SOUTH SAN FRANCISCO
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March 25, 2026
Ms. Laura Snideman,
City Manager
City of South San Francisco
400 Grand A venue
-- C O M P A N Y, I N C. -
South San Francisco, CA 94080
Dear Ms. Snideman,
In accordance with the terms of Section 6.2 of the Franchise Agreement, please accept this letter as the required Notice oflntent 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 3 I st 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, 2027.
For 2026, 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 1 .40%. 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 f
rom the current $19,924.61 per month to $20,203.55 per month.
A proposed rate schedule is also attached. As per the Franchise Agreement, the rate adjustments would be effective as of July 1, 2026, if approved.
Also, the transpo1tation and disposal of sewage sludge, Section 5.9 of the Franchise Agreement, and the adopted 2023 sewage sludge proposal, states that annual increases will be calculated January I st using the change in the Consumer Price Index for All Urban Consumers (CPI-U), San Francisco-Oakland-Hayward ( 1982-84= 100), as published by the U.S. Depa1tment of Labor, Bureau of Labor Statistics for the prior twelve ( 12) months. Any annual rate increase shall be limited to a minimum of2.5% and a maximum of6%. This results in a percentage increase of
2.50% for 2026 (see attached calculation). The adoption of the sewage sludge proposal in 2023, pursuant to Section 6.3 of the Franchise Agreement, was due to a significant increase in cost of compliance with state-wide mandate regarding organic material. Therefore, the current rate of $170.58 per ton would increase to $174.84 per ton, effective as of July I, 2026, if approved.
Thank you for your consideration of this matter, and we are, of course, available to meet and confer at your convenience, as you desire.
rmosa, 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 Attachment 1