SOUTH SAN FRANCISCO
SCIVENGER
COMPANY, INC.
March 29, 2022
Mr. Jason Wong,
Acting Finance Director
City of South San Francisco
400 Grand Avenue
South San Francisco, CA 94080
Dear Mr. Wong,
In acordance with the terms of Section 6.2 of the Franchise Agreement, please accept this letter as the required Notice of Intent to adjust the current rates for service in South San Francisco.
The Franchise agreement has a specific procedure for rate adjustments, and this notice is due to the City by March 31" cach year. The procedure has a three year cycle, and two of those three years call for an adjustment based on the Consumer Price Index. The third year in the cycle calls for a rate study and rates are based on those in 30 plus cities in the SF Bay Area. The next rate study is due March 31, 2024.
For 2022, the rate adjustment would be equal to 80% of the change in the Consumer Price Index for Urban Wage Earners and Clerical Workers, as published by the U.S.
Bureau of Labor Statistics. The adjustment for this current year equates to 5.19%. The calculation is attached for review.
A proposed rate schedule is also attached. As per the Franchise Agreement, the rate adjustments would be effective as of July 1, 2022, if approved.
Also, the Second Amendment to the Franchise Agreement, regarding the transport of sewage sludge, Section 5.9. states that the Tonnage Rate is also subject to the same percentage increase as the service rates referred to in Section 6.2. Therefore, the current rate of $63.29 per ton would increase to $66.57. Also, per our agreement, the SRRE Fee paid to the City is adjusted by the same percentage, and increases from the current $17.435.36 per month to $18,340.26 per month.
Thank you for your consideration of this matter, and we are, of course, available to meet and confer at your convenience. as you desire.
Sincerely.
Paul Formosa, CFO
South San Francisco Scavenger Company, Inc.
500 East Jamie Court • PO Box 348 • South San Francisco, CA 94080-0348 V: 650.589.4020 • F: 650.589.7385 • e: [email protected] • web: www.ssfscavenger.com South San Francisco Scavenger Co.
City of South San Francisco
Rate Computation
March 31, 2022
CPI Index February 2021 297.170
CPI Index February 2022 316.463
Numerical change 19.293
Percentage change 6.49%
80% of change 5.19%
Index Used - Consumer Price Index
Urban Wage Earners and Clerical Workers
San Francisco-Oakland-Hayward, CA
All Items
1982-84 = 100
New Series ID - CWURS49BSAO
Previous Series ID - CWURA422SAO
(replaced as of January 2018)
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U.S. BUREAU OF LABOR STATISTICS
Bureau of Labor Statistics > Data Tools > Data Retrieval Tools > Top Picks Databases, Tables & Calculators by Subject
Change Output From: 2012 ~ To: 2022
Options:
•include graphs include annual More Formatting Options up averages
Data extracted on: March 28, 2022(7:36:11 PM)
CPI for Urban Wage Earners and Clerical Workers (CPI-W) CWURS49BSAO
Not Seasonally Adjusted
All items in San Francisco-Oakland-Hayward, CA, urban wage earners and clerical workers, not seasonally adjusted
Area: San Francisco-Oakland-Hayward, CA
Item: All items
Base 1982-84=100
Period:
Download: Xl xisx
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual HALF1 HALF2 2012 234.648 236.626 236.890 238.445 240.864 236.454 237.097 235.572 238.622 2013 240.262 241.764 243.052 242.903 243.711 242.602 242.125 241.141 243.109 2014 245.148 247.932 250.085 249.877 250.508 247.680 248.326 247.097 249.555 2015 249.809 252.875 254.736 256.060 256.107 255.492 253.910 252.041 255.780 2016 257.141 259.386 261.017 262.326 264.026 263.222 : 260.830 258.715 262.946 2017 265.569 268.896 269.508 269.827 271.272 271.342 268.990 267.426 270.555 2018 275.699 278.039 280.219 281.536 283.183 283.278 279.572 277.035 282.110 2019 284.758 288.266 288.581 288.514 291.707 289.456 288.192 286.615 289.770 2020 292010 290.304 292.420 293.062 294.442 | 295.687 | 292.601 291.297 293.906 2021 297.170 302.294 304.971 307.423 309.656 312.019|304.602 300.275 308.928 2022 316.463
U.S. BUREAU OF LABOR STATISTICS Postal Square Building 2 Massachusetts Avenue NE Washington, DC 20212-0001
Telephone:1-202-691-5200 Telecommunications Relay Service: 7-1-1. www.bls.gov Contact Us SOUTH SAN FRANCISCO SCAVENGER CO., INC.
City of South San Francisco
Proposed Fees for Refuse Service, Effective July 1, 2022 Current Proposed
Rates Maximum Rates
Residential Can Service: (per Month)
Proposed change
A. Service Level By Container Volume
20 Gallons $ 31.75 5.19% 33.40
32 Gallons 37.83 5.19% 39.79
64 Gallons 83.25 87.57
96 Gallons 130.52 137.29
128 Gallons or more 181.54 190.96
Commercial Can Service
30 Gallons 32.74 34.44
32 Gallons 34.90 5.19% 36.71
40 Gallons 43.66 45.93
45 Gallons 49.07 51.62
55 Gallons 59.98 63.09
Commercial Compactor Service
Per Cubic Yard 69.09 5.19% 72.68
Debris Box Service, Residential and Commercial
Temporary / One Time Use
5 Yard Mini-box 295.85 311.20
7 Yard 646.44 679.99
14 Yard 646.44 5.190% 679.99
20 Yard 880.16 925.84
30 Yard 1,269.80 1,335.70
Regular / Permanent Service
7 Yard 545.40 573.71
14 Yard 545.40 573.71
20 Yard 779.12 819.56
30 Yard 1,168.71 1,229.37
Rental Charge (per day, over 7 days) 24.37 25.63
SOUTH SAN FRANCISCO SCAVENGER CO., INC.
City of South San Francisco
Proposed Fees for Refuse Service, Effective July 1, 2022 Current Proposed
Rates Maximum Rates
Overweight Charge
Content weight in excess of 3 tons, per ton 152.30 160.20 Commercial Bin Service
A. Regular Pick-up
1 - yard Container 229.74 5.190% 241.66
2 - yard (Front End Loader Bin) 344.47 362.35
3 - yard (Front End Loader Bin) 516.78 543.60
4 - yard (Front End Loader Bin) 689.01 724.77
5 - yard (Front End Loader Bin) 861.33 906.03
6 - yard (Front End Loader Bin) 1,033.53 1,087.17
B. On Call Pick-up, Per Yard 39.80 41.87
Per Pick-up, Per Yard
Plus Container Rental Per Month
Rental Charges
1 - yard Container 60.19 63.31
2 - yard Container 65.33 68.72
3 - yard Container 70.11 73.75
4 - yard Container 75.23 79.13
5 - yard Container 85.24 89.66
6 - yard Container 90.41 95.10
Sludge Hauling Per Ton (Treatment Plant) 63.29 5.19% 66.57 Current SRRE Fee 17,435.36 5.19% 18,340.26