SOUTH SAN FRANCISCO
SCIVENGER
COMPANY, INC.
March 29, 2023
Ms. Karen Chang,
Director of Finance
City of South San Francisco
400 Grand Avenue
South San Francisco, CA 94080
Dear Ms. Chang,
In accordance 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 each 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 2023, 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 3.90%. The calculation is attached for review. Also, per our agreement, the SRRE Fee paid to the City is adjusted by the same percentage, and increases from the current $18,340.26 per month to $19,055.53 per month.
A proposed rate schedule is also attached. As per the Franchise Agreement, the rate adjustments would be effective as of July 1, 2023, if approved.
Also, the transportation and disposal of sewage sludge, Section 5.9 of the Franchise Agreement, has a significant increase in cost due to compliance with state-wide mandate regarding organic material. In accordance with Section 6.3, and discussions with city staff, the rate per ton would be $120 effective July 1, 2023, and would subsequently increase to $154 effective January 1, 2024.
Thank you for your consideration of this matter, and we are, of course, available to meet and confer at your convenience, as you desire.
Paul Formosa, CFO
South San Francisco Scavenger Company, Inc.
500 East Jamie Court • South San Francisco, CA 94080
V: 650.589.4020 • F: 650.589.7385 • e: [email protected] • web: www.ssfscavenger.com | Printed on Post-consumer Recycled Paper.
South San Francisco Scavenger Co.
City of South San Francisco
Rate Computation
March 31, 2023
CPI Index February 2022 316.463
CPI Index February 2023 331.875
Numerical change 15.412
Percentage change 4.87%
80% of change 3.90%l
Index Used - Consumer Price Index
Urban Wage Earners and Clerical Workers
San Francisco-Oakland-Hayward, CA
All Items
1982-84 = 100
New Series ID - CWURS49BSA0
Previous Series ID - CWURA422SAO
(replaced as of January 2018)
3/17/23, 3:57 PM Bureau of Labor Statistics Data
U.S. BUREAU OF LABOR STATISTICS
Databases, Tables & Calculators by Subject
Change Output Options: From: 2013 To: 2023v
• include graphs include annual averages More Formatting Options * Data extracted on: March 17, 2023 (6:52:08 PM)
CPI for Urban Wage Earners and Clerical Workers (CPI-W) Series Id: CWURS49BSA0,CWUSS49BSAO
Not Seasonally Adjusted
Series Title: 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 Period: 1982-84=100
Download: XE xIsx
Annual HALF1 HALF2
242.602 242.125 241.141 243.109
247.680 248.326 247.097 249.555
255.492 253.910 252.041255.780
263.222 260.830 258.715 262.946
271.342 268.990 267.426 270.555
283.278 279.572 277.035 282.110
289.456 288.192 286.615 289.770
295.687 292.601 291.297 293.906
312.019 304.602 300.275 308.928
326.465 323.900 320.408 327.391
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 https://data.bls.gov/pdq/SurveyOutputServlet
SOUTH SAN FRANCISCO SCAVENGER CO., INC.
City of South San Francisco
Proposed Fees for Refuse Service, Effective July 1, 2023 Current Proposed
Rates Maximum Rates
Residential Can Service: (per Month)
Proposed change
A. Service Level By Container Volume
20 Gallons $ 33.40 3.90% 34.70
32 Gallons 39.79 3.90% 41.34
64 Gallons 87.57 90.99
96 Gallons 137.29 142.64
128 Gallons or more 190.96 198.41
Commercial Can Service
30 Gallons 34.44 35.78
32 Gallons 36.71 3.90% 38.14
40 Gallons 45.93 47.72
45 Gallons 51.62 53.63
55 Gallons 63.09 65.55
Commercial Compactor Service
Per Cubic Yard 72.68 3.90% 75.51
Debris Box Service, Residential and Commercial
Temporary / One Time Use
5 Yard Mini-box 311.20 323.34
7 Yard 679.99 706.51
14 Yard 679.99 3.900% 706.51
20 Yard 925.84 961.95
30 Yard 1,335.70 1,387.79
Regular / Permanent Service
7 Yard 573.71 596.08
14 Yard 573.71 596.08
20 Yard 819.56 851.52
30 Yard 1,229.37 1,277.32
Rental Charge (per day, over 7 days) 25.63 26.63
SOUTH SAN FRANCISCO SCAVENGER CO., INC.
City of South San Francisco
Proposed Fees for Refuse Service, Effective July 1, 2023 Current Proposed
Rates Maximum Rates
Overweight Charge
Content weight in excess of 3 tons, per ton 160.20 166.45 Commercial Bin Service
A. Regular Pick-up
1 - yard Container 241.66 3.900% 251.08
2 - yard (Front End Loader Bin) 362.35 376.48
3 - yard (Front End Loader Bin) 543.60 564.80
4 - yard (Front End Loader Bin) 724.77 753.04
5 - yard (Front End Loader Bin) 906.03 941.37
6 - yard (Front End Loader Bin) 1,087.17 1,129.57
B. On Call Pick-up, Per Yard 41.87 43.50
Per Pick-up, Per Yard
Plus Container Rental Per Month
Rental Charges
1 - yard Container 63.31 65.78
2 - yard Container 68.72 71.40
3 - yard Container 73.75 76.63
4 - yard Container 79.13 82.22
5 - yard Container 89.66 93.16
6 - yard Container 95.10 98.81
Sludge Hauling Per Ton (Treatment Plant) 66.57 80.26% 120.00 Current SRRE Fee 18,340.26 3.90% 19,055.53