primary language spoken, determining if there is a gap between services according to language, and taking steps to decrease the gaps in those services (e.g., is it harder for patients of one language to get an appointment) Eliminating barriers that unfairly impact communities of color (i.e., housing, education, etc.) E. Program Fees
This program may not charge program fees to participants.

F. Non-discrimination
This program must adhere to policies that ensure Non-Discrimination in all program operations.

Consistent with the policies of the Marin Continuum of Care, this program shall not tolerate discrimination on the basis of any protected class (including actual or perceived race, color, religion, national origin, sex, age, familial status, disability, sexual orientation, gender identity, medical condition, genetic information, marital status, military and veteran status, denial of medical and family care leave or pregnancy disability leave, or any other characteristic protected by state or federal law).

Contractor will shall ensure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. Contractor shall comply with the provisions of California’s laws against discriminatory practices relating to specific groups: the California Fair Employment and Housing Act (FEHA) (Gov. Code, Section 12900 et seq.); the regulations promulgated thereunder (Cal. Code Regs., tit. 2, Section 11000 et seq.); and the provisions of Article 9.5, Chapter 1, Part 1, Division 3, Title 2 of the Government Code (Gov. Code, Section 11135 – 11139.5).

All aspects of the outreach services will comply with all Federal, State, and local Fair Housing laws and regulations. Participants will not be “steered” toward any particular housing facility or neighborhood because of race, color, national origin, religion, sex, disability, or the presence of children.

G. Coordination with WPC providers
Contractor is required to:
• Participate in standardized onboarding training to ensure consistency in care coordination, data sharing, and reporting processes.
• Provide ongoing training to new staff to ensure services are appropriate and to promote continuous quality improvement.
• Participate in surveys, interviews, and reports.
• Participate in the governance committees, including the Advisory and Steering Committees, as well as committee workgroups as necessary.

All Contractors shall:
• Share data (e.g., on caseload progress and outcomes) subject to state and federal laws regarding confidentiality of health information.
• Participate in case conferencing among their Care Provider Team partners and between Care Provider Teams to not only engage in care planning, but to also share best practices and procedures; identify challenges and barriers; and develop shared philosophies and approaches.
• Participate in quality improvement testing.
• Track and document implementation progress.
• Adopt best practices developed for addressing the needs of the target population. • Communicate on-going technical assistance needs that can be addressed with training and consulting resources.

H. Digital accessibility
Vendor will engage in good faith with open and effective communication with County of Marin to solve and address accessibility issues. County of Marin will collaborate with vendor around accessibility, understanding that it is the vendor's responsibility to conduct accessibility testing and create accessible deliverables. Vendor shall ensure that all digital content and deliverables shall meet the World Wide Web Consortium's (W3C) Web Content Accessibility Guidelines (WCAG), Version 2.1, level AA or most recent version. Vendor is responsible for addressing accessibility problems in any implementation, configuration, or documentation delivered or performed by Vendor, and in any software, documents, videos, and/or trainings given and published by Vendor and delivered under this contract. Applicable laws include but are not limited to Americans with Disabilities Act (ADA), 21st Century Communications and Video Accessibility Act (CVAA), and California Government Code Sections 7405 and 11135.

Vendor will engage in good faith with open and effective communication with County of Marin to solve and address accessibility issues. County of Marin will collaborate with vendor around accessibility, understanding that it is the vendor's responsibility to conduct accessibility testing and create accessible deliverables.

I. County of Marin Accessibility Requirements for Delegated Direct Services The Americans with Disabilities Act of 1990 requires that all of the County of Marin’s programs, services, and activities be accessible to and usable by individuals with disabilities. This law also stipulates that we may not delegate away our responsibility to ensure people with disabilities have equitable access. This means that not only must the programs and services administered by the County be accessible, but also those administered on behalf of the County by third party agencies. All entities receiving County funding which provide direct services to the public must also comply with the accessibility requirements set forth in the ADA, and other applicable laws and regulations. This guide has been created to assist agencies under contract with the County of Marin to ensure that they comply with accessibility requirements. Inquiries related to the content herein can be directed to:

County of Marin
Disability Access Program
(415) 473-4381 (voice)
(415) 473-3232 TTY
[email protected]

1. Programs and Services
Every aspect of the service you provide is considered part of your program, and therefore it must be accessible to individuals with disabilities. This includes parking lots, service counters and spaces, transportation (shuttles, etc.), agendas, flyers, emails, online services, phone calls, meetings, celebrations, classes, recreational activities and more. The guidance in this document is primarily intended to help you provide accessible programs by providing you with the tools to:
▪ survey facilities and identify common architectural barriers for people with disabilities; ▪ identify common ADA compliance problems in your communications and activities; and ▪ remove barriers and fix common ADA compliance problems in these areas.

ADA Technical Assistance Materials
ADA Update
Your programs can be broken into three main categories, (Communications, Facilities, and Activities) which will be covered in more detail below.

Vendor shall ensure that all digital content and deliverables shall meet the World Wide Web Consortium's (W3C) Web Content Accessibility Guidelines (WCAG), Version 2.1, level AA or most recent version. Vendor is responsible for addressing accessibility problems in any implementation, configuration, or documentation delivered or performed by Vendor, and in any software, documents, videos, and/or trainings given and published by Vendor and delivered under this contract. Applicable laws include but are not limited to Americans with Disabilities Act (ADA), 21st Century Communications and Video Accessibility Act (CVAA), and California Government Code Sections 7405 and 11135.

Vendor will engage in good faith with open and effective communication with County of Marin to solve and address accessibility issues. County of Marin will collaborate with vendor around accessibility, understanding that it is the vendor's responsibility to conduct accessibility testing and create accessible deliverables.

2. Communications
All the communications within your program must be accessible. This means any documents you provide must be made available in alternative formats, upon request. Brochures, agendas, schedules, and lists all may be requested by a client to be provided in alternative formats.

Alternative formats can include Braille, large font, or documents on a thumb drive. You do not need to have all formats on hand at all times, but you must have a plan in place to provide them in a reasonable amount of time. Some clients may require professional support from providers such as sign language interpreters. Requests for these accommodations must be addressed in a timely manner as well.

The following is a list of resources and tools you may find helpful when ensuring the accessibility of your communications:

ADA Requirements: Effective Communications
General Effective Communication Requirements under Title II of the ADA US Access Board Guidelines and Standards: Communications

3. Facilities
If you are bringing clients into your facilities, or providing facilities for their use (recreation, program participation, housing, etc.) these facilities must meet accessibility requirements. In California, the best source of information on accessibility requirements for facilities is the California Building Code (CBC). The accessibility requirements contained in the CBC are compatible with the Federal requirements adopted by the United States Access Board. What is most important to remember about facilities is that your clients with disabilities need to be able to arrive, enter, conduct business, and interact with your program in the same way that clients without disabilities can. This generally means you must provide accessible parking, path of travel, meeting and workspaces, restrooms, and communal areas. All areas of your facility where clients will visit must be accessible. Please note there are different requirements for different types of facilities, so please review the requirements carefully.

The best way to determine if your facility is accessible and to determine what remediation may be necessary to bring your facility into compliance is to conduct a survey. You can either do this yourself, with the help of the tools provided below, or you can hire a Certified Access Specialist (CASp) to perform a survey for you and compile the findings. A list of CASp certified individuals can be found on the California Department of General Services Website. This list includes both public and private specialist, many of whom are available to work with publically contracted service providers.

The following is a list of resources and tools you may find helpful when trying to assess the accessibility of
your facilities:

US Access Board ADA Requirements
US Access Board Guidelines and Standards: Buildings and Sites California Building Code, Chapter 11B – Accessibility ADA Checklist for Existing Facilities
Overview of Title II ADA Requirements for Buildings and Facilities

4. Activities
Meetings, company outings, fundraising events, counseling sessions, classes and trainings are all examples of some activities your organization may provide. Any interaction between your agency and the client must be accessible to clients and/or employees with disabilities. Many accessibility issues surrounding activities will be remediated through ensuring your facilities and communications are accessible; however there are other areas you must consider. For example, course content may need to be modified for a client with a developmental disability, accessible transportation may need to be provided to an event site with no public transit access, etc.

The following is a list of resources and tools you may find helpful when trying to assess the accessibility of your activities:

A Planning Guide for Making Temporary Events Accessible to People with Disabilities Accessible Events: Planning and Preparation are Key Website Accessibility under Title II of the
ADA
ADA Guidelines for Recreational
Facilities
US Access Board Guidelines and Standards: Recreation Facilities, Streets and Sidewalks, Transportation,
Health Care
J. Confidentiality Requirements

1. Confidentiality. The Contractor and any employees and/or volunteers performing services at its direction shall maintain the confidentiality of any confidential or proprietary information and records made available or that Contractor is given access to in accordance with all applicable State and Federal laws relating to confidentiality. For purposes of this Contract, Confidential Information includes but is not limited to:
a. Health Information: Includes medical information, which means any individually identifiable information regarding an individual’s medical history, mental or physical condition, or medical treatment or diagnosis by a health care professional.
b. Personal Information: Information that identifies or describes an individual, including, but not limited to, their name, social security number, physical description, home address, home telephone number, education, financial matters, and medical or employment history.

2. Nondisclosure. Contractor and its employees, agents, or subcontractors shall protect Confidential Information from inappropriate and unauthorized access, use, disclosure. To the extent Contractor accesses Confidential Information in the course of its performance of this Contract, Contractor shall not use Confidential Information for any purpose and shall not disclose, any Confidential Information except if disclosure is required or permitted under State or Federal law.

3. Safeguards. Contractor shall implement appropriate and reasonable administrative, technical, and physical safeguards to protect the security, confidentiality and integrity of Confidential Information that it may access, including training all employees who perform work on this Contract on Confidential Information and the need to protect Confidential Information. Contractors that participate in AB210 Multi-Disciplinary Teams shall also sign and implement the Participating Agency Agreement and Confidentiality Statement for itself and its employees. Contractor and its employees will comply with the pertinent data sharing policies and procedures.

K. Grievances
Contractor shall notify the County of any grievances filed against the contractor.

L. CoC Participating Entity
As a participating entity of the Marin County Coordinated Entry System, the Contractor shall follow the Marin Coordinated Entry System Policies & Procedures (CEP&P) (Exhibit #). Where there is a disagreement between the CEP&P and other language in this contract, the Contractor shall communicate with the Marin County team and jointly discuss which of the two statements is most appropriate for the work being done under this contract.

M. Laws
Contractor shall follow all applicable federal, state, and local laws relating to providing this service not mentioned above, including, but not limited to, maintaining a drug-free workplace.

N. Administrative Responsibilities:
a. Contractor will ensure funding is utilized according to funding requirements. b. Contractor will submit reports as requested and meet with HHS staff to review outcomes, data and evaluate progress in meeting contract requirements, at a minimum interval of 6 and 12 months from contract execution.

EXHIBIT B

FEES AND PAYMENT SCHEDULE
07/01/24 – 06/30/2027
Mahon Creek Path Area (MCA) Encampment
B.1 Total Contract Amount: County shall pay Contractor a contract amount not to exceed ONE MILLION DOLLARS AND ZERO CENTS AND ZERO CENTS ($1,000,00.00). In no event shall total compensation paid to Contractor exceed $1,000,000.00 without an amendment to this contract approved by the County of Marin.

B.2 Authorization Required: Services performed by Contractor and not authorized in this contract shall not be paid for by County. Payment for additional services shall be made to Contractor by County if, and only if, this contract is amended by both parties in advance of performing additional services.

B.3 Contractor will submit a monthly invoice to County for work performed during the month.

Invoice will detail expenses including number of hours, hourly rate, and explanation of other costs incurred. Payment of an invoice deemed acceptable by County will be made by County in accordance with its Net 30 payment terms.
• Invoices must include contract number that will be given once contract is approved.
• Please submit invoices to: [email protected] B.4 Contractor will bill on a cost basis.

B.5 Contract Term: July 1, 2024 – June 30, 2027.

B.6 Summary of Fees and Payments
Total : $1,000,000.00
Budget Detail
Funding categories

2. Operations associated with an emergency encampment including emergency housing.

3. Direct assistance programs or services for homeless residents.

Fiscal Monitoring and Reporting
• Contractor is subject to annual fiscal monitoring by the County or the County’s qualified designee.
• A Cost Report and all supporting documentation must be submitted within sixty (60) days of the expiration date of this agreement. Supporting documentation may include but is not limited to: trial balance, general ledger, and revenue and expenditure report.

As required by the State, the Cost Report shall be based on actual costs and will be used by the County for management information and planning purposes. Contractor should be prepared to provide documentation of costs, including justifying indirect/overhead costs.
• Contractor will be asked to provide a complete set of latest annual audited financial statements.

MCGUIRE FUNDED ACTIVITES Total Amount Funding Category
Other Junk Co - Cleanup Contractor $ 165,000.00
2 - Emergency Encampment
Operations
Downtown Streets Team $ 40,000.00 3 - Direct Services
WeHope Shower Service $ 26,400.00 3 - Direct Services
Defense Block - first 3 months of operation $ 240,837.00 2 - Emergency Encampment
Operations
FS Global - first 3 months of operation $ 168,589.00
2 - Emergency Encampment
Operations
Secure Camping Area Site Preparation
Costs $ 359,174.00
2 - Emergency Encampment
Operations
TOTAL $ 1,000,000.00

EXHIBIT D

DEBARMENT CERTIFICATION
07/01/24 – 06/30/2027
Mahon Creek Path Area (MCA) Encampment

County of Marin and the City of San Rafael
Collaboration Agreement:

ERF3 Funds, Senator McGuire Funds, and
50/50 Match for Housing Based Case Manager
This agreement is made and entered into by the City of San Rafael (“San Rafael”) and the County of Marin, (“County”), also hereunder known as (“Party,” “Parties”). This agreement is effective the last date of signature and will expire on June 30, 2027.

This agreement covers activities under the Encampment Resolution Round 3, McGuire/County Match, and City-County 50/50 match for housing-based case manager.

This agreement commits each signatory to uphold, participate in, and comply with the actions, roles, and responsibilities of each party as described below.

Background & Funding Sources
State of California - Encampment Resolution Round 3
The Encampment Resolution Funding (ERF) Program is a four-year grant program that includes three rounds of funding. The third round, ERF-3-R, was authorized in 2022 through Senate Bill 197 (Chapter 70, Statutes of 2022), enacted under Chapter 7 of Part 1 of Division 31 of the California Health and Safety Code (HSC) (sections 502520 et seq.

Per the ERF-3 Notice of Funding Availability, ERF funding is intended to increase collaboration between CalICH (now moved under the Department of Housing and Community Development (HCD)), local jurisdictions, and Continuums of Care (CoC) for the following purposes:
• Help local jurisdictions ensure the safety and wellness of people experiencing homelessness in encampments.
• Provide funds to resolve critical encampment concerns and transition individuals to safe and stable housing.
• Encourage a data-informed, coordinated approach to address encampment concerns.

The City and the County submitted a joint application for ERF-3 funds under application window 1 with a proposal to address the Mahon Creek Path Area (MCA) encampment and received a Notice of Intent to Award this funding ($5.9M) from the State on April 18, 2024. Below details the roles and responsibilities of each party with regards to implementation of these multiple funding opportunities.

McGuire/County Match Funds
The scope of work and budget for the $500,000 “Senator McGuire” grant and $500,000 County match are required by the State of California to operate under the following three eligible uses:

1. The purchase or rehabilitation of housing, including the purchase of land for housing for homeless residents.

2. Operations associated with an emergency encampment including emergency housing.

3. Direct assistance programs or services for homeless residents.

City-County 50/50 Funded Housing Based Case Manager
The County offers a 50 percent County matching program for City-run homeless service programs aimed at improving conditions at homeless encampments and efforts to move individuals along the continuum of care to a permanent housing destination, consistent with Housing First Principles.

As part of this program initiative, the City of San Rafael will contribute, from available state and/or local funding, to funding 50% of a Full-Time Equivalent (FTE) city focused Housing Based Case Manager position in San Rafael over a two-year period. The County of Marin would fund the remaining 50% from available state and/or local funding.

In this collaborative approach, the County will partner with the City of San Rafael in a HousingBased Case Management initiative directed toward supporting individuals experiencing homelessness within the City with a priority on those residing in unsanctioned encampments within the City consistent with Housing First Principles.

Encampment Resolution Grant, Round 3, Window 1
19 Strategies to Address Encampments
The County and the City agree to utilize the following “19 Strategies to Address Encampments” revised in 2024 by United States Interagency Council on Homelessness as outlined below:

EQUITY CRISIS RESPONSE

1. Engage Encampment Residents in Efforts to Develop Solutions

2. Address Unique Needs of People With Chronic and Acute Health Conditions

COLLABORATION HOUSING & SUPPORT

3. Establish a Cross-Agency, Multi-Sector Response

4. Empower Outreach Teams and Health Providers to Lead the Effort

5. Prioritize Closure Based on Health and Safety Factors

6. Engage Neighboring Residents and Businesses

DATA & EVIDENCE PREVENTION

7. Collect and Share Qualitative and Quantitative Data

8. Track Shelter and Housing Availability

9. Track Status of People Housed and Yet to Be Housed

CRISIS RESPONSE

10. Address Basic Needs and Provide Health Care

11. Conduct Comprehensive, Coordinated, and Ongoing Housing-Focused Outreach

12. Provide Storage

HOUSING & SUPPORT

13. Ensure Access to Housing and Services

14. Ensure Interim Strategies Promote Dignity, Respect, and Pathways to Permanent Housing

15. Develop Pathways to Permanent Housing and Support

16. Ensure Encampments Are Closed Humanely

PREVENTION

17. Expand Affordable Housing

18. Interrupt Pipelines Into Homelessness

19. Build and Strengthen Safety Nets
County & City Joint Roles & Responsibilities
The County & City shall jointly serve to ensure success of the ERF-3 implementation. The following are activities that the County and City shall conduct in collaboration together:
• Collaborate on making changes to the budget or implementation strategy as needed to ensure expenditure and encumbrance deadlines are met, as defined by the grant. • Collaborate on scope development, oversight, and implementation for outreach and housing-based case management ERF-3 funded services.
• Coordinate with service providers/vendors selected to serve the sanctioned camping program and the housing based interim shelter site on program implementation. • Collaborate regarding any potential future temporary/interim shelter projects. • Co-lead and participate in bi-weekly case conferencing meetings to review status of all clients and report to partners on aggregated housing progress. • Jointly chair a monthly ERF-3 operations and strategy meeting to be for the purpose of collaborating on strategy and ongoing implementation of the program, overall grant monitoring, coordination of services and supports, on-going tracking/reporting of data/progress.
• Collaborate on all external communications and community engagement for ERF-3 to ensure timely, accurate, and informative messaging is being provided to the community.

Services & Supports
• Conduct outreach in the encampment, provide social services and support when needed, resolve community concerns, work with direct service provider staff, and offer crisis intervention support to the program.
• Manage the client flex funds, ensuring that they are spent in alignment with the grant objectives and that appropriate expenditure justification documentation is collected and maintained.
• Co-manage Rapid Rehousing and rental assistance supports provided to clients through contracts, including that best practices are implemented, regulations are followed, and appropriate documentation is collected and maintained.
• Collaborate regarding operations of the City’s sanctioned camping program, including establishment of policies and procedures, attending to urgent client issues, and other activities associated with site management as needed.
• Collect lived experience qualitative and quantitative data to inform on-going process improvement.
• Develop and implement a plan to return MCA to its original intended public use.

County Roles and Responsibilities:

The County, in addition to shared responsibilities, shall conduct the following activities:

Administration, Staffing & Grant Management
• Review CalICH/ERF-3 grant requirements, award documents, and on-going office hours to ensure required data collection and reporting on grant progress and outcomes. • Execute and monitor outreach and housing-based management contracts relating to ERF3, including with CalICH, vendors, and as applicable the City. • Submitting reports to CalICH on ERF-3 progress with timely information contributed by City.

Services & Supports
• Manage Coordinated Entry (CE) process, including but not limited to managing CE prioritization based on coordinated entry assessments, managing referrals to housingbased case management, referrals to Marin Housing Authority (MHA), and referrals to housing placements.
• Increase access and connection to services and entitlements managed by Health & Human Services through the Coordinated Care Initiative including, but not limited to, MediCal, CalFresh, General Relief, Behavioral Health and Recovery Services Access Team, Homeless Medical Services (including Street Medicine).

Other Leveraged Activities
• HHS will work with MHA to ensure Housing Based Case Managers complete Section 8 paperwork for chronically homeless individuals and refer eligible clients to the Section 8 waitlist.
• Housing Based Case Managers and outreach workers will leverage supports such as Security Deposits, Furniture assistance, Moving Costs, etc. As needed. • Housing based case managers and outreach workers will refer individuals to shelter, transitional housing, and other supports as needed or requested by clients. •
City Roles and Responsibilities:

The City, in addition to shared responsibilities, shall perform the following activities:

Administration, Staffing & Grant Management
• Manage budget and oversight for leveraged City funded staff positions. • Provide information monthly to the County required for it to fulfill its administrative duties (e.g., information for reports to CalICH)
Services & Supports
• Establish and manage the MCA site, including monitoring trash pickup, establishment of policies and procedures on the site, monitoring safety, attending to urgent site issues, and other activities associated with site management. City expects to contract many of these services to third parties, while informing the County and collaborating with County staff on contractor selection.

Other Leveraged Activities
• Manage unsanctioned camping of the greater Mahon Creek Path area including enforcement activities, provision of port-o-potties, trash pickup, and large debris removal. • Coordinate with any service vendors selected to serve the interim shelter site on program implementation.
• Leverage the support of the SAFE Team and track calls/outcomes for reporting. • Manage mailbox and storage program with the Ritter Center. • Via the San Rafael Police Department: facilitate education and compliance with the City’s camping ordinances; serve as a central nexus for coordinating enforcement efforts of departments, including Fire, Police, Community and Economic Development, Libraries, Childcare and Recreation, Public Works, City Attorney, along with San Rafael’s SAFE team. • Via the SRPD Mental Health Liaison: conduct outreach in the encampment, provide social services and support when needed, resolve community concerns, work with direct service

provider staff, offer crisis intervention support to the program along with San Rafael’s SAFE team.
• Via the Assistant City Manager and Assistant City Attorney: provide supervisory and legal support to the project.

Signatures
_______________________________ _________________________________ City of San Rafael County of Marin
____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting: _______________________
Disposition: ___________________________
Agenda Item No: 8.a
Meeting Date: November 4, 2024

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: City Manager’s Office
Prepared by: Cory Bytof,
Sustainability Program Manager
City Manager Approval: __________
TOPIC: MARIN SANITARY SERVICE RATES AND AMENDMENTS FOR 2025 SUBJECT: RESOLUTIONS OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL:
1) APPROVING A FIFTH AMENDMENT OF THE AMENDMENT AND

RESTATEMENT OF THE COLLECTION AGREEMENT OF THE CITY OF
SAN RAFAEL WITH MARIN SANITARY SERVICE; 2) AUTHORIZING

MAXIMUM RATES COLLECTED BY MARIN SANITARY SERVICE FOR

REFUSE AND RECYCLABLE MATERIAL COLLECTION AND DISPOSAL
SERVICES TO BE EFFECTIVE JANUARY 1, 2025, AND ADOPTING A CITY

COST OF SOLID WASTE SERVICES FEE, REFUSE VEHICLE IMPACT

FEE, AND FRANCHISE FEE FOR THE USE OF CITY PROPERTY IN THE PROVISION OF SOLID WASTE RELATED SERVICES.

RECOMMENDATION:

1. Adopt a resolution approving a fifth amendment to the amendment and restatement of the collection agreement of the City of San Rafael with Marin Sanitary Service.

2. Adopt a resolution authorizing the maximum rates collected by Marin Sanitary Service for Refuse and Recyclable Material Collection and Disposal Services to be effective January 1, 2025, and adopting a City Cost of Solid Waste Services Fee, Refuse Vehicle Impact Fee, and Franchise Fee for the use of City property in the provision of solid waste related services.

EXECUTIVE SUMMARY:

This report addresses three subjects: 1) amendments to the City’s Franchise Agreement with Marin Sanitary Service, 2) a proposed new illegal dumping program, and 3) the rate adjustment proposal for 2025 for Marin Sanitary Service to provide refuse, recycling, and organic materials composting, hauling, and processing for customers in San Rafael. Amendments to the Franchise agreement include changes to the City’s fee calculations in accordance with a fee study the City conducted in 2023. Another change eliminates customer-owned carts to comply with Senate Bill (SB) 1383, the State law regulating organics recycling. A third change codifies the proposed illegal dumping program, including establishing bulky item collection at multifamily properties, a new Waste Management Coordinator position, and other activities related to outreach and enforcement.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
The proposed rate adjustment would allow Marin Sanitary Service to increase rates by up to a maximum of 5.24% over 2024 levels for all customers. Customers include residential homeowners, apartment owners, commercial property owners, and other businesses and tenants that pay solid waste bills. The proposed rate adjustment is based upon an independent third-party review of Marin Sanitary Service’s costs of providing the service by R3 Consulting Group, Inc. (R3) and a contractually agreed-upon rate-setting methodology with Marin Sanitary Service. It also includes new services and programs, including bulky item collection in multifamily dwellings, the establishment of a Waste Management Coordinator, and other items for the proposed illegal dumping program.

BACKGROUND:

Each year, the City Council holds a public hearing to authorize the maximum collection rates that Marin Sanitary Service can charge to customers in the City of San Rafael. These rates are based on a specific methodology in the City’s Franchise Agreement with Marin Sanitary Service. This methodology has been in effect since 2018 when the City entered into the Third Amendment to the Franchise Agreement.

Franchise Agreement, Franchise Fees, and Franchisors’ Group Article XI of the California Constitution and the California Public Resources Code allows cities to regulate refuse and recycling services. Marin Sanitary Service is the City’s sole provider of refuse hauling and recycling services and performs these services in many surrounding communities as well. These services are pursuant to a franchise agreement between the City and Marin Sanitary Service, which outlines the services that must be provided by the company and the methodology to set customer rates each year. The franchise agreement with Marin Sanitary Services includes a Franchise Fee, which recovers the City’s costs of providing solid waste-related services, including the negotiation and administration of the franchise agreement, as well as charges for the reasonable value of the use of City property for the provision of solid waste services.

Additionally, the franchise agreement includes a Refuse Vehicle Impact Fee to recover the costs of addressing the specific impacts of refuse vehicles on City streets and rights-of-way.

The City Council approved the Fourth Amendment to the current Franchise Agreement in December 2021. The Franchise Agreement, including all amendments, contains a rate-setting methodology based on the cost of service and primarily ties compensation to a common index:
the consumer price index (CPI) for water, sewer, and trash collection. It also includes a mechanism to capture recycling revenues intended to help offset the cost of processing. This methodology was developed to ensure accuracy and transparency while providing relatively stable and predictable rates and continued verifiable high levels of service, which continues to be the case.

All the jurisdictions in Marin that have similar franchise agreements with Marin Sanitary Service work together to share information and reduce costs. These include the Cities of San Rafael and Larkspur, the Towns of Ross, San Anselmo, and Fairfax, the Las Gallinas Valley Sanitary District, and the County of Marin. These seven agencies meet throughout the year to oversee the company’s operations and work together to conduct a single annual rate review analysis rather than each jurisdiction having to conduct and pay for a separate review, saving thousands of dollars annually.

New State Law
In 2016, recognizing the negative impacts of organic materials decomposing in landfills on climate change, the State of California started mandating that businesses with certain thresholds of refuse SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
disposal compost their organic materials. The most significant of these laws, SB 1383, requires all residents and businesses to divert their organic waste. SB 1383 also requires local governments to implement, monitor, and enforce participation in organic waste diversion programs. The California Department of Resources Recycling and Recovery (CalRecycle) is authorized to fine local governments that do not comply. The City of San Rafael signed an agreement with Zero Waste Marin to provide support to achieve compliance with SB 1383 and assess opportunities to create economies of scale working countywide to implement the law.

Nevertheless, the City’s requirements remain significant to comply with the law and provide regular, ongoing compliance activities and reporting throughout the year.

Marin Sanitary Service Programs and Services
Marin Sanitary Service provides residential, commercial, and multifamily refuse services, including garbage, recycling, and organics (food waste and green waste diversion) collection and processing. The company also provides garbage and recycling pickup for City facilities, public spaces, and all sidewalk receptacles downtown and throughout San Rafael.

Marin Sanitary Service is a key partner in achieving the City’s sustainability goals and the City’s and County’s zero waste goals. The company conducts most of the outreach for the City for the State’s Mandatory Commercial Recycling and Mandatory Composting laws (AB 341, AB 1826, and SB 1383), which place requirements on businesses to recycle and divert organic waste and require annual monitoring and notifications to non-compliant businesses. Marin Sanitary Service also has a robust community outreach and education program and conducts numerous programs and community offerings, including an annual free compost giveaway and customer education event. Their services, including the “Where Does it Go, Joe” recycling lookup feature, can be found on their website at MarinSanitaryService.com.

ANALYSIS:

A. Franchise Agreement Amendments
The City and Marin Sanitary Service have been working for several years, conducting research and pilot programs to understand and prevent illegal dumping. Much of the City’s illegal dumping activity centers around multifamily housing, and much of the material collected by the Public Works Department are bulky items set out by apartment dwellers and managers who have few options for disposal. After five years of study and pilots, staff are now proposing a comprehensive program to reduce illegal dumping in San Rafael. Approval of this proposal necessitates amendments to the Franchise Agreement to accommodate these new services. The proposed changes can be found in Attachment 2: Fifth Amendment to the Amendment and Restatement of Collection Agreement. Two other changes are being proposed to 1) accommodate SB 1383 requirements precluding customer-owned carts and 2) reflect changes to the franchise fees and vehicle road impact fees to align with the Fee Study completed and approved by the City Council in 2023.

Background: Illegal Dumping Program
In 2019, a cross-departmental Together San Rafael Team (“Team”) developed a 5-year plan to reduce illegal dumping by 50% by 2025. The Team has been using a human-centered design approach to understand community needs and perceptions, conduct learning pilots to identify root causes and develop evidence-based solutions. Over time, the Team was expanded to include Marin Sanitary Service, R3, Gigantic Idea Studios, the Mattress Recycling Council, Conservation Corps North Bay, City volunteers, and community members through Voces del Canal, Mujeres Empoderadas, and the Canal Community Resilience Council.

Part of this project’s early work was to better understand who is dumping, why, and what types of SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4
materials are being dumped the most. The Team has identified three major types of dumping with the understanding that each type requires different solutions to achieve success:

1. Casual dumping is usually done by renters without access to free, on-site disposal and resort to setting things out on the curb.

2. Illicit dumping is usually done by folks who know it is illegal, have large amounts of items to dispose of, and seek out-of-the-way locations to dump.

3. Dumping related to homelessness is trash generated by unsheltered persons. It can also refer to housed persons leaving items for use by unsheltered persons.

This project is focused on the first two. However, the Team collaborated with the City’s Health and Safety Committee and other departments to assist with waste management related to homelessness.

In 2024, the Team conducted the following pilots and activities:
• 12 monthly bulky item drop-off days at Pickleweed Park targeting our neighborhoods with the most prevalent illegal dumping in the Canal and near downtown. • Additional “Hot Spot” campaigns focused on engagements, data analysis, mapping, and surveillance camera installations, with enforcement in locations where dumping is common.
• Mini-grants and commercial vouchers for businesses that experience dumping on their property.
• Exploration of different types of enforcement solutions and staffing, including placement of rotating surveillance cameras at hot spots.
• Continued tracking and validation of dumping data to measure pre- and post-intervention results (including types of material, amounts, and locations) and testing of new apps for tracking trash and dumping.
• Continued research into programs in other jurisdictions around the State to verify keys to success.
• Cost Projections of recommended solutions. Outputs can be found in Attachment 2 • Community presentations and engagements to elicit feedback, including to the Federation of San Rafael Neighborhoods, Voces del Canal, Zero Waste Marin, and the East San Rafael Working Group of the San Rafael Chamber of Commerce. • Presentations to department staff, including the City Attorney’s Office and the Streets Division of Public Works, to vet the recommendations and remove confirmation bias. • Presentations to the Statewide Illegal Dumping Taskforce and at the 4th Annual Illegal Dumping Conference in Oakland to elicit feedback and stress test the recommended suite of solutions.

Key Challenges and Insights:

The following are the major challenges identified during the pilot programs:
• Renters in multifamily dwellings have no easy, economical options for disposing of bulky items, unlike owners of single-family homes, who get two curbside pickups per year. Early in the pilot programs, community members and advocates pointed out that those with the most need have the least access to services.
• Community norms are hard to change, and the norm in areas with a lot of multifamily units is to “put items on the street, and the City picks it up.” There are currently few incentives for someone to go through the effort to bring these materials to Marin Sanitary Service when cost, transportation, and effort are minimized through simply doing what others in the neighborhood are doing.
• There is limited staff capacity for enforcement. Currently, two different codes apply, one SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 5
municipal and one penal, depending on the type and circumstances of dumping. The City’s Code Enforcement Division and the Police Department have very limited capacity to enforce. • There is limited staff capacity for outreach. Regular, ongoing outreach and education are necessary to change behaviors, and there is no entity, dedicated staff person, or program dedicated to this function.
• There is a lack of standardized cross-departmental coordination; the only coordination with Marin Sanitary Service is through the City’s Sustainability Division. This leads to extra work in all departments as complaints and work requests come through a variety of channels (i.e., SeeClickFix, Emails to the City Council/City Manager, etc.). In addition, it leaves City departments, service providers such as Conservation Corps North Bay and Zero Waste Marin, and property owners siloed, and sometimes working at cross-purposes when more collaboration is needed. Ideally, engagement and enforcement efforts are well coordinated and tracked over time to ensure follow-through and that the right tool is used for the right situation.
• Data is lacking and hard to get. The only reliable data is overall tonnage. It is very challenging for the Department of Public Works to collect spatial and time-dependent data due to the demands of the job of collecting dumped items in a timely fashion, often on busy streets with limited visibility. New tools are needed to get data to show progress and identify location-based causes and solutions.

Two of the most promising pilots were focused on equitable access to bulky item disposal by tenants and apartment managers: bulky item drop-off events and on-call, on-site collection at multifamily complexes. Currently, limited options exist for them to dispose of items such as mattresses and dressers. Whereas residents in single-family homes can schedule a no-cost pickup of bulky items curbside twice a year from Marin Sanitary Service, occupants of multifamily dwellings must either contract with a junk hauler or take them to the dump and incur a fee to dispose of them. However, research also revealed that simply providing the service was not enough: other mechanisms needed to be in place to support and compel individuals to utilize the service.

This and other research led to a critical finding throughout these last several years of investigation; success only happens when all three of the following interventions occur:

1. Equitable access to disposal options,

2. Targeted and visible enforcement, and

3. Creative and continuous community engagement and outreach Finally, the current system lacks a system or point of contact for dumping complaints, abatement, and enforcement. Though illegal dumping comprises 25% of all See-Click-Fix service requests – twice the number of the next highest request type – the City has no coordinated system to address it. The community and City staff must interact with different departments in different situations.

For example, dumping on private property is a penal code violation and requires a police report.

Dumping on public right of way is a civil code violation enforced by Code Enforcement but sent to Public Works for abatement. Resources are slim, and no budgetary or programmatic landing place exists for this issue, unlike road repair or tree maintenance. Consequently, extra effort and staff time are needed to identify and apply the correct interventions.

Final Recommendations: Illegal Dumping Program
Staff spent the last year analyzing the most ideal combination and level of programming to achieve a systemic and sustainable response that results in a significant and measurable reduction in illegal dumping. This analysis also looked at cost implications and potential funding sources for a variety of scenarios while providing equitable services to all residents.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 6
The Together San Rafael Team has developed a final set of recommendations in conjunction with our community partners, consultant team, and Marin Sanitary Service. This was reviewed by an ad hoc subcommittee of the City Council comprised of Mayor Kate Colin and Councilmember Maribeth Bushey on October 15, 2024. These recommendations continue many of the activities piloted over the past several years with adjustments based on what was learned during implementation. These recommendations make up the proposal included in the amendment to the Franchise Agreement and are listed below.
• Provide curbside bulky item collection at multifamily properties, along with alternative methods of collection to match circumstances, such as roll-off debris boxes or vouchers for owners and managers who have different needs. This is the most significant change and provides the baseline level of service necessary to prevent and reduce illegal dumping.
• Create and hire a Waste Management Coordinator who serves as the single point of contact and coordinator for illegal dumping, SB 1383 compliance, and other waste-related activities. This coordinator would also serve as a code enforcement officer as well to conduct enforcement in addition to outreach and engagement. This position is the other necessary component to ensure all other elements of the proposal are carried out and evolve as the programs are implemented and data comes in. • Conduct robust multifamily outreach to change norms and behaviors over time. This would include a variety of methods, such as designing and posting information in laundry rooms, targeted mailings and social media posts, and site visits, as well as feedback loops to continually improve and adjust using iterative design concepts. • Conduct code enforcement for dumping in adjacent right of way at multifamily complexes. Changing norms will require more than offering services when placing things on the street is easy. Most of the time warnings suffice to nudge people to comply. • Continue the monthly Bulky Item Drop-off Days at Pickleweed Park. The Canal Neighborhood is one of the densest neighborhoods in the Bay Area outside of downtown San Francisco, and these events have been very successful in helping alleviate the tremendous need. Over time, the hope is to reduce or end these events as multifamily curbside service becomes well-utilized.
• Test a data collection app and develop a robust data platform to fill the gaps in spatial and time-dependent data. This will be necessary to show progress and develop meaningful hot spot campaigns.
• Conduct annual Hot Spot Campaigns to further comprehensive location-based interventions. Targeted campaigns allow for community-member engagement and volunteerism, one-on-one engagement with apartment managers targeted enforcement with temporary surveillance camera installations, and technical assistance for nonstandard circumstances and challenges. • Continue and expand Crime Prevention Through Environmental Design (CPTED) Mini-grants for businesses that experience dumping on their properties. CPTED interventions such as lighting, fencing, surveillance cameras, and signage have been shown to significantly reduce illegal activities on private property. This demonstrates our commitment to local businesses impacted by dumping.
• Review and revise City codes and adjust fine amounts over time to provide more effective enforcement tools. This may include best practices from other jurisdictions, amendments to the City’s Master Fee Schedule, or adjustments to minimum service levels, among other things.

Other Proposed Changes to the Franchise Agreement
When the Franchise Agreement is amended for specific purposes, the City and Marin Sanitary Service seek to amend other portions to accommodate other priorities, much like the Department SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 7
of Public Works coordinates with utilities when they do major road work. Last year, the City conducted a Franchise Fee Study to align with new legal determinations resulting from a California Supreme Court ruling on franchise fees. To better align with the court ruling, the City Attorney’s Office recommends amending the franchise fee to comport with the study completed last year and be calculated based on cost of service rather than a flat rate. This amendment is included in Attachment 3, along with the City Council Resolution. This allows the City to set the franchise fee at an amount equal to or less than $1,474,000, which is the reasonable market value of the City property used for solid waste-related services, as determined by negotiations between MSS and the City. Staff are recommending that the City set the franchise fee at $1,216,000 pursuant to the amount justified by the Franchise Fee Study.

Finally, SB 1383 requires that all carts and cans serviced by waste haulers be color-coded and include signage that complies with the law and the three refuse and recycling streams: black for landfill, green for organics, and blue and brown for dual-stream recycling. This change to the agreement would prohibit customer-owned carts from complying with the law. Marin Sanitary Service will conduct robust outreach to customers to make them aware of the change. The company will provide extra organics and recycling carts to accommodate customers with a need for extra service. This includes increasing the compost bin size options to the largest size: 96- gallon carts. Attachment 5 details the plan for transitioning away from customer-owned carts, including timeline and customer alternatives. This change has already happened in other neighboring jurisdictions, including San Anselmo and Fairfax.

B. Proposed Maximum Rate Adjustment for 2024
History of Rate Adjustments
The five-year rate increase history for San Rafael averages 5.22%, with a range of 2.39% to

7.15%. Last year’s adjustment was 6.22% and included an Illegal Dumping Pilot, which staff proposes to replace with permanent programs to address illegal dumping and other waste-related issues of priority to the City Council and the community. Many factors contribute to the fluctuation in rates for refuse haulers, including a growing amount of solid waste, recycling, and organic (compostable) materials generated by residents and businesses, the costs of processing recyclables and organic materials, changes in the value of recyclable materials, landfill fees, increasing costs of labor and insurance, and changes in State laws and other government fees.

Rate Review and Adjustment
Attachment 3 is the independent third-party analysis and report of Marin Sanitary Service’s 2025 Rate Application conducted by R3 Consulting Group, Inc. San Rafael’s calculated rate adjustment is 5.24%. As shown in the report, Collector Operations comprised the largest portion of the increase to the base rate adjustment, which was calculated using the Consumer Price Index (CPI) for Water, Sewer, and Trash Collection. Much of this increase is attributed to and closely tracks current inflation levels.

A second significant impact on the rates this year is a one-time reduction in the fees to Zero Waste Marin. Zero Waste Marin secured grant funding through an agreement with the City of San Rafael and all other member agencies to apply as one entity and use those funds to accomplish work typically conducted using hauler and landfill fees in 2025. Zero Waste Marin reduced fees in proportion to the grant they received. Two other reductions to the rate adjustment are due to the recyclable materials revenues being better than expected this year and a slight increase in business revenue, resulting in a benefit to the rate calculation for 2025. The full list of adjustments to the rates can be found in Table 1 in Attachment 4.

The full cost of the Illegal Dumping Program is included in the adjustment and makes up 2.32% of the overall 5.24% adjustment for 2025. Marin Sanitary Service proposed a phased-in approach SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 8
to the bulky item service for multifamily dwellings to allow for anticipated uptake over time and to allow for increases in staffing and vehicles to accommodate the increase in program usage. With this approach, the City will not overfund the program in year one. Similarly, outreach will be phased in, starting with apartment owners and property managers of multi-family housing.

Therefore, overall program costs are spread over three years and would result in additional costs in 2026 and 2027, as shown in the budget table at the end of Exhibit A in Attachment 2. This would result in modest, less than 1% adjustments related to this program in both years, which will be included in future rate applications.

Conclusion
R3 reviewed the application and all relevant documents and financial schedules with Marin Sanitary Service, including the proposed Illegal Dumping Program. The full schedule of rate adjustment line items can be found on page 1 of Attachment 3: Review of Marin Sanitary Service’s 2025 Rate Application. Staff reviewed the proposed rate adjustment and programs with an ad hoc City Council subcommittee of Mayor Colin and Councilmember Bushey on October 15, 2024.

Staff recommends the City County authorize the maximum amount to be collected in 2025 with a rate adjustment of 5.24%.

This rate adjustment would result in an overall increase of $2.79 per month for a residential 32- gallon landfill cart, which is the most common cart size, for a total monthly fee of $56.10. For a common commercial size, there would be an overall increase of $34.51 per month for a three cubic yard bin, for a monthly total of $693.10. Recycling is included in all accounts, and customers can reduce their regular landfill container size or pickup schedule, resulting in a lower rate of recycling and reducing overall waste generation. Organics recycling is also provided, which is included in the residential rates and is offered at approximately 60% of the cost of landfill service for the commercial composting program.

R3 conducted a survey of solid waste rates throughout Marin as part of the rate review, which is included on the last page of the report. It summarizes the survey data for residential 30-35 gallon can weekly service with curbside recycling and organics pickup. However, note that the proposed 2025 rates are not yet available for other jurisdictions. This summary compares proposed San Rafael 2025 base rates to other jurisdictions’ 2024 actual rates, which will likely also increase.

This comparison shows that San Rafael’s rates are slightly lower than most other Marin jurisdictions. However, jurisdictions often provide different services and service levels, so these are not necessarily equal comparisons. San Rafael’s rates have traditionally been comparable to those in other Bay Area jurisdictions while often providing more services.

As in previous years, the authorized maximum rate adjustment shall be applied uniformly to all residential, multifamily, and commercial service accounts. The actual maximum rates for all services are provided in Attachment 2 as Exhibit C - Schedule of Rates.

COMMUNITY OUTREACH:

Notice of the public hearing was published twice in the Marin Independent Journal (Attachment 6) and emailed to all names of interested parties on file with the City Clerk and City Manager’s Office, which includes residents, the San Rafael Chamber of Commerce, and the Marin Builders Association, among others. Information on the maximum annual rate that MSS may collect has been available at the City Clerk’s office during the ten days prior to the public hearing. The proposed rate information was also provided directly to the San Rafael Chamber of Commerce, the Business Improvement District, the Marin Builder’s Association, and other interested parties.

The illegal dumping program was developed with extensive community engagement with various resident and business entities, as referenced on pages 3 and 4 of this report.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 9
FISCAL IMPACT:

If approved by the City Council, the maximum rates would be authorized for all customer types and service options and satisfy the City’s contractual obligations to meet the MSS revenue requirements to cover costs for San Rafael refuse and recycling services, including franchise fees. The cost-of-service fee of $1,945,401 and the franchise fee of $1,216,000 would be deposited into the City’s General Fund. All costs for solid waste-related services would be paid for out of the General Fund. Refuse vehicle impact fees of $1,480,601 would continue to be deposited into the City’s Gas Tax Fund, and all road maintenance expenses related to the impacts of refuse vehicles, are paid for out of that same fund. Exhibit C to the resolution contains the complete maximum rate request.

OPTIONS:

The City Council has the following options to consider on this matter:

1. Adopt the resolutions.

2. Adopt the resolutions with modifications.

3. Do not adopt the resolutions at this time and direct staff to come back with more information.

RECOMMENDED ACTION:

1. Adopt a resolution approving a fifth amendment to the amendment and restatement of the collection agreement of the City of San Rafael with Marin Sanitary Service.

2. Adopt a resolution authorizing the maximum rates collected by Marin Sanitary Service for Refuse and Recyclable Material Collection and Disposal Services to be effective January 1, 2025, and adopting a City Cost of Solid Waste Services Fee, Refuse Vehicle Impact Fee, and Franchise Fee for the use of City property in the provision of solid waste related services.

ATTACHMENTS:

Attachment 1: Resolution Approving the Fifth Amendment to the Amendment and Restatement of Franchise Agreement with Marin Sanitary Service
Attachment 2: Fifth Amendment to the Amendment and Restatement of Franchise Agreement with Marin Sanitary Service, including Exhibit A: Description of Services Attachment 3: Resolution Authorizing Rates with Franchise Fee Study (marked as Exhibit A), Cost of Service, Vehicle Impact, and Franchise Fees (marked as Exhibit B), and Rate Schedule (marked as Exhibit C)
Attachment 4: R3 Review of MSS Rate Application
Attachment 5: Customer Owned Can Memo
Attachment 6: Public Hearing Notice
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL

APPROVING AN AMENDMENT TO THE AMENDMENT AND RESTATEMENT

OF COLLECTION AGREEMENT OF THE CITY OF SAN RAFAEL WITH MARIN

SANITARY SERVICE
WHEREAS, the City of San Rafael and Marin Sanitary Service have entered into a written Amendment and Restatement of Collection Agreement (“Restated Agreement”) dated September 4, 2001; and
WHEREAS, the City of San Rafael and Marin Sanitary Service amended this agreement on March 1, 2005 with the Amendment to Refuse and Recycling Collection Agreement; and WHEREAS, the City of San Rafael and Marin Sanitary Service further amended this agreement on October 1, 2012 with the Second Amendment to Amendment and Restatement of Collection Agreement; and
WHEREAS, the City of San Rafael and Marin Sanitary Service further amended this agreement on December 17, 2018 with the Third Amendment to Amendment and Restatement of Collection Agreement; and
WHEREAS, the City of San Rafael and Marin Sanitary Service further amended this agreement on December 6, 2021 with the Fourth Amendment to Amendment and Restatement of Collection Agreement (the Restated Agreement and all amendments to the Restated Agreement are collectively referred to herein as the “Franchise Agreement”); and WHEREAS, the City of San Rafael and Marin Sanitary Service now desire changes to the Franchise Agreement to update Marin Sanitary Service services to provide additional services for bulky item collection and illegal dumping prevention as well as to update the City fees and franchise fees; and
WHEREAS, the City of San Rafael has determined that such adjustments are proper, in the best interest of all citizens, and will promote public health, safety and welfare; and WHEREAS, on November 4, 2024 the City Council held a duly noticed public hearing to consider the rate application request and receive public testimony thereon; and, WHEREAS, the City Council has reviewed and duly considered the Staff Report, and documents and other oral and written evidence presented at the hearing;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES RESOLVE, DETERMINE AS FOLLOWS:
1) The City Manager is authorized to execute the Fifth Amendment to the Amendment and Restatement of Collection Agreement of the City of San Rafael with Marin Sanitary Service, attached to the staff report accompanying this resolution as Attachment 2.

I, Lindsay Lara, Clerk of the City of San Rafael, hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of the City of San Rafael, held on Monday, the 4th day of November 2024, by the following vote, to wit:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:
__________________________
LINDSAY LARA, City Clerk

FIFTH AMENDMENT TO THE

AMENDMENT AND RESTATEMENT OF COLLECTION AGREEMENT

OF THE CITY OF SAN RAFAEL WITH MARIN SANITARY SERVICE

THIS FIFTH AMENDMENT to the Amendment and Restatement of Collection Agreement of the City of San Rafael (City) with Marin Sanitary Service (Company) is made and entered into this __ day of November, 2024.

WHEREAS, the City and Company entered into a written agreement on September 4, 2001, as amended on March 1, 2005, November 14, 2012, December 17, 2018, and December 6, 2021 (together the “Agreement”) pursuant to which the Company renders Solid Waste, Recyclable Material and Green Waste collection, processing and disposal services to businesses, residents and government institutions in the City; and
WHEREAS, since 2018, the City has implemented strategies through an Illegal Dumping Pilot Program to improve the condition and safety of public areas, collaborating with City departments, Company, contractors, and the community to address illegal dumping; and WHEREAS, by utilizing data-driven analysis and innovative approaches, the City and Company have identified effective services to improve illegal dumping outcomes and now seek to establish a formal program of service, which includes bulky item collection at multifamily residential properties, further solidifying their commitment to maintain well-kept and secure public spaces; and WHEREAS, the City and Company now desire to add an ongoing Illegal Dumping Prevention Program to the suite of services provided by the Company; and
WHEREAS, a change in compensation to the Company is necessary and warranted to compensate the Company for provision of the Illegal Dumping Prevention Program; and WHEREAS, the City and Company have met in good faith to develop the terms, conditions, and compensation for provision of the Illegal Dumping Prevention Program; and WHEREAS, a key component of the Illegal Dumping Prevention Program is the establishment of a new position, which the City will employ on behalf of Company, to oversee waste management and the Illegal Dumping Prevention Program; and
WHEREAS, the Company has requested adjustments to terms of services to protect worker health and safety by requiring the use of Company provided containers for general solid waste collection; and WHEREAS, the City and Company have negotiated and agree to revisions in definitions, terms and conditions regarding fees paid by Company to City.

NOW THEREFORE, it is mutually agreed as follows:

1. Section 1. Definitions, shall be amended to add:
“Illegal Dumping Prevention Program” means a comprehensive suite of services designed to address illegal dumping across the City through equitable access to disposal options,

FIFTH AMENDMENT TO THE

AMENDMENT AND RESTATEMENT OF COLLECTION AGREEMENT

OF THE CITY OF SAN RAFAEL WITH MARIN SANITARY SERVICE

targeted outreach and engagement, and robust enforcement strategies. The program emphasizes collaboration between City departments, the Company, and community partners to maintain clean, safe public spaces while providing practical, accessible waste management solutions.

2. Section 3. Services, Rate Setting and Rates, Equipment, shall be amended to add:
(B) Exhibit C sets forth the current, maximum schedule of rates for services. The City Council may authorize amendments to Exhibit C, from time to time, in accordance with the parties’ agreed upon rate setting methodology set forth in Exhibit B. (E) Compensation Adjustment for New Programs:
(1) 2025 Adjustment to Compensation for New Programs. Company’s compensation via Collector Operations (as per Exhibit B Section III.A) shall be adjusted by $571,291 (not inclusive of profit margin or franchise fee) effective January 1, 2025 to compensate the Company for the first of a three-year phase-in period implementing the Illegal Dumping Prevention Program. (2) 2026 Adjustment to Compensation for New Programs. Company’s compensation via Collector Operations (as per Exhibit B Section III.A) shall be adjusted by $162,078 (not inclusive of profit margin or franchise fee) effective January 1, 2026 to compensate the Company for the second of a three-year phase-in period implementing the Illegal Dumping Prevention Program. (3) 2027 Adjustment to Compensation for New Programs. Company’s compensation via Collector Operations (as per Exhibit B Section III.A) shall be adjusted by $167,750 (not inclusive of profit margin or franchise fee) effective January 1, 2027 to compensate the Company for the third and final year of a three-year phase-in period implementing the Illegal Dumping Prevention Program.
(4) Company shall provide all elements of the Illegal Dumping Prevention Program in all subsequent years without further adjustment to compensation beyond those stated above.

3. Section 11. Franchise Fee, shall be replaced in its entirety as follows:

Company shall pay to the City a Cost of Service Fee, Vehicle Impact Fee, Franchise Fee and other fees, as determined by the Parties or the City Council, to compensate the City for its solid waste-related costs, the impacts to City property, and the value of the Company’s use of City property for solid waste related services. The fees are set forth in Exhibit B (Collector’s Rate Revenue Requirement and Rate Adjustment).

4. Exhibit A - Description of Services, is replaced in its entirety as attached hereto.

FIFTH AMENDMENT TO THE

AMENDMENT AND RESTATEMENT OF COLLECTION AGREEMENT

OF THE CITY OF SAN RAFAEL WITH MARIN SANITARY SERVICE

5. Exhibit B – Collector’s Rate Revenue Requirement and Rate Adjustment, is amended as follows:

Section II. B.6.d. Forecasted Other Agency Fees Expense, is replaced in its entirety as follows: “The City Council may establish and impose, by ordinance or resolution, fees or charges for benefits conferred, privileges granted, or services or products provided to Company, or for the City’s reasonable regulatory costs, related to or involving Company’s responsibilities under this Agreement, including, without limitation, the responsibilities set forth in Exhibit A. ”
Section II.B.9. Forecasted Franchise Fees Expense, is replaced in its entirety as follows:
“City and Company agree that Company will pay City a franchise fee for the value of City property used by Company to provide solid waste-related services. The Franchise Fee for use of City property shall be in an amount determined by the parties to reflect the reasonable value of City property used in Company’s provision of solid waste-related services and for Company’s purposes and/or responsibilities under this agreement. The Franchise Fee shall not exceed the reasonable market value of the City property. For calendar year 2025 the parties have determined, based on available data, that the value of the City property used by Company for the provision of solid waste-related services shall not exceed $1,474,000. The parties further agree that the reasonable market value of the City property will increase annually in proportion to the annual percentage change in the Consumer Price Index for All Urban Consumers (CPI-U) for the San Francisco Bay Area (U.S. Bureau of Labor Statistics series ID: CUURS49BSA0). City may set the franchise fee, by ordinance or resolution, at any amount equal to or less than the reasonable market value of the City property, as determined by the parties and set forth in this agreement.”
Section III.F. Franchise Fees, is revised as follows: “The Forecasted Franchise Fees category for the Rate Year shall be determined in accordance with Section II.B.9 above.” Section III.G. Other Agency Fees, is revised as follows: “The Forecasted Other Agency Fees category for the Rate Year shall be determined in accordance with Section II.B.6.d above.”

6. City and Company agree and acknowledge that, except as explicitly modified by this Amendment, the Agreement remains in full force and effect.

FIFTH AMENDMENT TO THE

AMENDMENT AND RESTATEMENT OF COLLECTION AGREEMENT

OF THE CITY OF SAN RAFAEL WITH MARIN SANITARY SERVICE

IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment the day and year first above written.

Date (month, day and year) Date (month, day and year)
Marin Sanitary Service City of San Rafael
By: By:

President City Manager
By: By:

Secretary City Clerk
APPROVED AS TO FORM:

By:

City Attorney
Exhibit A: Description of Services
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I. GENERAL
Company’s Responsibilities Under Agreement:

Company’s responsibilities under this Agreement broadly include collection and removal of solid waste in the City. This includes solid waste materials that are not set out for proper collection and removal by Company’s customers and which contribute to litter and illegal dumping and thus the need for street sweeping, removal of waste from catch basins, and illegal dumping prevention programs and services. Company authorizes City to provide all street sweeping and catch basin waste removal programs and services and agrees to compensate the City for provision of those services and illegal dumping prevention programs (as provided in this Agreement) via payment of the City fees set by the City pursuant to Section II.B.6.d of Exhibit B to this Agreement.

Illegal Dumping Prevention Program:

COMPANY shall make efforts to reduce illegal dumping by providing equitable and comprehensive disposal options, as well as support for enhanced community outreach, engagement, and stronger enforcement, led by a full-time Waste Management Coordinator, employed by the City on the Company’s behalf. The Illegal Dumping Prevention Program (IDP) is a collaborative initiative involving City departments, COMPANY, and community partners, aimed at ensuring cleaner public spaces and improved waste management for all residents.

As part of the IDP, COMPANY shall compensate CITY for the Waste Management Coordinator, with an annual cost of $165,000 in 2025, adjusted annually by CPI. COMPANY will pay 1/12th of this amount on the 15th of each month.

Additionally, COMPANY shall compensate CITY or pay directly $129,140 in 2025 for additional outreach, education, and enforcement services materials, also adjusted by CPI annually over time.

COMPANY will pay 1/12th of this amount on the 15th of each month.

COMPANY shall also provide support for up to 12 annual Debris Box Day events (or up to 24 provided City authorizes additional compensation) per year.

City reserves right to enact reduction in program compensation if performance does not meet expected outcomes. Program specifics are further described in Section III of this Exhibit A.

Exhibit A: Description of Services
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COMPANY shall track and report to CITY all instances of the following, on a quarterly basis:

A. Roll-off containers (pertaining to IDP program) delivered to Multi-family dwellings, including date of delivery and pick up, address of complex, and tonnage collected.

B. On-call bulky item pick-ups at Multi-family dwellings by date and address/unit number and quantity of items collected.

C. Bulky waste coupons used by Multi-family dwellings by date and address/unit number and quantity of items collected.

D. Debris Box Day Events by date, number of containers delivered, and tonnage collected.

E. City disposal of illegal dumping debris at Marin Resource Recovery Center.

Recyclable Materials Processing Facility:

COMPANY shall continue to provide full service processing, marketing and sale of Recyclable Materials collected by the COMPANY within the CITY at the Recyclable Materials processing facility located at 535 Jacoby Street in San Rafael (the “Marin Recycling Center”), which is operated by the COMPANY’S affiliated company, Marin Recycling & Resource Recovery Association. COMPANY and CITY agree that the charges for rate revenues for Recyclable Materials processing to be billed by the COMPANY as described in Exhibit B are predicated on the COMPANY continuing to process Recyclable Materials at the Marin Recycling Center. Under no circumstances may the COMPANY cease processing of the CITY’S Recyclable Materials at the Marin Recycling facility without prior approval of the CITY. The COMPANY may temporarily ship Recyclable Materials to other processing facilities at its discretion as needed while repairs or upgrades are made to the Marin Recycling facility, but any such temporary shipment of Recyclable Materials is at the COMPANY’S sole expense and risk without any change in the rate revenues and charges for Recyclable Materials processing via either an Indexed Year approach or a Base Year approach.

Education, Outreach, Technical Assistance, Monitoring, Compliance Services:

COMPANY shall continue to provide CITY with outreach, education, technical assistance, monitoring and compliance services to residents, multi-family dwellings and commercial businesses. The CITY and COMPANY intend for these services to: provide information to customers regarding the services offered by the COMPANY as provided for via the Agreement; encourage, incentivize and maximize participation in recycling and organics collection programs, and; implement the requirements of state Exhibit A: Description of Services
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laws AB 341, AB 1826, SB 1383, and any other solid waste, recycling and organics state law requirements applicable to CITY and/or COMPANY. The CITY and COMPANY further intend to define specific and quantifiable performance targets and reporting requirements for these services so that the CITY and COMPANY can accurately and consistently evaluate and monitor progress towards landfill diversion goals and state laws. To that end, the CITY and COMPANY agree to develop mutually agreeable quantitative performance targets and reporting requirements for these services by June 30, 2019. These will supplement other reporting and performance requirements in the Agreement and are not intended to change or replace them in any way.

Marin Sanitary Service (COMPANY) shall provide Collection services using modern automated and semi- automated equipment with the COMPANY’s name and telephone number clearly visible from the outside of the vehicle or equipment.

COMPANY shall provide Carts or bins to Residential, Multifamily, and Commercial Customers that are clearly labeled for their allowable contents, with solid waste, recyclable or compostable materials. All containers provided by the COMPANY are the property of the COMPANY.

Company to provide customer billing and payment options including automatic billing, credit card billing, and online payments.

II. RESIDENTIAL SERVICE (THREE OR FEWER UNITS IN A

SINGLE STRUCTURE)
Solid Waste
COMPANY shall provide automated or semi-automated tipper Carts in 20-, 32-, 64-, and 96-gallon capacities to be placed at the curb or COMPANY-designated location for one time per week Collection at the rates and fees listed in Exhibit C. Carts should be placed at the designated Collection location by 6:00 am the day of service. Lids of carts must close. Customers may place additional bags not to exceed 32 gallons in size and 60 pounds by weight for a fee as listed in Exhibit C. Items placed outside the Cart or overflowing Carts will incur an additional charge as listed in Exhibit C. Carts are the property of the COMPANY. COMPANY will determine the appropriate Collection location. Solid Waste placed in COMPANY-provided Carts or at the curb for Collection is the property of COMPANY.

Low-income rates are available for customers who meet the PG&E CARE Program qualifications.

Exhibit A: Description of Services
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Recyclable Materials
As part of the Residential Customer rates, COMPANY shall provide all Residential Customers with one (1) 64-gallon Split cart for Recyclable Materials with one side for paper and fiber products, and one side for acceptable glass, metal and plastic excluding polystyrene, plastic bags and compostable plastics. Acceptable materials may change depending on the markets. A full list of accepted materials is available on the COMPANY’s website (marinsanitaryservice.com). Cardboard must be broken down small enough to easily slide out of the cart. Large cardboard boxes may also be broken down and tied into 24” x 24” bundles and left beside the Recycling container. Carts must be placed at the curb or, upon approval of COMPANY, the designated Collection location next to their Solid Waste container for one time per week Collection by 6:00 am the day of service. All Residential Customers must be offered Recyclable Materials Collection services. Additional split carts are available for a nominal monthly fee as listed in Exhibit C.

Recyclable Materials placed in COMPANY-provided Carts or at the curb for Collection are the property of COMPANY, and the theft thereof is a crime.

Compostable (Organic) Materials
As part of the Residential Customer rates, COMPANY shall provide each Residential Customer with two (2) 32, 64, or 96-gallon Compostable Materials Cart to be placed at the curb or COMPANYapproved designated Collection location next to their Solid Waste container for one time per week Collection by 6:00 am the day of service. All Residential Customers must be offered Compostable Materials Collection for the collection of accepted Yard Trimmings, Food Waste and Food Soiled Papers in the same Container. A full list of accepted materials is available on the COMPANY’s website (marinsanitaryservice.com). Only COMPANY provided tipper carts will be allowed for the weekly collection of compostable materials. Up to four (4) additional Compostable Materials Carts beyond the first two (2) shall be provided to a Residential Customer upon request, at a cost specified in Exhibit C. Compostable Materials placed in COMPANY-provided Carts or at the curb for Collection are the property of COMPANY.

Additional Services

CLEAN-UP PROGRAMS
COMPANY shall provide Residential Customers with two (2) scheduled Clean-up Collection events per calendar year for extra Solid Waste, Recyclable Materials, and/or Compostable Materials at no Exhibit A: Description of Services
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additional cost to the Customers provided that COMPANY’s costs for such events shall constitute costs of operation included in the rate base and compensated for through the rates. COMPANY shall also provide all Residential Customers with two (2) on-call pickups of Bulky Items per calendar year on their regularly scheduled Collection day, upon Customer request. COMPANY will also provide on-call Bulky Item pickups beyond two (2) per Residential Customer per calendar year for an additional fee as listed in Exhibit C. These Bulky Items may be Collected in non-compaction vehicles, or in compaction vehicles if the materials are not compacted, and taken to the Designated Processing Facility for sorting.

COMPANY shall schedule Clean-up Collection events in such a manner that all Residential Customers shall receive Clean-up Collection services on their regularly scheduled Collection day. Extra Solid Waste, and/or Recyclable Materials can also be Collected for a fee as listed in Exhibit C in customer provided bags, not to exceed 32 gallons in size and 60 pounds by weight, when placed next to the regular container on Collection day. If an Operations Manager determines it is safe to collect overweight or oversized items, an additional fee will be charged as listed in Exhibit C to cover the cost of extra labor and/or equipment.

Semi-Annual Scheduled Clean-Up Service Guidelines
For each Clean-up Collection event, each Customer shall be permitted to place up to two (2) cubic yards (equivalent to fourteen (14) standard 32-gallon bags) of Solid Waste, Recyclable Materials and/or Compostable Materials for Collection by COMPANY at no charge. In the event Customer places more than two (2) cubic yards of materials for Collection, COMPANY shall charge the Customer for additional Collection services as listed in Exhibit C.

COMPANY shall require Customers to adhere to the following guidelines:

A. No Bulky Items will be collected.

B. No rocks, cement, dirt or Hazardous Waste shall be accepted.

C. Materials shall be placed in disposable bags/containers, cardboard boxes or customer owned 32-gallon cans or bags. COMPANY will only empty customer owned cans that are not more than 32 gallons in volume and are less than 60 pounds in weight. Recyclables Exhibit A: Description of Services
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and/or yard waste should be placed in paper bags or cardboard boxes to ensure they are recycled.

D. Discarded materials to be Collected in the Clean-up event shall be placed at the designated Collection location by the Generator by 6:00 a.m. on the pickup day to ensure Collection, but in no case shall be placed more than twenty-four (24) hours prior to the pick-up day.

On-Call Bulky Item Service Guidelines:

Each Residential Customer may call prior to their regular Collection day and schedule two (2) collections of up to two Bulky Items each per calendar year.

COMPANY shall require Customers to adhere to the following guidelines:

A. Customer must call in at least 24 hours on a regular business day (excluding weekends and holidays) prior to their regular Collection day to have Bulky Items collected and give the approximate size and weight of the Item so appropriate truck, equipment and number of drivers can be determined.

B. No more than two (2) Bulky Items will be collected.

C. Any Bulky Item that is over 60 pounds, greater than 6 feet in length, or that cannot be collected safely by one driver-operator, will be charged an additional special handling fee as set forth in Exhibit C.

COMPANY may provide on-call Bulky Item pickups beyond two (2) per Residential Customer per calendar year for an additional fee as listed in Exhibit C. These Bulky Items will be Collected in noncompaction vehicles and taken to the Designated Processing Facility for sorting.

Holiday trees will be Collected curbside on the regularly-scheduled pickup day during a two- (2) week period beginning on the Monday following the first Saturday after January 1. If trees are greater than six (6) feet in length, they must be cut in half. All metal stands, plastic tree bags, ornaments, and decorations of any sort must be removed. Flocked trees will not be accepted.

Exhibit A: Description of Services
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III. MULTI-FAMILY SERVICE (4 OR MORE SERVICE UNITS)
Solid Waste
COMPANY shall provide semi-automated or automated tipper Carts in 32-, 64-, and 96-gallon capacities to be placed for Collection at the curb or, upon approval of COMPANY, the designated Collection location.

COMPANY will also provide Bins with 1-6, 10-, or 18-cubic yard capacities for large volumes of material.

COMPANY will determine the size and type of container depending on materials generated, recycled and diverted, safety, collection vehicle and service location. Service levels shall range from one time per week to six times per week but should be adequate for the volume of material generated. Lids of containers must close and should not be overflowing. Extra fees may be incurred for extra bags or overloaded bins as listed in Exhibit C. Each Multi-Family Customer must maintain a 32 gallon per living unit equivalency minimum service level, which the COMPANY may reduce based on actual waste reduction and diversion results. COMPANY retains approval of all service locations for carts not at the curb and for bins.

COMPANY shall also service Customer-owned compactor units for the fees as listed in Exhibit C. For safety and equipment purposes, COMPANY retains right of approval as to the type of compactor to be serviced and the service location.

Recyclable Materials
COMPANY shall provide all Multi-Family Customers with unlimited collection of acceptable glass, metal and plastic excluding polystyrene, plastic bags and compostable plastics. Acceptable materials may change depending on the markets. A full list of accepted materials is available on the COMPANY’s website (marinsanitaryservice.com). These materials will be collected in Company provided 32 or 64-gallon colorcoded tipper carts: blue for paper and paper-fiber products, and brown for accepted commingled glass, metal and plastics. Collection is available from one time per week to six times per week. Cardboard placed in carts must be broken down small enough to easily slide out of the cart. Large cardboard boxes may also be broken down and tied into 24” x 24” bundles and left beside the Recycling container. 1-2 cubic yard rear loading bins are available for large amounts of cardboard collection with COMPANY’s approval of size and location. COMPANY will evaluate the appropriate container sizes on an individual customer basis. Pickups can be scheduled from one time per week to six times per week. Recyclable Materials placed in COMPANY-provided containers or at the curb for Collection are the property of the COMPANY.

Exhibit A: Description of Services
8 | Page
Updated 10-22-2024
Compostable (Organic) Materials
COMPANY will provide post-consumer Compostable Materials collection at all Multi-Family Dwellings and that parallel the Single-Family Residential program. Customers will be provided up to four (4) 32- or 64- gallon tipper green carts for the collection of accepted Yard Trimmings, Food Waste and Food Soiled Paper in the same Container. A full list of accepted materials is available on the COMPANY’s website (marinsanitaryservice.com). Additional carts beyond four may be rented at a nominal monthly fee as listed in Exhibit C.

In addition, Multi-Family tenants may receive kitchen pails at no additional cost to the tenant or property manager for the collection of compostable materials after participating in a COMPANY provided training.

Additional Services
COMPANY is to perform a visual waste audit at least one time per year for each Multi-Family account to provide an estimate of the amount of Recyclable Materials and Compostable Materials still in the Solid Waste container to help guide the Customer in service changes to increase diversion.

COMPANY will provide services to comply with all state laws regarding recycling and organics diversion.

On-site Collection of solid Waste, recyclable materials and compostable materials carts not at the curb— excluding the services listed in the following section—is available for an extra charge as set forth in Exhibit C.

CLEAN-UP PROGRAMS
COMPANY shall provide Multi-Family Customers with two (2) scheduled collection events per calendar year of up to two (2) Bulky Items or the equivalent of up to two (2) cubic yards per unit of Extra Solid Waste, Recyclable Materials, and/or Compostable Materials per unit, for all units served by the account, during two (2) scheduled collection events per calendar year, at no additional cost to the Customers provided that COMPANY’s costs for such events shall constitute costs of operation included in the rate base and compensated for through the rates. These two scheduled collection events per calendar year shall consist of some combination of the services described in the subsequent subsection, “Bulky Item Service Guidelines”.

Bulky Item Service Guidelines:

Exhibit A: Description of Services
9 | Page
Updated 10-22-2024
Each Multi-Family Customer is entitled to one or a combination of the following services, based on the discretion of the property manager, not exceeding a total equivalent of 2 cubic yards per unit, twice per calendar year:

1. Roll-off Dumpster Service shall be made available to properties according to the following terms:

A. Property managers may select a service equivalent to up to 2 cubic yards per unit.

B. The property manager shall designate the location for the placement of the roll-off dumpster on the property.

C. Excess Solid Waste, Recyclable Materials, Organic Materials, and bulky items are accepted for disposal.

2. On-Call Bulky Item Collection service shall be made available to properties according to the following terms:

A. Customers are entitled to up to two bulky item collections per year on a per-unit basis.

B. Each collection shall include up to two bulky items per unit or the equivalent of up to 2 cubic yards per unit.

C. Should residents require disposal of more than two items or 2 cubic yards per unit, they may pay the special collection fees applicable to single-family residents under the current program.

Payment for additional items must be made in advance by the customer.

3. Coupon for Drop-Off at Material Recovery and Recycling Center (MRRC) shall be made available to MFD customers according to the following terms:

A. Customers may receive up to two coupons per unit for drop-off at the MRRC.

B. Each coupon entitles the drop-off of up to 2 cubic yards per unit.

C. Customers or property managers are responsible for the transportation of items to the MRRC.

Combination of Services:

Should a combination of roll-off and on-call or coupon services be used, the total cubic yardage shall be deducted from additional service options. For example:

Exhibit A: Description of Services
10 | Page
Updated 10-22-2024
A. If a property manager utilizes the roll-off dumpster service at the beginning of the year, they may request a second collection on a per-unit basis or redeem one coupon later in the year.

B. If a property manager utilizes an on-call bulky item collection for 50% of the units, they may order a roll-off dumpster for the equivalent volume of the remaining units.

Special pickups of Bulky Items and Excess Solid Waste beyond the two standard pickups of up to two (2) cubic yards per Multi-Family Customer per calendar year may be requested by Multi-Family Customers for additional fees as listed in Exhibit C, provided that such a request may only be made by the bill payer (Property Manager or Owner) and not by the occupant of an individual unit. If an individual occupant pays his or her own collection service bill, only then will they be allowed to schedule special pick-ups. COMPANY may provide fee estimates to Customer while scheduling the pickup. These Bulky Items may be Collected in non-compaction vehicles, or in compaction vehicles if the materials are not compacted, and taken to the Designated Processing Site for sorting resulting in greater re-use and recycling. Extra material can be Collected for a fee as listed in Exhibit C in customer provided bags not greater than 32 gallons in size and 60 pounds by weight when placed next to the regular container on Collection day.

COMPANY will collaborate with CITY to implement up to 12 Debris Box Day events (or up to 24 provided City authorizes additional compensation) throughout the year as designated by the CITY. Specifically, COMPANY will furnish debris box rental and Bulky Waste Disposal for each event at the service level necessary to ensure sufficient capacity throughout the duration of each event.

IV. COMMERCIAL SERVICE
Solid Waste
COMPANY shall provide semi-automated or automated tipper Carts in 32-, 64-, and 96-gallon capacities to be placed for Collection at the curb or, upon approval of COMPANY, the designated Collection location.

COMPANY will also provide Bins with 1-6, 10-, or 18-cubic yard capacities for large volumes of material.

COMPANY will determine the size and type of container depending on materials generated, recycled and diverted, safety, collection vehicle and service location. Service levels shall range from one time per week to six times per week. Each Commercial Customer must subscribe to a level of service that is adequate for the volume of material generated. Lids of containers must close and should not be overflowing. Extra fees may be incurred for extra bags or overloaded bins as listed in Exhibit C. COMPANY retains approval of all service locations for carts not at the curb and for bins. COMPANY shall also service Customer-owned Exhibit A: Description of Services
11 | Page
Updated 10-22-2024
compactor units for the fees as listed in Exhibit C. For safety and equipment purposes, COMPANY retains right of approval as to the type of compactor to be serviced and service location.

Recyclable Materials
COMPANY shall provide all Commercial Customers with unlimited collection of acceptable glass, metal and plastic bottles, jugs and containers excluding polystyrene, plastic bags and compostable plastics.

Acceptable materials may change depending on the markets. A full list of accepted materials is available on the COMPANY’s website (marinsanitaryservice.com). These materials will be collected in Company provided 32 or 64-gallon tipper carts color-coded carts: blue for paper and paper-fiber products, and brown for accepted commingled glass, metal and plastics. Collection is available from one time per week to six times per week. Cardboard placed in carts must be broken down small enough to easily slide out of the cart. Large cardboard boxes may also be broken down and tied into 24” x 24” bundles and left beside the Recycling container. 1-2 cubic yard rear loading bins are available for large amounts of cardboard collection with COMPANY’s approval of size and location. COMPANY will evaluate the appropriate container sizes on an individual customer basis. Pickups can be scheduled from one time per week to six times per week. Recyclable Materials placed in COMPANY-provided containers or at the curb for Collection are the property of the COMPANY.

Compostable (Organic) Materials
Two options are available for Commercial Business for collection of Organic materials. Both programs are offered at a discounted rate to commercial customers as listed in Exhibit C.

Commercial Composting
COMPANY will provide post-consumer Compostable Materials collection at Commercial Businesses that would parallel the Single-Family Residential program. Customers will be provided 32- or 64-gallon tipper green carts for the collection of accepted Yard Trimmings, Food Waste and Food Soiled Papers in the same Container. A full list of accepted materials is available on the COMPANY’s website (marinsanitaryservice.com). By special request and upon approval of the Company, 1-2 cubic yard bins may be available. Monthly collection fees are listed in Exhibit C.

Exhibit A: Description of Services
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Updated 10-22-2024
Commercial Food to Energy (F2E) program in partnership with Central Marin Sanitation Agency COMPANY will provide restaurants, grocery stores, cafeterias, and other similar businesses with 32 and/or 64-gallon tipper dark green carts for the collection of a subset of Food Waste consisting of fruits, vegetables, meats, dairy, fish, breads, pastas and other food scraps. A full list of accepted materials is available on the COMPANY’s website (marinsanitaryservice.com). This pre-consumer Food will be anaerobically digested for energy production at Central Marin Sanitation Agency. Monthly collection fees for this service are set forth in Exhibit C.

Additional Services
COMPANY is to perform a visual waste audit at least one time per year for each Commercial Business account to provide an estimate of the amount of Recyclable Materials and Compostable Materials still in the Solid Waste container to help guide the Customer in service changes to increase diversion.

COMPANY will provide services to comply with all state laws regarding recycling and organics diversion.

On-site Collection of Solid Waste, Recyclable Materials and compostable Materials Carts not at the curb is available for an extra charge as set forth in Exhibit C.

Special pickups of large, hard to handle or bulky items may be requested for an additional fee as listed in Exhibit C. Estimates can be provided. These bulky items will be collected in non-compaction vehicles and taken to the Marin Recycling Center for sorting resulting in greater re-use and recycling. Extra material can be collected for a fee as listed in Exhibit C in cans or bags not greater than 32 gallons in size or 60 pounds by weight when placed next to the regular container on collection day.

V. MUNICIPAL SERVICES
COMPANY shall provide service to each CITY facility and those CITY-owned cans in public areas and parks based upon mutually agreed upon parameters by CITY and COMPANY. These services shall constitute costs of operation included in the rate base and compensated for through the rates of all Residential, Commercial and Multi-Family Customers.

Solid Waste
COMPANY shall provide semi-automated or automated tipper Carts in 32-, 64-, and 96-gallon capacities to be placed for Collection at the curb or, upon approval of COMPANY, the designated Collection location.

COMPANY will also provide Bins with 1-6, 10-, or 18-cubic yard capacities for large volumes of material.

Exhibit A: Description of Services
13 | Page
Updated 10-22-2024
COMPANY will determine the size and type of container depending on materials generated, recycled and diverted, safety, collection vehicle and service location. Service levels shall range from one time per week to six times per week. Each CITY facility must subscribe to a level of service that is adequate for the volume of material generated. Lids of containers must close and should not be overflowing. COMPANY retains approval of all service locations for carts not at the curb and bins. For safety and equipment purposes, COMPANY retains right of approval as to the type of compactor to be serviced and service location.

Recyclable Materials
COMPANY shall provide all CITY facilities with unlimited collection of acceptable glass, metal and plastic excluding polystyrene, plastic bags and compostable plastics. Acceptable materials may change depending on the markets. A full list of accepted materials is available on the COMPANY’s website (marinsanitaryservice.com). These materials will be collected in Company provided 32 or 64-gallon tipper carts color-coded carts: blue for paper and paper-fiber products, and brown for accepted commingled glass, metal and plastics. Collection is available from one time per week to six times per week. Cardboard placed in carts must be broken down small enough to easily slide out of the cart. Large cardboard boxes may also be broken down and tied into 24” x 24” bundles and left beside the Recycling container. 1-2 cubic yard rear loading bins are available for large amounts of cardboard collection with COMPANY’s approval of size and location. COMPANY will evaluate the appropriate container sizes on an individual customer basis. Pickups can be scheduled from one time per week to six times per week. Recyclable Materials placed in COMPANY-provided containers or at the curb for Collection are the property of the COMPANY.

Compostable (Organic) Materials
Two options are available for CITY facilities for collection of Organic materials.

Composting
COMPANY will provide post-consumer Compostable Materials collection at CITY facilities that would parallel the Single-Family Residential program. Facilities will be provided 32- or 64-gallon tipper green carts for the collection of accepted Yard Trimmings, Food Waste and Food Soiled Papers in the same Container. A full list of accepted materials is available on the COMPANY’s website (marinsanitaryservice.com). By special request and upon approval of the Company, 1-2 cubic yard bins may be available.

Exhibit A: Description of Services
14 | Page
Updated 10-22-2024
Food to Energy (F2E) program in partnership with Central Marin Sanitation Agency COMPANY will provide CITY facilities with cafeterias or other similar food service facilities with 32 and/or 64-gallon tipper dark green carts for the collection of a subset of Food Waste consisting of fruits, vegetables, meats, dairy, fish, breads, pastas and other food scraps. A full list of materials accepted is available on the website. This pre-consumer Food will be anaerobically digested for energy production at Central Marin Sanitation Agency.

Additional Services
Special pickups of Bulky Items may be requested. These Bulky Items may be Collected in non-compaction vehicles, or in compaction vehicles if the materials are not compacted, and sorted at the Marin Recycling Center for greater re-use and Recycling.

COMPANY shall Collect Discarded Materials from all street-side public litter and Recycling containers based upon mutually agreed upon parameters by CITY and COMPANY. CITY shall be responsible for maintaining such containers.

COMPANY shall provide the occasional on-call pick-up of illegally dumped Discarded Materials at CITY’s request. COMPANY shall provide such service within twenty-four (24) hours of such request, provided that the CITY authorizes or directs the service so that all costs incurred by COMPANY in providing the service shall constitute costs of operations included in the rate base and compensated for through the rates.

COMPANY will collaborate with the CITY on two community events throughout the year as designated by the CITY. COMPANY will furnish, at no cost to the promoters, as needed up to ten (10), 3 cubic yard debris boxes (or the equivalent). These debris boxes are to be used solely for solid waste, organics and recycling generated by the events.

Services Subject to Change
Services provided by COMPANY are subject to “Change in Scope” as defined and described in Exhibit B to the Agreement. CITY and COMPANY shall meet and confer to establish any such change in scope. Agreed upon changes of scope shall be effective irrespective of whether this Exhibit A – Description of Services is subsequently amended to reflect such Changes in Scope.

Exhibit A: Description of Services
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Updated 10-22-2024
Exhibit A: Description of Services
16 | Page
Updated 10-22-2024
Appendix 1. Illegal Dumping Program Budget Summary
1 RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL

AUTHORIZING MAXIMUM RATES COLLECTED BY MARIN SANITARY SERVICE

FOR REFUSE AND RECYCLABLE MATERIAL COLLECTION AND DISPOSAL SERVICES TO BE EFFECTIVE JANUARY 1, 2025, AND ADOPTING A CITY COST

OF SOLID WASTE SERVICES FEE, REFUSE VEHICLE IMPACT FEE, AND

FRANCHISE FEE FOR THE USE OF CITY PROPERTY IN THE PROVISION OF SOLID WASTE RELATED SERVICES.

WHEREAS, the City of San Rafael and Marin Sanitary Service have entered into an “Amendment and Restatement of Collection Agreement of the City of San Rafael and Marin Sanitary Service,” dated September 4, 2001 and amended by a written first amendment dated March 1, 2005, a written second amendment dated November 14, 2012, a written third amendment dated February 25, 2019, a written fourth amendment approved by the City Council on December 6, 2021, and a written fifth amendment approved by the City Council on November 4, 2024 (hereafter the “Franchise Agreement”); and
WHEREAS, Section 3 (B) of the Franchise Agreement provides for maximum rates allowed to be collected by Marin Sanitary Service, to be authorized from time to time by the City Council; and
WHEREAS, Exhibit "C" of the Franchise Agreement provides rate schedules, to be authorized by the City Council; and
WHEREAS, Marin Sanitary Service has submitted a rate application request for 2025 using the methodology outlined under Section 3 (A) of the Franchise Agreement; and WHEREAS, the City of San Rafael has conducted a review of said rate application based on a formula determined by Marin Sanitary Service’s actual cost of service and produced a report concurring with Marin Sanitary Service’s rate and fee adjustments; and WHEREAS, Section II(B)(6)(d) of Exhibit B of the Franchise Agreement authorizes the City to establish and impose fees or charges for benefits conferred, privileges granted, or services or products provided to the Company, or for the City’s reasonable regulatory costs, related to or involving Marin Sanitary Services’ responsibilities under the Franchise Agreement; and WHEREAS, Section II(B)(9) of Exhibit B of the Franchise Agreement authorizes the City to set a franchise fee at any amount equal to or less than the reasonable market value of the City property, as determined by the parties and set forth in the Franchise Agreement, used by Marin Sanitary Services, for solid waste-related services; and WHEREAS, R3 Consulting Group produced a Solid Waste Franchise Fee Study Report, dated December 6, 2023 (“Franchise Fee Study” attached hereto as Exhibit A), which determined 2 the reasonable fees the City could impose, pursuant to Article XIII C, Section 1 of the California Constitution, to recover its costs of providing specific benefits or privileges, services, and/or products to Marin Sanitary Service for the provision of solid waste-related services, the fees the City could charge to recover its reasonable regulatory costs related to solid waste services, and the reasonable value of City property used by Marin Sanitary Service in its provision of solid wasterelated services; and WHEREAS, The City Council accepted and adopted the Franchise Fee Study, attached hereto as Exhibit A, and found and determined that the City’s franchise fees and Refuse Vehicle Impact Fees complied with Article XIII C of the California Constitution and were justified by the City’s costs of providing solid waste-related services, reasonable charges for the use of City property for solid waste services, and the City’s costs of addressing the impacts of solid waste refuse vehicles, when it adopted Resolution No. 15265 on December 18, 2023; and WHEREAS, the City of San Rafael previously adopted a resolution amending the Master Fee Schedule to increase the Refuse Vehicle Impact Fee in order to pay for the increased costs of addressing the impacts of refuse vehicles on City streets; and WHEREAS, the City desires to adopt a Cost of Service Fee, an updated Refuse Vehicle Impact Fee, and an updated Franchise Fee, pursuant to the Franchise Agreement and in amounts that are justified by the Franchise Fee Study; and
WHEREAS, the Cost of Service Fee does not exceed the City’s reasonable costs for providing services or products, and/or the City’s reasonable regulatory costs, related to Marin Sanitary Services’ provision of solid waste-related services; and WHEREAS, the Refuse Vehicle Impact Fee does not exceed the City’s reasonable costs of addressing the refuse vehicle impacts caused by Marin Sanitary Services in its provision of solid waste-related services; and
WHEREAS, the Franchise Fee does not exceed the fair market value of the City property used by Marin Sanitary Services in the provision of solid waste-related services, as negotiated by the parties and demonstrated by the Franchise Fee Study; and WHEREAS, the rates for solid waste service are set and imposed by Marin Sanitary Service and the City’s Cost of Service Fee, Refuse Vehicle Impact Fee, and Franchise Fee are set by the Franchise Agreement and are the exclusive obligation of Marin Sanitary Service. By adopting this resolution, the City does not intend to impose any rates, fees, or charges on solid waste customers.

However, to the extent that the adoption of this resolution results in the City’s imposition of any fees, rates, or charges, on solid waste customers, for services or facilities in connection with a solid waste 3 system, including the franchise fees or the Refuse Vehicle Impact Fees, those charges are adopted pursuant to California Health and Safety Code section 5471; and WHEREAS, on November 4, 2024, the City Council held a duly noticed public hearing to consider the rate application request and receive public testimony thereon; and WHEREAS, the City of San Rafael has determined that such rate and fee adjustments are proper, in the best interest of all citizens, and will promote public health, safety and welfare.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES RESOLVE, DETERMINE AND ORDER AS FOLLOWS:

Section 1. Pursuant to California Environmental Quality Act (CEQA) Guidelines Section 15378(b)(4), this action is not a project under CEQA because the City’s rate approval relates to the funding mechanism of on-going solid waste collection services, which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment.

Section 2. The City adopts the Cost of Service Fee, Refuse Vehicle Impact Fee, and Franchise Fee set forth in Exhibit B, attached hereto and incorporated herein. The fees set forth in Exhibit B shall be incorporated into the Master Fee Schedule and are intended to supersede and replace any previously adopted fees.

Section 3. The schedule of maximum rates and fees attached hereto as Exhibit C and incorporated herein by reference, is hereby approved to be collected by Marin Sanitary Service for refuse and recyclable material collection and disposal services, at an increased rate of 5.24% over 2024 rates, to be effective January 1, 2025. Said “Exhibit C” shall be incorporated as the revised Exhibit "C" to the Franchise Agreement.

Section 4. To the extent the provisions of this resolution conflict with any prior resolutions, the provisions of this resolution shall control.

I, Lindsay Lara, City Clerk of the City of San Rafael, hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of the City of San Rafael, held on Monday, the 4th of November 2024, by the following vote, to wit:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:
4 __________________________
LINDSAY LARA, City Clerk
1512 Eureka Road, Suite 220, Roseville, CA 95661 | p 916.782.7821 | f 916.782.7824 | www.r3cgi.com December 6, 2023
Ms. Cristine Alilovich
City Manager
City of San Rafael
submitted via email: [email protected] SUBJECT: Solid Waste Franchise Fee Study Report
Dear Ms. Alilovich,
R3 Consulting Group, Inc. (R3) is pleased to submit the attached Report of Solid Waste Franchise Fee Study (Study) to the City of San Rafael (City). This Report presents our analytical methodology, results and findings, and recommendations regarding the solid waste Franchise Fee and Vehicle Impact Fee paid by the City’s contracted solid waste collection service provider, Marin Sanitary Service (Contractor), per the Refuse and Recyclable Material Collection and Disposal Services Agreement (Agreement) between the City and the Contractor. The purpose of this Study was to comprehensively analyze and calculate the following:

City’s Costs: The annual costs to the City for performing its management, administration, regulatory compliance and enforcement, solid waste collection and clean-up, and other obligations associated with the Contractor’s Agreement and the sanitation system.

Property Use Charges: The annual use charge to the Contractor for its special and lasting access to use government property in the public right-of-way for placement of solid waste containers and collection of the solid waste contents.

Pavement Impacts: The annualized costs for pavement repair, maintenance and rehabilitation resulting from the unique impacts to City street pavement caused by the Contractor’s solid waste collection vehicles during the course of providing sanitation service.

We then compared the calculated values for each component to the annual Franchise Fee and Vehicle Impact Fee paid by the Contractor to the City per the Agreement. We found that the City’s current and projected Franchise Fee revenues are less than the sum of the City’s Costs and government Property Use Charges calculated in this Study. We also found that the City’s current Vehicle Impact Fee is less than the costs for Pavement Impacts calculated in this Study. Based on these results, we conclude that the City’s fee amounts are not more than necessary to cover the City’s reasonable costs in managing and administering the Agreement and the sanitation system plus the reasonable value of the Contractor’s use of the public right-of-way.

We appreciate the opportunity to be of service to the City. If you have any questions regarding this Report or need additional information, please contact me.

Sincerely,

Garth Schultz | Principal
R3 Consulting Group, Inc.
510.292.0853 | [email protected]
r) ~ CONSULTING GROUP, INC.

K___...-1 RESOURCES· RESPECT· RESPONSIBILITY
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TABLE OF CONTENTS
City of San Rafael | Solid Waste Franchise Fee Study Report toc - i

1. Executive Summary
page 1

2. Methodology and Calculations
page 4

3. Findings and Conclusions
page 19

4. Recommendations
page 20

1. Executive Summary
City of San Rafael | Solid Waste Franchise Fee Study Report 1 of 20 Background
The City’s Agreement with the Contractor is for the collection, processing, and disposal of solid waste from covered waste generators in the City. The Agreement provides the Contractor with the exclusive right to provide critical aspects of the City’s sanitation system including solid waste collection and the other services and programs included in the Agreement. The Agreement specifies that the Contractor will charge solid waste service subscribers, with the Contractor billing and collecting revenues from subscribers and the City authorizing the maximum rates that the Contractor may charge pursuant to the rate adjustment methodology included in the Agreement.

Per the Agreement, the Contractor pays the City a Franchise Fee to cover the costs incurred by the City in managing, administering, enforcing, and supplementing the services provided in the Agreement, as well as the reasonable charge for the use of the public right-of-way for the special and lasting access to use it for set-out and collection of solid waste containers. The Agreement also provides that the Contractor pays the City a Vehicle Impact Fee to cover the proportionate costs of the unique impacts to pavement caused by the Contractor’s solid waste collection vehicles during the course of providing sanitation service.

Purpose
The purpose of this Study is to prove that the Franchise Fee and Vehicle Impact Fee paid by the Contractor to the City are exempt from consideration as taxes per Article XIII C, Section 1(e) of the California Constitution (“Proposition 26”) and are not higher than necessary to cover the City’s reasonable costs plus the reasonable value of the Contractor’s use of the public right-ofway. There are three primary exceptions to the Proposition 26 definition of tax that are relevant to this Study:

Exception 1: “A charge imposed for a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege.” Exception 2: “A charge imposed for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product.” Exception 4: “A charge imposed for entrance to or use of local government property, or the purchase, rental, or lease of local government property.” The Franchise Fee is a legal fee with two components. The first component includes the City’s reasonable and proportionate costs (City’s Costs) and is a legal fee per Exception 2. The second component includes the reasonable and proportionate and reasonable charges for the Contractor’s use of the public right-of-way (Property Use Charges) and is a legal fee per Exception 4. The Vehicle Impact Fee includes the City’s reasonable and proportionate costs associated with pavement impacts (Pavement Impacts) and is a legal fee per Exception 1.

Methodology and Findings
To complete this Study, R3 reviewed and analyzed information provided by the City and the Contractor pertaining to the City’s Costs, Property Use Charges, and impacts on pavement.

Using that information, we then calculated the reasonable and proportionate amounts necessary to cover the City’s costs, including staffing and other costs, use of government property in the ))
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Executive Summary
City of San Rafael | Solid Waste Franchise Fee Study Report 2 of 20 public right-of-way, and pavement repair, maintenance, and rehabilitation costs caused by the Contractor’s solid waste collection vehicles during the course of providing sanitation service. All calculated amounts in this Study are in current Fiscal Year (FY) 2023-24 dollars and are rounded to the nearest $1,000.

City’s Costs
The annual costs to the City for management, administration, regulatory compliance and enforcement, solid waste collection and clean-up, and other obligations associated with the Contractor’s Agreement and the sanitation system includes: staffing salary and benefits, contracted services, capital and equipment depreciation, operations and maintenance, supplies, and overhead for distributed costs including but not limited to property, utilities, insurance, human resources, payroll administration, accounts payable and receivable, and other finance functions. Staffing costs are calculated based on estimated time allocations (based on historical experience) and other costs are calculated based on estimated share allocations associated with the sanitation system, with distributed overhead applied to both.

The calculation results are $1,513,000 in staffing costs and $391,000 in other costs for annual proportionate City’s Costs totaling $1,904,000.

Property Use Charges
The annual charge to the Contractor for use of government property in the public right-of-way is calculated as a function of estimates for the number of solid waste accounts setting out solid waste collection containers in the right-of-way, the set-out area used, the amount of time it is used, and the reasonable market value for the per square foot use of the public right-of-way.

The calculation result for the use of the public right-of-way is a proportionate annual total Property Use Charge of $1,173,000.

Pavement Impacts
The annualized costs for pavement repair, maintenance and rehabilitation is calculated based on the proportionate impact to pavement from solid waste collection vehicles compared to other sources of impacts. This calculation accounts for the City’s annual repair costs, five-year projections for capital improvement costs, and five-year projections for growth in deferred maintenance. The calculation also accounts for the high loading and slow speed impacts on pavement associated with solid waste collection vehicles.

The calculation result for the proportionate Pavement Impacts caused by Contractor’s solid waste collection vehicles during the course of providing sanitation service is an annualized total repair, maintenance, and rehabilitation cost of $1,838,000.

Conclusions
Franchise Fee
The FY 2022-23 Franchise Fee paid Contractor to the City was $2,757,168 and the projection for FY 2023-24 is $2,929,000. The sum of FY 2023-24 annual City’s Costs and amounts for Property Use Charges calculated in this Study is $3,077,000 which is $148,000 (5%) higher than the projected FY 2023-24 Franchise Fee payments.
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Executive Summary
City of San Rafael | Solid Waste Franchise Fee Study Report 3 of 20 The amount of the Franchise Fee is therefore not more than necessary to cover the City’s reasonable costs incurred in managing and administering the Agreement and the sanitation system plus the reasonable value of the Contractor’s use of the public right-of-way.

Vehicle Impact Fee
The Vehicle Impact Fee paid to the City annually is $1,480,600. The amount of Pavement Impacts calculated in this Study is $1,868,000 which is $387,400 (26%) higher than the Vehicle Impact Fee.

The amount of Vehicle Impact Fee is therefore not more than necessary to cover the City’s reasonable costs incurred for repair, maintenance, and rehabilitation of pavement made necessary by the impacts of Contractor’s solid waste collection vehicles used in providing sanitation services in the City.

Reasonableness of Estimates and Assumptions
In performing calculations, it was necessary to estimate certain values for which information could not be attained, and for which reasonable ranges exist. Where assumptions were necessary for completing calculations, our objective was to apply assumptions on the lower end of the reasonable range.

Had we used other higher assumptions, the results of this Study would have been higher calculated Franchise Fee and Vehicle Impact Fee amounts. Therefore, we conclude that the calculated fee amounts are not higher than necessary to cover the City’s reasonable costs plus the reasonable value of the Contractor’s use of the public right-of-way.

Limitations
This Study relies on information provided by the City and the Contractor, which we have reviewed and analyzed for reasonableness and accuracy but did not independently audit or verify.

As stated above, it was necessary to estimate certain values for which information could not be attained, and for which reasonable ranges are known to exist. Though, changes to estimates and other underlying assumptions may materially change the calculations, we have elected to apply estimates on the low end of reasonable ranges, thus minimizing the potential that changes in calculations would result in different findings. We have reviewed all estimates and assumptions with City staff and legal counsel and have mutual concurrence on applicability and reasonableness of all such values in this Study.

Finally, the methodology employed by this Study calculates the reasonable values for the Franchise Fee and Vehicle Impact Fee within the context of current laws, regulations, and court rulings. Changes in the legal framework may require revisions to the methodology and findings contained in this Study.
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2. Methodology and Calculations
City of San Rafael | Solid Waste Franchise Fee Study Report 4 of 20 City’s Costs
Methodology
R3 reviewed and analyzed information provided by the City pertaining to the General Fund costs incurred for management, administration, regulatory compliance and enforcement, solid waste collection and clean-up, and other obligations associated with the Contractor’s Agreement and the sanitation system. These costs include any may not be limited to:

Staffing costs, including salaries and benefits.

Contracted services.

Capital and equipment depreciation.

Capital and equipment operations and maintenance.

Supplies and materials.

Overhead for distributed costs such as property, utilities, insurance, human resources, payroll administration, accounts payable and receivable, and other finance functions.

Using the total annual salary, benefit and other cost information provided by the City we estimated the proportion of costs associated with management and administration of the agreement and the sanitation system. We then calculated the proportionate totals and categorized them by the functions listed in the sections below.

Variables, Estimates and Assumptions
Staffing Costs
Variables associated with salaries and benefits include the allocation of time that positions are dedicated to management and administration of the Agreement and the sanitation system (including time supervising others with primary responsibility for these duties), the amount by which funding of salaries and benefits is paid by the General Fund, and the applicable amount of General Fund overhead. The estimated time allocation by position category used in this Study (and based on historical experience) is shown in Table 1, below, along with the explanation for the allocation values.

Table 1 – Allocations of Staffing Time by Position
Positions Time
Allocation Explanation
City Manager, Assistant City Manager, City
Attorney, Assistant City Attorney, City Clerk,
Deputy City Clerk, Public Works Director, Deputy
Public Works Director, Management Analyst,
Operations and Maintenance Manager, Sr. Code
Enforcement Supervisor, Code Enforcement
Supervisor, Police Lieutenant, Police Sergeant
(2), Police Officer.

4.9%
Calculated allocation based on
the percentage of City’s Costs
plus Property Use Charges plus
Pavement Impacts divided by FY
2023-24 General Fund Budget.

Code Enforcement Official I and II. 10%
Estimated allocation based on
solid waste code enforcement
obligations.
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Methodology and Calculations
City of San Rafael | Solid Waste Franchise Fee Study Report 5 of 20 Positions Time
Allocation Explanation
Sustainability Program Manager. 25%
Estimated allocation based on job
duties for management and
administration of the Agreement
and the sanitation system.

Public Works Maintenance Crews responsible for
Street Sweeping, Catch Basin Waste Removal,
and Illegal Dumping Clean-up.
80%
Estimated allocation based on
proportion of waste generation in
City.

R3 verified with City staff that the salaries and benefits included in this Study are paid by the General Fund – any non-General Fund portions of positions included in Table 1 have been excluded from the calculations. A General Fund overhead rate of 10.6% (provided by the City’s Finance Director) is also applied to the total allocated costs.

Other Costs
Variables associated with the City’s other (i.e., non-salary and benefit) costs include the proportionate allocation of those costs that are for management and administration of the Agreement and the sanitation system, the amount by which these costs are paid by the General Fund, and the applicable amount of General Fund overhead. The estimated time allocation by cost category used in this Study is shown in Table 2, below, along with the explanation for the allocation values.

Table 2 –Allocations of Other Costs by Category
Cost Category Cost
Allocation Explanation
Public Works Maintenance Crews responsible for
Street Sweeping, Catch Basin Waste Removal,
and Illegal Dumping Clean-up.
80%
Estimated allocation based on
proportion of waste generation in
City.

Consulting costs for direct management and
administration of Agreement and sanitation
system.
100%
All these costs are directly
associated with management and
administration of the Agreement
and the sanitation system.

R3 verified with City staff that the other costs included in this Study are paid by the General Fund – any non-General Fund portions of these costs as included in Table 2 have been excluded from the calculations. A General Fund overhead rate of 10.6% (provided by the City’s Finance Director) is also applied to the total allocated costs.

Analysis
Direct Management and Administration
This category includes City staffing and consulting costs for direct management and administration of the Agreement and the sanitation system. Staffing costs include allocated costs for the City’s Public Works Director, Deputy Public Works Director, Sustainably Program Manager, Management Analyst, and Operations and Maintenance Manager, for a calculated $116,000 in annual staffing costs. Other costs include solid waste consulting services provided Methodology and Calculations
City of San Rafael | Solid Waste Franchise Fee Study Report 6 of 20 by R3, for $7,000 in annualized consulting costs. The total calculated cost for this category is $123,000.

Indirect Management and Administration
This category includes City staffing costs for indirect management and administration, including supervision of those responsible for direct management and administration of the Agreement and the sanitation system and associated responsibilities. Allocated costs for the City Manager, Assistant City Manager, City Attorney, Assistant City Attorney, City Clerk, and Deputy City Clerk are calculated for total annual costs in this category of $111,000.

CalRecycle and SB 1383 Compliance
This category would include City staff costs and other costs for various activities associated with the City’s need to implement Senate Bill 1383 (Short-Lived Climate Pollutants Act) as well as annual reporting to the State agency, CalRecycle. No costs for these activities are included in this Study as these costs are not funded by the City’s General Fund.

Code Enforcement
This category includes City staffing costs for enforcing the solid waste provisions of the City’s Municipal Code, which includes illegal solid waste accumulations, illegal dumping, littering, improper waste collection setouts, nuisances, and the associated investigations, warnings, notices of violation, and administration of penalties. Staffing costs include allocated costs for the City’s Code Enforcement Supervisors and Officials and Police Officer, Sergeants, and Lieutenant for calculated total annual costs in this category of $107,000.

Street Sweeping
When the Contractor or individual waste generators do not properly manage the collection of solid waste, that mismanaged solid waste tends to end up in the public right-of-way and on streets, where it must be removed by the City. Street sweeping captures solid waste that ends up in public streets because of improper collection. Most if not all of the solid waste that ends up in the streets is generated by properties that receive solid waste collection services from the Contractor.

For the purposes of this Study, we do not assume that all mismanaged solid waste that ends up on the City’s streets is generated by properties receiving solid waste services. Rather, because there is the possibility that some solid waste collected by street sweeping operations was originally generated by other sources, this Study estimates that only 80% of the solid waste collected by street sweepers was generated by properties receiving solid waste services. This assumption is consistent with other studies conducted by R3 (for the cities of Garden Grove and San Bruno) wherein street sweeping activities were allocated between 77.4% and 90% to the sanitation system.

This category includes City staffing, capital equipment, and operations and maintenance costs for the City’s street sweeping operations. Allocated staffing costs for the Public Works maintenance crews are calculated to be $229,000 annually. The allocated and annualized costs for capital equipment and operations and maintenance costs are calculated to be $57,000 annually, for a calculated total in this category of $286,000.

Methodology and Calculations
City of San Rafael | Solid Waste Franchise Fee Study Report 7 of 20 Catch Basin Waste Removal
As with street sweeping, solid waste that is not properly managed by waste generators or the Contractor, and not otherwise captured by street sweeping operations, accumulates in catch basins and other trash capture devices in the City’s storm drain system. As with the street sweeping category, we do not assume that all mismanaged solid waste that ends up in catch basins or trash capture devices is generated by properties that receive solid waste services; the 80% estimate used for street sweeping costs is also applied here, and for the same reasons.

This category includes City staffing, capital equipment, and operations and maintenance costs for the City’s catch basin waste removal operations. Allocated staffing costs for the Public Works maintenance crews are calculated to be $844,000 annually. The allocated and annualized costs for capital equipment and operations and maintenance costs are calculated to be $136,000 annually, for a calculated total in this category of $980,000.

Illegal Dumping Clean-up
The City’s Public Works maintenance crews also clean up solid waste materials that are illegally dumped throughout the City. As with street sweeping and catch basin waste removal, an 80% waste generation allocation is applied.

This category includes City staffing costs for illegal dumping clean-up as well as costs for outside contractors and service providers for clean-up of un-housed encampments. Allocated staffing costs for the Public Works maintenance crews are calculated to be $106,000 annually.

The allocated costs for clean-up of un-housed encampments along with the allocated costs for equipment maintenance and fuel are calculated to be $191,000 annually, and the for a calculated total in this category of $297,000.

Public Waste Containers
This category would include City staff costs and other costs for collection of waste deposited in public waste containers in the public right-of-way and other public locations in the City. No costs for these activities were identified by the City and thus none of the costs associated with category are included in this Study.

Waste Collection at City Events
This category would include City staff costs and other costs for collection of waste generated and disposed of at City public events. No costs for these activities were identified by the City and thus none of the costs associated with category are included in this Study.

Tree Trimming for Vehicle Access to Public Right-of-Way This category would include City staff costs and other costs for trimming of the City’s street trees to provide safe clearance for collection vehicles to collect solid waste from the public rightof-way. No costs for these activities were identified by the City and thus none of the costs associated with category are included in this Study.

Annual Total of City’s Costs
Table 3, following page, shows the total of the City’s Costs for management and administration of the Agreement and the sanitation system as calculated in this Study, by category.

Methodology and Calculations
City of San Rafael | Solid Waste Franchise Fee Study Report 8 of 20 Table 3 – Annual City’s Costs by Category and in Total
Category Staffing Costs Other Costs Total
Direct Management
and Administration $116,000 $7,000 $123,000
Indirect Management
and Administration $111,000 N/A $111,000
Code Enforcement $107,000 N/A $107,000
Street Sweeping $229,000 $57,000 $286,000
Catch Basin Waste
Removal $844,000 $136,000 $980,000
Illegal Dumping Cleanup $106,000 $191,000 $297,000
Total Annual City’s
Costs $1,513,000 $391,000 $1,904,000
Property Use Charges
Methodology
R3 reviewed and analyzed information provided by the City and the Contractor pertaining to Property Use Charges for Contractor’s use of the public right-of-way for collection of solid waste collection containers. When then calculated the annual Property Use Charges based on:

The setout area used for collection of solid waste containers (in square feet).

The amount of time that the area is used.

The reasonable market value for use of the public right-of-way (in dollars per square foot).

The number of solid waste subscribers setting out collection containers in the public right-ofway.

Using these values, we calculated the reasonable market value for the Contractor’s use of government property in the City.

Variables, Estimates and Assumptions
Setout Area
Standard residential solid waste collection setouts include three solid waste collection containers, usually carts with wheels and lids, with one each for garbage, recycling, and organics waste streams. The setout area needed for placement of these containers is inclusive ))
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Methodology and Calculations
City of San Rafael | Solid Waste Franchise Fee Study Report 9 of 20 of the width of each container (typically two feet) as well as minimum required space between the containers and other objects such as cars (minimum of one feet). The set-out area also takes up available parking space and is thus assumed to extend six feet out from the curb. It should be noted that the Contractor’s service guide shows two feet between containers and five feet between containers and other objects, which requires a much larger area than the amounts estimated in this Study. Thus, our estimated average setout area is likely low, and is therefore conservative. Taken altogether, the area for residential setouts is calculated as three containers that are each two feet wide, plus one foot between each container and other objects, for a total area ten feet wide times six feet in depth. The result is 60 square feet of setout area used for collection of solid waste containers in residential areas.

The amount of area used for commercial setouts (in this Study, use of the term commercial also always includes multi-family) can vary widely, as there is no standard commercial subscription size profile – each commercial solid waste subscriber can select from a range of container sizes, with most of them being larger than the containers used in residential areas. Given this complexity, this Study assumes that the average commercial setout area is twice that of the residential setout area, for 120 square feet. This estimate is likely lower than the average setout area needed in commercial areas and is therefore conservative.

Setout Time Usage
Standard residential solid waste collection is performed once weekly. Most residential containers are set out the evening prior to collection and are removed from the public right-ofway the following afternoon. Thus, for the purposes of this Study, we assume that collection containers are in the public right-of-way for an average of 18 hours per day, one day per week, which amounts to approximately 10.71% of the time (18 hours divided by 24 per day divided by 7 days per week).

Commercial solid waste subscription setout times can vary widely – just as there is no standard commercial subscription size profile, likewise there is no standard collection frequency.

Commercial solid waste subscribers can select collection frequency between once and six times per week, and with different frequencies for different waste streams. Given this complexity, this Study assumes that the average commercial collection frequently is twice weekly, for 12.42% of the time. As with the setout area, this estimate is likely lower than the average commercial collection frequency and is therefore conservative.

Reasonable Market Value for Use of Public Right-of-Way
The City’s “Streatery” Program established a use charge for the use of the public-right-of way of $3,600 annually. That amount is for the use of an area equivalent to one parking space, which the typical parking space being 24 feet wide by 8 feet deep for an area of 192 square feet. Therefore, the City’s established annual use charge for the use of the public right-of-way is $3,600 divided by 192, for a resultant $18.75 per square foot.

Other cities in the Bay Area have also established use charges for use of the public right-of-way, like the City’s program. Other Marin County communities including Fairfax, Larkspur, and San Anselmo also have similar use charges, as do other communities including Healdsburg, Oakland, Torrance, and Windsor. The minimum annual use charge per square foot in these communities is $5.21 (Fairfax and Oakland) and the largest is $30.00 (Windsor). The average annual per square foot use charge, including the City, is $15.67. To be conservative in our calculations, we use the average annual value of $15.67 per square foot rather than the higher City-specific value of $18.75.

Methodology and Calculations
City of San Rafael | Solid Waste Franchise Fee Study Report 10 of 20 Number of Subscriptions Setting Out Containers
The Contractor reports that there are 12,385 residential and 2,529 commercial solid waste service subscribers in the City. However, not all subscribers set out their containers in the public right-of-way for collection all the time. To account for non-setouts (either because subscribers don’t have waste materials to set out or because they receive on-premises service) we assume that only 90% of residential solid waste subscribers set out containers on a regular basis, for a resulting total of 11,146 average residential setouts. It is also understood that most commercial subscribers do not set out containers in the public right-of-way, and therefore we conservatively assume that only 5% of commercial subscribers set out containers on a regular basis, for a resulting total of 126 average commercial setouts.

Analysis and Total Annual Property Use Charges
Calculating the total annual Property Use Charges using the variables, estimates and assumptions from the prior section is a function of multiplication, as shown in Table 4, below.

Table 4 – Calculation of Total Annual Property Use Charges Variable Category Residential Commercial
Grand Total Annual
Property Use Charge
Setout Area 60 SF 120 SF
Setout Time Usage 10.71% 21.42%
Annual Use Charge $15.67 per SF $15.67 per SF
Number of Setouts 11,146 126
Total Annual Property
Use Charges $1,122,000 $51,000 $1,173,000
Pavement Impacts
Methodology
R3 reviewed and analyzed information provided by the City pertaining to Pavement Impacts from the Contractors solid waste collection vehicles. We then calculated estimates of the proportionate share of the average annual pavement repair, maintenance and rehabilitation costs associated with solid waste collection vehicles based on the proportionate impact to pavement from solid waste collection vehicle compared to other sources of impacts.

The calculation accounts for the City’s annual repair costs, five-year projections for capital improvement costs, and five-year projections for annualized growth in deferred maintenance. The calculation also accounts for the high loading and slow speed impacts on pavement associated with solid waste collection vehicles. The calculation proportionately allocates the average annual pavement management costs to solid waste vehicles based on:

The equivalent single-axle load and proportionate impacts from speed for those vehicles compared to other vehicles.

The number of vehicle trips on City streets.
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Methodology and Calculations
City of San Rafael | Solid Waste Franchise Fee Study Report 11 of 20 The proportion of vehicle trips that are made by trucks versus automobiles.1 Variables, Estimates and Assumptions
The weight, loading, slow speed, and frequent stops that characterize solid waste collection vehicle operations impose unique and quantifiable impacts on the City’s street pavement. It is important to understand that, while calculation of vehicle impacts to pavement can be precise for individual vehicles, out of necessity we made certain assumptions about overall blended pavement impacts associated with several categories of vehicle types for the purposes of this Study. This is because we sought to calculate estimated impacts to all street pavement in the City, covering all vehicle uses, and precise traffic information at that scale is not currently available. Thus, we make informed assumptions regarding several variables necessary for this Study.

For each of these variables, there is a range of potentially reasonable values that may be used.

We have selected values at the low end of the reasonable range to present findings that conservatively calculate estimated values of the pavement impacts associated with the Contractor’s solid waste collection vehicles during the course of providing sanitation service.

Assumptions used are described in the following subsections, which reference sources supporting the summary provided here. We must note that changes in assumptions may result in material changes in calculation results and findings.

Factors Impacting Pavement Conditions
Street pavement repair, maintenance and rehabilitation needs and their resulting costs are affected by several factors including vehicle usage and trench cuts and subsurface activities related to underground utilities. Environmental conditions such as light and water also contribute to pavement repair, maintenance and rehabilitation needs in combination with the primary impacts from vehicles, trench cuts, and subsurface activities. This Study only focuses on the impacts to street pavement from vehicles, and the proportion of those impacts that are attributable to the Contractor’s solid waste collection vehicles as they perform sanitation service.

City’s Costs for Pavement Repair, Maintenance and Rehabilitation The City regularly projects its costs for repair, maintenance and rehabilitation of pavement resulting from degradation due to use. These projections, and the basis for them, are documented in Pavement Management Technical Assistance Program (P-TAP) reports which the City commissions with engineering consultants.2 Per the City’s April 26, 2023, P-TAP report, the City’s projected average annual pavement maintenance and rehabilitation costs from 2023 through 2027 for its entire street network, are approximately $4.2 million. Also, per the P-TAP, deferred 1 Our analysis accounts for the distribution of vehicles among the 13 Federal Highway Administration vehicle classifications, which include passenger cars, SUVs/pick-ups, buses, and multiple truck and truck/trailer axle combinations.
2 The City’s current P-TAP report dated April 26, 2023, was prepared by Adhara Systems, Inc., a consulting firm with expertise in pavement engineering. Broadly speaking, a P-TAP is designed to provide objective information and useful data for analysis so that managers can make more consistent, cost-effective, and defensible decisions related to the preservation of a pavement network.
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Methodology and Calculations
City of San Rafael | Solid Waste Franchise Fee Study Report 12 of 20 pavement maintenance on the City’s streets3 (which is the result of degrading pavement conditions associated with the impacts of vehicles) is projected to increase by $15.3 million between 2023 and 2027.
4 Axle Loading
Our methodology for calculating the proportionate amount of pavement maintenance and rehabilitation impacts for the Contractor’s vehicles is grounded in the fact that all vehicles, including solid waste collection vehicles, degrade pavement during use. Measurement of that impact – also known as “vehicle loading” – can be estimated, quantified, and expressed as an Equivalent Single Axle Load (ESAL), which is a function of the vehicle’s weight and the distribution of that weight over the vehicle’s axles. It is important to note that heavier vehicles have more impacts on pavement and have a higher vehicle loading ESAL value. It is also important to note that ESAL values are associated with vehicle loading only, and not the speed of the vehicle; it is therefore assumed that relative ESAL values between vehicle types are based on vehicles travelling at the same rate of speed.

For this analysis, R3 used the vehicle categories and average ESAL values shown in Table 5, below. Table 5 explains and cites supporting information for how the ESAL for each vehicle type was determined.

Table 5 – ESAL Value Assumptions by Vehicle Type
Vehicle Type ESAL
Value Source
Automobiles (Passenger Cars) 0.0008
AASHTO (American Association of State Highway and
Transportation Officials) Design Guide with ESALs by
Vehicle Type (Attachment 1)
Average of All Other Trucks5 0.0171
Calculated Value Using AASHTO Design Guide with
ESALs by Vehicle Type (Attachment 1), Federal Highway
Administration ESALs by Vehicle Type (Attachment 2),
Comparative Traffic Counts (Attachment 3)
Solid Waste Vehicle (Garbage) 1.0000
Calculated Values by Type (Attachment 4) Using Example
Axle Weights (Attachment 5) and AASHTO Axle Load
Equivalency Factors (Attachment 6)
Solid Waste Vehicle (Organics) 1.0000
Solid Waste Vehicle (Recycling) 0.7500
Given the assumed ESAL values in Table 5, a solid waste vehicle collecting garbage has 1,250 times the impact of an automobile. We are aware of other research concluding that the impacts 3 Deferred maintenance is planned maintenance that gets delayed and backlogged because of a lack of funding.

Deferred maintenance costs remain on the books until they are funded and the work is completed and recategorized in the City’s P-TAP.
4 Our analysis assumes funding based on the City’s budgeted pavement maintenance costs as presented in the PTAP under Scenario 2 “Maintaining PCI 62”. 5 “All other trucks” means all vehicles with high loading and impact on street pavement other than solid waste vehicles.

Methodology and Calculations
City of San Rafael | Solid Waste Franchise Fee Study Report 13 of 20 of solid waste collection vehicles may be as high as 8,000-9,000 times the impact of passenger cars; thus, our assumed ESAL of “1” for garbage collection vehicles is on the low end of the reasonable range of ESALs for such vehicles.

Speed Impact
Impacts to flexible pavements (which are typical for residential streets) are also influenced by vehicle speeds, with impacts being exponentially higher when a load carrying vehicle is moving at a very slow speed.6 This is demonstrated in Chart 1, below.

Chart 1 – Exponential Relationship Between Speed and Pavement Impacts Unlike typical traffic on residential streets, which tends to travel at or near the posted speed limit (25 miles per hour [mph] in the City), solid waste vehicles slow and stop for collection in front of each household, averaging approximately 4 mph to 8 mph.7 At these low speeds, and as shown in Chart 1, vehicles have approximately 2.2 to 2.6 times the impact to the pavement than they would travelling only at the 25 mph speed limit.

In this Study we conservatively assume that solid waste vehicles in the City may be travelling at a faster 10 mph average speed, and we thus assume that the relative impact of speed is a factor of 2, not the higher 2.2 to 2.6 factors corresponding with slower speeds as noted above. We apply this speed factor of 2 as a multiplier to the ESAL loading for solid waste collection vehicles in our analysis of impacts to residential streets only; the factor is not applied to the ESAL loading for arterial and collector streets, as those streets are not typically comprised of flexible pavements, solid waste collection vehicles stop less frequently on those streets (and thus have a higher average speed).

Vehicle Passes Per Day
By estimating the number and type of vehicles (i.e., solid waste collection vehicles, automobiles, and all other trucks) that travel on a street, and the average pavement impacts (measured in 6 Effect of truck speed on the response of flexible pavement systems to traffic loading; International Journal of Pavement Engineering, July 2020; Michael R. S. Mshali and Wynand JvdM. Steyn. 7 Real-world activity, fuel use, and emissions of heavy-duty compressed natural gas refuse trucks; Science of the Total Environment 761, 2021; Gurdas S. Sandhu, H. Christopher Frey, Shannon Bartelt-Hunt, Elizabeth Jones.

0.00 0.50

1.00 1.50

2.00 2.50

3.00 3.50
0 2 4 6 8 10 12 14 16 18 20 22 24 26
Relative Impact
Average Speed (MPH)
T
r
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········e. ..
••••••••••••••
········• .......
•• •• ........................................ .

I
Methodology and Calculations
City of San Rafael | Solid Waste Franchise Fee Study Report 14 of 20 ESAL loading) associated with each vehicle type (described in the prior subsection), the total impacts that the pavement will experience can be estimated in a mathematical calculation. Our analysis makes informed assumptions about the number of vehicle passes (meaning trips down streets) by type for the two major types of streets identified by the City in its P-TAP. Those two types of streets are: high traffic volume streets (namely arterial and collector streets) and low traffic volume streets (residential streets). Specific data for the City relating to the number of vehicle passes per day and the proportion of those passes that are comprised of trucks was not available for this Study.

For the low traffic residential streets, we used an estimate of 1,500 vehicle passes per day, which is larger than the 750 passes per day previously estimated by the City in the 2020 Vehicle Impact Fee Study. Using the higher figure of 1,500 passes per day reduces the proportionate impact from the Contractor’s solid waste collection vehicles and is thus more conservative than the calculation using 750 passes per day. We also estimated that 5% of residential traffic trips were made by trucks, and that value is higher than the 2% used in the prior study. While the prior 2% figure was validated by City Engineer, for the purposes of this study we use the higher 5% because it is more conversative than the 2% figure in that it also reduces the proportionate impacts from the Contractor’s solid waste collection vehicles.

For arterial and collector streets, we used an estimate of 15,000 passes per day, which is the same value used in the prior study. For the percentage of those trips that are trucks, we used a calculated value based on comparative traffic counts from the City of Torrance in 2023 (Attachment 3) and which is the same dataset that we used to estimate the average ESAL for “All other trucks” in Table 5. Attachment 3 calculates the average daily traffic counts for all vehicles on commercial streets in that city, with 87.7% of the average daily traffic count being comprised of passenger cars and motorcycles and the remaining 12.3% being comprised of trucks. For the purposes of this Study, we have assumed an even higher percentage of arterial and collector street traffic being trucks, at 15% of the average daily traffic. As with the prior assumptions, this value is conservative in that it returns a low proportionate value for the impacts to streets from the Contractor’s solid waste vehicles. Table 6, below, is a summary of the average daily vehicles passes and the percentage that are trucks assumptions used in this Study.

Table 6 – Vehicle Passes Per Day by Street Type
Street Type Vehicle Passes Per Day Percentage of Vehicle Passes That Are Trucks
Residential 1,500 5%
Arterial and Collector 15,000 15%
Vehicle Passes By Vehicle Type
The variables described in the prior subsection provide the overall number of vehicle passes per day, and the percentage of those passes that are trucks. To isolate the vehicle loading impacts to pavement associated with solid waste collection vehicles we need to determine the number of passes that those vehicles make per day. This is a relatively simple calculation based on the weekly schedule of collections for solid waste collection services. For the low traffic residential streets, solid waste collection operations are on a weekly schedule. Since weekly collections are on both sides of the street, each street is driven twice (once in each direction) by a minimum of Methodology and Calculations
City of San Rafael | Solid Waste Franchise Fee Study Report 15 of 20 one of each type of solid waste collection vehicle. For the purposes of this Study, we assume that each solid waste collection and vehicle makes two passes per week, or 0.286 passes per day on residential streets. This value does not account for the fact that some streets are driven on during non-route days so that collection vehicles can access streets on a given route, meaning that the actual average passes per week in the City must be higher than stated above.

Using the lower passes per week is conservative in that it returns a lower result for the street impacts from the Contractor’s solid waste vehicles. For the high traffic arterial and collector streets, which are primarily commercial, the schedule for solid waste collection can vary. Solid waste collection services may be provided up to five or six times a week for larger waste generators and may be as low as weekly for smaller generators. Additionally, because solid waste generators in commercial areas are not all on the same collection schedules as residential accounts are, vehicles in commercial areas pass over the same streets multiple times to serve accounts with different collection schedules.

For the purposes of this Study, for arterial and collector streets, we assume that solid waste collection vehicles collecting garbage for landfill disposal pass over each street two times per day (once in each direction), while solid waste collection vehicles for organics and recycling pass over each street once per day (one half in each direction). Total passes for organics and recycling collection vehicles are less because it is generally the case that service levels for garbage are at least twice those of the corresponding organics or recycling service level. As with the number of passes on residential streets, this value does not account for the fact that some streets are driven on during non-route days so that collection vehicles can access streets on a given route, meaning that the actual average passes per week in the City must be higher than stated above. Using the lower passes per week is conservative in that it returns a lower result for the pavement impacts from the Contractor’s solid waste vehicles.

The number of passes per day for the remaining vehicle types – automobiles and other trucks – are simply calculated as a function of the total number of daily passes, the total number of those that are trucks (based on the percentages discussed in the prior section), and the number of passes for solid waste collection vehicles. For example, for the City’s residential streets, given the assumed 1,500 passes per day and 5% (75) of those being trucks, there are 1,425 automobile passes per day (1,500 x 95%). With three types of solid waste collection vehicles each passing 0.286 times per day (as described above), the total passes per day are 0.857 (3 x

0.286). The number of passes for all other trucks is 74.143 (150 minus 0.857). Table 7, below, provides a summary of vehicle passes per day by street type.

Table 7 – Vehicle Passes Per Day by Vehicle Type and Street Type Vehicle Type Residential Streets Arterial and Collector Streets Automobiles (Passenger Cars) 1,425.000 12,750.000
Average of All Other Trucks 74.143 2,247.143
Solid Waste Vehicle (Garbage) 0.286 1.429
Solid Waste Vehicle (Organics) 0.286 0.714
Solid Waste Vehicle (Recycling) 0.286 0.714
Total 1,500 15,000
Methodology and Calculations
City of San Rafael | Solid Waste Franchise Fee Study Report 16 of 20 Percentage of Streets by Type
A final variable that needs to be addressed in the percentage of streets by type. This information is included in the City’s P-TAP, including the relative area by street type, as shown in Table 8, below.

Table 8 – Percentage of Streets by Type
Street Type Area (Square Yards) Percentage of Area
Residential 1,740,000 58.5%
Arterial 666,700 22.4%
Collector 568,000 19.1%
Total 2,974,700 100%
Analysis
Percentage Impact for Solid Waste and Street Sweeping Vehicles by Street Type With the variables for ESAL by vehicle type, the multiplication factor for the relative impacts of speed for solid waste collection vehicles on residential streets, and the number of passes by vehicle type established, we then calculate the relative percentage impact associated with each vehicle type. This is calculated as a function of ESAL multiplied by speed factor (residential streets only) multiplied by the number of weekly passes, multiplied by ESAL, with the product being the total vehicle loading pavement impact by vehicle type per week. Totaling the weekly total vehicle loading by vehicle types yields the total estimated loading experienced by each street type (residential vs. arterial and collector). From there, we calculate the percentage contribution to total vehicle loading for solid waste collection vehicles, which is the total weekly ESAL loading associated with solid waste collection vehicles divided by the total ESAL loading for the street.

Table 9, below, and Table 10, on the following page, show these calculations and the results.

Table 9 – Calculation of Solid Waste Pavement Impacts – Residential Streets

A B C D E F
Vehicle Type
Average
ESAL /
Vehicle
(Per Table
5)
Relative
Impact
from
Speed
Passes /
Day /
Vehicle
Type
(Per Table
7)
Passes /
Week /
Vehicle
Type
(C x 7)
Total
Weekly
ESAL
Loading
(A x B x D)
Percent of
Total
ESAL
Loading
(E / 27.85)
Automobiles 0.0008 1x 1,425.000 9,975 7.98 28.65%
All Other Trucks 0.0171 1x 74.143 519 8.87 31.86%
Garbage Vehicles 1.0000 2x 0.286 2 4.00 14.36%
Organic Material Vehicles 1.0000 2x 0.286 2 4.00 14.36% Recycling Vehicles 0.7500 2x 0.286 2 3.00 10.77%
Total 1,500 10,500 27.85 100%
Methodology and Calculations
City of San Rafael | Solid Waste Franchise Fee Study Report 17 of 20 As shown in Table 9, for the City’s residential streets we calculated the percentage impacts for solid waste vehicles to be 39.49% of total impacts to residential street pavement (14.36% times 2 plus 10.77%)
Table 10 – Calculation of Solid Waste Vehicle Impacts – Arterial and Collector Streets

A B C E F
Vehicle Type
Average
ESAL /
Vehicle
(Per Table 5)
Passes /
Day /
Vehicle Type
(Per Table 7)
Passes /
Week /
Vehicle Type
(B x 7)
Total Weekly
ESAL
Loading
(A x C)
Percent of
Total ESAL
Loading
(E / 359.13)
Automobiles 0.0008 12,750.000 89,250 71.40 19.88%
All Other Trucks 0.0171 2,247.143 15,730 268.98 74.90%
Garbage Vehicles 1.0000 1.429 10 10.00 2.78%
Organic Material Vehicles 1.0000 0.714 5 5.00 1.39%
Recycling Vehicles 0.7500 0.714 5 3.75 1.04%
Total 15,000 105,000 359.13 100%
For the City’s arterial and collector streets, Table 10 calculates the percentage impact from solid waste vehicles to be 5.22% of the total impacts (2.78% plus 1.39% plus 1.04%).

Average Annual Pavement Expenses
Per the P-TAP report, the City is projected to spend $4.2 million per year on pavement repair, maintenance, and rehabilitation. Additionally, the City spends approximately $187,000 annually for spot repair work not included in the P-TAP. Therefore, the total annual estimated City costs for pavement repair are $4,387,000.

Average Annualized Deferred Maintenance
In addition to contributing to annual pavement maintenance and rehabilitation costs, solid waste vehicles also contribute to deferred maintenance. The P-TAP report projects that deferred maintenance will increase by $15.3 million from 2023 to 2027, which is $3,830,500 annually.

Reduction for Pavement Subsurface Impacts
Expenditures for pavement maintenance repair impacts to pavement caused by vehicles, trench cutting and subsurface activities, as well as the environmental impacts associated with those same sources of primary impacts. We roughly estimate the impacts of trench cutting and subsurface activities on the City’s streets to be 10% of all pavement repair, maintenance, and rehabilitation costs. This leaves 90% of the average annual pavement management costs and average annualized deferred maintenance needs associated with vehicle impacts. This is demonstrated in Table 11, on the following page.

Methodology and Calculations
City of San Rafael | Solid Waste Franchise Fee Study Report 18 of 20 Table 11 – Average Annual Pavement Impacts from Vehicles Category Amount of Impacts
from All Sources
Reduction for
Subsurface Activities
Amount of Pavement
Impacts from
Vehicles
Average Annual
Pavement Expenses $4,387,000 -10% $3,948,000
Average Annualized
Deferred Maintenance $3,830,000 -10% $3,447,000
Total $8,217,000 -10% $7,395,000
Table 12 shows the breakdown of the average annual pavement impacts from all vehicles by street type, using the total from Table 11 above.

Table 12 –Total Pavement Impacts from Vehicles by Street Type Variable Residential Arterial and Collector Total
Percentage of Streets
by Type (From Table 8) 58.5% 41.5% 100%
Annual Pavement
Impacts from
Vehicles
$4,326,000 $3,069,000 $7,395,000
Total Annual Pavement Impacts
Calculating the total annual Pavement Impacts using the variables, estimates and assumptions from the prior section is a function of multiplication, as shown in Table 13, below.

Table 13 – Calculation of Total Pavement Impacts from Contractor’s Vehicles Variables Residential Arterial and Collector
Grand Total
Annual Pavement
Impacts from Vehicles
(From Table 12)
$4,326,000 $3,069,000
Percentage Impacts
from Contractor’s
Vehicles (From Tables 9
and 10)

39.49% 5.22%
Total $1,708,000 $160,000 $1,868,000

3. Findings and Conclusions
City of San Rafael | Solid Waste Franchise Fee Study Report 19 of 20 Franchise Fee
The FY 2022-23 Franchise Fee paid to the City was $2,757,168 and the projection for FY 2023-24 is $2,929,000.

R3 calculated reasonable estimates of the City’s Costs and Property Use Charges based on actual and estimated cost information provided by the City, and with reasonable and conversative assumptions for estimated values.

The sum of FY 2023-24 annual City’s Costs ($1,904,000) and Property Use Charges ($1,173,000) amounts calculated in this Study is $3,077,000.

The calculated amounts bear a reasonable relationship to the Contractor’s burdens on the City resulting from the management and administration of the Agreement and the sanitation system, and the reasonable value of the Contractor’s use of the public right-of-way. The City’s Costs have been reviewed and confirmed by City staff as being representative of the actual time and costs incurred for these activities. Amounts of Property Use Charges are proportionately allocated to the Contractor with due recognition of the realities of the Contractor’s operations.

The amounts calculated in this Study are $148,000 (5%) higher than the projected FY 2023- 24 Franchise Fee payments. It is highly unlikely, given the justification provided herein, that FY 2023-24 Franchise Fee payments will exceed the amounts calculated in this Study.

The projected FY 2023-24 Franchise Fee is less than would be justified by the calculations in this Study.

The Franchise Fee therefore is not more than necessary to cover the City’s reasonable costs incurred in managing and administering the Agreement and the sanitation system plus the reasonable value of the Contractor’s use of the public right-of-way.

Vehicle Impact Fee
The Vehicle Impact Fee paid to the City annually is $1,480,600.

R3 calculated reasonable estimates of the Pavement Impacts from Contractor’s solid waste collection vehicles based on quantifiable impacts from such vehicles.

The amount of Pavement Impacts calculated in this Study is $1,868,000.

The amount calculated Pavement Impacts bear a reasonable relationship to the Contractor’s burdens on the City resulting from the pavement impacts caused by Contractor’s solid waste collection vehicles. Calculations of Pavement Impacts have been proportionately allocated to the Contractor with due recognition of the impacts from loading, speed, number of trips, and other causes of pavement repair, maintenance, and rehabilitation needs.

The amounts calculated in this Study are $387,400 (26%) higher than the Vehicle Impact Fee.

The Vehicle Impact Fee is less than would be justified by the calculations in this Study.

The Vehicle Impact Fee there is not more than necessary to cover the City’s reasonable costs incurred for repair, maintenance, and rehabilitation of pavement. ))
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4. Recommendations
City of San Rafael | Solid Waste Franchise Fee Study Report 20 of 20 Annual Adjustments
All values calculated in this Study are in current FY 2023-24 dollars. Given that the City’s Costs, Property Use Charges, and Pavement Impacts will all tend to change over time in response to changing staffing, benefits, and other costs, it would be appropriate for the City to implement an annual adjustment to the Franchise Fee and Vehicle Impact Fee.

We recommend that the City consider including an automatic annual adjustment that would change the fees in proportion to the percentage change in the Consumer Price Index (CPI).

We recommend the CPI for All Urban Consumers (CPI-U) for the San Francisco Bay Area (U.S. Bureau of Labor Statistics series ID: CUURS49BSA0).

Sources and Uses Accounting
Currently, the City’s Costs and Property Use Charges are not tied to Franchise Fee revenues in the City’s accounting system. The City could implement project code accounting and/or enterprise fund accounting for the Franchise Fee to better track source revenues and their uses.

In either case, allocated and/or direct staffing and other costs could be tied to source revenues, while the Property Use Charges could be transferred out for general use.

We recommend that the City consider implementing sources and uses accounting practices for Franchise Fee revenues, City’s Costs, and Property Use Charges. 8 Periodic Recalculation
Over time, the City’s Costs associated with the Agreement and the sanitation system, the value of Property Use Charges for use of the public right-of-way, and the annualized costs associated with Pavement Impacts from the Contractor’s solid waste collection vehicles may change in ways that vary from the annual change in the CPI. Additionally, changes in City policies, programs, procedures, organization, geopolitical boundaries, laws, regulations, court rulings, and/or other factors may also trigger a need for recalculating fees.

We recommend that the City consider updating this Study periodically (e.g., every five years) or more frequently if needed to recalculate fees in response to other factors. 8 The Vehicle Impact Fee is recorded as revenue in the Gas Tax fund, from which pavement repair, maintenance and rehabilitation costs are paid.
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Attachment 1 City of San Rafael Franchise Fee Study 12-4-2023 Appendix D D-25
Tobie D.21. Worksheet for Calculating 18-kip Equivalent Single Axle Load (ESAL) Applications Location ____ E_xam_.;;..p_le_l ___ _ Analysis Period = __ 2_0 __ Years 911 Assumed SN or D = _ _ __ _
Current Growth Design E.S.A.L. pesign
Traffic Factors Traffic Factor E.S.A.L.

Vehicle Types (A) (B) (C) (D) (E)
2%
Passenger Cars 5,925 24.30 52,551,787 .0008 42,041
Buses 35 24.30 310,433 .6806 211,280
Panel and Pickup Trucks 1,135 24.30 10,066,882 .0122 122,816 Other 2-Axle/4-Tire Trucks 3 24.30 26,609 .0052 138
2-Axle/6-Tire Trucks 372 24.30 3,299,454 .1890 623,597
3 or More Axle Trucks 34 24.30 301,563 .1303 39,294
All Single Unit Trucks
3 Axle Tractor Semi-Trailers 19 24.30 168,521 .8646 145,703 4 Axle Tractor Semi-Trailers 49 24.30 434,606 .6560 285,101 5 + Axle Tractor Semi-Trailers 1,880 24.30 16,674,660 2.3719 39,550,626 All Tractor Semi-Trailers
5 Axle Double Trailers 103 24.30 913,559 2.3187 2,118,268 6 + Axle Double Trailers 0 24.30
All Double Trailer Combos
3 Axle Truck-Trailers 208 24.30 1,844,856 .0152 28,042
4 Axle Truck-Trailers 305 24.30 2,705,198 .0152 41,119
5 + Axle Truck-Trailers 125 24.30 1,108,688 .5317 589,489 All Truck-Trailer Combos
All Vehicles 10,193 90,406,816 Design 43,772,314 E.S.A.L.

Attachment 2 City of San Rafael Franchise Fee Study 12-4-2023 FHWA Truck Classes
Class Type I EALF
1 Motorcycles negligible
2 Passenger Cars negligible
3 Other Two-Axle, Four-Tire Single Unit Vehicles negligible 4 Buses 0.57
5 Two-Axle, Six-Tire, Single Unit Trucks 0.26
6 Three-Axle Single Unit Trucks 0.42
7 Four or More Axle Single Unit Trucks 0.42
8 Four or Less Axle Single Trailer Trucks 0.30
9 Five-Axle Single Trailer Trucks 1.20
10 Six or More Axle Single Trailer Trucks 0.93
11 Five or Less Axle Multi-Trailer Trucks 0.82
12 Six-Axle Multi-Trailer Trucks 1.06
13 Seven or More Axle Multi-Trailer Trucks 1.39
Attachment 2 City of San Rafael Franchise Fee Study 12-4-2023 FHW A s 13 ehicle Category Clas ification
Motorcycles Four or more
1----- ----------------- axle, single unit
Class l
Passenger cars
Class 3
Four tire,
single unit
Class 4
Buses
Class 5
Two axle, six
tire, single unit
Class 6
Three axle,
single unit
t--------------
1----- ------
t--------------
-
Class 8
Four or less axle,
s in g I e trailer
Class 9
5-Axle tractor
s emit ra ii er
Class 10
Six or more axle,
s in g I e trailer
Class 11
Five or less axle,
multi trailer
Class 11
1-----------Six axle, multitrailer
Class 13
Seven or more
axle. multi-trailer
ource: Federal Highway Admini tration (TMG 2013).
lllt-llllllt
IIIIJlllllla

2..
1 2
3 4
5 6
9 10
13 14
17 18
28 29
30 31
32 33
34 35
36 37
39 40
41 42
43 44
46 47
49 50
52 53
57 58
61 62
63 64
66 67
69 70
71 72
74 75
87 88
90 91
94 95
98 99
111
112
114
132
133
134
135
136
137
138
139
147
148
149
150
151
152

A B C D E F GH I J K LMNOPQRST U
Street Name From Location To Location Class 1 Class 2 Class 3 Class 4 Class 5 Class 6 Class 7 Class 8 Class 9 Class 10 Class 11 Class 12 Class 13 Torrance Blvd Victor St Anza Ave 29796 04/2018 1262 50% 79 26526 2054 152 866 67 5 21 26 0 0 00 29796 0% 89% 7% 1% 3% 0% 0% 0% 0% 0% 0% 0% 0% 100%
Torrance Blvd Madrona Ave Maple Ave 32572 04/2018 1486 51% 45 28713 2362 159 1166 61 16 26 24 0 0 00 32572 0% 88% 7% 0% 4% 0% 0% 0% 0% 0% 0% 0% 0% 100%
Torrance Blvd Arlington Ave Cabrillo Ave 29267 05/2018 1203 50% 62 26131 1574 111 625 505 49 53 48 5 32 40 32 29267 0% 89% 5% 0% 2% 2% 0% 0% 0% 0% 0% 0% 0% 100%
Crenshaw Blvd Redondo Beach BlvArtesia Blvd 32648 04/2018 1318 50% 61 29104 2563 110 726 37 5 14 28 0 0 00 32648 0% 89% 8% 0% 2% 0% 0% 0% 0% 0% 0% 0% 0% 100%
Crenshaw Blvd Artesia Blvd 182nd St 33944 04/2018 1475 54% 62 29796 2588 122 1258 69 7 18 24 0 0 00 33944 0% 88% 8% 0% 4% 0% 0% 0% 0% 0% 0% 0% 0% 100%
Crenshaw Blvd 182nd St 190th St 54327 04/2018 2186 52% 55 47269 4235 113 2415 47 5 99 89 0 0 00 54327 0% 87% 8% 0% 4% 0% 0% 0% 0% 0% 0% 0% 0% 100%
Crenshaw Blvd 190th St Del Amo Blvd 49516 04/2018 1931 51% 49 42896 3828 108 2162 128 0 123 222 0 0 00 49516 0% 87% 8% 0% 4% 0% 0% 0% 0% 0% 0% 0% 0% 100%
Crenshaw Blvd Del Amo Blvd Dominguez St 47718 04/2018 2074 53% 54 41416 3749 125 2165 36 0 62 111 0 0 00 47718 0% 87% 8% 0% 5% 0% 0% 0% 0% 0% 0% 0% 0% 100%
Crenshaw Blvd Torrance Blvd El Dorado St 45215 04/2018 1835 52% 59 39890 3489 87 1465 27 4 102 92 0 0 00 45215 0% 88% 8% 0% 3% 0% 0% 0% 0% 0% 0% 0% 0% 100%
Crenshaw Blvd Carson St Sepulveda Blvd 44936 04/2018 1770 51% 61 38281 4119 97 2043 80 8 130 117 0 0 00 44936 0% 85% 9% 0% 5% 0% 0% 0% 0% 0% 0% 0% 0% 100%
Crenshaw Blvd Sepulveda Blvd 235th St 50785 04/2018 2004 51% 46 43831 4455 120 1949 65 1 118 200 0 0 00 50785 0% 86% 9% 0% 4% 0% 0% 0% 0% 0% 0% 0% 0% 100%
Crenshaw Blvd Lomita Blvd Skypark Dr 41290 04/2018 1846 55% 62 35390 3650 122 1761 51 7 130 117 0 0 00 41290 0% 86% 9% 0% 4% 0% 0% 0% 0% 0% 0% 0% 0% 100%
Crenshaw Blvd Pacific Coast Hwy South City Limit 33219 04/2018 1546 55% 91 28665 3297 56 1049 40 0 6 15 0 0 00 33219 0% 86% 10% 0% 3% 0% 0% 0% 0% 0% 0% 0% 0% 100%
Del Amo Blvd Victor St Anza Ave 21330 04/2018 1040 56% 80 18735 1880 47 545 20 8 11 4 0 0 00 21330 0% 88% 9% 0% 3% 0% 0% 0% 0% 0% 0% 0% 0% 100%
Del Amo Blvd Maple Ave Crenshaw Blvd 28001 04/2018 1336 57% 48 23933 2202 176 1386 73 22 100 51 10 0 0 0 28001 0% 85% 8% 1% 5% 0% 0% 0% 0% 0% 0% 0% 0% 100%
Artesia Blvd Hawthorne Blvd Prairie Ave 34571 05/2018 1270 50% 122 30839 1595 233 711 635 158 22 111 25 14 50 56 34571 0% 89% 5% 1% 2% 2% 0% 0% 0% 0% 0% 0% 0% 100%
Artesia Blvd Ainsworth Ave Yukon Ave 32714 06/2018 1592 66% 149 27864 2889 79 1836 16 0 9 2 0 0 00 32844 0% 85% 9% 0% 6% 0% 0% 0% 0% 0% 0% 0% 0% 100%
Artesia Blvd Crenshaw Blvd Van Ness Ave 32897 05/2018 1366 59% 535 28709 1571 110 903 601 192 35 103 22 28 104 74 32987 2% 87% 5% 0% 3% 2% 1% 0% 0% 0% 0% 0% 0% 100%
Redondo Beach BlvHawthorne Blvd Prairie Ave 24076 06/2018 8963 56% 20 21007 1944 111 950 21 7 8 8 0 0 00 24076 0% 87% 8% 0% 4% 0% 0% 0% 0% 0% 0% 0% 0% 100%
Redondo Beach BlvPrairie Ave Yukon Ave 32187 05/2018 1334 54% 33 29927 1279 120 402 261 22 47 22 2 32 23 17 32187 0% 93% 4% 0% 1% 1% 0% 0% 0% 0% 0% 0% 0% 100%
Redondo Beach BlvCrenshaw Blvd Van Ness Ave 31183 06/2018 1485 59% 48 27555 2483 111 864 36 3 15 68 0 0 00 31183 0% 88% 8% 0% 3% 0% 0% 0% 0% 0% 0% 0% 0% 100%
Hawthorne Blvd Pacific Coast Hwy South City Limit 35335 06/2018 1634 61% 45 30266 2981 116 1201 120 26 164 311 2 103 0 0 35335 0% 86% 8% 0% 3% 0% 0% 0% 1% 0% 0% 0% 0% 100%
Sepulveda Blvd Palos Verdes Blvd Anza Ave 25198 05/2018 1142 58% 67 22574 1546 50 525 329 41 13 18 3 11 12 9 25198 0% 90% 6% 0% 2% 1% 0% 0% 0% 0% 0% 0% 0% 100%
Sepulveda Blvd Madrona Ave Maple Ave 45820 04/2018 2109 58% 79 41604 2602 140 1362 18 3 6 2 4 0 00 45820 0% 91% 6% 0% 3% 0% 0% 0% 0% 0% 0% 0% 0% 100%
Sepulveda Blvd Arlington Ave Cabrillo Ave 48933 04/2018 2339 64% 47 43059 3813 116 1845 33 2 8 10 0 0 00 48933 0% 88% 8% 0% 4% 0% 0% 0% 0% 0% 0% 0% 0% 100%
Palos Verdes Blvd Sepulveda Blvd Prospect Ave 15126 06/2018 798 57% 13 12696 1614 9 761 16 3 11 3 0 0 00 15126 0% 84% 11% 0% 5% 0% 0% 0% 0% 0% 0% 0% 0% 100%
Palos Verdes Blvd Catalina Ave Calle Miramar 27158 04/2018 1304 61% 49 23375 2580 52 1067 15 0 6 14 0 0 00 27158 Class 1 Class 2 Class 3 Class 4 Class 5 Class 6 Class 7 Class 8 Class 9 Class 10 Class 11 Class 12 Class 13 TOTALS 2121 840051 72942 2952 34008 3407 594 1357 1840 73 220 229 188 959982 PERCENTAGES OF TOTAL 0.2% 87.5% 7.6% 0.3% 3.5% 0.4% 0.1% 0.1% 0.2% 0.0% 0.0% 0.0% 0.0% 100%

PERCENT OF TRAFFIC
FOR "ALL OTHER
TRUCKS"

12.27%

ESAL SOURCE
Load Factor 0.0008 - 0.0122 0.5700 0.2600 0.4200 0.4200 0.3000 1.2000 0.9300 0.8200 1.0600 1.3900 Weighted Load Factor 0.0007 - 0.0009 0.0018 0.0092 0.0015 0.0003 0.0004 0.0023 0.0001 0.0002 0.0003 0.0003

TOTAL WEIGHTED ESAL
FOR "ALL OTHER
TRUCKS"
Other Truck Weighted Load Factor 0.0018 0.0092 0.0015 0.0003 0.0004 0.0023 0.0001 0.0002 0.0003 0.0003 0.0009 0.0171 AASHTO Federal Highway Administration
CALCULATION OF WEIGHTED ESAL FOR "ALL OTHER TRUCKS"
ADT (or AADT) by Vehicle Classification
HPMS Traffic Data Sought - City of Torrance 5/19/2023
Section Identification Current Traffic Data ADT (or AADT) by Vehicle Classification ADT
Month & Year
of Traffic
Count
(MM/YYYY)
Peak
Hour
Volume
D Factor
https://r3cgi.sharepoint.com/Shared Documents/R3 Shared/+Projects/2023 FRANCHISE FEE STUDIES/Anaheim/+ Expert Witness Files/REPORT ATTACHMENTS/3 - Attachment Z - All Other Truck Average ESAL / Torrance Data Attachment 3 City of San Rafael Franchise Fee Study 12-4-2023 -
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ESAL Calc

RESIDENTIAL ESAL CALCS

SOLID WASTE

MODEL AXLE WEIGHT DISTRIBUTIONS
Front 50% Front 35.8% Front 43%
Rear 50% Rear 64.2% Rear 57%

MODEL AXLE WEIGHTS
Empty Payload
Total Weight 32,620 Total Weight 48,700 Total Weight 40,660 Front 16,276 Front 17,420 Front 16,848
Rear 16,344 Rear 31,280 Rear 23,812
48,700 32,620 40,660 16,080

8.04 DETERMINE SAE OF SOLID WASTE VEHICLES
Gross Axle
Weight Single Axle Double Axle Triple Axle

0.010 0.001 0.0003 6,000

0.034 0.003 0.001 8,000

0.088 0.007 0.002 10,000
Empty 0.189 0.014 0.003 12,000
Single Front Double Rear 0.360 0.027 0.006 14,000
weight 16,276 weight 16,344 16,000 0.623 0.047 0.011
SAE 0.675 SAE 0.052 Total SAE= 0.727 18,000 1.000 0.077 0.017 20,000 1.510 0.121 0.027
Full 22,000 2.180 0.180 0.04
Single Front Double Rear 3.030 0.260 0.057 24,000
weight 17,420 weight 31,280 26,000 4.090 0.364 0.08
SAE 0.891 SAE 0.771 Total SAE= 1.662 28,000 5.390 0.495 0.109 30,000 6.970 0.658 0.145
Average = 1.195 32,000 8.880 0.857 0.191
34,000 11.180 1.095 0.246
Half Full 13.930 1.380 0.313 36,000
Single Front Double Rear 17.200 1.700 0.393 38,000
weight 16,848 weight 23,812 40,000 21.080 2.080 0.487
SAE 0.783 SAE 0.252 Total SAE = 1.035 42,000 25.640 2.510 0.597

RESIDENTIAL ESAL CALCS

RECYCLABLES

MODEL AXLE WEIGHT DISTRIBUTIONS
Front 50% Front 41.5% Front 46%
Rear 50% Rear 58.5% Rear 54%

MODEL AXLE WEIGHTS
Empty Payload
Total Weight 32,620 Total Weight 40,640 Total Weight 36,630 Front 16,276 Front 16,847 Front 16,561
Rear 16,344 Rear 23,793 Rear 20,069
40,640 32,620 36,630 8,020

4.01 SAE Equivalents
Empty Full (Average Payload) Half Full
Full (Average Payload) Half Full
Empty Full (Average Payload) Half Full
Full (Average Payload) Half Full
https://r3cgi.sharepoint.com/Shared Documents/R3 Shared/+Projects/2023 FRANCHISE FEE STUDIES/Anaheim/+ Expert Witness Files/REPORT ATTACHMENTS/4 - Refuse Vehicle ESAL calcs / ESAL Calc
Attachment 4 City of San Rafael Franchise Fee Study 12-4-2023 I I
I I
I
I I
ESAL Calc

DETERMINE SAE OF RECYCLING VEHICLES
Gross Axle
Weight Single Axle Double Axle Triple Axle

0.010 0.001 0.0003 6,000

0.034 0.003 0.001 8,000

0.088 0.007 0.002 10,000
Empty 0.189 0.014 0.003 12,000
Single Front Double Rear 0.360 0.027 0.006 14,000
weight 16,276 weight 16,344 16,000 0.623 0.047 0.011
SAE 0.675 SAE 0.052 Total SAE= 0.727 18,000 1.000 0.077 0.017 20,000 1.510 0.121 0.027
Full 22,000 2.180 0.180 0.04
Single Front Double Rear 3.030 0.260 0.057 24,000
weight 16,847 weight 23,793 26,000 4.090 0.364 0.08
SAE 0.783 SAE 0.252 Total SAE= 1.034 28,000 5.390 0.495 0.109 30,000 6.970 0.658 0.145
Average = 0.881 32,000 8.880 0.857 0.191
34,000 11.180 1.095 0.246
Half Full 13.930 1.380 0.313 36,000
Single Front Double Rear 17.200 1.700 0.393 38,000
weight 16,561 weight 20,069 40,000 21.080 2.080 0.487
SAE 0.729 SAE 0.056 Total SAE = 0.784 42,000 25.640 2.510 0.597

RESIDENTIAL ESAL CALCS

GREEN WASTE

MODEL AXLE WEIGHT DISTRIBUTIONS
Front 50% Front 35.8% Front 43%
Rear 50% Rear 64.2% Rear 57%

MODEL AXLE WEIGHTS
Empty Payload
Total Weight 32,620 Total Weight 47,100 Total Weight 39,860 Front 16,276 Front 17,306 Front 16,791
Rear 16,344 Rear 29,794 Rear 23,069
47,100 32,620 39,860 14,480

8.04 DETERMINE SAE OF YARD WASTE VEHICLES
Gross Axle
Weight Single Axle Double Axle Triple Axle

0.010 0.001 0.0003 6,000

0.034 0.003 0.001 8,000

0.088 0.007 0.002 10,000
Empty 0.189 0.014 0.003 12,000
Single Front Double Rear 0.360 0.027 0.006 14,000
weight 16,276 weight 16,344 16,000 0.623 0.047 0.011
SAE 0.675 SAE 0.052 Total SAE= 0.727 18,000 1.000 0.077 0.017 20,000 1.510 0.121 0.027
Full 22,000 2.180 0.180 0.04
Single Front Double Rear 3.030 0.260 0.057 24,000
weight 17,306 weight 29,794 26,000 4.090 0.364 0.08
SAE 0.869 SAE 0.641 Total SAE= 1.510 28,000 5.390 0.495 0.109 30,000 6.970 0.658 0.145
Average = 1.119 32,000 8.880 0.857 0.191
SAE Equivalents
SAE Equivalents
Empty Full (Average Payload) Half Full
Full (Average Payload) Half Full
https://r3cgi.sharepoint.com/Shared Documents/R3 Shared/+Projects/2023 FRANCHISE FEE STUDIES/Anaheim/+ Expert Witness Files/REPORT ATTACHMENTS/4 - Refuse Vehicle ESAL calcs / ESAL Calc
Attachment 4 City of San Rafael Franchise Fee Study 12-4-2023 I I
I I
I
I I
I I
I I
I I
ESAL Calc

11.180 1.095 0.246 34,000
Half Full 13.930 1.380 0.313 36,000
Single Front Double Rear 17.200 1.700 0.393 38,000
weight 16,791 weight 23,069 40,000 21.080 2.080 0.487
SAE 0.772 SAE 0.223 Total SAE = 0.995 42,000 25.640 2.510 0.597 https://r3cgi.sharepoint.com/Shared Documents/R3 Shared/+Projects/2023 FRANCHISE FEE STUDIES/Anaheim/+ Expert Witness Files/REPORT ATTACHMENTS/4 - Refuse Vehicle ESAL calcs / ESAL Cal
Attachment 4 City of San Rafael Franchise Fee Study 12-4-2023 Attachment 5
City of San Rafael Franchise Fee Study 12-4-2023 • • •
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Attachment 6 City of San Rafael Franchise Fee Study 12-4-2023

PUBLISHED BY THE

AMERICAN ASSOCIATION OF STATE HIGHWAY AND TRANSPORTATION OFFICIALS Attachment 6 City of San Rafael Franchise Fee Study 12-4-2023 D-6 Design of Pa1·e,.

Table D.4. Axle Load Equivalency Factors for Flexible Pavements,i._8jngle Axles and p1 .Axle Load Pavement Structural Number (SN)
(kips) 1 2 3 4
2 .0004 .0004 .0003 .0002 .0002
4 .003 .004 .004 .003 02_
6 .011 .017 .017 .013 .0lOv'
8 .032 .047 .051 .041 .034
IO .078 .102 .118 .102 .088
12 .168 . 198 .229 .213 .189
14 .328 .358 .399 .388 .360
16 .591 .613 .646 .645 .623
18 1.00 1.00 1.00 1.00 1.00
20 1.61 1.57 1.49 1.47 l 1.51
22 2.48 2.38 2.17 2.09 2. 18
24 3.69 3.49 3.09 2.89 3.03
26 5.33 4.99 4.31 3.91 4.09
28 7.49 6.98 5.90 5.21 5.39
30 10.3 9.5 7.9 6.8 7.0
32 13.9 12.8 10.5 8.8 8.9
34 18.4 16.9 13.7 11.3 11.2
36 24.0 22.0 17.7 14.4 13.9
38 30.9 28.3 22.6 18.1 , 17.2
40 39.3 35.9 28.5 22.5 21.1
42 49.3 45.0 35.6 27.8 _25.6
44 - 6T_f ___ 55.9 44.0 34.0 31.0
46 75.5 68.8 54.0 41.4 37.2
48 92.2 83.9 65.7 50.1 44.5
50 112. 102. 79. 60. 53.

Attachment 6 City of San Rafael Franchise Fee Study 12-4-2023 D-7
.. D.S. Axle Load Equivalency Factors for Flexible Pavements, Tandem les and Pt of 2.5 Pavement Structural Number (SN)
1 2 3 4 s 6
.0001 .0001 .0001 .0000 .0000 .0000
.0005 .0005 .0004 .0003 .0003 .0002
.002 .002 .002 .001 001 ✓ .001
.004 .006 .005 .004 .003 .003
.008 .013 .011 .009 .007 .006
.015 .024 .023 .018 .014 .013
.026 .041 .042 .033 .027 .024
.044 .065 .070 .057 .047 .043
.070 .097 .109 .092 .077 .070
.107 .141 .162 .141 .121 .llO
.160 .198 .229 .207 .180 .166
.231 .273 .3 15 .292 .260 .242
.327 .370 .420 .401 .364 .342
.451 .493 .548 .534 .495 .470
.611 .648 .703 .695 .658 .633
.813 .843 .889 .887 .857 .834

1.06 1.08 1.11 1.11 1.09 1.08

1.38 1.38 1.38 1.38 1.38 1.38

1.75 1.73 1.69 1.68 1.70 1.73

2.21 2.16 2.06 2.03 ' 2.08 2. 14

2.76 2.67 2.49 2.43 2.51 2.61

3.4 1 3.27 2.99 2.88 3.00 3.16

4.18 3.98 3.58 3.40 3.55 3.79

5.08 4.80 4.25 3.98 4.17 4.49

6.12 5.76 5.03 4.64 4.86 5.28

7.33 6.87 5.93 5.38 5.63 6.17

8.72 8.14 6.95 6.22 6.47 7.15

10.3 9.6 8.1 7.2 7.4 8.2

12.1 11.3 9.4 8.2 8.4 9.4

14.2 13.1 10.9 9.4 9.6 10.7

16.5 15.3 12.6 10.7 10.8 12.1

19.1 17.6 14.5 12.2 12.2 13.7

22.1 20.3 16.6 13.8 13.7 15.4

25.3 23.3 18.9 15.6 15.4 17.2

29.0 26.6 21.5 17.6 17.2 19.2

33.0 30.3 24.4 19.8 19.2 21.3

37.5 34.4 27.6 22.2 21.3 23.6

42.5 38.9 31.1 24.8 23.7 26.1

48.0 43.9 35.0 27.8 26.2 28.8

54.0 49.4 39.2 30.9 29.0 31.7

60.6 55.4 43.9 34.4 32.0 34.8

67.8 61.9 49.0 38.2 35.3 38. I

75.7 69.1 54.5 42.3 38.8 41.7

84.3 76.9 60.6 46.8 42.6 45.6

93.7 85.4 67.1 51.7 46.8 49.7
Exhibit B - Cost of Service Fee, Refuse Vehicle Impact Fee, and Franchise Fee The City adopts the Cost of Service Fee, Refuse Vehicle Impact Fee, and Franchise Fee set forth below. Amounts shown are annual calendar year figures effective January 1, 2025 through December 31, 2025.

Cost of Service Fee - $1,945,401
Refuse Vehicle Impact Fee - $1,480,601
Franchise Fee - $1,216,000
Effective January 1, 2026, and annually every January 1st thereafter, the Cost of Service Fee and the Franchise Fee shall be adjusted in proportion to the annual percentage change in the Consumer Price Index for All Urban Consumers (CPI-U) for the San Francisco Bay Area (U.S. Bureau of Labor Statistics series ID: CUURS49BSA0). The Vehicle Impact Fee is not subject to annual adjustment.

CITY OF SAN RAFAEL

EXHIBIT C - SCHEDULE OF RATES

RESIDENTIAL REFUSE COLLECTION RATES
Rate increase: 5.24%
Effective date: 01/01/2025
Weekly Service Rates (Billed Quarterly)
Monthly Rate Quarterly Rate Monthly Rate Quarterly Rate 20 gallon cart $47.69 $143.07 $54.00 $162.00
32 gallon cart $56.10 $168.30 $63.55 $190.65
64 gallon cart $112.20 $336.60 $127.10 $381.30
96 gallon cart $168.30 $504.90 $190.65 $571.95
Low income - 20 gal* cart $38.15 $114.45 $43.20 $129.60 Low income - 32 gal* cart $44.88 $134.64 $50.84 $152.52 Low income - 64 gal* cart $89.76 $269.28 $101.68 $305.04 Low income - 96 gal* cart $134.64 $403.92 $152.52 $457.56 Senior rate**Discontinued $39.60 $118.80 $50.43 $151.29 Additional Organics Cart Rental $3.00 $9.00 $3.00 $9.00 (35 or 64 gallon cart)
Additional Split Cart Rental $3.00 $9.00 $3.00 $9.00
(64 or 96 gallon cart)
Additional Monthly Charges Monthly Fee Quarterly Fee
(per cart, each way)
Distance 0' - 50' $7.27 $21.81
Distance Over 50' $14.74 $44.22
Additional Service Fees per Occurrence Fee
Return Fees - Off day $25.00
Return Fees - Same day $10.00
Resume Service/Late Fee $35.00
Contamination (cart) any size cart $30.00
Overload/Overweight (cart) $25.00
Extra bag garbage $15.00
Extra bag yard waste $10.00
Steam Clean (cart) $15.00
Special Collection $35.00
Special Handling (Bulky items) $30.00
Bulky item fees per item Fees Vary
Cart Strap Set-up Admin Fee $25.00
20 Gal Cart Replacement Fee $55.00
32 Gal Cart Replacement Fee $60.00
64 Gal Cart Replacement Fee $65.00
96 Gal Cart Replacement Fee $75.00
64 Gal Split Cart Replacement Fee $90.00
96 Gal Split Cart Replacement Fee $100.00
*Must meet PG&E CARE program eligibility requirements.
**Customers with these rates prior to 2005 will keep the existing rate type. No new customers will be added with this rate type.

ONE TIME SERVICE FEES REOCCURING CHARGES
Residential Service (Bundled service includes 1 landfill (garbage) cart, 1 organics cart, & 1 recycling split cart ) Flat rate Hill Rate
NOTE: We may not be able to accommodate any collection requests NOT at the curb due to a variety of factors including safety, accessibility, and efficiency. Requests to be assessed and approved by Route Manager.

CITY OF SAN RAFAEL

EXHIBIT C - SCHEDULE OF RATES

COMMERCIAL REFUSE MONTHLY COLLECTION RATES
Rate increase: 5.24%
Effective date: 01/01/2025

COMMERCIAL CARTS, BINS, ROLL-OFFS
Garbage 1 2 3 4 5 6
20 gallon cart* $47.69 $95.38 $143.07 $190.76 $238.45 $286.14 $11.01 32 gallon cart $55.72 $111.44 $167.16 $222.88 $278.60 $334.32 $12.86 64 gallon cart $111.44 $222.88 $334.32 $445.76 $557.20 $668.64 $25.72 96 gallon cart $167.16 $334.32 $501.48 $668.64 $835.80 $1,002.96 $38.58 1 yard bin $362.16 $731.28 $1,107.34 $1,490.46 $1,880.43 $2,277.35 $83.58 2 yard bin $532.49 $1,223.43 $1,856.00 $2,502.48 $3,162.89 $3,837.21 $122.88 3 yard bin $693.10 $1,290.65 $1,967.38 $2,664.85 $3,383.30 $4,122.60 $159.95 4 yard bin $988.77 $1,827.85 $2,783.44 $3,766.97 $4,511.10 $5,817.49 $228.18 5 yard bin $1,069.58 $2,151.10 $3,278.97 $4,441.45 $5,638.89 $6,871.00 $246.83 6 yard bin $1,269.78 $2,581.32 $3,934.73 $5,329.80 $6,766.61 $8,245.22 $293.03 10 yard roll-off $1,789.69 $3,662.49 $5,620.67 $7,661.30 $9,785.51 $11,993.15 $413.01 18 yard roll-off $3,214.47 $6,579.40 $10,094.58 $13,760.08 $17,575.90 $21,542.11 $741.80 20 yard roll-off $3,571.75 $7,310.42 $11,216.17 $15,288.94 $19,528.78 $23,935.63 $824.25 25 yard roll-off $4,996.30 $10,226.48 $15,075.71 $20,549.69 $26,248.43 $32,171.73 $1,152.99 Organics (F2E or Compost) 1 23456
Additional One
Time Empty/On
Call
32 gallon $23.11 $46.22 $69.33 $92.44 $115.55 $138.66 $5.33 64 gallon $46.22 $92.44 $138.66 $184.88 $231.10 $277.32 $10.67 1 yard $161.72 $323.44 $485.16 $646.88 $808.60 $970.32 $37.32 2 yard $323.44 $646.88 $970.32 $1,293.76 $1,617.20 $1,940.64 $74.64 3 yard $485.16 $970.32 $1,455.48 $1,940.64 $2,425.80 $2,910.96 $111.96 10 yard roll-off $1,252.78 $2,505.56 $3,758.34 $5,011.12 $6,263.90 $7,516.68 $289.10 18 yard roll-off $2,255.00 $4,510.00 $6,765.00 $9,020.00 $11,275.00 $13,530.00 $520.38 20 yard roll-off $2,505.56 $5,011.12 $7,516.68 $10,022.24 $12,527.80 $15,033.36 $578.21 25 yard roll-off $3,131.95 $6,263.90 $9,395.85 $12,527.80 $15,659.75 $18,791.70 $722.76 Garbage Compactors (Per empty)
Roll-off Compactor Tipping fee per ton $153.82 Roll-off Compactor Hauling charge $345.73 Stationary FL (Per Compacted Yard) $133.58 Roll-off Compactor Special handling Rates Vary Service Fee Details
Lock $25.00 Monthly fee per collection and commodity
Box rental Fees Vary Minimum Bimonthly fee
Minimum Load ML Fees Vary
Distance < 50ft $7.27 Monthly fee per cart, each way
Distance > 50ft $14.74 Monthly fee per cart, each way
On Call rate only available with approval from Route Manager Commercial Service Fees Fee
Return Fee - BIN $75.00
Return Fee - CART -same day $10.00
Return Fee - CART -off day $25.00
Late Fee/Resume Service Fee $35.00
Contamination (BIN) $50.00
Contamination (CART) $30.00
Overload/Compaction (BIN) $60.00
Overload/Compaction (CART) $25.00
Additional Empty/Bag Garbage $15.00
Additional Empty BIN Fees vary
Extra Bag Yard Waste $15.00
Steam Clean (1-6 yard BIN) $95.00
Steam Clean (CART) $15.00
Steam Clean (COMPACTOR/ROLL-OFF) $225.00
Lock Set-up Admin Fee $25.00
Lock Single Use Fee $5.00
Lock Purchase Fee $20.00
Lock Bar Bin Set-up Fee $75.00
Overweight Charge Per Ton* $205.00
20 Gal Cart Replacement Fee $55.00
32 Gal Cart Replacement Fee $60.00
64 Gal Cart Replacement Fee $65.00
96 Gal Cart Replacement Fee $75.00
64 Gal Split Cart Replacement Fee $90.00
96 Gal Split Cart Replacement Fee $100.00
Bin Repair/Replacement Fee** Fees vary
*(Boxes exceeding 300lbs/yard)
**Fees vary by size up to $1,200, not to exceed current replacement value.

NOTE: All container types and sizes may not be available at all locations depending on a variety of factors including safety, accessibility, and efficiency. Requests to be assessed and approved by Route Manager.

ONE TIME SERVICE FEES REOCCURING CHARGES
Collections per Week
Monthly fee
Additional One
Time Empty/On
Call
Other Charges
* Customers must have a sufficient level of service for the volume of material generated. Requests for 20gal carts require assessment and approval of a Route Manager.

CITY OF SAN RAFAEL

EXHIBIT C - SCHEDULE OF RATES

MULTI-FAMILY DWELLING REFUSE MONTHLY COLLECTION RATES
Rate increase: 5.24%
Effective date: 01/01/2025

MFD CARTS, BINS, ROLL-OFFS
Garbage 1 23456
20 gallon cart* $47.69 $95.38 $143.07 $190.76 $238.45 $286.14 $11.01 32 gallon cart $56.10 $112.20 $168.30 $224.40 $280.50 $336.60 $12.95 64 gallon cart $112.20 $224.40 $336.60 $448.80 $561.00 $673.20 $25.89 96 gallon cart $168.30 $336.60 $504.90 $673.20 $841.50 $1,009.80 $38.84 32 gallon - hill $63.55 $127.10 $190.65 $254.20 $317.75 $381.30 $14.67 64 gallon - hill $127.10 $254.20 $381.30 $508.40 $635.50 $762.60 $29.33 96 gallon - hill $190.65 $381.30 $571.95 $762.60 $953.25 $1,143.90 $44.00 1 yard bin $348.99 $703.53 $1,063.71 $1,429.43 $1,800.69 $2,177.49 $80.54 2 yard bin $532.49 $1,220.62 $1,847.65 $2,485.76 $3,135.07 $3,795.47 $122.88 3 yard bin $693.10 $1,270.28 $1,930.51 $2,607.42 $3,301.00 $4,011.23 $159.95 4 yard bin $988.77 $1,822.30 $2,766.69 $3,733.54 $4,636.04 $5,733.94 $228.18 5 yard bin $1,069.58 $2,117.14 $3,217.45 $4,345.58 $5,501.60 $6,685.46 $246.83 6 yard bin $1,253.58 $2,540.59 $3,860.94 $5,214.72 $6,601.92 $8,022.49 $289.29 10 yard roll-off $1,789.69 $3,662.49 $5,620.67 $7,661.30 $9,785.51 $11,993.15 $413.01 18 yard roll-off $3,214.47 $6,579.40 $10,094.58 $13,760.08 $17,575.90 $21,542.11 $741.80 20 yard roll-off $3,571.75 $7,310.42 $11,216.17 $15,288.94 $19,528.78 $23,935.63 $824.25 25 yard roll-off $4,996.30 $10,226.48 $15,075.71 $20,549.69 $26,248.43 $32,171.73 $1,152.99 Organics 1 23456
Additional One
Time Empty/ on
Call
Additional Organics Cart Rental $3.00 $6.00 $9.00 $12.00 $15.00 $18.00 NA (35 gallon cart) after 4 TOTAL carts per cart per
month
Additional Organics Cart Rental $3.00 $6.00 $9.00 $12.00 $15.00 $18.00 NA (64 gallon cart) after 4 TOTAL carts per cart per
month.
1 yard $161.72 $323.44 $485.16 $646.88 $808.60 $970.32 $37.32 2 yard $323.44 $646.88 $970.32 $1,293.76 $1,617.20 $1,940.64 $74.64 3 yard $485.16 $970.32 $1,455.48 $1,940.64 $2,425.80 $2,910.96 $111.96 Garbage Compactors (Per empty)
Roll-off Compactor Tipping fee per ton $153.82 Roll-off Compactor Hauling charge $345.73 Stationary FL (Per Compacted Yard) $133.58 Roll-off Compactor Special handling Rates Vary Service Fee Details
Lock $25.00 Monthly fee per collection and commodity
Box rental Fees Vary Minimum Bimonthly fee
Minimum Load ML Fees Vary
Distance < 50ft $7.27 Monthly fee per cart, each way
Distance > 50ft $14.74 Monthly fee per cart, each way
On Call rate only available with approval from Route Manager MFD One Time Service Fees Fee
Return Fee - BIN $75.00
Return Fee - CART -same day $10.00
Return Fee - CART -off day $25.00
Late Fee/Resume Service Fee $35.00
Contamination (BIN) Per Yard $50.00
Contamination (CART) $30.00
Overload/Compaction (BIN) $60.00
Overload/Compaction (CART) $25.00
Additional Empty/Bag Garbage $15.00
Extra Bag Yard Waste $10.00
Additional Empty Garbage Fees vary
Steam Clean (BIN) $95.00
Steam Clean (CART) $15.00
Steam Clean (COMPACTOR/ROLL-OFF) $225.00
Lock Set-up Admin Fee $25.00
Lock Single Use Fee $5.00
Lock Purchase Fee $20.00
Lock Bar Bin Set-up Fee $75.00
Overweight Charge Per Ton* $205.00
20 Gal Cart Replacement Fee $55.00
32 Gal Cart Replacement Fee $60.00
64 Gal Cart Replacement Fee $65.00
96 Gal Cart Replacement Fee $75.00
64 Gal Split Cart Replacement Fee $90.00
96 Gal Split Cart Replacement Fee $100.00
Bin Repair/Replacement Fee** Fees vary by size
up to $1,200
*(Boxes exceeding 300lbs/yard)
**Fees vary by size not to exceed current replacement value.

NOTE: All container types and sizes may not be available depending on a variety of factors including safety, accessibility, and efficiency. Requests to be assessed and approved by Route Manager.

NOTE: Minimum service level is 32 gallons per unit or equivalent volume. Decrease to 20 gallon per unit is subject to company review and approval.

NOTE: Up to four (4) Organics carts provided at no additional charge. Additional carts may be rented for a nominal monthly fee.

REOCCURING CHARGES
Collections per Week Additional One
Time Empty/On
Call
Other Charges

ONE TIME SERVICE FEES
Monthly fee

FINAL REPORT
City of San Rafael
Submitted electronically on October 22, 2020
submitted electronically: October 21, 2024
Review of Marin Sanitary Service’s
2025 Rate Application
450 14th Street, Suite 350, Oakland, CA 94612 | p 916.782.7821 | f 916.782.7824 | www.r3cgi.com October 21, 2024
John Stefanski
Assistant City Manager
City of San Rafael
1400 Fifth Avenue
San Rafael, CA 94919
submitted via email: [email protected] SUBJECT: Final Report – Review of Marin Sanitary Service’s 2025 Rate Application Dear Mr. Stefanski,
R3 Consulting Group, Inc. (R3) is pleased to submit this report detailing the results of our review of Marin Sanitary Service’s (MSS’s) 2025 rate application for the City of San Rafael.

This review was conducted pursuant to R3’s engagement with the seven agencies (Agencies) served by MSS, including the City of San Rafael, City of Larkspur, County of Marin, Las Gallinas Valley Sanitary District, Town of Ross, Town of Fairfax, and the Town of San Anselmo.

This report summarizes results from our review of MSS’s 2025 indexed rate application per the streamlined rate setting methodology established in 2019. The methodology is described in the amended Exhibit B to the Franchise Agreement that the City holds with MSS. * * * * *
We appreciate the opportunity to be of service to the City. Should you have any questions regarding this report or need any additional information, please do not hesitate to reach out directly.

Sincerely,
Jim Howison | Sr. Managing Consultant
R3 Consulting Group, Inc.
925.768.7244 | [email protected]

1. FINDINGS
City of San Rafael | Review of MSS’s 2025 Rate Application Page 1 of 4 Executive Summary
On August 30, 2024, MSS submitted its application for an increase to its solid waste rates, to be effective January 1, 2025. This is an indexed year rate adjustment, which primarily projects compensation due to MSS based on the applicable Water-Sewer-Trash CPI Index (WST). Based on our review of the rate application, R3 concurs with MSS’s calculated 2025 rate revenue requirement of $31,895,957, which is $1,587,765 higher than the 2024 rate revenue requirement of $30,308,192. The corresponding adjustment to the City’s solid waste rates for 2025 is 5.24%, based on January 1, 2025 effective date.

Table 1: 2025 Rate Adjustment Summary
2024 2025 Dollar
Change
Percentage
Change
Adjustment
to Rates
Collector Operations 18,249,610 19,086,959 837,349 4.59% 2.76% Garbage Landfilling and Organics
Processing 2,975,895 3,182,484 206,589 6.94% 0.68%
State Compliance Database
Subscription (4,197) 0 4,197 -100.00% 0.01%
SB 1383 Compliance 223,017 224,558 1,541 0.69% 0.01%
San Rafael Illegal Dumping
Program 123,400 571,291 447,891 362.96% 1.48%
Profit Calculation 2,264,015 2,421,219 157,204 6.94% 0.52% Recyclable Materials Processing 749,801 660,900 (88,901) -11.86% -0.29% Interest 415,019 434,061 19,042 4.59% 0.06%
Zero Waste Marin Fees 394,265 287,781 (106,484) -27.01% -0.35% Cost of Service and Franchise
Fees 2,995,369 3,161,401 166,032 5.54% 0.55%
Vehicle Impact Fee 1,480,601 1,480,601 0 0.00% 0.00%
Annual Rate Revenue
Reconciliation 354,503 281,947 (72,556) -20.47% -0.24%
Recycling Property Insurance 86,894 102,755 15,861 18.25% 0.05% Total Annual Rate Revenue
Requirement $30,308,192 $31,895,957 $1,587,765 5.24% 5.24% City of San Rafael | Review of MSS’s 2025 Rate Application Page 2 of 4 2025 Rate Adjustment Details
Collector Operations
Collector Operations compensates MSS for labor, benefits, general and administrative, depreciation and lease, maintenance, fuel and oil. Per Exhibit B, compensation for Collector Operations is adjusted using the CPI index for Water and Sewer and Trash Collection. R3 used publicly available Bureau of Labor Statistics data to verify the calculated increase of 4.59% to Collector Operations. Per Exhibit B, the rate adjustment is subject to a 2.5% minimum and a 5% maximum rate cap for MSS’s collection operations.

The result is $19,086,959 in Collector Operations for the City of San Rafael in 2025, which is an increase of $837,349 compared to 2024.

Garbage and Organics Tipping Fees
Garbage Landfilling and Organics Processing tipping fee projections are calculated using actual tonnages collected from January 1 through June 30, 2024, which are then annualized to project total 2024 tonnages. Those tonnages are then multiplied by the projected 2025 tipping fees calculated in accordance with Exhibit B. This is based on the actual per ton tipping fees for each waste stream category, or if unavailable, projected tipping fees are calculated using the current year per ton tipping fees escalated by the change in WST— subject to a minimum increase of 2.5% and a maximum increase of

5.0%.

R3 reviewed MSS’s projected 2024 tons and the 2025 per ton tipping fees for residential garbage, residential green waste/organics, commercial garbage, commercial mixed waste for processing, commercial food scraps, and MSS-served Agencies’ waste delivered to MSS. Per Exhibit B, R3 confirmed that MSS materially correctly projected tons by category using annualized actual tons for the first six months of the current rate year and, as actual tipping fees are unavailable, applied the 4.59% WST adjustment to project 2025 per ton tip fees. The result is $3,182,484 in Garbage and Organics Tipping fees for the City in 2025, which is an increase $206,589 compared to 2024.

Database Subscription for Compliance with State Law
The rate setting methodology allows for the recovery of additional revenues associated with costs for changes in law and/or new State mandates. For increased operating expenses due to State Laws, including AB 1826 and SB 1383, MSS has included in its rate application a line item for a compliance database. Zero Waste Marin has assumed responsibility for the tracking and reporting of materials. In 2024, MSS discontinued its subscription to Recyclist and received a refund of $4,197. For 2025,there is no remaining portion of the agency’s refund.

Compliance with SB 1383
MSS is requesting continued revenue in association with SB 1383 with the goal of increasing compliance with the State of California’s organics state mandate(s). The company will continue to provide compliance monitoring and inspection services, contamination monitoring, outreach and education, and reporting functions on behalf of the City. The total 2025 revenue recovery for these new SB 1383 compliance measures for MSS is $224,558, for an increase of $1,541 or 0.69% from 2024.

Illegal Dumping Program Funding
Since 2020, the City has been piloting and testing programs to reduce and abate incidences of illegal dumping in the City, in partnership with MSS and others. In 2024, the City allocated $123,400 for the illegal dumping pilot program. For 2025, City staff recommends increasing the budget by $478,291 (to $571,291 which will be incorporated into Collector Operations) due to the expansion of the program.

City of San Rafael | Review of MSS’s 2025 Rate Application Page 3 of 4 Profit Calculation
R3 reviewed the calculation of MSS’s profit, which is a function of total allowable operating expenses ($23,065,292 for the City) divided by the contractually set operating ratio of 90.5% and subtracting the same sum, rounded to the nearest dollar. MSS’s actual profit achievement will vary depending on the company’s real revenues and expenses; as such, profit is not guaranteed. The result is $2,421,219 in Calculated Profit for the City in 2025, which is an increase of $157,204 compared to 2024. The increase is due to increases in allowable operating expenses, which were described in the previous sections of this report.

Recyclable Materials Processing
A net recyclable materials processing cost is calculated each year to share the risks and rewards of changing recycling markets between rate payers and MSS. Per Exhibit B, the Recyclable Materials Processing cost is escalated by the annual change in the WST and that amount is then divided by the number of all tons of recyclable materials processed at Marin Recycling Center from July 1 of the prior rate year through June 30 of the current rate year.

The recyclable materials revenue amount is calculated based on 90% of the total revenue received by the Marin Recycling Center for recyclable materials, which is then divided by the number recyclable material tons processed at Marin Recycling Center. The calculation does not include income or tons from recyclable materials processed for third parties or agencies that were not customers of MSS or the Marin Recycling Center as of December 31, 2018. For Rate Year 2025, the resulting Net Recyclable Materials Processing Cost Per Ton is $73.58, a decrease of $5.29 from the 2024 value of $78.87. The result is $660,900 in Recyclable Materials Processing costs for the City in 2025, which is a decrease of $88,901.

Interest
Interest is based on MSS’s actual interest from its loan amortization schedules for actual and projected capital expenditures for services under the Agreement as of the last base year review in 2019. This is increased in the same manner as Collector Operations, as described above, via WST annually.

The result is $434,061 in interest for the City in 2025, which is an increase of $19,042 compared to 2024.

Zero Waste Marin Fees
Zero Waste Marin Fees are set as a pass-through as government fees and, per Exhibit B to the agreements, changes in such fees result in appropriate adjustments to rates to compensate MSS for increases or decreases in such fees. Zero Waste Marin fees included in the annual indexed rate applications for the MSS service area are set to be equal to the current Zero Waste Marin Fee assessments for the current fiscal year, with 100% of the MSS hauler fees passed through to the MSS Agencies, and with none of the MSS Transfer Station fees passed through to the MSS Agencies. The result is $287,781 in Zero Waste Marin Fees for the City in 2025, which is a decrease of $106,484 compared to 2024. The decrease is due to grant funding obtained by Zero Waste Marin which is offsetting the need for fees in 2025.

Cost of Service and Franchise Fee
The City’s Cost of Service Fee is set by the City to cost the City’s costs associated with management and administration of the Agreement with MSS and the solid waste utility. The Franchise Fee is established via agreement of the City and MSS and for the value of City property used by MSS in collection operations. Taken together, the Cost of Service Fee and Franchise Fee amount to $3,161,401 in in 2025.

Vehicle Impact Fee
MSS pays the City a $1,480,601 Vehicle Impact Fee to cover the cost of road impacts from MSS’s solid waste collection vehicles, which is set by the City.

City of San Rafael | Review of MSS’s 2025 Rate Application Page 4 of 4 Annual Rate Revenue Reconciliation
The Rate Revenue Reconciliation item is to reconcile the projected rate revenue from the 2023 rate adjustment to the actual revenue collected through rates charged during the 2022 rate year. MSS experienced a shortfall of $281,947 in 2023 billed revenues in the City compared to the 2023 revenue requirement. That amount is therefore included in the 2025 rate application.

Recycling Property Insurance
Property insurance for recycling processing facilities has gone up across the country due to due to fire risks from lithium batteries. MSS has had no such claims but has received rate increases based on its risk profile. MSS has previously and separately briefed the Agencies on this item, and R3 is aware of the market circumstances surrounding it. R3 finds that this extraordinary item is supported and reasonable.

The result is $660,900 in Recycling Property Insurance for the City in 2025, which is an increase of $15,861 compared to 2024.

Survey of Comparable Rates
Figure 1 illustrates R3's survey of solid waste rates as of October 2024 for agencies located throughout Marin County. These survey results are presented as an indication of the reasonableness of the resulting rates for 2025. For comparison purposes, agencies serviced by Marin Sanitary Services (MSS) are designated in green and represent the proposed pricing for 32-gallon cart, including the current rate increase. Other, non-MSS service agencies are designated in blue and are current rates, though rate increases are expected for 2025 as well. The average cost for the 30–35-gallon cart for non-MSS service agencies is represented by the grey line is $57.18. The 32-gallon cart is projected to cost $56.10 per month for the flat regions of the City. The 2025 Hill Rate for the 32-gallon cart is projected at $63.55 per month. The City’s commercial rates for a 3-cubic yard bin serviced one time per week will be $693.10 compared to $658.59 the previous year.

Figure 1: Comparison of MSS’s 2025 Rates to Other Marin County Agencies $57.18
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Customer Owned Cart Implementation Plan
Messaging Plan

Type Description Delivery Date
Website updated Rationale and details on program change December 2024(once approved) Postcard mailed Rationale for program change January 2025 Email campaign Program change details January 2025
Social Media
Campaign
Program change details January-February 2025
Cart hanger Reminder that own cans will no longer be
accepted after March 1, 2025, for
customers who put out extra cans/bags.

January 2025
Cart hanger Explanation of why cart/bags were not
collected
March 1, 2025 forward
Elimination of Customer-Owned Cans Roll-Out

1. Beginning January 1, 2025
a. Residential customers will be educated on the new program rules which go into effect March 1, 2025.
b. Customers may call in for one (1) additional bundled cart or to exchange to a larger cart, at no charge.
c. Customers may rent up to four additional organics carts for a total of 6 organics carts. d. Program basics:
i. Owner organics cans will continue to be collected until February 28, 2025 ii. ALL customers who set out owner cans will have a cart hanger left with information on the new program EVERY TIME THE OWNER CANS ARE EMPTIED in January and February 2025.

1. The following documentation will be collected from January 1-February 28, 2025 every time a customer sets out owner cans:
a. Date
b. Customer Name
c. Customer Address
d. Number of owner cans set out

2. Effective March 1, 2025

1. No customer owned carts or extra bags will be allowed for service

2. MSS will remove and recycle any personal cans at the customer’s request through May 1, 2025 at no additional cost.

CITY OF SAN RAFAEL

NOTICE OF PUBLIC HEARING BEFORE THE SAN RAFAEL CITY COUNCIL You are invited to attend the City Council hearing on the following: consideration of (1) amendments to the City’s franchise agreement with Marin Sanitary Service; (2) authorization of maximum rates allowed by Marin Sanitary Service for refuse and recycling collection and adoption of City fees imposed on Marin Sanitary Service related to their provision of solid waste services.

DATE/TIME: Monday, November 4, at 6:00 p.m.

LOCATION: City Council Chambers, City Hall, 1400 Fifth Avenue, San Rafael, CA 94901 PURPOSE:

1. To consider amendments to the franchise agreement with Marin Sanitary Service to include a new illegal dumping program, to require use of Marin Sanitary Service carts for refuse service, and to change how franchise fees are calculated.

2. To consider a request by Marin Sanitary Service for a rate increase of 5.24% for refuse and recycling collection and services and to consider adopting a Resolution authorizing maximum rates to be charged by Marin Sanitary Service for the year 2025 and adopting City fees to be imposed on Marin Sanitary Service for the City’s costs of providing services and/or benefits related to solid waste services and for the value of property used by Marin Sanitary Service in the provision of solid waste-related services.

WHAT WILL HAPPEN:

Staff will provide a presentation, members of the public can provide comments/questions, and the City Council will consider all public testimony, deliberate, and determine how to proceed with the recommendation provided by staff.

IF YOU CANNOT ATTEND:

You may submit comments regarding the proposed item by 4:00 p.m. the day of the hearing to Lindsay Lara, City Clerk, City of San Rafael, 1400 Fifth Avenue, San Rafael, CA 94901, or by email to [email protected]. You can also hand deliver a letter prior to the public hearing. The City Clerk’s office will forward your comments to the City Council and publish correspondence received to the agenda online. Comments received after 4:00 p.m. will be forwarded to the City Council and posted online the following day.

FOR MORE INFORMATION:

For additional information regarding the above, you may contact Cory Bytof, Sustainability Program Manager for the City of San Rafael at (415) 485-3407 or [email protected]. Office hours are MondayFriday, 8:30 AM to 5:00 PM. You can also view the staff report after 4:00 p.m. on the Friday before the meeting at https://www.cityofsanrafael.org/city-council-meetings/ /s/ Lindsay Lara
Lindsay Lara
City Clerk
City of San Rafael
To be published in the Marin IJ twice: October 25th and October 30th ____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting:

Disposition:

Agenda Item No: 8.b
Meeting Date: November 4, 2024

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Community & Economic Development
Prepared by: Micah Hinkle, Community &
Economic Development Department Director
City Manager Approval: ______________
TOPIC: BIOMARIN DEVELOPMENT AGREEMENT
SUBJECT: ACCEPT THE 4th ANNIVERSARY ANNUAL REPORT FOR THE EXECUTED DEVELOPMENT AGREEMENT (ORDINANCE NO. 1982) BETWEEN BIOMARIN

PHARMACEUTICAL AND THE CITY OF SAN RAFAEL FOR THE DEVELOPMENT OF AN EXPANDED SAN RAFAEL CORPORATE CENTER (750-790 LINDARO STREET AND 781-791 LINCOLN AVENUE AND 999 3RD STREET); CASE NO.: DA18-001 RECOMMENDATION:

Adopt the Resolution Approving the 4th Anniversary Annual Report for the Executed Development Agreement (Ordinance No. 1982) Between BioMarin Pharmaceutical and the City of San Rafael for the Development of An Expanded San Rafael Corporate Center (750-790 Lindaro Street and 781-791 Lincoln Avenue and 999 3rd Street).

EXECUTIVE SUMMARY:

On March 23, 2020, the City Council adopted Ordinance No. 1982, approving a Development Agreement (DA) between BioMarin Pharmaceutical (BioMarin) and the City of San Rafael. This DA permits the phased development and expansion of the San Rafael Corporate Center and the 999 3rd Street property with laboratory, research, and development (R&D) buildings. The DA vests the land use and development entitlements/approvals for ten years.

The procedures and requirements for reviewing and approving DAs are prescribed by City Resolution No. 6089. The procedures require periodic review to ensure that the project continues in good faith and that the terms of the DA are being met. Ordinance No. 1982 specifically requires an annual review for this DA. This report presents the 4th-anniversary annual review, and a public hearing is required to solicit comments on the Annual Review Report. BioMarin has submitted an Annual Report (Attachment 1), which demonstrates progress and compliance with the terms of the DA.

BACKGROUND:

In 2012, BioMarin purchased the San Rafael Corporate Center (SRCC), a 15.54-acre campus of office buildings located south of Second Street. Since the initial purchase, BioMarin has built out the original campus of buildings (five office buildings and two parking garages) and now occupies the campus with corporate office, R&D, and laboratory uses. In 2015, BioMarin was granted entitlements to expand the SRCC campus to develop a sixth office/lab building on the surface parking lot west of Lindaro Street (755 SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
Lindaro Street) and to expand the existing parking garage located east of Lincoln Avenue. This expansion has not been built.

In 2018, BioMarin purchased the three-acre site at 999 3rd Street, formerly owned and occupied by Pacific Gas & Electric (PG&E). This property, which also fronts Lindaro Street and 2nd Street, is contiguous to the SRCC. This three-acre site previously underwent a two-phased soil remediation project administered by PG&E and BioMarin. The fully remediated site is now vacant and paved with asphalt.

BioMarin & Vivalon/EDEN Housing Development Approvals
On March 23, 2020, the City Council approved entitlements to redevelop the 999 3rd Street site and append this site to the SRCC for an expanded campus. BioMarin intends to develop the properties in phases to maintain its corporate campus and increase laboratory, research, and development space.

The City Council’s actions for this approval included the following:
• Certification of a Final Environmental Impact Report (FEIR). • Expansion of the Planned Development (PD) zoning District adopted for the SRCC to encompass/incorporate the 999 3rd St. property. Within the expanded PD District, a General Plan Amendment was granted to allow for a new floor area ratio allowance (development intensity) to govern the expanded SRCC as one project site. The approvals also extended and incorporated the previously approved expansion of the SRCC campus, which, as noted above, is the development of an office/lab building at 755 Lindaro Street and an expanded parking garage. • Approval of a Master Use Permit, Environmental and Design Review Permit, and Tentative Parcel Map. The Vesting Parcel Map divides the three-acre, 999 3rd Street into two parcels: a large parcel (116,680 square feet) and a small parcel (15,000 square feet) at the northwestern portion of the site. • Approval of most of the 999 3rd Street site (large parcel reference above) for development of the expanded BioMarin campus with 207,000 sq. ft. of laboratory, research, and development (R&D) and office space (split about equally between the two uses). This development consists of two 72-ft tall, four-story buildings. The ground floor is designed to provide amenities to support the BioMarin campus, including lobbies, an auditorium, conference rooms, a small café, and dining space. A useable rooftop deck (above the ground floor between the two buildings) is proposed for employee use, as noted in the concept drawing package.
• Approval of a senior center and senior housing on the northwest portion of the property (the 15,000 square-foot small parcel reference above) was allocated to Vivalon (formerly Whistlestop), and EDEN Housing was approved for the development of a six-story building for a new senior center, and senior housing (67 low-income rental units). The expanded PD District does not apply to this parcel. • Approval of a Development Agreement (DA) (adopted on April 6, 2020) to vest the approvals for an extended period (10 years). The DA freezes the City’s development fees at the current fee schedule rates in exchange for BioMarin providing certain public benefits (discussed below). The DA applies only to the expanded BioMarin campus development. Vivalon and EDEN Housing are not party to this DA, so the vesting does not apply to the senior center and senior housing.

A complete and detailed background and project description discussion can be found in the January 28, 2020, Planning Commission staff report and the March 23, 2020, City Council staff report. The Planning Commission and City Council meetings can also be viewed online at the Meeting Agendas & Videos at http://www.cityofsanrafael.org/meetings. Referenced application material exhibits are also included within FEIR attachments, and they are online at https://www.cityofsanrafael.org/999-3rd.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
Terms of the Development Agreement
The DA afforded the City and the developer (BioMarin) the opportunity to negotiate terms and conditions and public benefits in exchange for the 10-year vesting of the project approvals. The executed DA, which can be accessed here, includes the following list of public benefits, as well as other obligations and requirements:

1. Northwestern Portion Donation. BioMarin is required to donate the 15,000 square-foot northwestern parcel on the 999 3rd Street site to Vivalon (formerly Whistlestop) as part of a land exchange. Based on the final appraisals of the two properties exchanged and the delta in value reflected in those appraisals, BioMarin’s donation to Vivalon is One Million Three Hundred and Thirty Thousand Dollars ($1,330,000).

2. Remediation. For the benefit of the development of a healthy aging campus and affordable senior housing, BioMarin must complete the second phase of the soil remediation for the 999 3rd Street Property by performing an investigation and cleanup under the State Department of Toxic Substance Control (DTSC) Voluntary Cleanup Program. BioMarin is responsible for funding this remediation ($2,000,000). The total remediation costs for the entire three-acre site are over $16,000,000.

3. Retail Space. BioMarin agreed to provide 3,500 square feet of retail space on a portion of the 999 3rd Street property (the actual layout and location of such space will be determined by BioMarin).

The retail space must be open to the public during BioMarin’s business hours (from 9 a.m. to 5:00 p.m.).

4. Public Plaza. BioMarin agreed to provide an approximately 6,000 square-foot landscaped plaza called the “Front Porch” at the corner of 3rd Street and Lindaro Street (BioMarin will determine the layout). This plaza must be open to the public from dawn to dusk.

5. Striping for Bike Lane. BioMarin must add striping for a Class II Bike lane on Lindaro Street from 3rd Street to Andersen Drive or up to one mile of an equivalent section of roadway in San Rafael that is determined by the City to meet the City’s Bicycle & Pedestrian Master Plan.

6. Restriping for Pedestrian Safety. BioMarin is required to improve pedestrian safety by restriping the corner of Lindaro Street and 3rd Street.

7. Contribution to Traffic Light Synchronization. BioMarin must contribute $500,000 to the City towards synchronizing traffic lights along the 2nd and 3rd Street corridors to improve traffic flow or for other traffic/circulation/parking improvement measures as reasonably determined by the City.

This obligation may be payable in full at the first anniversary of the effective date, or $125,000 each year for four (4) years (starting on the first anniversary of the effective date), at the option and sole discretion of BioMarin.

8. Contribution to Shuttle Service. BioMarin must contribute $400,000 to the City to implement a first-mile/last-mile shuttle service or other traffic/circulation/parking improvement measures as reasonably determined by the City. This obligation shall be payable in increments of $100,000 each year for four (4) years (starting on the first anniversary of the effective date).

9. City’s Use for Public Parking and Ancillary Uses. Upon the effective date of the DA and until BioMarin submits any construction-related permit (grading, building, etc.) for either Building A or B, BioMarin is required to allow the City to utilize up to 70% of the surface area of the 999 3rd Street property (the exact layout to be reasonably negotiated and agreed to by the parties to SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4
maximize the utility of the portion to be used by the City and the remaining portion) for public parking and ancillary uses (such as food truck market, etc.) until the commencement of construction activities for either building on this property.

10. Donation of Lease to Vivalon. Upon BioMarin’s acquisition of the Vivalon property at 648 Lindaro Avenue (land exchange referenced above), BioMarin must donate to Vivalon a leaseback of 930 Tamalpais Avenue for three (3) years.

Additional Obligations. BioMarin agreed to the following additional obligations if certain timing milestones in the DA are not met:
• If construction on the 999 3rd Street property (now 801/815 Lindaro (APN011-265-02) has not commenced by the sixth (6th) anniversary (2026) of the effective date of this DA, then BioMarin is required to construct the Class II Bike lane along Lindaro Street from 3rd Street to Andersen Drive (Item #5 Above) and required improvements to the 2nd Street and Lindaro Street intersection; and • If construction of the second building at the 999 3rd Street property (now 801/815 Lindaro (APN011-265-02) has not commenced by the eighth (8th) anniversary (2028) of the effective date of the DA, then the vesting of the entitlements for the SRCC expansion (approved office/lab building at 755 Lindaro Street) shall expire.

Continuing Obligations Relating to the Original SRCC Development Agreement. The 1998 DA executed for the SRCC campus (initially executed between Fair Isaac and the City of San Rafael) included the following ongoing obligations (in perpetuity), which were carried over into the current DA between the City and BioMarin:

1. Public Parking on Nights and Weekends. The project shall continue to make public parking available on the western SRCC surface parking lot and garage (west of Lindaro Street) during evening and weekend hours.

2. Park Area. The project shall continue to provide the publicly accessible park located along the south side of the SRCC campus (south of and between Building A at 750 Lindaro Street and Building B at 781 Lincoln Avenue). This park area shall open to the public from dawn to dusk. The public’s use of the park area shall be subject to the Reservation Rules and Policies on file with the City.

3. Conference Facility. The project will continue to offer an after-business-hours publicly accessible interior conference facility consisting of 2,500 square feet. At the sole option of BioMarin, this facility may be relocated from the current location on the SRCC property to a location within the 999 3rd Street property that provides substantially equivalent amenities and space, as determined upon the completion of the retail and plaza portions of the R&D Development Property. The public’s use of the Conference Facility shall be subject to the scheduling, fee, priority use, rules, regulations, and guidelines provisions in the Reservation Rules and Policies on file with the City.

Annual Reporting. Upon the City’s request, BioMarin must report to the City, no more frequently than once per calendar year, on the status of its development plans related to the DA.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 5
ANALYSIS:

Annual Report on Development Agreement
Per City Resolution No. 6089, periodic review is required to ensure that the project is proceeding in good faith and that the terms of the DA are being met. Per the terms of the DA, BioMarin has submitted an Annual Report (Attachment 2), which represents the 4th year anniversary status of the project. While the Annual Report states that there are no updates on the start of the project construction, it reports on the status of the DA terms and obligations. The following is the status of the key terms and obligations (listed above) that are pertinent to this 4th-year anniversary annual review:
 Item #1-Northwestern Portion Donation [COMPLETED IN 2022]. BioMarin and Vivalon (previously Whistlestop) negotiated and executed a Charitable Contribution and Exchange Agreement on September 14, 2020, to effectuate BioMarin’s donation of the northwest portion of the property for the benefit of the development of a healthy aging campus and affordable senior housing. Parcel separation and transfer to Vivalon was completed on January 21, 2022. Based on the final appraisals of the two properties exchanged and the difference in value reflected in those appraisals, BioMarin’s donation to Vivalon is One Million Three Hundred and Thirty Thousand Dollars ($1,330,000).
 Item #2-Remediation [COMPLETED IN 2021]. BioMarin has completed the remediation of the western portion of the 999 3rd Street property. Final site certification for the completed remediation (for the entire three-acre site) was provided by DTSC on March 24, 2021.  Item #3- Retail Space [NOT COMPLETED]. BioMarin is required to include 3,500 square feet of retail space within the development of the property at 999 3rd Street. This obligation will start upon issuance of the certificate of occupancy for either building A or B; therefore, it is not yet required.

City staff will report on this item in future annual reports.  Item #4-Public Plaza [NOT COMPLETED]. BioMarin is required to construct a 6,000 square foot plaza at the corner of 3rd Street and Lindaro Street. This obligation will start upon issuance of the certificate of occupancy of the plaza; therefore, it is not yet required. City staff will report on this item in future annual reports.
 Item #5-Striping for Bike Lane [NOT COMPLETED]. BioMarin is required to add striping for a Class II Bike lane on Lindaro Street from 3rd Street to Anderson Drive or up to one mile of an equivalent section of roadway in San Rafael that the City determines to meet the City’s Bicycle & Pedestrian Plan. This obligation is required upon issuance of the certificate of occupancy for either building A or B; therefore, this item is not yet required. City staff will report on this item in future annual updates.
 Item #6-Restriping for Pedestrian Safety [NOT COMPLETED]. BioMarin is required to improve pedestrian safety by restriping the corner of Lindaro Street and 3rd Street. This obligation is required at issuance of the certificate of occupancy for either building A or B; therefore, it is not yet required. City staff will report on this item in future annual updates.  Item #7-Contribution to Traffic Light Synchronization [COMPLETED IN 2024]. BioMarin submitted a check for $125,000 to the City of San Rafael in March 2024 as a contribution towards the synchronization of traffic lights along the 2nd and 3rd Street corridors to improve traffic flow or for other traffic/circulation/parking improvement measures as reasonably determined by the City.

This is the fourth of four annual required payments. The total amount paid to date is $500,000, which is the total amount required.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 6
 Item #8-Contribution to Shuttle Service [COMPLETED IN 2024]. BioMarin submitted a check for $100,000 to the City of San Rafael in March 2024. This contribution supports the City of San Rafael in implementing a first-mile/last-mile shuttle service or other traffic/circulation/parking improvement measures as reasonably determined by the City. This is the fourth of four annual required payments. The total amount paid to date is $400,000, which is the total amount required.  Item #9-City’s Use for Public Parking and Ancillary Uses [COMPLETED IN 2022]. BioMarin negotiated a license agreement with the City of San Rafael for temporary public parking and ancillary uses, and the agreement was fully executed on February 2, 2022  Item #10-Lease to Vivalon [ON-GOING]. BioMarin is required to donate the lease of the property located at 930 Tamalpais for a period of three years. The property continues to be leased back to Vivalon and is expected to be leased back through Jan. 2025 (beyond the three years).

City staff has concluded that BioMarin has demonstrated good faith in meeting the terms and obligations of the DA. Through the City Council’s acceptance of BioMarin’s Annual Report, the Council will find and determine, based on substantial evidence, that the property owner has complied in good faith with the terms and conditions of the agreement during the period of review and that the 4th-anniversary annual review is concluded.

Status of Vivalon/EDEN Housing Senior Center and Senior Housing As discussed above, the Vivalon/EDEN Housing Senior Center and Senior Housing project was entitled concurrent with the BioMarin project approvals. However, Vivalon/EDEN Housing is not a party to the DA. The Vivalon Healthy Aging Campus announced its grand opening on January 2, 2024.

ENVIRONMENTAL REVIEW:

As discussed above, the BioMarin and Vivalon/EDEN Housing development projects were subject to environmental review, and a Final Environmental Impact Report was prepared and certified. As required by State law (California Environmental Quality Act), action on the annual review of the Development Agreement must be reviewed to determine if it is subject to environmental review. As the Annual Review is an informational report, it will have no physical impact on the environment and is therefore exempt from environmental review per CEQA Guidelines under 14 CRR Section 15061(b).

FISCAL IMPACT:

There is no direct fiscal impact associated with the acceptance of this annual report. This project is a private development, and as such, costs associated with plan review and processing of these applications are fully recovered through fees paid for by the applicant.

As discussed above, the DA for the project is subject to the City’s development fees, with the required fees and fee amounts locked in at the time the DA is executed. In exchange for the vesting of the fees, the DA obligates BioMarin to make other financial contributions to the City, which are discussed above.

OPTIONS:

The City Council has the following options to consider on this matter:

1. Accept the Annual Report as recommended by staff;

2. Accept the Annual Report with modifications; or

3. Continue the public hearing and request staff return with additional information, study, or analysis.

ATTACHMENTS:

1. BioMarin Annual Report, March 19, 2024
BioMarin Annual Report
Obligations Relating to the R&D Development Agreement
March 19, 2024
BioMarin Annual Report
Obligations Relating to the R&D Development Agreement
San Rafael, CA
March 30, 2024
As required by the Development Agreement (“DA”), BioMarin is pleased to submit this annual report to provide an update on the status of the new projects and compliance with the DA’s terms and obligations, due on each anniversary of the Effective Date. the following addresses compliance with the obligations to date.

Development Update: BioMarin has growing & immediate needs for laboratories and is currently evaluating several options including the new Lab building at 801 Lindaro, one of the two approved buildings on the site. Construction of the lab building is anticipated to start early next year or sooner, pending the result of the evaluation.

Northwestern Portion Donation. Developer shall donate the Northwestern Portion to Whistlestop as part of a land swap through which the delta in value of the swapped properties, as of a June 2018 appraisal, results in a One Million Two Hundred Thousand Dollars ($1,200,000) donation. Developer shall donate the Northwestern Portion in its then current as-is condition, for development of a healthy aging campus and affordable senior housing.

BioMarin and Vivalon (previously Whistlestop) executed a Charitable Contribution and Exchange Agreement on September 14, 2020 to effectuate BioMarin’s donation of the northwest portion of the property for the benefit of development of a healthy aging campus and affordable senior housing. The agreement was completed in 2021 and Parcel separation was completed.

Remediation. For the benefit of development of a healthy aging campus and affordable senior housing, Developer shall complete the second phase of the soil remediation for the 999 3rd Street Property by performing an investigation and cleanup under the DTSC’s Voluntary Cleanup Program. Developer shall complete such second phase of remediation prior to commencement of construction and development activities for the R&D Development Property, resulting in out-of-pocket costs for Developer of over Two Million Dollars ($2,000,000) and total remediation costs of over Sixteen Million Dollars ($16,000,000).

BioMarin completed the remediation of the west portion of the property and received DTSC’s final site certification for the entire property on March 24, 2021.

Retail Space: Developer agrees that a portion of the R&D Development Property consisting of approximately 3,500 square feet of retail space (the actual layout and location of such space to be determined by Developer) (the “Retail Space”) shall be open to the public during Developer’s business hours (from 9 a.m. to 5:00 p.m.). This obligation shall commence upon the issuance of the certificate of occupancy for the Retail Space and when the Retail Space is open for business and continue until such time as the Retail Space is vacant because a tenant cannot be found despite commercially reasonable efforts to market the space at a commercially reasonable rent for three years.

This obligation will commence upon the issuance of the certificate of occupancy for retail space.

Public Plaza: Developer agrees to provide an approximately 6,000 square feet of landscaped plaza “Front Porch” located at the corner of 3rd Street and Lindaro Street (the actual layout of such plaza to be determined by Developer) that will be open to the public from dawn to dusk. This obligation shall commence upon the issuance of the certificate of occupancy for such plaza.

This obligation will commence upon the issuance of the certificate of occupancy for retail space.

Striping for Bike Lane: Developer shall add striping for Class II Bike lane on Lindaro Street from 3rd Street to Anderson Drive or up to one mile of an equivalent section of roadway in San Rafael that is determined by the City to meet the City’s Bicycle & Pedestrian Plan. This obligation shall be required at the time of the issuance of the first certificate of occupancy for either Building A or B, unless otherwise required by Section 4.11.1.

This obligation will commence upon issuance of the first certificate of occupancy for either building A or building B.

Contribution for Traffic Light Synchronization: Developer shall contribute $500,000 to the City towards the synchronization of traffic lights along the 2nd and 3rd Street corridors to improve traffic flow or for other traffic/circulation/parking improvement measures as reasonably determined by the City. This obligation may be payable in full at the first anniversary of the Effective Date, or $125,000 each year for four (4) years (commencing on the first anniversary of the Effective Date and continuing for the next three (3) anniversaries of the Effective Date), at the option of Developer, in Developer’s sole discretion.

In exchange for this $500,000 contribution and in light of significant concerns about pedestrian safety and the fact that a parallel public path already exists, the City is eliminating a prior requirement that the Lindaro and Parking Expansion Project develop and maintain a trail along the backside of the Lincoln Avenue garage which is along southern edge of the campus abutting Mahon Creek.

BioMarin submitted checks each in the amount of $125,000 to the City of San Rafael in 2021,2022, 2023 & 2024 as contribution towards the synchronization of traffic lights along the 2nd and 3rd Street corridors to improve traffic flow or for other traffic/circulation/parking improvement measures as reasonably determined by the City. BioMarin’s 2024 payment is the final annual payment for a total contribution of $500,000.

Contribution for Shuttle Service: Developer shall contribute $400,000 to the City for purposes of implementing a first mile/last mile shuttle service or for other traffic/circulation/parking improvement measures as reasonably determined by the City. This obligation shall be payable in increments of $100,000 each year for four (4) years (commencing on the first anniversary of the Effective Date and continuing for the next three (3) anniversaries of the Effective Date).

BioMarin has submitted checks each in the amount of $100,000 to the City of San Rafael in 2021, 2022, 2023 & 2024. This contribution is to support the City of San Rafael implementing a first mile/last mile shuttle service or for other traffic/circulation/parking improvement measures as reasonably determined by the City. BioMarin’s 2024 payment is the final annual payment for a total contribution of $400,000.

City’s Use for Public Parking and Ancillary Uses. As of the Effective Date of this Agreement and until Developer submits any construction related permit (grading, building, etc.) for either Building A or B, the Developer shall allow the City to utilize up to 70% of the surface area of the R&D Development Property (the exact layout to be reasonably negotiated and agreed to by the parties so as to maximize the utility of the portion to be used by the City and the remaining portion) for public parking and ancillary uses (such as food truck market, etc.) (the “Temporary Public Parking Parcel”) until such time as commencement of construction activities for either building on the R&D Development Property. City shall be financially and legally responsible for (i) any improvements or modifications to the R&D Development Property that
BioMarin entered into the License Agreement for a Right of Entry for Temporary Use with the City of San Rafael on February 2, 2022. This License Agreement, which was amended in November 2022, allows for temporary public parking and ancillary uses, including construction lay down activities. The City of San Rafael has been using the area for construction layout to support the 3rd street improvements and Eden Housing and Vivalon’s construction activities.