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HomeMy WebLinkAbout06-18-2019 Item 12 - 2019 Solid Waste Rate Adoption Rate Setting Objectives 1. Easy to understand 2. Environmentally sound 3. Supportive of waste reduction goals Department Name: Utilities Cost Center: N/A For Agenda of: June 18, 2019 Placement: Public Hearing Estimated Time: 20 minutes FROM: Aaron Floyd, Utilities Director Prepared By: Mychal Boerman, Water Resources Program Manager SUBJECT: 2019 SOLID WASTE RATE ADOPTION RECOMMENDATION Adopt a resolution (Attachment A) entitled “A Resolution of the City Council of the City of San Luis Obispo, California, Establishing Integrated Solid Waste Rates.” DISCUSSION Background The City currently has three distinct contracts with San Luis Garbage Company (the Garbage Company) for hauling solid waste, recycling, and organic/green waste (Attachments B-D). These contracts outline the obligations of both parties in areas such as service delivery, record keeping, and regulatory compliance. In accordance with these contracts, the City’s solid waste, recycling, and organic/green waste is collected for processing by the Garbage Company each week for residential customers and up to seven days per week for commercial customers. The City has a longstanding relationship with San Luis Garbage Company that has resulted in a high level of service and customer satisfaction for many years. The City’s Rate Setting Process and Proposed Increases The City’s Rate Setting Manual serves to guide the three-year rate setting process. As part of the rate request review and analysis, the Garbage Company outlines the revenues, expenditures, profits, and operational information that is necessary to measure compliance with the needs of the Rate Setting Manual (Attachment E) and to document the need for the proposed rate increase. In addition to the financial documentation requirements, the Rate Setting Manual aims to have rates that are environmentally sound, easy to understand, and supportive of the City’s waste reduction goals. San Luis Garbage Company submitted a Base Year Rate Adjustment Application (Attachment F) to the City, requesting a 13.72 percent rate increases to become effective on June 19, 2019. In the second and third year of the proposed increase, rate adjustments are made for changes in the Bureau of Labor Statistics’ Consumer Price Index (CPI) for Urban Consumers based on the All U.S. City Average, changes in pass-through costs such as landfill tipping fees, increases in Packet Pg 223 Item 12 franchise fees, and increases in AB939 fees that are paid to the City to fund the operation of waste diversion programs. If adopted, the second and third-year rate increases will become effective on January 1 of 2020 and 2021 respectively. After review of the revenues, expenses, and operational data contained within the rate application, staff has found that the rate request meets the requirements of the City’s Rate Setting Manual. The three-year process outlined above historically resulted in three to six percent increases during base year periods, and one to two percent increases during the second and third years. The 13.72 percent base year increase requested this year is largely a result of global recycling market instability and deferred maintenance and replacement costs of San Luis Garbage Company’s garbage truck fleet. Interim year increases are expected to be consistent with what the City has seen in the past due to limited fluctuation in CPI, nominal increases in landfill tipping fees, and minimal annual increases AB939 fees. Key Factors Contributing to Increased Solid Waste Collection/Disposal Costs Recycled Material Processing Costs Recycling tipping fee cost increases are largely attributed to global recycling market instability that has caused a substantial decrease in the market value of recycled materials. Additionally, increased recycling contamination, caused by “wishful recycling”, combined with more strict contamination restrictions, has led to higher recycling processing costs. These issues have increased recycling tipping fees from $7.80/ton to $67.50/ton (9x). The $67.50/ton cost will impact recycling generated within the City of San Luis Obispo and recyclable material hauled to the Cold Canyon Material Recovery Facility (MRF) from other local cities. Vehicle-Related Costs Increases in fleet costs are a large contributor to the 2019 base-year rate increase, accounting for a 4.7 percent increase. In addition to the increasing cost of renewable natural gas, which powers the garbage truck fleet, five of the trucks within the fleet are scheduled for full replacement in 2019. California’s strict air pollution regulations and increasing raw materials prices (i.e. tariffs) have led to higher costs for truck replacement, thus the need for increased rates to offset cost increases. Organics Recycling/Processing Costs With the opening of the Hitachi Zosen Inova Anaerobic Digestion Facility, the City’s organic waste (food waste and yard waste) is being converted to renewable energy. Operation of this facility, and other costs associated with organic waste collection and processing account for about a one percent rate increase. The increase in costs in this area are largely due to a better understanding of the costs to operate the facility and the distribution of cost amongst Waste Connections’ customers. Landfill Tipping Fee Increases for Landfill Expansion To cover costs associated with the Cold Canyon Landfill expansion, the City’s garbage tipping fee is slated to increase each year over the next three years. This landfill tipping fee increase pays for landfill expansion and ensures that the landfill has capacity to meet the City’s needs for many years to come. Packet Pg 224 Item 12 Table 1: Key Rate Increase Factors Public Engagement The City has been working with San Luis Garbage Company and the Integrated Waste Management Authority (IWMA) to focus outreach efforts on reducing waste generation and recycling contamination. The City has increased efforts to educate the public about these issues through increased use of social media, improvement of the solid waste section of the City’s website, and through attendance of many public events such as the Farmers’ Market and Earth Day. The 2019- 2021 budget also allocates substantial funding for solid waste, recycling, and organic waste public education. CONCURRENCE The City’s Finance Department concurs with the recommended action. ENVIRONMENTAL REVIEW The California Environmental Quality Act (CEQA) does not apply to the recommended action, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. Key Factor Proposed Rate Increase Recycled material processing costs 7.2% Vehicle costs including costs for new equipment, maintenance of vehicle fleets to stay current with the California Air Resources Board rules and regulations, and increased fuel costs. 4.7% Organics recycling/processing costs 1.0% Annual tipping fee increases for landfill expansion 0.82% Total Proposed Increase 13.72% Packet Pg 225 Item 12 FISCAL IMPACTS Budgeted: NA Budget Year: NA Funding Identified: NA Fiscal Analysis: Solid waste rate increases are proposed to become effective on June 19, 2019, January 1, 2020, and January 1, 2021. Proposed rates for residential customers can be found in Attachment G, while proposed rates for commercial customers can be found in Attachment H. Increases for the first year of the rate increase for standard residential customers can be seen in Table 2 below. Table 2: Standard Residential Service Rate Increases ALTERNATIVES Continue Consideration of the Proposed Solid Waste Rates. Council may elect to continue consideration of the proposed solid waste rates should more information be required to satisfy Council’s findings to increase rates based on the rate setting manual. Attachments: a - Resolution Adopting the 2019 Solid Waste Rates b - COUNCIL READING FILE - Solid Waste Contract c - COUNCIL READING FILE - Recycling Contract d - COUNCIL READING FILE - Green Waste Contract e - COUNCIL READING FILE - Solid Waste Rate Setting Manual f - Base Year Rate Application g - Proposition 218 Notice (residential rates) h - Proposition 218 Notice (commercial rates) Service Level (includes solid waste, recycling, and organics services) Current Rate Proposed Rate Economy Rate (32 Gallon Container) $14.49 $16.48 Standard Rate (64 Gallon Container) $28.99 $32.97 Premium Rate (96 Gallon Container) $43.48 $49.45 Packet Pg 226 Item 12 R ______ RESOLUTION NO. _____ (2019 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, ESTABLISHING INTEGRATED SOLID WASTE RATES WHEREAS, on June 21, 1994, the City Council of the City of San Luis Obispo approved the Rate Setting Manual Process and Methodology Manual for Integrated Solid Waste Management Rates; and WHEREAS, notices regarding the requested rate increase were mailed to all property owners and customers 45-days prior to the June 18, 2019 public hearing; and WHEREAS, sufficient protests were not received to prevent the rate increase; and WHEREAS, a review of San Luis Garbage Company’s 2019 Base Year solid waste rate application has been completed in accordance with the adopted solid waste rate setting policies. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Resolution No. 10658 (2015 series) is hereby rescinded as of 11:59 p.m., June 18, 2019. SECTION 2. The proposed rate increases are consistent with the adopted solid waste rate setting policies and provide the analytical basis to support rate increases. SECTION 3. The rates set forth in Exhibit A shall be effective at 12:00 a.m. June 19, 2019. SECTION 4. Rate increase outlined in Exhibit B shall become effective at 12:00 a.m. January 1, 2020 and January 1, 2021, as outlined in the Proposition 218 notification. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2018. ____________________________________ Mayor Heidi Harmon Packet Pg 227 Item 12 Resolution No. _____ (2019 Series) Page 2 R ______ ATTEST: ____________________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this ______ day of ______________, _________. ____________________________________ Teresa Purrington City Clerk Packet Pg 228 Item 12 Resolution No. _____ (2019 Series) Page 3 R ______ EXHIBIT A Single Family and Multi-Unit Residential (4 Units or Less) Service Description Pick Ups Per Week Current Rate Proposed Rate Adjustment % Proposed Monthly Rate Effective 6/19/2019 Price per month for specified waste-wheeler container collected once each week. One green waste container and one recycling container service is included at no additional charge. Mini-Can Service One 19-gallon waste wheeler container 1 $9.08 13.72% $10.33 Economy Rate One 32-gallon waste wheeler container 1 $14.49 13.72% $16.48 Standard Rate One 64-gallon waste wheeler container 1 $28.99 13.72% $32.97 Premium Rate One 96-gallon waste wheeler container 1 $43.48 13.72% $49.45 Premium Plus Rate One 96-gallon waste wheeler at the Premium Rate, plus an additional charge of: One 32-gallon waste wheeler container 1 $13.21 13.72% $15.02 One 64-gallon waste wheeler container 1 $26.45 13.72% $30.08 One 96-gallon waste wheeler container 1 $39.64 13.72% $45.08 Designed Manual Service (Determined by City Staff) Mini-Can Service 1 $14.75 13.72% $16.77 Economy Rate 1 $23.58 13.72% $26.82 Standard Rate 1 $47.20 13.72% $53.68 Premium Rate 1 $70.77 13.72% $80.48 Premium Plus 32-Gallon Can Rate 1 $21.50 13.72% $24.45 Premium Plus 64-Gallon Can Rate 1 $43.01 13.72% $48.91 Premium Plus 96-Gallon Can Rate 1 $64.54 13.72% $73.39 Long-Term Vacation Rate 1 $7.45 13.72% $8.47 Service Away from the Street Curb Additional per month per can or container charge 1 $9.83 13.72% $11.18 Packet Pg 229 Item 12 Resolution No. _____ (2019 Series) Page 4 R ______ Service Description Current Rate Proposed Rate Adjustment % Proposed Monthly Rate Effective 6/19/2019 Used Oil Collection - No Charge (Call for details and pick up information). Late Makeup Collections (Phone Call Required) Per trip charge plus charges identified below for any extra containers or equivalent volume. $14.63 13.72% $16.64 Additional charge per 32-gallon can or equivalent volume per collection. $7.21 13.72% $8.20 Other Residential Charges: Tax Lien Certified Mail Fee $3.87 13.72% $4.40 Special Trip Fee $43.86 13.72% $49.88 Loose Cardboard $7.77 13.72% $8.84 Restart Fee-Residential $21.93 13.72% $24.94 White Goods $27.40 13.72% $31.16 Extra Recycle 32 Or 64 Or 96-Gal Cart $1.50 13.72% $1.71 Extra Green Waste 32 Or 96-Gal Cart $5.65 13.72% $6.43 Extra Collections (Phone Call Required) Per trip, plus applicable amount below: $21.93 13.72% $24.94 Per garbage can or equivalent volume (Over 6 cans by quotation) $7.21 13.72% $8.20 Per recycling can or equivalent volume (Over 6 cans by quotation) $3.63 13.72% $4.13 Per white good article/ appliance (Once a month only) $15.24 13.72% $17.33 Per piece of furniture $15.24 13.72% $17.33 Per mattress or box spring $15.24 13.72% $17.33 Other Service Notes: 1. Customers that qualify for Low Income Services are eligible for a 25% discount on one 32-gallon waste wheeler. 2. Late Fees are imposed for residential customers over 30 days delinquent. The fee is 1.5% per month of the outstanding charge, with a minimum fee of $5.00. No prior notice is required, as this late fee policy is stated at the bottom of every bill. Commercial Rate Information Commercial Garbage “Can Service” (Per Month) Service Description Pick Ups Per Week Current Rate Proposed Rate Adjustment % Proposed Monthly Rate Packet Pg 230 Item 12 Resolution No. _____ (2019 Series) Page 5 R ______ Effective 6/19/2019 One 32-Gallon Can 1 $25.71 13.72% $29.24 One 32-Gallon Can 2 $40.36 13.72% $45.90 One 32-Gallon Can 3 $55.09 13.72% $62.65 One 32-Gallon Can 4 $69.74 13.72% $79.31 One 32-Gallon Can 5 $84.42 13.72% $96.00 One 32-Gallon Can 6 $99.10 13.72% $112.70 One 32-Gallon Can 7 $113.76 13.72% $129.37 Two 32-Gallon Cans 1 $33.05 13.72% $37.58 Two 32-Gallon Cans 2 $51.43 13.72% $58.49 Two 32-Gallon Cans 3 $69.76 13.72% $79.33 Two 32-Gallon Cans 4 $88.12 13.72% $100.21 Two 32-Gallon Cans 5 $106.52 13.72% $121.13 Two 32-Gallon Cans 6 $124.86 13.72% $141.99 Two 32-Gallon Cans 7 $143.21 13.72% $162.86 Three 32-Gallon Cans 1 $40.38 13.72% $45.92 Three 32-Gallon Cans 2 $62.47 13.72% $71.04 Three 32-Gallon Cans 3 $84.48 13.72% $96.07 Three 32-Gallon Cans 4 $106.57 13.72% $121.19 Three 32-Gallon Cans 5 $128.55 13.72% $146.19 Three 32-Gallon Cans 6 $150.60 13.72% $171.26 Three 32-Gallon Cans 7 $172.65 13.72% $196.34 Four 32-Gallon Cans 1 $47.75 13.72% $54.30 Four 32-Gallon Cans 2 $73.46 13.72% $83.54 Four 32-Gallon Cans 3 $99.14 13.72% $112.74 Four 32-Gallon Cans 4 $124.87 13.72% $142.00 Four 32-Gallon Cans 5 $150.57 13.72% $171.23 Four 32-Gallon Cans 6 $176.30 13.72% $200.49 Four 32-Gallon Cans 7 $201.97 13.72% $229.68 Five 32-Gallon Cans 1 $55.11 13.72% $62.67 Five 32-Gallon Cans 2 $84.46 13.72% $96.05 Five 32-Gallon Cans 3 $113.83 13.72% $129.45 Five 32-Gallon Cans 4 $143.20 13.72% $162.84 Five 32-Gallon Cans 5 $172.61 13.72% $196.29 Five 32-Gallon Cans 6 $201.95 13.72% $229.66 Five 32-Gallon Cans 7 $231.33 13.72% $263.07 Six 32-Gallon Cans 1 $62.47 13.72% $71.04 Six 32-Gallon Cans 2 $95.47 13.72% $108.57 Packet Pg 231 Item 12 Resolution No. _____ (2019 Series) Page 6 R ______ Six 32-Gallon Cans 3 $128.51 13.72% $146.14 Six 32-Gallon Cans 4 $161.57 13.72% $183.74 Six 32-Gallon Cans 5 $194.58 13.72% $221.28 Six 32-Gallon Cans 6 $227.64 13.72% $258.87 Six 32-Gallon Cans 7 $260.66 13.72% $296.42 Rates for all “Can Service” customers include recycling pickup once per-week. More frequent than once- per-week pickup can be provided at a 75% discount from the garbage service rate for the specified level of service required. Commercial “Waste Wheeler Container Service” (Per Month) Service Description Pick Ups Per Week Current Rate Proposed Rate Adjustment % Proposed Monthly Rate Effective 6/19/2019 One 96-Gallon Waste Wheeler 1 $45.83 13.72% $52.12 One 96-Gallon Waste Wheeler 2 $73.38 13.72% $83.45 One 96-Gallon Waste Wheeler 3 $100.93 13.72% $114.78 One 96-Gallon Waste Wheeler 4 $128.46 13.72% $146.08 One 96-Gallon Waste Wheeler 5 $156.03 13.72% $177.44 One 96-Gallon Waste Wheeler 6 $183.54 13.72% $208.72 One 96-Gallon Waste Wheeler 7 $211.10 13.72% $240.06 Two 96-Gallon Waste Wheelers 1 $75.12 13.72% $85.43 Two 96-Gallon Waste Wheelers 2 $115.48 13.72% $131.32 Two 96-Gallon Waste Wheelers 3 $155.87 13.72% $177.26 Two 96-Gallon Waste Wheelers 4 $196.24 13.72% $223.16 Two 96-Gallon Waste Wheelers 5 $236.64 13.72% $269.11 Two 96-Gallon Waste Wheelers 6 $276.99 13.72% $314.99 Two 96-Gallon Waste Wheelers 7 $317.43 13.72% $360.98 Packet Pg 232 Item 12 Resolution No. _____ (2019 Series) Page 7 R ______ Three 96-Gallon Waste Wheelers 1 $104.41 13.72% $118.74 Three 96-Gallon Waste Wheelers 2 $157.63 13.72% $179.26 Three 96-Gallon Waste Wheelers 3 $210.88 13.72% $239.81 Three 96-Gallon Waste Wheelers 4 $264.11 13.72% $300.35 Three 96-Gallon Waste Wheelers 5 $317.37 13.72% $360.91 Three 96-Gallon Waste Wheelers 6 $370.58 13.72% $421.42 Three 96-Gallon Waste Wheelers 7 $423.82 13.72% $481.97 Four 96-Gallon Waste Wheelers 1 $133.69 13.72% $152.03 Four 96-Gallon Waste Wheelers 2 $199.78 13.72% $227.19 Four 96-Gallon Waste Wheelers 3 $266.47 13.72% $303.03 Four 96-Gallon Waste Wheelers 4 $331.95 13.72% $377.49 Four 96-Gallon Waste Wheelers 5 $398.06 13.72% $452.67 Four 96-Gallon Waste Wheelers 6 $464.11 13.72% $527.79 Four 96-Gallon Waste Wheelers 7 $530.26 13.72% $603.01 Five 96-Gallon Waste Wheelers 1 $162.98 13.72% $185.34 Five 96-Gallon Waste Wheelers 2 $241.97 13.72% $275.17 Five 96-Gallon Waste Wheelers 3 $320.88 13.72% $364.90 Five 96-Gallon Waste Wheelers 4 $399.83 13.72% $454.69 Five 96-Gallon Waste Wheelers 5 $478.75 13.72% $544.43 Five 96-Gallon Waste Wheelers 6 $557.71 13.72% $634.23 Five 96-Gallon Waste Wheelers 7 $636.64 13.72% $723.99 Packet Pg 233 Item 12 Resolution No. _____ (2019 Series) Page 8 R ______ Six 96-Gallon Waste Wheelers 1 $192.29 13.72% $218.67 Six 96-Gallon Waste Wheelers 2 $284.08 13.72% $323.06 Six 96-Gallon Waste Wheelers 3 $375.88 13.72% $427.45 Seven 96-Gallon Waste Wheelers 1 $221.57 13.72% $251.97 Eight 96-Gallon Waste Wheelers 1 $250.86 13.72% $285.28 Eight 96-Gallon Waste Wheelers 7 $955.89 13.72% $1,087.04 Rates for all “Waste Wheeler Container Service” customers include recycling pickup once per-week. More frequent than once-per-week pickup can be provided at a 75% discount from the garbage service rate for the specified level of service required. Multi-Unit Residential “Dumpster Container Service” (Per Month) Service Description Pick Ups Per Week Current Rate Proposed Rate Adjustment % Proposed Monthly Rate Effective 6/19/2019 1-Yard Dumpster 1 $104.66 13.72% $119.02 1-Yard Dumpster 2 $152.43 13.72% $173.34 1-Yard Dumpster 3 $200.11 13.72% $227.57 1-Yard Dumpster 4 $247.85 13.72% $281.86 1-Yard Dumpster 5 $295.61 13.72% $336.17 1-Yard Dumpster 6 $343.30 13.72% $390.40 1-Yard Dumpster 7 $391.04 13.72% $444.69 1.5-Yard Dumpster 1 $121.17 13.72% $137.79 1.5-Yard Dumpster 2 $187.25 13.72% $212.94 1.5-Yard Dumpster 3 $253.36 13.72% $288.12 1.5-Yard Dumpster 4 $319.43 13.72% $363.26 1.5-Yard Dumpster 5 $385.52 13.72% $438.41 1.5-Yard Dumpster 6 $451.60 13.72% $513.56 1.5-Yard Dumpster 7 $517.67 13.72% $588.69 2-Yard Dumpster 1 $137.68 13.72% $156.57 2-Yard Dumpster 2 $220.31 13.72% $250.54 2-Yard Dumpster 3 $302.90 13.72% $344.46 Packet Pg 234 Item 12 Resolution No. _____ (2019 Series) Page 9 R ______ 2-Yard Dumpster 4 $385.52 13.72% $438.41 2-Yard Dumpster 5 $468.13 13.72% $532.36 2-Yard Dumpster 6 $550.73 13.72% $626.29 2-Yard Dumpster 7 $633.33 13.72% $720.22 3-Yard Dumpster 1 $170.71 13.72% $194.13 3-Yard Dumpster 2 $286.40 13.72% $325.69 3-Yard Dumpster 3 $402.05 13.72% $457.21 3-Yard Dumpster 4 $517.73 13.72% $588.76 3-Yard Dumpster 5 $633.36 13.72% $720.26 3-Yard Dumpster 6 $749.05 13.72% $851.82 3-Yard Dumpster 7 $864.71 13.72% $983.35 4-Yard Dumpster 1 $203.78 13.72% $231.74 4-Yard Dumpster 2 $354.31 13.72% $402.92 4-Yard Dumpster 3 $504.89 13.72% $574.16 4-Yard Dumpster 4 $655.45 13.72% $745.38 4-Yard Dumpster 5 $805.97 13.72% $916.55 4-Yard Dumpster 6 $956.55 13.72% $1,087.79 4-Yard Dumpster 7 $1,107.14 13.72% $1,259.04 6-Yard Dumpster 1 $269.84 13.72% $306.86 6-Yard Dumpster 2 $488.32 13.72% $555.32 6-Yard Dumpster 3 $706.82 13.72% $803.80 6-Yard Dumpster 4 $925.30 13.72% $1,052.25 6-Yard Dumpster 5 $1,143.80 13.72% $1,300.73 6-Yard Dumpster 6 $1,405.12 13.72% $1,597.90 6-Yard Dumpster 7 $1,595.44 13.72% $1,814.33 Commercial “Dumpster Container Service” (Per Month) Service Description Pick Ups Per Week Current Rate Proposed Rate Adjustment % Proposed Monthly Rate Effective 6/19/2019 1-Yard Dumpster 1 $91.80 13.72% $104.39 1-Yard Dumpster 2 $128.51 13.72% $146.14 1-Yard Dumpster 3 $165.25 13.72% $187.92 1-Yard Dumpster 4 $201.95 13.72% $229.66 1-Yard Dumpster 5 $238.66 13.72% $271.40 1-Yard Dumpster 6 $275.40 13.72% $313.18 1-Yard Dumpster 7 $312.12 13.72% $354.94 1.5-Yard Dumpster 1 $102.81 13.72% $116.92 Packet Pg 235 Item 12 Resolution No. _____ (2019 Series) Page 10 R ______ 1.5-Yard Dumpster 2 $150.53 13.72% $171.18 1.5-Yard Dumpster 3 $198.25 13.72% $225.45 1.5-Yard Dumpster 4 $246.00 13.72% $279.75 1.5-Yard Dumpster 5 $293.72 13.72% $334.02 1.5-Yard Dumpster 6 $341.47 13.72% $388.32 1.5-Yard Dumpster 7 $389.20 13.72% $442.60 2-Yard Dumpster 1 $113.82 13.72% $129.44 2-Yard Dumpster 2 $170.73 13.72% $194.15 2-Yard Dumpster 3 $227.68 13.72% $258.92 2-Yard Dumpster 4 $284.58 13.72% $323.62 2-Yard Dumpster 5 $341.50 13.72% $388.35 2-Yard Dumpster 6 $398.41 13.72% $453.07 2-Yard Dumpster 7 $455.33 13.72% $517.80 3-Yard Dumpster 1 $135.85 13.72% $154.49 3-Yard Dumpster 2 $214.77 13.72% $244.24 3-Yard Dumpster 3 $293.72 13.72% $334.02 3-Yard Dumpster 4 $372.67 13.72% $423.80 3-Yard Dumpster 5 $451.60 13.72% $513.56 3-Yard Dumpster 6 $530.55 13.72% $603.34 3-Yard Dumpster 7 $609.52 13.72% $693.15 4-Yard Dumpster 1 $157.86 13.72% $179.52 4-Yard Dumpster 2 $260.68 13.72% $296.45 4-Yard Dumpster 3 $363.46 13.72% $413.33 4-Yard Dumpster 4 $466.30 13.72% $530.28 4-Yard Dumpster 5 $569.09 13.72% $647.17 4-Yard Dumpster 6 $671.90 13.72% $764.08 4-Yard Dumpster 7 $774.74 13.72% $881.03 6-Yard Dumpster 1 $201.91 13.72% $229.61 6-Yard Dumpster 2 $346.96 13.72% $394.56 6-Yard Dumpster 3 $492.02 13.72% $559.53 6-Yard Dumpster 4 $637.07 13.72% $724.48 6-Yard Dumpster 5 $782.13 13.72% $889.44 6-Yard Dumpster 6 $927.17 13.72% $1,054.38 6-Yard Dumpster 7 $1,072.25 13.72% $1,219.36 8-Yard Dumpster 1 $245.97 13.72% $279.72 8-Yard Dumpster 2 $433.22 13.72% $492.66 8-Yard Dumpster 3 $620.51 13.72% $705.64 8-Yard Dumpster 4 $807.79 13.72% $918.62 8-Yard Dumpster 5 $995.08 13.72% $1,131.60 Packet Pg 236 Item 12 Resolution No. _____ (2019 Series) Page 11 R ______ 8-Yard Dumpster 6 $1,182.31 13.72% $1,344.52 8-Yard Dumpster 7 $1,369.60 13.72% $1,557.51 Sunday Service Flat Rate $64.27 13.72% $73.09 Unscheduled Extra Collections for Commercial Customers & Multi-Unit Service Description Frequency Current Rate Proposed Rate Adjustment % Proposed Monthly Rate Effective 6/19/2019 1-Yard Dumpster Per Lift $42.24 13.72% $48.04 1.5-Yard Dumpster Per Lift $46.85 13.72% $53.28 2-Yard Dumpster Per Lift $55.10 13.72% $62.66 3-Yard Dumpster Per Lift $67.93 13.72% $77.25 4-Yard Dumpster Per Lift $80.78 13.72% $91.86 Rates for all commercial customers for unscheduled extra collections of recycling can be provided at a 75% discount from the garbage service rate for the specified level of service required. Other Commercial Charges Service Description Quantity or Frequency Current Rate Proposed Rate Adjustment % Proposed Monthly Rate Effective 6/19/2019 Loose Cardboard Per Yard $7.81 13.72% $8.88 Loose Yardage (Solid Waste) Per Yard $31.21 13.72% $35.49 Rental Per Month $36.76 13.72% $41.80 Temporary Rental Charge Per Day $1.23 13.72% $1.40 White Goods Per Unit $27.55 13.72% $31.33 Tax Lien Cert. Mail Fee Per Mailing $3.87 13.72% $4.40 Lock Charge-Front Per Month $68.93 13.72% $78.39 Lock Charge-Rear Per Month $51.67 13.72% $58.76 Standby Time Per Minute $1.02 13.72% $1.16 Packet Pg 237 Item 12 Resolution No. _____ (2019 Series) Page 12 R ______ Compactors (Per Ton) Per Ton $45.36 13.72% $51.58 Extra 32 Or 96 Gallon Greenwaste Per Unit $1.53 13.72% $1.74 Extra 32 Or 64 Or 96 Gallon Recycle Per Unit $1.53 13.72% $1.74 Recycling Services: Collection of Commercial Dumpster Containers Service Description Pick Ups Per Week Current Rate Proposed Rate Adjustment % Proposed Monthly Rate Effective 6/19/2019 1-Yard Dumpster 1 INCLUDED * INCLUDED * 1-Yard Dumpster 2 INCLUDED * INCLUDED * 1-Yard Dumpster 3 $41.31 13.72% $46.98 1-Yard Dumpster 4 $50.49 13.72% $57.42 1-Yard Dumpster 5 $59.65 13.72% $67.83 1-Yard Dumpster 6 $68.87 13.72% $78.32 1-Yard Dumpster 7 $78.02 13.72% $88.72 1.5-Yard Dumpster 1 INCLUDED * INCLUDED * 1.5-Yard Dumpster 2 INCLUDED * INCLUDED * 1.5-Yard Dumpster 3 $49.57 13.72% $56.37 1.5-Yard Dumpster 4 $61.47 13.72% $69.90 1.5-Yard Dumpster 5 $73.41 13.72% $83.48 1.5-Yard Dumpster 6 $85.34 13.72% $97.05 1.5-Yard Dumpster 7 $97.30 13.72% $110.65 2-Yard Dumpster 1 INCLUDED * INCLUDED * 2-Yard Dumpster 2 INCLUDED * INCLUDED * 2-Yard Dumpster 3 $56.89 13.72% $64.70 2-Yard Dumpster 4 $71.13 13.72% $80.89 2-Yard Dumpster 5 $85.35 13.72% $97.06 2-Yard Dumpster 6 $99.62 13.72% $113.29 2-Yard Dumpster 7 $113.83 13.72% $129.45 3-Yard Dumpster 1 INCLUDED * INCLUDED * 3-Yard Dumpster 2 INCLUDED * INCLUDED * 3-Yard Dumpster 3 $73.41 13.72% $83.48 3-Yard Dumpster 4 $93.19 13.72% $105.98 3-Yard Dumpster 5 $112.90 13.72% $128.39 3-Yard Dumpster 6 $132.65 13.72% $150.85 3-Yard Dumpster 7 $152.38 13.72% $173.29 Packet Pg 238 Item 12 Resolution No. _____ (2019 Series) Page 13 R ______ 4-Yard Dumpster 1 INCLUDED * INCLUDED * 4-Yard Dumpster 2 INCLUDED * INCLUDED * 4-Yard Dumpster 3 $90.89 13.72% $103.36 4-Yard Dumpster 4 $116.58 13.72% $132.57 4-Yard Dumpster 5 $142.28 13.72% $161.80 4-Yard Dumpster 6 $167.99 13.72% $191.04 4-Yard Dumpster 7 $193.65 13.72% $220.22 6-Yard Dumpster 1 INCLUDED * INCLUDED * 6-Yard Dumpster 2 INCLUDED * INCLUDED * 6-Yard Dumpster 3 $123.02 13.72% $139.90 6-Yard Dumpster 4 $159.28 13.72% $181.13 6-Yard Dumpster 5 $195.55 13.72% $222.38 6-Yard Dumpster 6 $231.79 13.72% $263.59 6-Yard Dumpster 7 $268.07 13.72% $304.85 8-Yard Dumpster 1 INCLUDED * INCLUDED * 8-Yard Dumpster 2 INCLUDED * INCLUDED * 8-Yard Dumpster 3 $147.30 13.72% $167.51 8-Yard Dumpster 4 $191.76 13.72% $218.07 8-Yard Dumpster 5 $236.23 13.72% $268.64 8-Yard Dumpster 6 $287.19 13.72% $326.59 8-Yard Dumpster 7 $332.65 13.72% $378.29 In-office weekly collections of white and colored paper. $62.11 13.72% $70.63 *Rates for all commercial customers include recycling pickup twice per week free of charge for up to 4 cubic yards. If you need more frequent service, it can be provided at a 75% discount from the garbage service rates for the specified level of service required. Late Fees are imposed for residential customers over 60 days delinquent and commercial customers over 30 days delinquent. The fee is 1.5% per month of the outstanding charge, with a minimum fee of $5.00. No prior notice is required, as this late fee policy is stated at the bottom of every bill. Late Makeup Collections (Phone Call Required) Service Description Frequency Current Rate Proposed Rate Adjustment % Proposed Monthly Rate Effective 6/19/2019 Late Makeup Charge Plus Charges Identified Below for Any Extra Containers or Equivalent Volume Per Trip $14.72 13.72% $16.74 Packet Pg 239 Item 12 Resolution No. _____ (2019 Series) Page 14 R ______ Additional Charge Per 32- Gallon Can or Equivalent Volume Per Unit $7.89 13.72% $8.97 Extra Collections (Phone Call Required) Service Description Frequency Current Rate Proposed Rate Adjustment % Proposed Monthly Rate Effective 6/19/2019 Trip Fee, Plus Applicable Volumetric/Item Amount Below: Per Trip $22.05 13.72% $25.08 Garbage Can or Equivalent Volume. (Over 6 Cans by Quotation) Per Can $7.89 13.72% $8.97 Recycling Can or Equivalent Volume. (Over 6 cans by quotation) Per Can $3.65 13.72% $4.15 White Good Article/Appliance (Once a month only) Per Item $16.21 13.72% $18.43 Furniture Per Item $16.21 13.72% $18.43 Mattress or Box Spring Per Item $16.21 13.72% $18.43 Delivery Charge Per Trip $23.87 13.72% $27.14 Commercial Maintenance Fee Per Trip $22.05 13.72% $25.08 Packet Pg 240 Item 12 Resolution No. _____ (2019 Series) Page 15 R ______ EXHIBIT B 1. Increases, if any, in the Consumer Price Index (CPI) for Bureau of Labor Statistics’ Consumer Price Index for Urban Consumers based on the All U.S. City Average, Bureau of Labor Statistics for the month of June 2019 for January 1, 2020 and June 2020 for January 1, 2021. 2. Increases of 0.85 percent on January 1, 2020 and 0.82 percent for January 1, 2021 for increases in the cost of landfill disposal. 3. A 3% annual increase in AB 939 fee costs which are used to fund City waste diversion programs associated with California Assembly Bill 939. Packet Pg 241 Item 12 San Luis Garbage, Co. Base Year Rate Adjustment Application--4th Amended Summary Recycle Processing 7.2% CNG Trucks/Infrastructure 4.7% Organics Tipping Fees 1.0% Operations Costs 0.8% 1. Rate Increase Requested 13.7% Current Increased Adjustment New Rate Schedule Rate Rate (a)Rate Single Family Residential 2. Mini-Can Service (20 gallon can curb)9.08$ $10.33 $10.33 3. Economy Service (1 - can curb)14.49$ $16.48 $16.48 4. Standard Service (2- can curb)28.99$ $32.97 $32.97 5. Premium Service (3 - can curb)43.48$ $49.45 $49.45 (a) Calculated rates are rounded up to the nearest $0.01. 6.Multiunit Residential and Non-residential Rate increases of 13.72% will be applied to all rates in each structure with each rate rounded to the nearest $0.01 Certification To the best of my knowledge, the data and information in this application is complete, accurate, and consistent with the instructions provided by the Rate Setting Manual. Name:Jeff Smith Title:District Manager Signature:Date:01/30/19 Fiscal Year: 1-1-2019 to 12-31-2019 Pg. 1 of 6 Summary of Significant Requested Increase Components Rate Schedule Packet Pg 242 Item 12 San Luis Garbage, Co. Base Year Rate Adjustment Application--4th Amended Current Financial Information Base Year 2016 2017 2018 2019 2020 (from Pg. 4) 6. Direct Labor $2,768,633 $2,991,926 $2,754,390 $2,784,365 $2,862,327 7. Corporate Overhead $204,231 $206,273 $209,574 $215,651 $221,690 8. Office Salaries $474,164 $433,427 $445,922 $458,260 $471,091 9. Other General and Admin Costs $3,252,350 $3,797,574 $3,860,402 $4,213,664 $4,331,647 10 Total Allowable Costs $6,699,378 $7,429,200 $7,270,288 $7,671,940 $7,886,754 11. Operating Ratio 95.6%102.7%107.1%93.0%93.0% 12.Allowable Operating Profit $295,208 ($201,989) ($513,509) $577,458 $593,627 $400,839 13. Tipping Fees $1,561,965 $1,535,432 $2,173,148 $2,151,960 $2,212,215 14. Franchise Fees $1,079,412 $1,099,790 $1,075,409 $1,085,649 $1,116,047 15. AB939 Fees $148,797 $163,944 $166,560 $171,224 $176,018 16.Lease Pmts to Affiliated Companies $45,132 $46,476 $91,450 $94,926 $97,583 17. Total Pass Through Costs $2,835,306 $2,845,642 $3,506,567 $3,503,758 $3,601,863 18. Revenue Requirement $11,753,156 $12,082,244 19. Total Revenue Offsets $9,829,893 $10,072,853 $10,263,346 $10,463,863 $10,590,846 (from Page 3) 20. Net Shortfall (Surplus)$1,289,293 21. Total Residential and Non-residential Revenue without increase in Base Year (pg.3, lines 32+40)$10,441,461 22. Percent Change in Residential and Non-residential Revenue Requirement 12.35% 23. Franchise Fee Adjustment Factor (1 - 10 percent)90.00% 24. Percent Change in Existing Rates 13.72% Fiscal Year: 1-1-2019 to 12-31-2019 Pg. 2 of 6 Section V - Net Shortfall (Surplus) Historical Projected Section I-Allowable Costs Section II-Allowable Operating Profit Section III-Pass Through Costs Section IV - Revenue Requirement Packet Pg 243 Item 12 San Luis Garbage, Co. Base Year Rate Adjustment Application--4th Amended Revenue Offset Summary Current Base Year 2016 2017 2018 2019 2020 Residential Revenue (without increase in Base Yr.) Current Projected Annualized Account Type Rate/Mo.Mo.'s Accounts Revenue 25. Mini can 9.08$ 12 1,752 190,873$ 26. One can 14.49$ 12 5,510 958,138$ 26.5 Two can 28.99$ 12 3,798 1,321,261$ 27. Three can 43.48$ 12 996 519,573$ Adj unincorp/supplemental svcs 12,056 28. Single Family Residential $3,088,187 $3,178,558 $3,244,810 $3,309,706 $3,349,423 Multiunit Residential Dumpster 29. Number of Accounts 328 323 318 322 321 30. Revenues $1,152,527 $1,164,053 $1,241,123 $1,265,945 $1,281,137 31. Less Allowance for Uncollectible Resid Accounts 32.Total Residential Revenue $4,240,714 $4,342,611 $4,485,933 $4,575,652 $4,630,559 Non-residential Revenue (without increase in Base Yr.) Account Type Non-residential Can 33. Number of Accounts 278 305 334 338 341 34. Revenues $192,825 $196,681 $199,041 Non-residential Wastewheeler 35. Number of Accounts 437 424 410 415 419 36. Revenues $465,384 $474,692 $480,388 Non-residential Dumpster 37. Number of Accounts 1,292 1,472 1,658 1,679 1,696 38. Revenues $5,571,832 $5,707,001 $5,092,585 $5,194,437 $5,256,770 39. Less: Allowance for Uncollectible Non-resid 40.Total Non-residential Revenue $5,571,832 $5,707,001 $5,750,793 $5,865,809 $5,936,199 45.Interest on Investments $543 $0 $0 $181 $60 46.Other Income $16,804 $23,242 $26,619 $22,222 $24,027 47.Total Revenue Offsets $9,829,893 $10,072,853 $10,263,346 $10,463,863 $10,590,846 Fiscal Year: 1-1-2019 to 12-31-2019 Pg. 3 of 6 Section VII - Revenue Offsets Historical Projected Packet Pg 244 Item 12 San Luis Garbage, Co. Base Year Rate Adjustment Application--4th Amended Cost Summary for Base Year Description of Cost BASE YEAR 2016 2017 2018 2019 Labor $2,538,857 $2,744,067 $2,502,580 $2,530,607 Payroll Taxes $229,776 $247,858 $251,810 $253,758 48.Total Direct Labor $2,768,633 $2,991,926 $2,754,390 $2,784,365 49. Corporate Overhead $204,435 $275,248 $387,485 $400,253 Less limitation (enter as negative)($203)($68,975)($177,911)($184,602) Total Corporate Overhead $204,231 $206,273 $209,574 $215,651 Office Salary $413,091 $383,192 $374,212 $384,398 Payroll Taxes $61,073 $50,235 $71,710 $73,862 50.Total Office Salaries $474,164 $433,427 $445,922 $458,260 Bad Debt ($228)($410)($0)($0) Allocated expenses $0 $0 $0 $0 Bond expense $6,608 $5,988 $5,988 $6,216 Depreciation on Bldg and Equip $0 $32,067 $29,018 $41,179 Depreciation on Trucks/Containers $471,493 $500,047 $450,720 $704,057 Drive Cam fees $31,298 $28,618 $17,223 $17,878 Dues and Subscriptions $5,236 $4,964 $6,375 $6,617 Facilities $0 $25,169 ($0)($0) Gas and oil $550,990 $668,932 $739,401 $736,244 Interest Expense $0 $142,678 $144,686 $196,563 Laundry (Uniforms)$25,050 $32,231 $32,297 $33,524 Legal and Accounting $23,437 $34,035 $35,972 $37,339 Miscellaneous and Other $12,946 $6,543 $7,269 $7,545 Office Expense $155,495 $194,638 $177,685 $184,437 Operating Supplies $32,267 $31,056 $27,796 $28,852 Other Insurance - Medical $1,214,446 $1,194,010 $1,003,548 $1,041,683 Other Taxes $33,669 $34,608 $36,604 $37,995 Outside Services $210,708 $352,753 $448,112 $490,108 Public Relations and Promotion $803 $2,100 $0 $0 Permits $50,087 $54,851 $54,066 $56,121 Postage $5,071 $3,053 $9,130 $9,477 Relocation $8,347 $17,104 $9,065 $9,065 Rent $0 $0 $0 $0 Telephone $27,932 $33,054 $33,186 $37,185 Tires $85,230 $89,230 $84,879 $85,516 Transportation $5,165 $3,000 $275 $285 Travel $54,924 $54,115 $78,361 $54,338 Truck Repairs $226,718 $239,021 $413,046 $375,141 Utilities $14,657 $14,118 $15,699 $16,296 51.Total Other Gen/Admin Costs $3,252,350 $3,797,574 $3,860,402 $4,213,664 52.Total Tipping Fees $1,561,965 $1,535,432 $2,173,148 $2,151,960 53.Total Franchise Fee $1,079,412 $1,099,790 $1,075,409 $1,085,649 54.Total AB 939/Regulatory Fees $148,797 $163,944 $166,560 $171,224 55.Total Lease Pmt to Affil Co.'s $45,132 $46,476 $91,450 $94,926 56.Total Cost $9,534,685 $10,274,842 $10,776,854 $11,175,698 Fiscal Year: 1-1-2019 to 12-31-2019 Pg. 4 of 6 Packet Pg 245 Item 12 San Luis Garbage, Co. Base Year Rate Adjustment Application--4th Amended Base Year Revenue Offset Summary For Information Purposes Only Description of Revenue Overall Franchise Non-franchise Total Total SLO City SLO County Cal Poly Total Residential Revenue (without increase in Base Year) 57. Single Family Residential $3,309,706 $3,309,706 2,991,155 318,551 - - Multiunit Residential Dumpster (Considered Non-residential revenue) 58. Number of Accounts 321.816 322 322 59. Revenues $1,265,945 $1,265,945 $1,265,945 $0 $0 $0 60. Less Allowance for Uncollectable $0 $0 61.Total Residential Revenue $4,575,652 $4,575,652 $4,257,101 $318,551 $0 $0 Non-residential Revenue (without increase in Base Year) Account Type Non-residential Can 62. Number of Accounts 338 338 334 3 1 63. Revenues $196,681 $196,681 $195,565 $939 $177 $0 Non-residential Wastewheeler 64. Number of Accounts 415 415 383 19 13 65. Revenues $474,692 $474,692 $457,707 $8,790 $8,194 $0 Non-residential Dumpster 66. Number of Accounts 1679 1678 1,327 250 101 1 67. Revenues $5,194,437 $4,938,430 $4,305,361 $201,921 $431,148 $256,007 68. Less: Allowance for Uncollectible Non-residential Accounts $0 $0 $0 $0 $0 $0 69.Total Non-residential Revenue $5,865,809 $5,609,803 $4,958,633 $211,650 $439,519 $256,007 74.Interest on Investments $0 $0 $0 $0 $0 $0 75.Other Income $5,703 $5,323 $5,034 $290 $240 $140 76.Total Revenue Offsets $10,447,164 $10,190,777 $9,220,768 $530,490 $439,760 $256,147 Fiscal Year: 1-1-2019 to 12-31-2019 Pg. 5 of 6 Refuse Collection Section VII-Revenue Offsets Packet Pg 246 Item 12 San Luis Garbage, Co. Base Year Rate Adjustment Application--4th Amended Operating Information Percent Percent Percent Base Year Percent 2016 Change 2017 Change 2018 Change 2019 Change 2020 Residential Garbage 77. Accounts 11,819 0.7% 11,907 0.1% 11,914 2.0% 12,152 2.0% 12,395 78. Routes 5 0.0% 5 0.0% 5 0.0% 5 0.0% 5 79. Tons Collected 7,833 -5.1% 7,436 -5.9% 6,996 0.0% 6,996 0.0% 6,996 80. Direct Labor Hours 16,914 0.0% 16,914 0.0% 16,914 0.0% 16,914 0.0% 16,914 Non-residential Garbage 80. Accounts 2,233 1.0% 2,256 6.5% 2,402 2.0% 2,450 2.0% 2,499 81. Routes 12 0.0% 12 0.0% 12 0.0% 12 0.0% 12 Tons Collected 26,537 0.6% 26,689 -0.1% 26,652 0.0% 26,652 0.0% 26,652 82. Direct Labor Hours 23,616 0.0% 23,616 0.0% 23,616 0.0% 23,616 0.0% 23,616 Recyclable Materials - Commingled Recycling 83.Accounts 14,052 0.8% 14,163 1.1% 14,316 2.0% 14,602 2.0% 14,894 Routes 6 0.0% 6 0.0% 6 0.0% 6 0.0% 6 Tons Collected 10,865 2.1% 11,094 1.8% 11,293 1.0% 11,406 3.3% 11,784 84.Direct Labor Hours 14,153 0.0% 14,153 0.0% 14,153 0.0% 14,153 0.0% 14,153 Recyclable Materials - Greenwaste Collection 85 Accounts 11,819 0.7% 11,907 0.1% 11,914 2.0% 12,152 2.0% 12,395 Routes 3 0.0% 3 0.0% 3 0.0% 3 0.0% 3 Tons Collected 4,490 46.2% 6,562 -7.2% 6,090 10.0% 6,699 10.0% 7,369 Direct Labor Hours 6,054 0.0% 6,054 0.0% 6,054 10.0% 6,659 10.0% 7,325 Fiscal Year: 1-1-2019 to 12-31-2019 Pg. 6 of 6 Historical Current Projected Section IX-Operating Data Packet Pg 247 Item 12 Notice  of  Public  Hearing  Regarding   Proposed  Solid  Waste  Rate  Increase     Residential  Property  Owners  and  Tenants  -­‐  Customers:     This  notice  is  intended  to  inform  you  that  the  City  of  San  Luis  Obispo  (the  “City”)  will  hold  a  public  hearing   regarding   rate   increases   (the   “Proposed   Rate   Increase”)   proposed   by   San   Luis   Garbage   Company   (the   “Garbage  Company”)  for  properties  and  customers  receiving  solid  waste,  recycling,  and  green  waste  services   within  the  City.  The  Proposed  Rate  Increase  will  be  considered  by  the  San  Luis  Obispo  City  Council  at  the  date,   time,  and  location  specified  below.  Consistent  with  the  requirements  of  Proposition  218,  this  notice  also   provides  you  with  the  following  information:             ●   The  Date,  Time,  and  Place  of  the  Public  Hearing;           ●   The  Majority  Protest  Procedures;           ●   The  Reason  for  the  Proposed  Rate  Increase;  and           ●   The  Basis  for  the  Proposed  Rate  Increase.       NOTICE  OF  PUBLIC  HEARING     The  Public  Hearing  for  the  Proposed  Rate  Increase  within  the  City  limits  will  be  held  on:     Date:  June  18,  2019    Time:  6:00  pm   Place:  San  Luis  Obispo  City  Hall,  990  Palm  Street,  San  Luis  Obispo,  CA     At  the  Public  Hearing,  the  City  Council  will  consider  all  public  comment  in  support  of  and  in  opposition  to  the   Proposed  Rate  Increase  and  whether  or  not  a  Majority  Protest  exists  pursuant  to  the  California  Constitution  (as   described  below).  If  approved,  the  Proposed  Rate  Increase  would  become  effective  on  June  19,  2019.       HOW  DO  I  PROTEST  THE  PROPOSED  RATE  INCREASE?     Pursuant  to  Section  6  of  Article  XIII  D  of  the  California  Constitution,  the  following  persons  may  submit  a   written  protest  against  the  Proposed  Rate  Increase  to  the  City  Clerk  before  the  close  of  the  Public  Hearing   referenced  above.      An  owner(s)  of  property  (parcel(s))  receiving  solid  waste,  recycling,  and  green  waste  services  within   the  City  limits.  If  the  person(s)  signing  the  protest,  as  an  owner,  is  not  shown  on  the  last  equalized   assessment  roll  as  the  owner  of  the  parcel(s)  then  the  protest  must  contain  or  be  accompanied  by   written   evidence   that   such   person   signing   the   protest   is   the   owner   of   the   parcel(s)   receiving   services;     or    A  tenant(s)  whose  name  appears  on  the  Garbage  Company’s  records  as  the  customer  of  record  for   the  corresponding  parcel  receiving  solid  waste,  recycling,  and  green  waste  services  within  the  City   limits  (tenant-­‐customer).     A  valid  written  protest  must  contain  a  statement  that  you  protest  the  Proposed  Rate  Increase,  the  address  or   Assessor’s  Parcel  Number  (APN)  of  the  parcel  or  parcels  which  receive  solid  waste,  recycling,  and  green  waste   services,  and  a  signature  by  either  the  owner  or  the  tenant-­‐customer  of  the  parcel  or  parcels.  One  written   protest  per  parcel  shall  be  counted  in  calculating  a  majority  protest  to  the  Proposed  Rate  Increase  subject  to   the  requirements  of  Section  6  of  Article  XIII  D  of  the  California  Constitution.  Written  protests  will  not  be   Packet Pg 248 Item 12 accepted  by  e-­‐mail  or  by  facsimile.  Verbal  protests  will  not  be  counted  in  determining  the  existence  of  a   majority  protest.  To  be  counted,  a  protest  must  be  received  in  writing  by  the  City  Clerk  before  the  close  of  the   Public  Hearing  referenced  above.       Written  protests  regarding  the  solid  waste  rate  increase  may  be  mailed  to:     City  of  San  Luis  Obispo   Attn:  City  Clerk   990  Palm  Street  ,  San  Luis  Obispo,  CA  93401-­‐3249     Written  protests  may  also  be  personally  delivered  to  the  City  Clerk  at  San  Luis  Obispo  City  Hall  located  at  990   Palm  Street,  San  Luis  Obispo,  California.     If  valid  written  protests  are  presented  by  a  majority  of  owners  and/or  tenants-­‐customers  of  parcels  receiving   solid  waste,  recycling,  and  green  waste  services  within  the  City  limits,  then  the  City  will  not  adjust/increase  the   rates  for  the  services.       Reason  for  the  Proposed  Rate  Increase   The  Proposed  Rate  Increase  (amounting  to  an  increase  of  13.72  percent  for  solid  waste,  recycling,  and  green   waste  services)  is  necessary  for  the  Garbage  Company  to  continue  to  provide  safe,  environmentally  sound,   and   reliable   solid   waste,   recycling,   and   green   waste   collection,   transportation   and   disposal   or   processing   services  to  the  citizens  of  the  City.  Several  factors  have  contributed  to  these  increased  costs,  including,  but  not   limited  to:  the  rising  costs  associated  with  the  processing  of  recycling  material,  increased  costs  associated  with   purchase,  operation  and  fuel  for  vehicles,  increased  labor  costs,  and  costs  associated  with  the  implementation   of   an   Organics   Program   mandated   by   California   Assembly   Bill   1826   (AB   1826).   AB   1826   requires   local   jurisdictions  to  develop  a  program  to  divert  organic  waste  from  landfills  to  an  authorized  composting  facility.   Organic  waste  is  food  waste,  green  waste,  landscape  and  pruning  waste,  and  nonhazardous  wood  waste.     Basis  of  the  Proposed  Rate  Increase   The  total  Proposed  Rate  Increase  of  13.72  percent  is  based  on  the  following  cost  increases  incurred  by  the   Garbage  Company:       1. 4.7  percent  of  the  Proposed  Rate  Increase  is  based  on  increased  vehicle  costs  that  include   costs  for  new  equipment,  maintenance  of  vehicle  fleets  to  stay  current  with  the  California   Air  Resources  Board  rules  and  regulations,  fuel,  and  increased  labor  costs.   2. 0.82  percent  of  the  Proposed  Rate  Increase  is  based  on  the  net  result  of  other  increases  to   the  cost  of  operations.     3. 1.0  percent  of  the  Proposed  Rate  Increase  is  based  on  the  implementation  of  an  Organics   Program  mandated  by  the  State  of  California.   4. 7.2   percent   of   the   Proposed   Rate   Increase   is   related   to   the   cost   to   process   recyclable   materials.     In  addition,  commencing  on  January  1,  2020  and  January  1,  2021,  rates  shall  be  increased  based  on  the   following:   1. Increases,  if  any,  in  the  Consumer  Price  Index  (CPI)  for  Bureau  of  Labor  Statistics’  Consumer   Price   Index   for   Urban   Consumers   based   on   the   All   U.S.   City   Average,   Bureau   of   Labor   Statistics  for  the  month  of  June  2019  for  January  1,  2020  and  June  2020  for  January  1,  2021.   2. Increases  of  0.85  percent  on  January  1,  2020  and  0.82  percent  for  January  1,  2021  for   increases  in  the  cost  of  landfill  disposal.   Packet Pg 249 Item 12 3. A  3%  annual  increase  in  AB  939  fee  costs  which  are  used  to  fund  City  waste  diversion   programs  associated  with  California  Assembly  Bill  939.       A  copy  of  the  2019  Base  Year  Rate  Adjustment  Application,  which  provides  additional  information  on  the   proposed  rate  increases,  is  available  at  the  City  Clerk’s  office  located  at  990  Palm  Street,  San  Luis  Obispo,   California  and  online  at  sanluisgarbage.com.     Single  Family  and  Multi-­‐Unit  Residential  (4  Units  or  Less)   Service  Description     Pick  Ups   Per   Week   Current   Rate   Proposed  Rate   Adjustment  %     Proposed   Monthly   Rate   Effective   6/19/2019   Price  per  month  for  specified  waste-­‐wheeler  container  collected  once  each  week.  One  green  waste  container   and  one  recycling  container  service  is  included  at  no  additional  charge.   Mini-­‐Can  Service       One  19-­‐gallon  waste  wheeler  container  1  $9.08  13.72%  $10.33      Economy  Rate       One  32-­‐gallon  waste  wheeler  container  1  $14.49  13.72%  $16.48    Standard  Rate     One  64-­‐gallon  waste  wheeler  container  1  $28.99  13.72%  $32.97    Premium  Rate   One  96-­‐gallon  waste  wheeler  container  1  $43.48  13.72%  $49.45    Premium  Plus  Rate   One  96-­‐gallon  waste  wheeler  at  the  Premium  Rate,  plus  an  additional  charge  of:   One  32-­‐gallon  waste  wheeler  container  1  $13.21    13.72%  $15.02   One  64-­‐gallon  waste  wheeler  container  1  $26.45    13.72%  $30.08   One  96-­‐gallon  waste  wheeler  container  1  $39.64    13.72%  $45.08    Designed  Manual  Service  (Determined  by  City  Staff)     Mini-­‐Can  Service    1  $14.75  13.72%  $16.77   Economy  Rate  1  $23.58  13.72%  $26.82   Standard  Rate  1  $47.20  13.72%  $53.68   Premium  Rate  1  $70.77  13.72%  $80.48   Premium  Plus  32-­‐Gallon  Can  Rate  1  $21.50  13.72%  $24.45   Premium  Plus  64-­‐Gallon  Can  Rate  1  $43.01  13.72%  $48.91   Premium  Plus  96-­‐Gallon  Can  Rate  1  $64.54  13.72%  $73.39    Long-­‐Term  Vacation  Rate  1  $7.45  13.72%  $8.47    Service  Away  from  the  Street  Curb   Additional  per  month  per  can  or  container   charge  1  $9.83  13.72%  $11.18   Packet Pg 250 Item 12   Service  Description  Current   Rate   Proposed  Rate   Adjustment  %   Proposed  Monthly   Rate   Effective   6/19/2019   Used  Oil  Collection  -­‐  No  Charge  (Call  for  details  and  pick  up  information).     Late  Makeup  Collections  (Phone  Call  Required)     Per  trip  charge  plus  charges  identified  below   for  any  extra  containers  or  equivalent   volume.   $14.63  13.72%  $16.64   Additional  charge  per  32-­‐gallon  can  or   equivalent  volume  per  collection.  $7.21  13.72%  $8.20     Other  Residential  Charges:     Tax  Lien  Certified  Mail  Fee  $3.87  13.72%  $4.40   Special  Trip  Fee  $43.86  13.72%  $49.88   Loose  Cardboard  $7.77  13.72%  $8.84   Restart  Fee-­‐Residential  $21.93  13.72%  $24.94   White  Goods  $27.40  13.72%  $31.16   Extra  Recycle  32  Or  64  Or  96-­‐Gal  Cart  $1.50  13.72%  $1.71   Extra  Green  Waste  32  Or  96-­‐Gal  Cart  $5.65  13.72%  $6.43     Extra  Collections  (Phone  Call  Required)   Per  trip,  plus  applicable  amount  below:  $21.93  13.72%  $24.94   Per  garbage  can  or  equivalent  volume  (Over  6   cans  by  quotation)  $7.21  13.72%  $8.20   Per  recycling  can  or  equivalent  volume  (Over   6  cans  by  quotation)  $3.63  13.72%  $4.13   Per  white  good  article/  appliance  (Once  a   month  only)  $15.24  13.72%  $17.33   Per  piece  of  furniture  $15.24  13.72%  $17.33   Per  mattress  or  box  spring  $15.24  13.72%  $17.33   Other  Service  Notes:     1. Customers  that  qualify  for  Low  Income  Services  are  eligible  for  a  25%  discount  on  one  32-­‐gallon  waste  wheeler.   2. Late  Fees  are  imposed  for  residential  customers  over  30  days  delinquent.  The  fee  is  1.5%  per  month  of  the  outstanding   charge,  with  a  minimum  fee  of  $5.00.  No  prior  notice  is  required,  as  this  late  fee  policy  is  stated  at  the  bottom  of everybill.       The Garbage Company 4388 Old Santa Fe Road San Luis Obispo, CA 93401 Packet Pg 251 Item 12   N otice  of  Public  Hearing  Regarding   Proposed  Solid  Waste  Rate  Increase    Commercial  Property  Owners  and  Tenants-­‐Customers:     This  notice  is  intended  to  inform  you  that  the  City  of  San  Luis  Obispo  (the  “City”)  will  hold  a  public  hearing  regarding  rate   increases   (the   “Proposed   Rate   Increase”)   proposed   by   San   Luis   Garbage   Company   (the   “Garbage   Company”)   for   properties  and  customers  receiving  solid  waste,  recycling,  and  green  waste  services  within  the  City.  The  Proposed  Rate   Increase   will   be   considered   by   the   San   Luis   Obispo   City   Council   at   the   date,   time,  and   location   specified   below.   Consistent  with  the  requirements  of  Proposition  218,  this  notice  also  provides  you  with  the  following  information:             ●  The  Date,  Time,  and  Place  of  the  Public  Hearing;   ●  The  Reason  for  the  Proposed  Rate  Increase;  and     ●  The  Majority  Protest  Procedures;      ●  The  Basis  for  the  Proposed  Rate  Increase.      NOTICE  OF  PUBLIC  HEARING    The  Public  Hearing  for  the  Proposed  Rate  Increase  within  the  City  limits  will  be  held  on:    Date:  June  18,  2019    Time:  6:00  pm   Place:  San  Luis  Obispo  City  Hall,  990  Palm  Street,  San  Luis  Obispo,  CA     At   the   Public   Hearing,   the   City   Council   will   consider   all   public   comment   in   support  of  and   in   opposition  to  the   Proposed  Rate  Increase  and  whether  or  not  a  Majority  Protest  exists  pursuant  to  the  California  Constitution  (as   described  below).  If  approved,  the  Proposed  Rate  Increase  would  become  effective  on  June  19,  2019.       HOW  DO  I  PROTEST  THE  PROPOSED  RATE  INCREASE?     Pursuant  to  Section  6  of  Article  XIII  D  of  the  California  Constitution,  the  following  persons  may  submit  a  written  protest   against  the  Proposed  Rate  Increase  to  the  City  Clerk  before  the  close  of  the  Public  Hearing  referenced  above.      An  owner(s)  of  property  (parcel(s))  receiving  solid  waste,  recycling,  and  green  waste  services  within  the  City   limits.  If  the  person(s)  signing  the  protest,  as  an  owner,  is  not  shown  on  the  last  equalized  assessment  roll  as   the  owner  of  the  parcel(s)  then  the  protest  must  contain  or  be  accompanied  by  written  evidence  that  such   person  signing  the  protest  is  the  owner  of  the  parcel(s)  receiving  services;     or    A   tenant(s)   whose   name   appears   on   the   Garbage   Company’s   records   as   the   customer   of   record   for   the   corresponding  parcel  receiving  solid  waste,  recycling,  and  green  waste  services  within  the  City  limits  (tenant-­‐ customer).     A  valid  written  protest  must  contain  a  statement  that  you  protest  the  Proposed  Rate  Increase,  the  address  or  Assessor’s   Parcel  Number  (APN)  of  the  parcel  or  parcels  which  receive  solid  waste,  recycling,  and  green  waste  services,  and  a   signature  by  either  the  owner  or  the  tenant-­‐customer  of  the  parcel  or  parcels.  One  written  protest  per  parcel  shall  be   counted  in  calculating  a  majority  protest  to  the  Proposed  Rate  Increase  subject  to  the  requirements  of  Section  6  of   Article  XIII  D  of  the  California  Constitution.  Written  protests  will  not  be  accepted  by  e-­‐mail  or  by  facsimile.  Verbal   protests  will  not  be  counted  in  determining  the  existence  of  a  majority  protest.  To  be  counted,  a  protest  must  be   received  in  writing  by  the  City  Clerk  before  the  close  of  the  Public  Hearing  referenced  above.       Written  protests  regarding  the  solid  waste  rate  increase  may  be  mailed  to:       City  of  San  Luis  Obispo   Attn:  City  Clerk   990  Palm  Street,  San  Luis  Obispo,  CA  93401-­‐3249       Written  protests  may  also  be  personally  delivered  to  the  City  Clerk  at  San  Luis  Obispo  City  Hall  located  at  990  Palm   Street,  San  Luis  Obispo,  California.       If  valid  written  protests  are  presented  by  a  majority  of  owners  and/or  tenants-­‐customers  of  parcels  receiving  solid   waste,  recycling,  and  green  waste  services  within  the  City  limits,  then  the  City  will  not  adjust/increase  the  rates  for  the   services.       Reason  for  the  Proposed  Rate  Increase   The  Proposed  Rate  Increase  (amounting  to  an  increase  of  13.72  percent  for  solid  waste,  recycling,  and  green  waste   services)  is  necessary  for  the  Garbage  Company  to  continue  to  provide  safe,  environmentally  sound,  and  reliable  solid   Packet Pg 252 Item 12 waste,  recycling,  and  green  waste  collection,  transportation  and  disposal  or  processing  services  to  the  citizens  of  the   City.  Several  factors  have  contributed  to  these  increased  costs,  including,  but  not  limited  to:  the  rising  costs  associated   with  the  processing  of  recycling  material,  increased  costs  associated  with  purchase,  operation  and  fuel  for  vehicles,   increased  labor  costs,  and  costs  associated  with  the  implementation  of  an  Organics  Program  mandated  by  California   Assembly  Bill  1826  (AB  1826).  AB  1826  requires  local  jurisdictions  to  develop  a  program  to  divert  organic  waste  from   landfills  to  an  authorized  composting  facility.  Organic  waste  is  food  waste,  green  waste,  landscape  and  pruning  waste,   and  nonhazardous  wood  waste.     Basis  of  the  Proposed  Rate  Increase   The  total  Proposed  Rate  Increase  of  13.72  percent  is  based  on  the  following  cost  increases  incurred  by  the  Garbage   Company:                 1. 4.7  percent  of  the  Proposed  Rate  Increase  is  based  on  increased  vehicle  costs  that  include  costs  for   new  equipment,  maintenance  of  vehicle  fleets  to  stay  current  with  the  California  Air  Resources   Board  rules  and  regulations,  fuel,  and  increased  labor  costs.   2. 0.82  percent  of  the  Proposed  Rate  Increase  is  based  on  the  net  result  of  other  increases  to  the  cost   of  operations.     3. 1.0  percent  of  the  Proposed  Rate  Increase  is  based  on  the  implementation  of  an  Organics  Program   mandated  by  the  State  of  California.   4. 7.2  percent  of  the  Proposed  Rate  Increase  is  related  to  the  cost  to  process  recyclable  materials.     In  addition,  commencing  on  January  1,  2020  and  January  1,  2021,  rates  shall  be  increased  based  on  the  following:                   1. Increases,  if  any,  in  the  Consumer  Price  Index  (CPI)  for  Bureau  of  Labor  Statistics’  Consumer  Price   Index  for  Urban  Consumers  based  on  the  All  U.S.  City  Average,  Bureau  of  Labor  Statistics  for  the   month  of  June  2019  for  January  1,  2020  and  June  2020  for  January  1,  2021.   2. Increases  of  0.85  percent  on  January  1,  2020  and  0.82  percent  for  January  1,  2021  for  increases  in   the  cost  of  landfill  disposal.   3. A  3%  annual  increase  in  AB  939  fee  costs  which  are  used  to  fund  City  waste  diversion  programs   associated  with  California  Assembly  Bill  939.               A  copy  of  the  2019  Base  Year  Rate  Adjustment  Application,  which  provides  additional  information  on  the  proposed  rate   increases,  is  available  at  the  City  Clerk’s  office  located  at  990  Palm  Street,  San  Luis  Obispo,  California  and  online  at   sanluisgarbage.com.     Commercial  Rate  Information   Commercial  Garbage  “Can  Service”  (Per  Month)   Service  Description     Pick  Ups   Per  Week   Current   Rate   Proposed  Rate   Adjustment  %     Proposed  Monthly   Rate  Effective   6/19/2019   One  32-­‐Gallon  Can  1  $25.71    13.72%  $29.24     One  32-­‐Gallon  Can  2  $40.36    13.72%  $45.90     One  32-­‐Gallon  Can  3  $55.09    13.72%  $62.65     One  32-­‐Gallon  Can  4  $69.74    13.72%  $79.31     One  32-­‐Gallon  Can  5  $84.42    13.72%  $96.00     One  32-­‐Gallon  Can  6  $99.10    13.72%  $112.70     One  32-­‐Gallon  Can  7  $113.76    13.72%  $129.37                         Two  32-­‐Gallon  Cans  1  $33.05    13.72%  $37.58     Two  32-­‐Gallon  Cans  2  $51.43    13.72%  $58.49     Two  32-­‐Gallon  Cans  3  $69.76    13.72%  $79.33     Two  32-­‐Gallon  Cans  4  $88.12    13.72%  $100.21     Two  32-­‐Gallon  Cans  5  $106.52    13.72%  $121.13     Two  32-­‐Gallon  Cans  6  $124.86    13.72%  $141.99     Two  32-­‐Gallon  Cans  7  $143.21    13.72%  $162.86                         Three  32-­‐Gallon  Cans  1  $40.38    13.72%  $45.92     Three  32-­‐Gallon  Cans  2  $62.47    13.72%  $71.04     Three  32-­‐Gallon  Cans  3  $84.48    13.72%  $96.07     Three  32-­‐Gallon  Cans  4  $106.57    13.72%  $121.19     Three  32-­‐Gallon  Cans  5  $128.55    13.72%  $146.19    Packet Pg 253 Item 12 Three  32-­‐Gallon  Cans  6  $150.60    13.72%  $171.26     Three  32-­‐Gallon  Cans  7  $172.65    13.72%  $196.34                         Four  32-­‐Gallon  Cans  1  $47.75    13.72%  $54.30     Four  32-­‐Gallon  Cans  2  $73.46    13.72%  $83.54     Four  32-­‐Gallon  Cans  3  $99.14    13.72%  $112.74     Four  32-­‐Gallon  Cans  4  $124.87    13.72%  $142.00     Four  32-­‐Gallon  Cans  5  $150.57    13.72%  $171.23     Four  32-­‐Gallon  Cans  6  $176.30    13.72%  $200.49     Four  32-­‐Gallon  Cans  7  $201.97    13.72%  $229.68                         Five  32-­‐Gallon  Cans  1  $55.11    13.72%  $62.67     Five  32-­‐Gallon  Cans  2  $84.46    13.72%  $96.05     Five  32-­‐Gallon  Cans  3  $113.83    13.72%  $129.45     Five  32-­‐Gallon  Cans  4  $143.20    13.72%  $162.84     Five  32-­‐Gallon  Cans  5  $172.61    13.72%  $196.29     Five  32-­‐Gallon  Cans  6  $201.95    13.72%  $229.66     Five  32-­‐Gallon  Cans  7  $231.33    13.72%  $263.07                         Six  32-­‐Gallon  Cans  1  $62.47    13.72%  $71.04     Six  32-­‐Gallon  Cans  2  $95.47    13.72%  $108.57     Six  32-­‐Gallon  Cans  3  $128.51    13.72%  $146.14     Six  32-­‐Gallon  Cans  4  $161.57    13.72%  $183.74     Six  32-­‐Gallon  Cans  5  $194.58    13.72%  $221.28     Six  32-­‐Gallon  Cans  6  $227.64    13.72%  $258.87     Six  32-­‐Gallon  Cans  7  $260.66    13.72%  $296.42       Rates  for  all  “Can  Service”  customers  include  recycling  pickup  once  per-­‐week.  More  frequent  than  once-­‐per-­‐week  pickup  can  be   provided  at  a  75%  discount  from  the  garbage  service  rate  for  the  specified  level  of  service  required.                       Commercial  “Waste  Wheeler  Container  Service”  (Per  Month)   Service  Description     Pick  Ups   Per  Week   Current   Rate   Proposed  Rate   Adjustment  %     Proposed  Monthly   Rate  Effective   6/19/2019   One  96-­‐Gallon  Waste  Wheeler  1  $45.83    13.72%  $52.12     One  96-­‐Gallon  Waste  Wheeler  2  $73.38    13.72%  $83.45     One  96-­‐Gallon  Waste  Wheeler  3  $100.93    13.72%  $114.78     One  96-­‐Gallon  Waste  Wheeler  4  $128.46    13.72%  $146.08     One  96-­‐Gallon  Waste  Wheeler  5  $156.03    13.72%  $177.44     One  96-­‐Gallon  Waste  Wheeler  6  $183.54    13.72%  $208.72     One  96-­‐Gallon  Waste  Wheeler  7  $211.10    13.72%  $240.06                         Two  96-­‐Gallon  Waste  Wheelers  1  $75.12    13.72%  $85.43     Two  96-­‐Gallon  Waste  Wheelers  2  $115.48    13.72%  $131.32     Two  96-­‐Gallon  Waste  Wheelers  3  $155.87    13.72%  $177.26     Two  96-­‐Gallon  Waste  Wheelers  4  $196.24    13.72%  $223.16     Two  96-­‐Gallon  Waste  Wheelers  5  $236.64    13.72%  $269.11     Two  96-­‐Gallon  Waste  Wheelers  6  $276.99    13.72%  $314.99     Two  96-­‐Gallon  Waste  Wheelers  7  $317.43    13.72%  $360.98     Three  96-­‐Gallon  Waste  Wheelers  1  $104.41    13.72%  $118.74     Three  96-­‐Gallon  Waste  Wheelers  2  $157.63    13.72%  $179.26     Three  96-­‐Gallon  Waste  Wheelers  3  $210.88    13.72%  $239.81     Three  96-­‐Gallon  Waste  Wheelers  4  $264.11    13.72%  $300.35     Three  96-­‐Gallon  Waste  Wheelers  5  $317.37    13.72%  $360.91     Three  96-­‐Gallon  Waste  Wheelers  6  $370.58    13.72%  $421.42    Packet Pg 254 Item 12 Three  96-­‐Gallon  Waste  Wheelers  7  $423.82    13.72%  $481.97                         Four  96-­‐Gallon  Waste  Wheelers  1  $133.69    13.72%  $152.03     Four  96-­‐Gallon  Waste  Wheelers  2  $199.78    13.72%  $227.19     Four  96-­‐Gallon  Waste  Wheelers  3  $266.47    13.72%  $303.03     Four  96-­‐Gallon  Waste  Wheelers  4  $331.95    13.72%  $377.49     Four  96-­‐Gallon  Waste  Wheelers  5  $398.06    13.72%  $452.67     Four  96-­‐Gallon  Waste  Wheelers  6  $464.11    13.72%  $527.79     Four  96-­‐Gallon  Waste  Wheelers  7  $530.26    13.72%  $603.01                         Five  96-­‐Gallon  Waste  Wheelers  1  $162.98    13.72%  $185.34     Five  96-­‐Gallon  Waste  Wheelers  2  $241.97    13.72%  $275.17     Five  96-­‐Gallon  Waste  Wheelers  3  $320.88    13.72%  $364.90     Five  96-­‐Gallon  Waste  Wheelers  4  $399.83    13.72%  $454.69     Five  96-­‐Gallon  Waste  Wheelers  5  $478.75    13.72%  $544.43     Five  96-­‐Gallon  Waste  Wheelers  6  $557.71    13.72%  $634.23     Five  96-­‐Gallon  Waste  Wheelers  7  $636.64    13.72%  $723.99                         Six  96-­‐Gallon  Waste  Wheelers  1  $192.29    13.72%  $218.67     Six  96-­‐Gallon  Waste  Wheelers  2  $284.08    13.72%  $323.06     Six  96-­‐Gallon  Waste  Wheelers  3  $375.88    13.72%  $427.45                         Seven  96-­‐Gallon  Waste  Wheelers  1  $221.57    13.72%  $251.97                         Eight  96-­‐Gallon  Waste  Wheelers  1  $250.86    13.72%  $285.28     Eight  96-­‐Gallon  Waste  Wheelers  7  $955.89    13.72%  $1,087.04         Rates  for  all  “Waste  Wheeler  Container  Service”  customers  include  recycling  pickup  once  per-­‐week.  More  frequent  than  once-­‐per-­‐ week  pickup  can  be  provided  at  a  75%  discount  from  the  garbage  service  rate  for  the  specified  level  of  service  required.                       Multi-­‐Unit  Residential  “Dumpster  Container  Service”  (Per  Month)   Service  Description     Pick  Ups   Per  Week   Current   Rate   Proposed  Rate   Adjustment  %     Proposed  Monthly   Rate  Effective   6/19/2019   1-­‐Yard  Dumpster  1  $104.66    13.72%  $119.02     1-­‐Yard  Dumpster  2  $152.43    13.72%  $173.34     1-­‐Yard  Dumpster  3  $200.11    13.72%  $227.57     1-­‐Yard  Dumpster  4  $247.85    13.72%  $281.86     1-­‐Yard  Dumpster  5  $295.61    13.72%  $336.17     1-­‐Yard  Dumpster  6  $343.30    13.72%  $390.40     1-­‐Yard  Dumpster  7  $391.04    13.72%  $444.69                         1.5-­‐Yard  Dumpster  1  $121.17    13.72%  $137.79     1.5-­‐Yard  Dumpster  2  $187.25    13.72%  $212.94     1.5-­‐Yard  Dumpster  3  $253.36    13.72%  $288.12     1.5-­‐Yard  Dumpster  4  $319.43    13.72%  $363.26     1.5-­‐Yard  Dumpster  5  $385.52    13.72%  $438.41     1.5-­‐Yard  Dumpster  6  $451.60    13.72%  $513.56     1.5-­‐Yard  Dumpster  7  $517.67    13.72%  $588.69     2-­‐Yard  Dumpster  1  $137.68    13.72%  $156.57     2-­‐Yard  Dumpster  2  $220.31    13.72%  $250.54     2-­‐Yard  Dumpster  3  $302.90    13.72%  $344.46     2-­‐Yard  Dumpster  4  $385.52    13.72%  $438.41     2-­‐Yard  Dumpster  5  $468.13    13.72%  $532.36     2-­‐Yard  Dumpster  6  $550.73    13.72%  $626.29     2-­‐Yard  Dumpster  7  $633.33    13.72%  $720.22                        Packet Pg 255 Item 12 3-­‐Yard  Dumpster  1  $170.71    13.72%  $194.13     3-­‐Yard  Dumpster  2  $286.40    13.72%  $325.69     3-­‐Yard  Dumpster  3  $402.05    13.72%  $457.21     3-­‐Yard  Dumpster  4  $517.73    13.72%  $588.76     3-­‐Yard  Dumpster  5  $633.36    13.72%  $720.26     3-­‐Yard  Dumpster  6  $749.05    13.72%  $851.82     3-­‐Yard  Dumpster  7  $864.71    13.72%  $983.35                         4-­‐Yard  Dumpster  1  $203.78    13.72%  $231.74     4-­‐Yard  Dumpster  2  $354.31    13.72%  $402.92     4-­‐Yard  Dumpster  3  $504.89    13.72%  $574.16     4-­‐Yard  Dumpster  4  $655.45    13.72%  $745.38     4-­‐Yard  Dumpster  5  $805.97    13.72%  $916.55     4-­‐Yard  Dumpster  6  $956.55    13.72%  $1,087.79     4-­‐Yard  Dumpster  7  $1,107.14    13.72%  $1,259.04                         6-­‐Yard  Dumpster  1  $269.84    13.72%  $306.86     6-­‐Yard  Dumpster  2  $488.32    13.72%  $555.32     6-­‐Yard  Dumpster  3  $706.82    13.72%  $803.80     6-­‐Yard  Dumpster  4  $925.30    13.72%  $1,052.25     6-­‐Yard  Dumpster  5  $1,143.80    13.72%  $1,300.73     6-­‐Yard  Dumpster  6  $1,405.12    13.72%  $1,597.90     6-­‐Yard  Dumpster  7  $1,595.44    13.72%  $1,814.33               Commercial  “Dumpster  Container  Service”  (Per  Month)   Service  Description     Pick  Ups   Per  Week   Current   Rate   Proposed  Rate   Adjustment  %     Proposed  Monthly   Rate  Effective   6/19/2019   1-­‐Yard  Dumpster  1  $91.80    13.72%  $104.39     1-­‐Yard  Dumpster  2  $128.51    13.72%  $146.14     1-­‐Yard  Dumpster  3  $165.25    13.72%  $187.92     1-­‐Yard  Dumpster  4  $201.95    13.72%  $229.66     1-­‐Yard  Dumpster  5  $238.66    13.72%  $271.40     1-­‐Yard  Dumpster  6  $275.40    13.72%  $313.18     1-­‐Yard  Dumpster  7  $312.12    13.72%  $354.94                         1.5-­‐Yard  Dumpster  1  $102.81    13.72%  $116.92     1.5-­‐Yard  Dumpster  2  $150.53    13.72%  $171.18     1.5-­‐Yard  Dumpster  3  $198.25    13.72%  $225.45     1.5-­‐Yard  Dumpster  4  $246.00    13.72%  $279.75     1.5-­‐Yard  Dumpster  5  $293.72    13.72%  $334.02     1.5-­‐Yard  Dumpster  6  $341.47    13.72%  $388.32     1.5-­‐Yard  Dumpster  7  $389.20    13.72%  $442.60                         2-­‐Yard  Dumpster  1  $113.82    13.72%  $129.44     2-­‐Yard  Dumpster  2  $170.73    13.72%  $194.15     2-­‐Yard  Dumpster  3  $227.68    13.72%  $258.92     2-­‐Yard  Dumpster  4  $284.58    13.72%  $323.62     2-­‐Yard  Dumpster  5  $341.50    13.72%  $388.35     2-­‐Yard  Dumpster  6  $398.41    13.72%  $453.07     2-­‐Yard  Dumpster  7  $455.33    13.72%  $517.80                         3-­‐Yard  Dumpster  1  $135.85    13.72%  $154.49     3-­‐Yard  Dumpster  2  $214.77    13.72%  $244.24     3-­‐Yard  Dumpster  3  $293.72    13.72%  $334.02    Packet Pg 256 Item 12 3-­‐Yard  Dumpster  4  $372.67    13.72%  $423.80     3-­‐Yard  Dumpster  5  $451.60    13.72%  $513.56     3-­‐Yard  Dumpster  6  $530.55    13.72%  $603.34     3-­‐Yard  Dumpster  7  $609.52    13.72%  $693.15                         4-­‐Yard  Dumpster  1  $157.86    13.72%  $179.52     4-­‐Yard  Dumpster  2  $260.68    13.72%  $296.45     4-­‐Yard  Dumpster  3  $363.46    13.72%  $413.33     4-­‐Yard  Dumpster  4  $466.30    13.72%  $530.28     4-­‐Yard  Dumpster  5  $569.09    13.72%  $647.17     4-­‐Yard  Dumpster  6  $671.90    13.72%  $764.08     4-­‐Yard  Dumpster  7  $774.74    13.72%  $881.03                         6-­‐Yard  Dumpster  1  $201.91    13.72%  $229.61     6-­‐Yard  Dumpster  2  $346.96    13.72%  $394.56     6-­‐Yard  Dumpster  3  $492.02    13.72%  $559.53     6-­‐Yard  Dumpster  4  $637.07    13.72%  $724.48     6-­‐Yard  Dumpster  5  $782.13    13.72%  $889.44     6-­‐Yard  Dumpster  6  $927.17    13.72%  $1,054.38     6-­‐Yard  Dumpster  7  $1,072.25    13.72%  $1,219.36                         8-­‐Yard  Dumpster  1  $245.97    13.72%  $279.72     8-­‐Yard  Dumpster  2  $433.22    13.72%  $492.66     8-­‐Yard  Dumpster  3  $620.51    13.72%  $705.64     8-­‐Yard  Dumpster  4  $807.79    13.72%  $918.62     8-­‐Yard  Dumpster  5  $995.08    13.72%  $1,131.60     8-­‐Yard  Dumpster  6  $1,182.31    13.72%  $1,344.52     8-­‐Yard  Dumpster  7  $1,369.60    13.72%  $1,557.51                         Sunday  Service  Flat  Rate  $64.27    13.72%  $73.09               Unscheduled  Extra  Collections  for  Commercial  Customers  &  Multi-­‐Unit   Service  Description    Frequency  Current   Rate   Proposed  Rate   Adjustment  %     Proposed  Monthly   Rate  Effective   6/19/2019   1-­‐Yard  Dumpster  Per  Lift  $42.24    13.72%  $48.04     1.5-­‐Yard  Dumpster  Per  Lift  $46.85    13.72%  $53.28     2-­‐Yard  Dumpster    Per  Lift  $55.10    13.72%  $62.66     3-­‐Yard  Dumpster    Per  Lift  $67.93    13.72%  $77.25     4-­‐Yard  Dumpster    Per  Lift  $80.78    13.72%  $91.86       Rates  for  all  commercial  customers  for  unscheduled  extra  collections  of  recycling  can  be  provided  at  a  75%  discount  from  the   garbage  service  rate  for  the  specified  level  of  service  required.              Other  Commercial  Charges           Service  Description     Quantity  or   Frequency   Current   Rate   Proposed  Rate   Adjustment  %     Proposed  Monthly   Rate  Effective   6/19/2019   Loose  Cardboard  Per  Yard  $7.81    13.72%  $8.88     Loose  Yardage  (Solid  Waste)  Per  Yard  $31.21    13.72%  $35.49     Rental  Per  Month  $36.76    13.72%  $41.80     Temporary  Rental  Charge  Per  Day  $1.23    13.72%  $1.40     White  Goods  Per  Unit  $27.55    13.72%  $31.33     Tax  Lien  Cert.  Mail  Fee  Per  Mailing  $3.87    13.72%  $4.40     Lock  Charge-­‐Front  Per  Month  $68.93    13.72%  $78.39     Lock  Charge-­‐Rear  Per  Month  $51.67    13.72%  $58.76    Packet Pg 257 Item 12 Standby  Time  Per  Minute  $1.02    13.72%  $1.16     Compactors  (Per  Ton)  Per  Ton  $45.36    13.72%  $51.58     Extra  32  Or  96  Gallon  Greenwaste  Per  Unit  $1.53    13.72%  $1.74     Extra  32  Or  64  Or  96  Gallon  Recycle  Per  Unit  $1.53    13.72%  $1.74      Recycling  Services:  Collection  of  Commercial  Dumpster  Containers   Service  Description     Pick  Ups   Per  Week   Current   Rate   Proposed  Rate   Adjustment  %     Proposed  Monthly   Rate  Effective   6/19/2019   1-­‐Yard  Dumpster  1  INCLUDED  *      INCLUDED  *   1-­‐Yard  Dumpster  2  INCLUDED  *      INCLUDED  *   1-­‐Yard  Dumpster  3  $41.31    13.72%  $46.98     1-­‐Yard  Dumpster  4  $50.49    13.72%  $57.42     1-­‐Yard  Dumpster  5  $59.65    13.72%  $67.83     1-­‐Yard  Dumpster  6  $68.87    13.72%  $78.32     1-­‐Yard  Dumpster  7  $78.02    13.72%  $88.72                         1.5-­‐Yard  Dumpster  1  INCLUDED  *      INCLUDED  *   1.5-­‐Yard  Dumpster  2  INCLUDED  *      INCLUDED  *   1.5-­‐Yard  Dumpster  3  $49.57    13.72%  $56.37     1.5-­‐Yard  Dumpster  4  $61.47    13.72%  $69.90     1.5-­‐Yard  Dumpster  5  $73.41    13.72%  $83.48     1.5-­‐Yard  Dumpster  6  $85.34    13.72%  $97.05     1.5-­‐Yard  Dumpster  7  $97.30    13.72%  $110.65                         2-­‐Yard  Dumpster  1  INCLUDED  *      INCLUDED  *   2-­‐Yard  Dumpster  2  INCLUDED  *      INCLUDED  *   2-­‐Yard  Dumpster  3  $56.89    13.72%  $64.70     2-­‐Yard  Dumpster  4  $71.13    13.72%  $80.89     2-­‐Yard  Dumpster  5  $85.35    13.72%  $97.06     2-­‐Yard  Dumpster  6  $99.62    13.72%  $113.29     2-­‐Yard  Dumpster  7  $113.83    13.72%  $129.45                       3-­‐Yard  Dumpster  1  INCLUDED  *      INCLUDED  *   3-­‐Yard  Dumpster  2  INCLUDED  *      INCLUDED  *   3-­‐Yard  Dumpster  3  $73.41    13.72%  $83.48     3-­‐Yard  Dumpster  4  $93.19    13.72%  $105.98   3-­‐Yard  Dumpster  5  $112.90    13.72%  $128.39     3-­‐Yard  Dumpster  6  $132.65    13.72%  $150.85     3-­‐Yard  Dumpster  7  $152.38    13.72%  $173.29                     4-­‐Yard  Dumpster  1  INCLUDED  *      INCLUDED  *   4-­‐Yard  Dumpster  2  INCLUDED  *      INCLUDED  *   4-­‐Yard  Dumpster  3  $90.89    13.72%  $103.36     4-­‐Yard  Dumpster  4  $116.58    13.72%  $132.57     4-­‐Yard  Dumpster  5  $142.28    13.72%  $161.80     4-­‐Yard  Dumpster  6  $167.99    13.72%  $191.04     4-­‐Yard  Dumpster  7  $193.65    13.72%  $220.22                     6-­‐Yard  Dumpster  1  INCLUDED  *      INCLUDED  *   6-­‐Yard  Dumpster  2  INCLUDED  *      INCLUDED  *   6-­‐Yard  Dumpster  3  $123.02    13.72%  $139.90     6-­‐Yard  Dumpster  4  $159.28    13.72%  $181.13     6-­‐Yard  Dumpster  5  $195.55    13.72%  $222.38     6-­‐Yard  Dumpster  6  $231.79    13.72%  $263.59    Packet Pg 258 Item 12 6-­‐Yard  Dumpster  7  $268.07    13.72%  $304.85                     8-­‐Yard  Dumpster  1  INCLUDED  *      INCLUDED  *   8-­‐Yard  Dumpster  2  INCLUDED  *      INCLUDED  *   8-­‐Yard  Dumpster  3  $147.30    13.72%  $167.51     8-­‐Yard  Dumpster  4  $191.76    13.72%  $218.07     8-­‐Yard  Dumpster  5  $236.23    13.72%  $268.64     8-­‐Yard  Dumpster  6  $287.19    13.72%  $326.59     8-­‐Yard  Dumpster  7  $332.65    13.72%  $378.29     In-­‐office  weekly  collections  of  white  and  colored  paper.    $62.11    13.72%  $70.63                       *Rates  for  all  commercial  customers  include  recycling  pickup  twice  per  week  free  of  charge  for  up  to  4  cubic  yards.  If  you  need  more   frequent  service,  it  can  be  provided  at  a  75%  discount  from  the  garbage  service  rates  for  the  specified  level  of  service  required.   Late  Fees  are  imposed  for  residential  customers  over  60  days  delinquent  and  commercial  customers  over  30  days  delinquent.  The  fee  is   1.5%  per  month  of  the  outstanding  charge,  with  a  minimum  fee  of  $5.00.  No  prior  notice  is  required,  as  this  late  fee  policy  is  stated  at  the   bottom  of  every  bill.            Late  Makeup  Collections  (Phone  Call  Required)   Service  Description    Frequency  Current   Rate   Proposed  Rate   Adjustment  %     Proposed  Monthly   Rate  Effective   6/19/2019   Late  Makeup  Charge  Plus  Charges  Identified  Below   for  Any  Extra  Containers  or  Equivalent  Volume  Per  Trip  $14.72    13.72%  $16.74     Additional  Charge  Per  32-­‐Gallon  Can  or  Equivalent   Volume  Per  Unit  $7.89    13.72%  $8.97               Extra  Collections  (Phone  Call  Required)   Service  Description    Frequency  Current   Rate   Proposed  Rate   Adjustment  %     Proposed  Monthly   Rate  Effective   6/19/2019   Trip  Fee,  Plus  Applicable  Volumetric/Item   Amount  Below:  Per  Trip  $22.05    13.72%  $25.08     Garbage  Can  or  Equivalent  Volume.  (Over  6  Cans   by  Quotation)  Per  Can  $7.89    13.72%  $8.97     Recycling  Can  or  Equivalent  Volume.  (Over  6   cans  by  quotation)  Per  Can  $3.65    13.72%  $4.15     White  Good  Article/Appliance  (Once  a  month   only)  Per  Item  $16.21    13.72%  $18.43     Furniture  Per  Item    $16.21    13.72%  $18.43     Mattress  or  Box  Spring  Per  Item    $16.21    13.72%  $18.43     Delivery  Charge  Per  Trip  $23.87    13.72%  $27.14     Commercial  Maintenance  Fee  Per  Trip  $22.05    13.72%  $25.08       The Garbage Company 4388 Old Santa Fe Road San Luis Obispo, CA 93401 Packet Pg 259 Item 12 1010 Marsh St., San (805) 546-8208 -1 PROOF OF PUBLICATION (2015.5 C.C.P.) STATE OF CALIFORNIA, County of San Luis Obispo, I am a citizen of the United States and a resident of the county aforesaid; I am over the age of eighteen years, and not a party interested in the above entitled matter. I am the principal clerk of the printer of the New Times, a newspaper of general circulation, printed and published weekly in the City of San Luis Obispo, County of San Luis Obispo, and which has been adjudged a newspaper of general circulation by the Superior Court of the County of San Luis Obispo, State of California, under the date of February 5, 1993, Case number CV72789: that notice of which the annexed is a printed copy (set in type not smaller than nonpareil), has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to -wit: 6 in the year 2019. I certify (or declare) under the the penalty of perjury that the foregoing is true and correct. Dated at San 1,uis Obispo, California, this daY_-&-of "SJ AC 2019, Patricia Horton, New Times Legals Admin & Personal •MA1G Admin'N1FNJG 0ffiWf3"1 lFSS1Publlc Notic !Rool of Pub PP(;EIVE® SAN LUIS OBISPO CITY COUNCIL NOTICE OF PUBLIC HEARING Titre San Luis Obispo City Council invites all interested persons to attend a public hearing on Tuesday, June 18,2019, a16:00 p.m. in the City Hall Cnunril Chamber. 990 Palm Street. San Luis Obispo, Calilornia, relative to the following: •2019-20 AND 2020-21 WATER & SEWER RATE STRUCTURE AND RATE ADOPTION A public hearing to consider adopting: 1. A Resolution entitled "A Resolution of the City Council of the City of San Luis Obispo, California, Establishing Water Rates for Fiscal Year 2019-20 and 2020-21." 2. A Resolution entitled "A Resolution of the City Council of the City of San Luis Obispo, California, Establishing Sewer Rates for Fiscal Year 2019-20 and 2020-21." On April 29, 2019, all property owners and customers of record received a form to protest the proposed water and sewer rate structure and the proposed water and sewer rates, as required under Proposition 218. Signed protests must be received by the City Clerk, 990 Palm Street. San Luis Obispo CA 93401, at or before the time of the protest hearing ;June 18, 7.019). For more Information please contact Jennifer Metz of the City's Utilities Department at (805) 781-7239 or by email at jmetz@slocity.org. 2019-20 SOLID WASTE RATE STRUCTURE AND RATE ADOPTION A public hearing to consider adopting: 1. A Resolution entitled "A Resolution of the City Council of the City of San Luis Obispo, California, establishing Integrated Solid WasteRates." On May 4, 7.019, all property owners and customers of rocord received a form to protest the proposed water and sewer rate stri.icture and the proposed water and sewer rates, as required under Proposition 218. Signed protests must be received by the City Clerk, 990 Palm Street, San Luis Obispo CA 93401, at or before the time of the protost hearing (June 18i2019). For more information, please contact Mychal Boorman of the City's Utilities Department at (805) 781- 7217 or by email at mboerman@slocity.org. The City Council may also discuss other hearings or business items before or after the items listed above. If you challenge the proposed project in court, you may be limited to raising only those issues you or someona also raised at the public hearing described in (his notice, or in written correspondence dalivored to the City Council at, or priorto, the public hearing. Reports for this meeting will be available for review in the City Clerk's Office and online at www.slocity. org on Wednesday, June 12, 2019. Please call the City Clerk's Office at (805) 781-7100 for more information. The City Council meeting will be televised live on Charter Cable Channel 20 and live streaming on www. slocity.org. Teresa Purrington City Clerk City of San Luis Obispo June 6, 2019 10 2019 (_TY CLERK 06‐18‐2019 Item 12 ‐ Staff Presentation 6/18/2019 1 2019-21 Solid Waste Collection Rates City Council June 18, 2019 Rate Review Background Three‐Year Rate Application Base Year, Plus Two Interim Years Rates Must Meet Contractual  Requirements Rates Must Meet Rate Setting  Manual Requirements Rate Structure Goals 1 Easy to Understand 2 Environmentally Sound 3 Supportive of Waste Reduction Goals 4 Fair Allocation of Total Cost of Service Among Customer Classes 1 2 06‐18‐2019 Item 12 ‐ Staff Presentation 6/18/2019 2 Three-Year Application Base Year (CY 2019) Conduct a Detailed Examination of Garbage Company Financial Statements vs. Contract & Rate Setting Manual Allows for Recovery of 100 Percent of Costs Minus Non- Allowable Costs Allows for 7 percent Profit on Allowable Costs Interim Years (CY 2020 & CY 2021) Allows for Increases in Tipping Fees and AB 939 Fees Allows Increases to Offset Consumer Price Index Increases Most Interim Year Increases Have Ranged from 1 to 2 Percent Recommended Solid Waste Rate Increase 4 Packet Pages 224-225 Key Factor Proposed Base Year Rate Increase Recycled material processing costs 7.2% Vehicle costs including costs for new equipment, maintenance of vehicle fleets to stay current with the California Air Resources Board rules and regulations, and increased fuel costs. 4.7% Organics recycling/processing costs 1.0% Net Result of Other Cost Increases 0.82% Total Proposed Increase 13.72% + Interim Year Increases for Tipping Fee Increases, AB939 Fee Increases, and CPI Increases (Starting January 2020 & January 2021) 3 4 06‐18‐2019 Item 12 ‐ Staff Presentation 6/18/2019 3 Recommended Solid Waste Rate Increase 5 Packet Pages 224-225 Key Factor Proposed Base Year Rate Increase Recycled material processing costs 7.2% Vehicle costs including costs for new equipment, maintenance of vehicle fleets to stay current with the California Air Resources Board rules and regulations, and increased fuel costs. 4.7% Organics recycling/processing costs 1.0% Net Result of Other Cost Increases 0.82% Total Proposed Increase 13.72% Global Market Instability + Increased Contamination Tipping Fee Increased from $7.80/ton to $67.50/ton Recommended Solid Waste Rate Increase 6 Packet Pages 224-225 Key Factor Proposed Base Year Rate Increase Recycled material processing costs 7.2% Vehicle costs including costs for new equipment, maintenance of vehicle fleets to stay current with the California Air Resources Board rules and regulations, and increased fuel costs. 4.7% Organics recycling/processing costs 1.0% Net Result of Other Cost Increases 0.82% Total Proposed Increase 13.72% 5 6 06‐18‐2019 Item 12 ‐ Staff Presentation 6/18/2019 4 Recommended Solid Waste Rate Increase 7 Packet Pages 224-225 Key Factor Proposed Base Year Rate Increase Recycled material processing costs 7.2% Vehicle costs including costs for new equipment, maintenance of vehicle fleets to stay current with the California Air Resources Board rules and regulations, and increased fuel costs. 4.7% Organics recycling/processing costs 1.0% Net Result of Other Cost Increases 0.82% Total Proposed Increase 13.72% Recommended Solid Waste Rate Increase 8 Key Factor Proposed Base Year Rate Increase Recycled material processing costs 7.2% Vehicle costs including costs for new equipment, maintenance of vehicle fleets to stay current with the California Air Resources Board rules and regulations, and increased fuel costs. 4.7% Organics recycling/processing costs 1.0% Net Result of Other Cost Increases 0.82% Total Proposed Increase 13.72% Increases for all other costs Travel, utilities payments, office expenses, laundry services 7 8 06‐18‐2019 Item 12 ‐ Staff Presentation 6/18/2019 5 Recommended Solid Waste Rate Increase 9 Packet Pages 224-225 Key Factor Proposed Base Year Rate Increase Recycled Material Processing Costs 7.2% Vehicle costs (including costs for new equipment, maintenance of vehicle fleets to stay current with the California Air Resources Board rules and regulations, and increased fuel costs) 4.7% Organics Recycling/Processing Costs 1.0% Net Result of Other Cost Increases 0.82% Total Proposed Increase 13.72% Increase in residential garbage bills = $2 ‐ $6 Per Month •Public hearings recently conducted  for other local cities served by Waste  Connections. •Cities not served by Waste  Connections are also seeing  substantial increases due to Cold  Canyon Materials Recovery Facility  processing their recyclables. •Rates are increasing across the  nation and in some parts of the  country , recycling is being landfilled. Regional/National Perspective 9 10 06‐18‐2019 Item 12 ‐ Staff Presentation 6/18/2019 6 Notice of Public Hearing Legal notification 45 days prior to  public hearing  San Luis Garbage Company mailed  13,499 notices which were  delivered May 4th A protest is valid when received  from a property owner or an  account holder responsible for solid  waste collection charges Proposition 218 Notification Questions? 11 12 06‐18‐2019 Item 12 ‐ Staff Presentation 6/18/2019 7 Recommendation: Adopt a resolution (Attachment A) entitled “A Resolution of the City Council of the City of San Luis Obispo, California, Establishing Integrated Solid Waste Rates.” Rate Structure and Rates ‐ Water Proposition 218 Official Protest Count – Solid Waste Rates 14 Mayor •Open the Public Hearing •Call for any written protests from the public •Receive public comments •Close the Public Hearing City Clerk •Confirm number of written protests received •Confirm total number of valid protests Council may not adopt the proposed rates if 6,750 valid protests (50% plus 1) are filed. 13 14