CC 2016-03-22_10a Solid Waste Collection Rates MEMORANDUM
TO: CITY COUNCIL
FROM: DEBBIE MALICOAT, DIRECTOR OF ADMINISTRATIVE SERVICES
SUBJECT: CONSIDERATION OF REQUEST FROM SOUTH COUNTY SANITARY
SERVICE FOR INTEGRATED SOLID WASTE COLLECTION RATE
INCREASE
DATE: MARCH 22, 2016
RECOMMENDATION:
It is recommended the City Council adopt a Resolution establishing integrated solid waste
collection service rates for April 1, 2016, January 1, 2017 and January 1, 2018.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
There is no impact on personnel resources related to the proposed action. There will be
a minor increase in franchise fee revenue from the increase and a minor increase to the
City’s cost for solid waste collection. If the proposed multi-year rate setting approach is
approved, future personnel resources will not be required to prepare Interim Year
reviews, thus providing an operational efficiency.
BACKGROUND:
The City has had a Franchise Agreement with South County Sanitary Service (SCSS), a
subsidiary of Waste Connections, for collection, diversion and disposal of solid waste
since 1997.
Per the Franchise Agreement, rate review is established in accordance with the “City of
San Luis Obispo Rate Setting Process and Methodology Manual for Integrated Solid
Waste Management Rates” (Manual). The Franchise Agreement allows for a base rate
adjustment every three years and interim rate increases in the other two years. In
interim rate periods, the operator is limited to increases resulting from inflation, tipping
fee adjustments, and franchise or regulatory fee increases. During base rate years, the
operator is able to request adjustments due to changes in other operational costs as set
forth in the Manual. Recently, SCSS was able to enter into a 20 year agreement for
tipping fees at the Cold Canyon Landfill. Because of this, interim rate adjustment factors
are all known, with the exception of inflation.
The City received a base year rate increase request of 3.25% from SCSS on July 30,
2015. In addition, SCSS proposes to include the next two interim rate adjustments in
their request at this time, with the maximum increase based on any increase in the
Consumer Price Index (CPI) for both operational costs and regulatory fees, and an
increase of 0.79% (for January 2017) and 0.77% (for January 2018) due to tipping fees.
Item 10.a. - Page 1
CITY COUNCIL
INTEGRATED SOLID WASTE RATE INCREASE
MARCH 22, 2016
PAGE 2
If the 2017 and 2018 proposed rate increase approach is adopted, subsequent interim
year reviews for 2017 and 2018 will not be required. The City Council considered this
request on October 13, 2015, but did not take action due, in part, to a discrepancy in the
Proposition 218 notice that came to the City’s attention at the meeting. A corrected
notice was sent to all customers prior to the March 22, 2016 meeting.
The Franchise Agreement also contains language that provides that if the rate increase
request compared with the rate in effect at the date of the Franchise Agreement
exceeds the cumulative cost of living increase from that same date, the City has the
option of terminating the Franchise Agreement at any time within nine months following
approval of the requested rate increase. The “trigger” calculation does not limit the
amount of increase that SCSS can request, it simply incentivizes them to keep their
requested increases below the cumulative increase in CPI if they wish to avoid the City
opting to terminate the Franchise Agreement.
ANALYSIS OF ISSUES:
The City again jointly contracted with consultant Bill Statler to prepare a review of the
rate increase request to determine if it complies with the provisions of the City of San
Luis Obispo Rate Setting Process and Methodology Manual for Integrated Solid Waste
Management Rates. Mr. Statler presented his report in October 2015; no revisions or
changes have been made to the report.
As discussed at the October 13, 2015 public hearing, SCSS requested that certain
costs be excluded from the “trigger” calculation. At that time, Mr. Statler recommended
that the City Council make findings that these costs would be excluded and that the City
would not pursue the “trigger” option. Also on the City Council agenda for March 22,
2016 is an Amendment to the Franchise Agreement that would formalize this exclusion.
Adoption of the Amendment would exclude the increase in tipping fees associated with
the landfill expansion from the calculation of the rate increases to be compared to the
CPI. As a result, the optional termination provision will not be triggered. Assuming the
previous item was approved by the City Council, no further findings would be necessary
in order to move forward with the requested rate increase.
The proposed change in monthly rates for residential accounts is as follows:
32 gallon container: Current rate - $16.30 New rate - $16.82
64 gallon container: Current rate - $21.17 New rate - $21.86
96 gallon container: Current rate - $26.07 New rate - $26.92
Organics Diversion Program
Approximately one third of the rate increase (1.1% of the 3.25%) is due to the
implementation of an Organics Diversion Program as mandated by California AB 1826,
which requires local jurisdictions across the state to develop a recycling program to
divert organic waste from landfills to an authorized composting facility. Organic waste
Item 10.a. - Page 2
CITY COUNCIL
INTEGRATED SOLID WASTE RATE INCREASE
MARCH 22, 2016
PAGE 3
means food waste, green waste, landscape and pruning waste, nonhazardous wood
waste, and food-soiled paper waste that is mixed in with food waste.
As discussed in the October 2015 Council Report, Waste Connections unveiled their
two phase plan for the long term management of all organic waste, including food
waste. An interim phase would expand existing residential green waste collection to
include food waste. The long-term phase, beginning in approximately mid-2017,
involves the construction of a Kompogas Anaerobic Digestion Plant at W aste
Connection’s existing yard on Old Santa Fe Road in San Luis Obispo. This industrial
site is ideally located in that it is in the center of the service area, is the location where
Waste Connection’s trucks start and end each day and has an existing building that can
be used for the organics receiving area.
Public Hearing Required
In compliance with Proposition 218, a corrected notice of the proposed rate increase
was mailed to record property owners (and tenants responsible for the account) more
than 45 days prior to the public hearing. If, at the conclusion of the public hearing,
written protests against the proposed rate increase are received from a majority, the
City Council may not adopt the proposed rates. There are currently 6,207 accounts.
Therefore, 3,104 would represent a majority. At the time the report was prepared, there
were 5 protest letters received.
The City Council consistently places a high priority on ensuring that increases in rates,
fees and taxes levied on the City’s residents are minimized as much as possible. While
the Manual provides limited discretion to the Council when reviewing individual rate
increases, it is important to emphasize the efforts by Council to institute rate increase
protections into the process and Franchise Agreement. The Manual was designed to
ensure that the operator can only be reimbursed for appropriate and reasonable costs
through their rates. Additionally, a clause was added to the Franchise Agreement that
provides the City with the ability to terminate the Franchise Agreement if rate increases
exceed the cumulative increase in the consumer price index up to that date. These
provisions allow the Council to effectively and appropriately protect residents from
undue rate increases.
ALTERNATIVES:
The following alternatives are provided for City Council consideration:
1. Adopt a Resolution approving the proposed rates;
2. Do not approve an increase if justification cannot be found in the rate review;
3. Do not approve an increase if a majority of protests are received; or
4. Provide direction to staff.
Item 10.a. - Page 3
CITY COUNCIL
INTEGRATED SOLID WASTE RATE INCREASE
MARCH 22, 2016
PAGE 4
ADVANTAGES:
Approval of the rate increase is consistent with the terms of the existing rate setting
methodology. The quality of service provided by SCSS has been good. Therefore, the
recommended action will enable continuation of uninterrupted refuse collection and
recycling services at a reasonable cost.
DISADVANTAGES:
While staff believes the fee increase request is reasonable and complies with the terms
of the existing rate setting methodology, any increase in fees results in a negative
financial impact to the City and its residents.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
South County Sanitary Service was required to mail notices to all customers and
property owners at least 45 days prior to the public hearing per Proposition 218 and
related implementation regulations. A copy of the corrected Proposition 218 notice is
attached.
The Agenda was posted in front of City Hall on Thursday, March 17, 2016. The Agenda
and report were posted on the City’s website on Friday, March 18, 2016.
ATTACHMENTS:
1. Proposition 218 Public Notice (residential)
2. Proposition 218 Public Notice (commercial)
Item 10.a. - Page 4
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE ESTABLISHING INTEGRATED SOLID
WASTE COLLECTION SERVICE RATES FOR APRIL 1,
2016, JANUARY 1, 2017 AND JANUARY 1, 2018
WHEREAS, the City of Arroyo Grande (“City”) establishes rates and charges for solid
waste, recycling and green waste collection services, pursuant to Public Resources
Code Section 40059 (a) and AGMC §§ 8.32.100 and 8.32.210; and
WHEREAS, the City and South County Sanitary Service, Inc. (“SCSS”) entered into a
Franchise Agreement for collection, diversion and disposal of solid waste, dated
November 12, 1997 (“Prior Solid Waste Agreement”); and
WHEREAS, the City and SCSS entered into a subsequent amendment, modifying
certain provisions of the Prior Solid Waste Agreement, dated March 23, 1999, requiring
collection, diversion and disposal of green waste; and
WHEREAS, the City and SCSS also entered into a Recycling Services Franchise
Agreement, dated August 24, 1999; and
WHEREAS, the City and SCSS further entered into an Amended and Restated Solid
Waste Collection Franchise Agreement, dated June 10, 2008, which amended and
restated the Prior Solid Waste Agreement and incorporated, amended and restated the
Prior Recycling Agreement; and
WHEREAS, SCSS has submitted a rate increase application (the “application”) in
accordance with the Amended and Restated Solid Waste Collection Franchise
Agreement; and
WHEREAS, the application has been comprehensively reviewed in accordance with the
City’s rate-setting policies; and
WHEREAS, notices of the proposed rate increase were sent to property owners and
tenants in accordance with the requirements of Proposition 218 and a public hearing
was held on March 22, 2016 to consider protests against the proposed rate increase;
and
WHEREAS, it was determined at the conclusion of the public hearing that a majority
protest to the proposed rate increase did not exist.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo
Grande as follows:
Item 10.a. - Page 5
RESOLUTION NO.
PAGE 2
1. The application for a rate increase is hereby approved and the integrated
solid waste, recycling and green waste collection service rates set forth in
Exhibit “A” attached hereto and incorporated herein shall become effective on
April 1, 2016.
2. Solid waste rates shall increase as follows on January 1, 2017 and January 1,
2018:
a. Increase, 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
2016 for January 1, 2017 and June 2017 for January 1, 2018.
b. Increase of 0.79% for 2017 and 0.77% for 2018 for increase in the
cost of landfill disposal.
On motion of Council Member , seconded by Council Member ,
and on the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this 22nd day of March, 2016.
Item 10.a. - Page 6
RESOLUTION NO.
PAGE 3
JIM HILL, MAYOR
ATTEST:
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
DIANNE THOMPSON, CITY MANAGER
APPROVED AS TO FORM:
HEATHER WHITHAM, CITY ATTORNEY
Item 10.a. - Page 7
Exhibit A
SOUTH COUNTY SANITARY SERVICE
RATE INCREASE EFFECTIVE APRIL 1, 2016
CITY OF ARROYO GRANDE
Service Description
Pickups Per
Week
Current
Monthly Rate
Effective
6-1-2014
Proposed
Rate
Adjustment %
Proposed
Monthly Rate
Effective
4-1-2016
RESIDENTIAL:
32 Gallon Waste Wheeler 1 $16.30 3.25% $16.82
64 Gallon Waste Wheeler 1 $21.17 3.25% $21.86
96 Gallon Waste Wheeler 1 $26.07 3.25% $26.92
TWO-64 Gallon Waste Wheelers 1 $30.96 3.25% $31.97
ONE 64 & ONE 96 Gallon 1 $35.87 3.25% $37.04
TWO-96 Gallon Waste Wheelers 1 $40.76 3.25% $42.08
Residential customers must use the waste wheelers provided by the garbage company.
MISCELLANEOUS CHARGES - ALL CUSTOMERS:
Overstacked Garbage & extra bags
Minimum/unit each $4.61 3.25% $4.76
Overstacked Greenwaste & extra
bags Minimum/unit each $2.31 138% $2.39
Overstacked Blue Bin & extra bags
Minimum/unit each $2.31 3.25% $2.39
In yard service (per can or
commodity) IN ADDITION TO
STANDARD GARBAGE RATES per month $11.52 3.25% $11.89
Monthly charge for additional 96-
gallon green waste service per month $3.19 245% $3.29
Extended Vacation Service per month $13.22 3.25% $13.65
Vacant Rate per month $10.74 3.25% $11.09
Waste wheeler cleaning each time $17.18 3.25% $17.74
Trip charge each time $11.52 3.25% $11.89
Non-payment downsize service each time $11.52 3.25% $11.89
Non-payment redeliver waste
wheeler each time $11.52 3.25% $11.89
Non-payment reconnect service each time $27.69 3.25% $28.59
Small item pickup (TV, toilet) each $27.02 3.25% $27.90
Appliance pickup-residential each $38.10 3.25% $39.34
Garbage extras on your scheduled
pickup day per yard $9.73 3.25% $10.05
Garbage extras -NOT ON YOUR
SCHEDULED PICKUP DAY per yard $26.84 3.25% $27.71
Re-deliver bin on stopped acct each time $33.05 3.25% $34.12
Recycle bin rental per month $6.41 3.25% $6.62
Stand by time per hour $55.37 3.25% $57.17
Item 10.a. - Page 8
Exhibit A
Service Description
Pickups Per
Week
Current
Monthly Rate
Effective
6-1-2014
Proposed
Rate
Adjustment %
Proposed
Monthly Rate
Effective
4-1-2016
Tax Lien Cert. Mail Fee $3.87 3.25% $4.00
City Clean Up $10.00 0.00% $10.00
Extra bin cleaning $51.54 3.25% $53.22
Damage/Destruction of bins or waste
wheelers by quote only
Larger than residential appliance or
glass, glass doors, or plate glass by quote only
Short Term Dumpsters:
Delivery & Pickup-Bin $33.04 3.25% $34.11
Delivery & Pickup-Waste Wheeler $11.52 3.25% $11.89
Rental Per Day $2.44 3.25% $2.52
Empties Per Yard $26.83 3.25% $27.70
Mattress:
Twin Each $12.47 3.25% $12.88
Double Each $23.13 -33.03% $15.49
Queen Each $32.02 -51.62% $15.49
King Each $37.38 -58.56% $15.49
ADDITIONAL INFORMATION ALL CUSTOMERS:
Late Fees are imposed for residential customers over 30 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.
Any additional recycling services are charged out at 50% of the garbage rate.
Service Description Pickups Per Week
Current Monthly
Rate Effective
6-1-2014
Proposed Rate
Adjustment %
Proposed
Monthly
Rate
Effective
4-1-2016
APARTMENTS, TRIPLEX, DUPLEX
Rates are the same as commercial rates (below).
COMMERCIAL DUMPSTERS - ALL AREAS:
1 yd dumpster 1 $80.49 3.25% $83.11
1 yd dumpster 2 $117.43 3.25% $121.25
1 yd dumpster 3 $154.41 3.25% $159.43
1 yd dumpster 4 $197.90 3.25% $204.33
Item 10.a. - Page 9
Exhibit A
Service Description Pickups Per Week
Current Monthly
Rate Effective
6-1-2014
Proposed Rate
Adjustment %
Proposed
Monthly
Rate
Effective
4-1-2016
1 yd dumpster 5 $232.66 3.25% $240.22
1 yd dumpster 6 $276.16 3.25% $285.14
1 yd dumpster 7 $335.66 3.25% $346.57
1.5 yd dumpster 1 $91.36 3.25% $94.33
1.5 yd dumpster 2 $141.36 3.25% $145.95
1.5 yd dumpster 3 $200.09 3.25% $206.59
1.5 yd dumpster 4 $260.96 3.25% $269.44
1.5 yd dumpster 5 $317.51 3.25% $327.83
1.5 yd dumpster 6 $358.83 3.25% $370.49
1.5 yd dumpster 7 $420.16 3.25% $433.82
2 yd dumpster 1 $102.23 3.25% $105.55
2 yd dumpster 2 $171.80 3.25% $177.38
2 yd dumpster 3 $243.58 3.25% $251.50
2 yd dumpster 4 $321.84 3.25% $332.30
2 yd dumpster 5 $397.96 3.25% $410.89
2 yd dumpster 6 $445.81 3.25% $460.30
2 yd dumpster 7 $518.34 3.25% $535.19
3 yd dumpster 1 $121.76 3.25% $125.72
3 yd dumpster 2 $230.51 3.25% $238.00
3 yd dumpster 3 $321.84 3.25% $332.30
3 yd dumpster 4 $419.69 3.25% $433.33
3 yd dumpster 5 $497.99 3.25% $514.17
3 yd dumpster 6 $593.67 3.25% $612.96
3 yd dumpster 7 $758.26 3.25% $782.90
4 yd dumpster 1 $152.24 3.25% $157.19
4 yd dumpster 2 $269.65 3.25% $278.41
4 yd dumpster 3 $387.07 3.25% $399.65
4 yd dumpster 4 $497.99 3.25% $514.17
4 yd dumpster 5 $615.42 3.25% $635.42
4 yd dumpster 6 $730.69 3.25% $754.44
4 yd dumpster 7 $930.54 3.25% $960.78
Item 10.a. - Page 10
Exhibit A
Service Description Pickups Per Week
Current Monthly
Rate Effective
6-1-2014
Proposed Rate
Adjustment %
Proposed
Monthly
Rate
Effective
4-1-2016
6 yd dumpster 1 $228.36 3.25% $235.78
6 yd dumpster 2 $404.48 3.25% $417.63
6 yd dumpster 3 $580.60 3.25% $599.47
6 yd dumpster 4 $747.00 3.25% $771.28
6 yd dumpster 5 $923.13 3.25% $953.13
6 yd dumpster 6 $1,096.04 3.25% $1,131.66
6 yd dumpster 7 $1,395.82 3.25% $1,441.18
8 yd dumpster 1 $304.47 3.25% $314.37
8 yd dumpster 2 $539.30 3.25% $556.83
8 yd dumpster 3 $774.13 3.25% $799.29
8 yd dumpster 4 $995.99 3.25% $1,028.36
8 yd dumpster 5 $1,230.85 3.25% $1,270.85
8 yd dumpster 6 $1,461.38 3.25% $1,508.87
8 yd dumpster 7 $1,861.10 3.25% $1,921.59
The rates shown above include the monthly container rental fee and a semi-annual dumpster cleaning.
The rates are the same for bins and garwoods, when volume is identical. Bins and garwoods are types of
containers used for recycling.
COMMERCIAL GARBAGE CANS - ALL AREAS:
1 Can * 1 $19.56 3.25% $20.20
1 Can * 2 $41.32 3.25% $42.66
1 Can * 3 $47.85 3.25% $49.41
1 Can * 4 $60.87 3.25% $62.85
2 Cans * 1 $41.32 3.25% $42.66
2 Cans * 2 $54.90 3.25% $56.68
2 Cans * 7 $164.06 3.25% $169.39
3 Cans * 1 $47.85 3.25% $49.41
3 Cans * 2 $80.49 3.25% $83.11
3 Cans * 3 $101.34 3.25% $104.63
3 Cans * 4 $122.43 3.25% $126.41
3 Cans * 5 $137.87 3.25% $142.35
3 Cans * 7 $188.08 3.25% $194.19
4 Cans * 1 $60.87 3.25% $62.85
4 Cans * 7 $234.61 3.25% $242.23
* Maximum volume and weight per garbage can : 33 gallons / 80 pounds
Item 10.a. - Page 11
Exhibit A
Service Description Pickups Per Week
Current Monthly
Rate Effective
6-1-2014
Proposed Rate
Adjustment %
Proposed
Monthly
Rate
Effective
4-1-2016
MISCELLANEOUS CHARGES - ALL CUSTOMERS:
Overstacked Garbage &
extra bags Minimum/unit each $4.61 3.25% $4.76
Overstacked Greenwaste
& extra bags
Minimum/unit each $2.31 3.25% $2.39
Overstacked Blue Bin &
extra bags Minimum/unit each $2.31 3.25% $2.39
Xtra Recycle 32, 64, or
96 waste wheelers per month $1.30 3.25% $1.34
In yard service (per can
or commodity) IN
ADDITION TO
STANDARD GARBAGE
RATES per month $11.52 3.25% $11.89
Monthly charge for
additional 96-gallon green
waste service per month $3.19 72% $3.29
Extended Vacation
Service per month $13.22 3.25% $13.65
Vacant Rate per month $10.74 3.25% $11.09
Waste wheeler cleaning each time $17.18 3.25% $17.74
Trip charge each time $11.52 3.25% $11.89
Non-payment downsize
service each time $11.52 3.25% $11.89
Non-payment redeliver
waste wheeler each time $11.52 3.25% $11.89
Non-payment reconnect
service each time $27.69 3.25% $28.59
Small item pickup (TV,
toilet) each $27.02 3.25% $27.90
Appliance pickup-
residential each $38.10 3.25% $39.34
Lock Charges $6.41 3.25% $6.62
Garbage extras on your
scheduled pickup day per yard $9.73 3.25% $10.05
Garbage extras -NOT ON
YOUR SCHEDULED
PICKUP DAY per yard $26.84 3.25% $27.71
Commercial Waste
Wheeler rent per month $3.56 3.25% $3.68
Re-deliver bin on stopped
acct each time $33.05 3.25% $34.12
COMPACTORS (PER
TON) by quote only
Item 10.a. - Page 12
Exhibit A
Service Description Pickups Per Week
Current Monthly
Rate Effective
6-1-2014
Proposed Rate
Adjustment %
Proposed
Monthly
Rate
Effective
4-1-2016
Sunday Service (in
additional to garbage
service level) per month $57.67 3.25% $59.54
Recycle bin rental per month $6.41 3.25% $6.62
Stand by time per hour $55.37 3.25% $57.17
Extra bin cleaning $51.54 3.25% $53.22
Larger than residential
appliance or glass, glass
doors, or plate glass by quote only
Damage/Destruction of
bins or waste wheelers by quote only
Short Term Dumpsters:
Delivery & Pickup-Bin $33.04 3.25% $34.11
Delivery & Pickup-
Waste Wheeler $11.52 3.25% $11.89
Rental Per Day $2.44 3.25% $2.52
Empties Per Yard $26.83 3.25% $27.70
Mattress:
Twin Each $12.47 3.25% $12.88
Double Each $23.13 -33.03% $15.49
Queen Each $32.02 -51.62% $15.49
King Each $37.38 -58.56% $15.49
ADDITIONAL INFORMATION ALL CUSTOMERS:
Late Fees are imposed for residential customers over 30 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.
Any additional recycling services are charged out at 50% of the garbage rate.
Item 10.a. - Page 13
"This Notice Supersedes the August 26th 2015 Proposition 218 Notice"
CITY OF ARROYO GRANDE
NOTICE OF PUBLIC HEARING REGARDING
PROPOSED SOLID WASTE RATE INCREASE
Dear Property Owners and Tenants-Customers:
This notice is intended to inform you that the City of Arroyo Grande ("the City") will hold a public hearing regarding
solid waste disposal rate increases (the "Proposed Rate Increase") proposed by South County Sanitary Service ("the
Garbage Company") for properties and customers receiving solid waste services within the City. The Proposed Rate
Increase will be considered by the Arroyo Grande 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:
• Date, Time and Place of the Public Hearing
• Majority Protest Procedures
• Reason for the Proposed Rate Increase
• Basis Upon Which the Proposed Rate Increase is Calculated
• Proposed Rate Increase Amounts
NOTICE OF PUBLIC HEARING
A Public Hearing for the Proposed Solid Waste Rate Increases within the City limits will be held on:
Date: March 22, 2016
Time: 6:00 pm
Place: Arroyo Grande City Council Chambers, 215 East Branch Street, Arroyo Grande, CA
At the Public Hearing, the Arroyo Grande City Council will consider all public comment in support and in
opposition of the Proposed Rate Increase and whether or not a Majority Protest exists pursuant to the California
Constitution (below). If approved, the Proposed Rate Increase would become effective April 1, 2016.
MAJORITY PROTEST PROCEDURES
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 service 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 solid waste 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 service within the city limits (tenant-customer).
A valid written protest must contain a statement that you protest the increase in solid waste rates, the address OR
Assessor's Parcel Number (APN) of the parcel or parcels which receive solid waste service and must be signed 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 solid waste 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. Although oral comments at the
public hearing will not qualify as formal protests unless accompanied by a written protest, the Mayor and City Council
welcome input from the community during the public hearing. To be counted, a protest must be received ·in writing by the
City Clerk before the close of the Public Hearing referenced above.
ATTACHMENT 1
Item 10.a. - Page 14
Written protests regarding the solid waste rate increase may be mailed to:
City of Arroyo Grande
Attn: City Clerk
300 East Branch Street, Arroyo Grande, CA 93420
Written protests may also be personally delivered to the City Clerk at Arroyo Grande City Hall located at 300 East Branch
Street, Arroyo Grande, California.
If valid written protests are presented by a majority of owners and/or tenants-customers of parcels receiving solid waste
service within the city limits, then the City will not adjust/increase the solid waste disposal rates. Only one protest per
parcel will be counted in determining whether or not a majority protest exists.
REASON FOR THE PROPOSED RATE INCREASES
The Proposed Rate Increases (amounting to an average increase of approximately 3 .25% for eayh category of service) are
necessary for the Garbage Company to continue to provide safe, environmentally sound and reliable solid waste removal,
transportation and disposal services to the citizens of the City of Arroyo Grande. The increases requested by the Garbage
Company are due to increasing operational costs. Several factors have contributed to these increased costs, including, but
not limited to: the rising costs associated with the operation of a garbage company, increased costs associated with
operation and fuel for vehicles, increased labor co~ts, increased landfill rates, and costs associated with the
implementation of an Organics Program as mandated by California AB 1826, which requires local jurisdictions across the
state to develop a recycling program to divert organic waste from landfills to an authorized composting facility. Organic
waste means food waste, green waste, landscape and pruning waste, nonhazardous wood waste, and food-soiled paper
waste that is mixed in with food waste.
BASIS UPON WHICH THE PROPOSED RATE INCREASE IS CALCULATED
The Proposed Rate Increases ( 3.25% ) for each category of service are based on the following cost increases incurred by
the Garbage Company:
1. 1.34% of the Proposed Rate Increase is based on increased costs for fuel, for vehicles, ongoing
maintenance, and increased labor costs.
2. 0.81 % of the Proposed Rate Increases are based on a $2.25 per ton increase in the cost of landfill
disposal.
3. 1.10% of the Proposed Rate Increases are based on the implementation of an Organics Program.
In addition, commencing on January 1, 2017 and January 1 2018, all the rates shall be increased based on the following:
1. Increase, 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 2016 for January 1, 2017 and June 2017 for January 1, 2018.
2. Increase of 0.79% for 2017 and 0.77% for 2018 for increase in the cost oflandfill disposal.
3. Increase, 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 increase in
AB939 fee cost.
A copy of the 2016 Base Year Rate Adjustment Application, which provides additional information
on the proposed rate increase is available at the City Clerk's office located at 300 East Branch,
Arroyo Grande, CA
Item 10.a. - Page 15
PROPOSED RATE INCREASE AMOUNTS
The following charts provide a summary of the current solid waste rates and the Proposed Rate Increases:
SOUTH COUNTY SANITARY SERVICE
RATE INCREASE EFFECTIVE April 1, 2016
CITY OF ARROYO GRANDE
32 Gallon Waste Wheeler
64 Gallon Waste Wheeler
96 Gallon Waste Wheeler
TW0-64 Gallon Waste Wheelers
ONE 64 & ONE 96 Gallon
TW0-96 Gallon -Waste Wheelers
Overstacked Greenwaste & extra bags
Minimum/unit
Overstacked Blue Bm & extra bags
Minimum/unit
In yard service (per can or commodity) IN
ADDITION TO STANDARD GARBAGE RATES
Monthly charge for additional 96-gallon green
waste service
Extended Vacation Service
Vacant Rate
Garba e extras on our scheduled icku da
Garbage extras -NOT ON YOUR SCHEDULED
PICKUP DAY
Re-deliver bm on sto ed acct
Rec cle bin rental
Stand b time
Larger than residential appliance or glass,
lass doors, or late lass
Short Term Oum sters:
Em ties
Exhibit A
$16.30 3.25%
$21.17 3.25%
$26.07 3.25%
$30.96 3.25%
$35.87 3.25%
$40.76 3.25%
each $4.61 3.25%
each $2.31 3.25%
each $2.31 3.25%
er month $11.52 3.25%
er month $3.19 3.25%
er month $13.22 3.25%
er month $10.74 3.25%
each time $17.18 3.25%
each time $11.52 3.25%
each time $11.52 3.25%
each time $11.52 3.25%
each time $27.69 3.25%
each $27.02 3.25%
$38.10 3.25%
$9.73 3.25%
ard $26.84 3.25%
$33.05 3.25%
er month $6.41 3.25%
$55.37 3.25%
$3.87 3.25%
$10.00 0.00%
3.25%
$33.04 3.25%
$11.52 3.25%
PerDa $2.44 325%
Per Yard $26.83 3.25%
$16.82
$21.86
$26.92
$31.97
$37.04
$42.08
$4.76
$2.39 *
$2.39
$11.89
$3.29 *
$13.65
$11.09
$17.74
$11.89
$11.89
$11.89
$28.59
$27.90
$39.34
$10.05
$27.71
$34.12
$6.62
$57.17
$4.00
$10.00
$53.22
$34.11
$11.89
$2.52
$27.70
Item 10.a. - Page 16
South County Sanitary
4388 Old Santa Fe Road
San Luis Obispo, CA 93401
Mattress:
Twin
Double
Queen
Kin
Each
Each
Each
Each
$12.47 3.25%
$23.13 -33.03%
$32.02 -51.62%
$37.38 -58.56%
PRESORTED
STANDARD
U.S. POSTAGE PAID
CENTRAL COAST
PRINTING
$12.88 *
$15.49
$15.49
$15.49
Late Fees are imposed for residential customers over 30 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 eve bill.
Please rec cle, its chea
If you have questions about the Proposed Rate Increase, please contact Patrick Fenton at 805-489-4246.
Item 10.a. - Page 17
“This Notice Supersedes the August 26th 2015 Proposition 218 Notice”
CITY OF ARROYO GRANDE
NOTICE OF PUBLIC HEARING REGARDING
PROPOSED SOLID WASTE RATE INCREASE
Dear Property Owners and Tenants-Customers:
This notice is intended to inform you that the City of Arroyo Grande (“the City”) will hold a public hearing regarding
solid waste disposal rate increases (the “Proposed Rate Increase”) proposed by South County Sanitary Service (“the
Garbage Company”) for properties and customers receiving solid waste services within the City. The Proposed Rate
Increase will be considered by the Arroyo Grande 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:
●Date, Time and Place of the Public Hearing
●Majority Protest Procedures
●Reason for the Proposed Rate Increase
●Basis Upon Which the Proposed Rate Increase is Calculated
●Proposed Rate Increase Amounts
NOTICE OF PUBLIC HEARING
A Public Hearing for the Proposed Solid Waste Rate Increases within the City limits will be held on:
Date: March 22, 2016
Time: 6:00 pm
Place: Arroyo Grande City Council Chambers, 215 East Branch Street, Arroyo Grande, CA
At the Public Hearing, the Arroyo Grande City Council will consider all public comment in support and in
opposition of the Proposed Rate Increase and whether or not a Majority Protest exists pursuant to the California
Constitution (below). If approved, the Proposed Rate Increase would become effective April 1, 2016.
MAJORITY PROTEST PROCEDURES
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 service 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 solid waste services; and
A Tenant(s) whose name appears on the Garbage Company’s records as the customer of record for the
corresponding parcel receiving solid waste service within the city limits (tenant-customer).
A valid written protest must contain a statement that you protest the increase in solid waste rates, the address OR
Assessor’s Parcel Number (APN) of the parcel or parcels which receive solid waste service and must be signed 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 solid waste 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. Although oral comments at the
public hearing will not qualify as formal protests unless accompanied by a written protest, the Mayor and City Council
welcome input from the community during the public hearing. To be counted, a protest must be received in writing by the
City Clerk before the close of the Public Hearing referenced above.
ATTACHMENT 2
Item 10.a. - Page 18
Written protests regarding the solid waste rate increase may be mailed to:
City of Arroyo Grande
Attn: City Clerk
300 East Branch Street
Arroyo Grande, CA 93420
Written protests may also be personally delivered to the City Clerk at Arroyo Grande City Hall located at 300 East Branch
Street, Arroyo Grande, California.
If valid written protests are presented by a majority of owners and/or tenants-customers of parcels receiving solid waste
service within the city limits, then the City will not adjust/increase the solid waste disposal rates. Only one protest per
parcel will be counted in determining whether or not a majority protest exists.
REASON FOR THE PROPOSED RATE INCREASES
The Proposed Rate Increases (amounting to an average increase of approximately 3.25% for each category of service) are
necessary for the Garbage Company to continue to provide safe, environmentally sound and reliable solid waste removal,
transportation and disposal services to the citizens of the City of Arroyo Grande. The increases requested by the Garbage
Company are due to increasing operational costs. Several factors have contributed to these increased costs, including, but
not limited to: the rising costs associated with the operation of a garbage company, increased costs associated with
operation and fuel for vehicles, increased labor costs, increased landfill rates, and costs associated with the
implementation of an Organics Program as mandated by California AB 1826, which requires local jurisdictions across the
state to develop a recycling program to divert organic waste from landfills to an authorized composting facility. Organic
waste means food waste, green waste, landscape and pruning waste, nonhazardous wood waste, and food-soiled paper
waste that is mixed in with food waste.
BASIS UPON WHICH THE PROPOSED RATE INCREASE IS CALCULATED
The Proposed Rate Increases (3.25% for each category of service are based on the following cost increases incurred by the
Garbage Company:
1.1.34% of the Proposed Rate Increase is based on increased costs for fuel, for vehicles, ongoing
maintenance, and increased labor costs.
2.0.81% of the Proposed Rate Increases are based on a $2.25 per ton increase in the cost of landfill
disposal.
3.1.10% of the Proposed Rate Increases are based on the implementation of an Organics Program.
In addition, commencing on January 1, 2017 and January 1 2018, all the rates shall be increased based on the following:
1.Increase, 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 2016 for January 1, 2017 and June 2017 for January 1, 2018.
2. Increase of 0.79% for 2017 and 0.77% for 2018 for increase in the cost of landfill disposal.
Increase, 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
increase in AB939 fee cost.
A copy of the 2016 Base Year Rate Adjustment Application, which provides additional information
on the proposed rate increase is available at the City Clerk’s office, located at 300 East Branch,
Arroyo Grande, CA
Item 10.a. - Page 19
PROPOSED RATE INCREASE AMOUNTS
The following charts provide a summary of the current solid waste rates and the Proposed Rate Increases:
SOUTH COUNTY SANITARY SERVICE
RATE INCREASE EFFECTIVE April 1, 2016
CITY OF ARROYO GRANDE
Service Description Pickups Per Week
Current Monthly
Rate Effective
6-1-2014
Proposed Rate
Adjustment %
Proposed Monthly
Rate Effective
4/01/2016
APARTMENTS, TRIPLEX, DUPLEX
Rates are the same as commercial rates (below).
COMMERCIAL DUMPSTERS - ALL AREAS:
1 yd dumpster 1 $80.49 3.25%$83.11
1 yd dumpster 2 $117.43 3.25%$121.25
1 yd dumpster 3 $154.41 3.25%$159.43
1 yd dumpster 4 $197.90 3.25%$204.33
1 yd dumpster 5 $232.66 3.25%$240.22
1 yd dumpster 6 $276.16 3.25%$285.14
1 yd dumpster 7 $335.66 3.25%$346.57
1.5 yd dumpster 1 $91.36 3.25%$94.33
1.5 yd dumpster 2 $141.36 3.25%$145.95
1.5 yd dumpster 3 $200.09 3.25%$206.59
1.5 yd dumpster 4 $260.96 3.25%$269.44
1.5 yd dumpster 5 $317.51 3.25%$327.83
1.5 yd dumpster 6 $358.83 3.25%$370.49
1.5 yd dumpster 7 $420.16 3.25%$433.82
2 yd dumpster 1 $102.23 3.25%$105.55
2 yd dumpster 2 $171.80 3.25%$177.38
2 yd dumpster 3 $243.58 3.25%$251.50
2 yd dumpster 4 $321.84 3.25%$332.30
2 yd dumpster 5 $397.96 3.25%$410.89
2 yd dumpster 6 $445.81 3.25%$460.30
2 yd dumpster 7 $518.34 3.25%$535.19
3 yd dumpster 1 $121.76 3.25%$125.72
3 yd dumpster 2 $230.51 3.25%$238.00
3 yd dumpster 3 $321.84 3.25%$332.30
3 yd dumpster 4 $419.69 3.25%$433.33
3 yd dumpster 5 $497.99 3.25%$514.17
3 yd dumpster 6 $593.67 3.25%$612.96
3 yd dumpster 7 $758.26 3.25%$782.90
4 yd dumpster 1 $152.24 3.25%$157.19
4 yd dumpster 2 $269.65 3.25%$278.41
4 yd dumpster 3 $387.07 3.25%$399.65
4 yd dumpster 4 $497.99 3.25%$514.17
4 yd dumpster 5 $615.42 3.25%$635.42
4 yd dumpster 6 $730.69 3.25%$754.44
4 yd dumpster 7 $930.54 3.25%$960.78
Item 10.a. - Page 20
6 yd dumpster 1 $228.36 3.25%$235.78
6 yd dumpster 2 $404.48 3.25%$417.63
6 yd dumpster 3 $580.60 3.25%$599.47
6 yd dumpster 4 $747.00 3.25%$771.28
6 yd dumpster 5 $923.13 3.25%$953.13
6 yd dumpster 6 $1,096.04 3.25%$1,131.66
6 yd dumpster 7 $1,395.82 3.25%$1,441.18
8 yd dumpster 1 $304.47 3.25%$314.37
8 yd dumpster 2 $539.30 3.25%$556.83
8 yd dumpster 3 $774.13 3.25%$799.29
8 yd dumpster 4 $995.99 3.25%$1,028.36
8 yd dumpster 5 $1,230.85 3.25%$1,270.85
8 yd dumpster 6 $1,461.38 3.25%$1,508.87
8 yd dumpster 7 $1,861.10 3.25%$1,921.59
The rates shown above include the monthly container rental fee and a semi-annual dumpster cleaning.
The rates are the same for bins and garwoods, when volume is identical. Bins and garwoods are types of containers used for recycling.
COMMERCIAL GARBAGE CANS - ALL AREAS:
1 Can * 1 $19.56 3.25%$20.20
1 Can * 2 $41.32 3.25%$42.66
1 Can * 3 $47.85 3.25%$49.41
1 Can * 4 $60.87 3.25%$62.85
2 Cans * 1 $41.32 3.25%$42.66
2 Cans * 2 $54.90 3.25%$56.68
2 Cans * 7 $164.06 3.25%$169.39
3 Cans * 1 $47.85 3.25%$49.41
3 Cans * 2 $80.49 3.25%$83.11
3 Cans * 3 $101.34 3.25%$104.63
3 Cans * 4 $122.43 3.25%$126.41
3 Cans * 5 $137.87 3.25%$142.35
3 Cans * 7 $188.08 3.25%$194.19
4 Cans * 1 $60.87 3.25%$62.85
4 Cans * 7 $234.61 3.25%$242.23
* Maximum volume and weight per garbage can : 33 gallons / 80 pounds
MISCELLANEOUS CHARGES - ALL CUSTOMERS:
Overstacked Garbage & extra bags Minimum/unit each $4.61 3.25%$4.76
Overstacked Greenwaste & extra bags Minimum/unit each $2.31 3.25%$2.39 *
Overstacked Blue Bin & extra bags Minimum/unit each $2.31 3.25%$2.39
Xtra Recycle 32, 64, or 96 waste wheelers per month $1.30 3.25%$1.34
In yard service (per can or commodity) IN ADDITION TO
STANDARD GARBAGE RATES per month $11.52 3.25%$11.89
Monthly charge for additional 96-gallon green waste service per month $3.19 3.25%$3.29 *
Extended Vacation Service per month $13.22 3.25%$13.65
Vacant Rate per month $10.74 3.25%$11.09
Waste wheeler cleaning each time $17.18 3.25%$17.74
Trip charge each time $11.52 3.25%$11.89
Item 10.a. - Page 21
Non-payment downsize service each time $11.52 3.25%$11.89
Non-payment redeliver waste wheeler each time $11.52 3.25%$11.89
Non-payment reconnect service each time $27.69 3.25%$28.59
Small item pickup (TV, toilet) each $27.02 3.25%$27.90
Appliance pickup-residential each $38.10 3.25%$39.34
Lock Charges $6.41 3.25%$6.62
Garbage extras on your scheduled pickup day per yard $9.73 3.25%$10.05
Garbage extras -NOT ON YOUR SCHEDULED PICKUP DAY per yard $26.84 3.25%$27.71
Commercial Waste Wheeler rent per month $3.56 3.25%$3.68
Re-deliver bin on stopped acct each time $33.05 3.25%$34.12
Large Compactor (> 4 yards) by quote only **by quote only **
Small Compactors (4 yards & below) by quote only **by quote only **
Sunday Service (in additional to garbage service level) per month $57.67 3.25%$59.54
Recycle bin rental per month $6.41 3.25%$6.62
Stand by time per hour $55.37 3.25%$57.17
Extra bin cleaning $51.54 3.25%$53.22
Larger than residential appliance or glass, glass doors, or
plate glass by quote only
Damage/Destruction of bins or waste wheelers by quote only
Short Term Dumpsters:
Delivery & Pickup-Bin $33.04 3.25%$34.11
Delivery & Pickup-Waste Wheeler $11.52 3.25%$11.89
Rental Per Day $2.44 3.25%$2.52
Empties Per Yard $26.83 3.25%$27.70
Mattress:
Twin Each $12.47 3.25%$12.88 *
Double Each $23.13 -33.03%$15.49
Queen Each $32.02 -51.62%$15.49
King Each $37.38 -58.56%$15.49
ADDITIONAL INFORMATION ALL CUSTOMERS:
* Rate has been reduced from the Original Notice of Public Hearing on October 13, 2015.
Late Fees are imposed for residential customers over 30 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.
**Compactor Rates are now being charged by the ton rather than by the yard. This is due to the trucks get weighed at the landfill
and can bill by the ton.
Please recycle, its cheaper and it helps the Community achieve its AB939 goal to reduce waste.
Any additional recycling services are charged out at 50% of the garbage rate.
FURTHER INFORMATION
If you have questions about the Proposed Rate Increase, please contact Patrick Fenton at 805-489-4246.
Item 10.a. - Page 22
South County Sanitary
4388 Old Santa Fe Road
San Luis Obispo, CA 93401
Item 10.a. - Page 23
THIS PAGE INTENTIONALLY LEFT BLANK
Item 10.a. - Page 24