►
Description
San Bruno City Council Meeting May 5, 2011
8. Garbage Rate Increase
A
Item
number
eight
public
hearings,
notices
have
been
published,
posted
in
mailed
hold
a
public
hearing,
waived
first
reading
and
introduced
the
ordinance
opposing
a
one
point:
four
four:
seven
percent
rate
increase
requested
by
Recology
of
San
Bruno
for
2011-2012
to
be
effective,
July
first
2011,
as
presented
in
the
notice
of
proposed
increased
mail
to
all
property
owners
staff
report.
Please.
B
Good
evening
mr.
mayor
members
of
City
Council
said
Benson
finance
director
in
February
of
this
year,
Recology
san
bruno
requests
today
1.44
seven
percent
rate
adjustment,
as
provided
under
the
franchise
agreement.
The
readjustment
is
calculated
based
on
an
increase
in
the
Consumer
Price
Index,
and
also
an
increase
in
disposal
fees
hidden.
B
In
addition,
based
on
feedback
from
the
community
and
the
City
Council
during
last
year's
rate
adjustment
application
process,
Recology
is
ready
to
implement
a
residential,
20-gallon
Toller
service
that
will
take
effect
july
first
of
this
year.
The
proposed
rate
adjustment
amounts
to
a
34
cent
increase
for
the
32-gallon
residential
Toller
service,
bringing
the
monthly
rate
from
the
current
$23
and
forty
four
sevenths
$23
and
44
cents
to
23
dollars
and
seventy-eight
cents
in
comparing
send
Bruno's
rates
to
eleven
nearby
agencies.
The
average
residential
32-gallon
Toller
for
these
localities
amounts
to
24
hours
and
twelve
cents.
B
So
alternatives
that
the
City
Council
may
consider
this
evening
include
looking
at
expanding
the
32,
the
discount
program,
potentially
to
the
20
gallon
service.
There's
a
little
bit
of
a
distinction
with
the
discounted
32
gallon
service
versus
the
20
gallon.
It's
60
cent
difference
that
being
with
the
discount
the
discount,
the
32-gallon
discounted
rate
is
seventeen
dollars
and
eighty
four
cents,
whereas
for
the
20
gallon
rate,
that's
being
proposed,
it's
actually
eighteen
dollars
and
forty
four
sentences.
B
So
there's
a
60
cent
difference
in
that
rate,
so
some
of
the
options
for
City
Council
to
consider
in
terms
of
alternatives
include
offering,
as
I
indicate
already
offering
that
discount
potentially
to
the
20
gallon
service.
There
is
a
fiscal
cost
of
this,
because,
obviously,
with
a
lower
rate
and
the
cost
of
rolling
out
the
20
gallon
service,
it
would
actually
mean
then
we
would
have
to
identify
those
costs
potentially
down
the
road
for
recology
recovery.
The
way
it's
set
up
right
now
in
terms
of
offering
the
20
gallon
service
is
when
that
was
considered.
B
Five
ecology.
We
didn't
know
what
the
conversion
rate
would
be
from
folks
who
are
currently
using
32
gallons
to
this
132
gallon
service
to
the
20
gallon
service
and
therefore
any
increases
that
are
associated
with
that
is
actually
being
postponed
as
aggrieved
by
the
sort
of
spa
provider,
ecology.
So,
having
said
that
again,
any
changes
that
we
would
incorporate
over
and
above
continuing
to
offer
the
discount
only
to
the
32
count
gallon
service
would
equate
to
an
adjustment.
B
Potentially,
a
future
adjustment
to
rates
for
the
entire
community
staff
has
received
two
protests
in
terms
of
the
rate
increase
and,
and
these
were
actually
provided
as
part
of
the
staff
reports.
So
since
these
protests
do
not
actually
represent
a
majority
protests,
obviously
the
City
Council
may
proceed
with
a
review
of
the
consideration
of
the
proposed
rate
increase.
B
With
that,
my
recommendation,
staffs
recommendation
is
to
hold
this
public
hearing
waive
the
first
reading
and
introduce
that
the
ordinance
proposing
the
one
point,
four
four
seven
percent
rate
increase
requested
by
recology
that
will
take
effect
july
first
of
this
year
and
then
obviously
leaving
as
as
identified
in
the
right
schedule,
leaving
the
twenty-five
percent
rate
discount
only
applicable
to
the
32-gallon
service
without
out
happy
to
take
any
questions
from
from
the
city
council.
Just.
B
A
C
C
B
C
B
C
B
A
B
Correct
as
part
of
the
discussions
with
Recology
during
the
onset
of
this
process,
we
don't
know-
obviously,
oh
don't
know
what
the
conversion
rate
is
migration
rate,
if
I
may,
from
the
32
to
the
20
so
rad
and
speculate
and
build
that
into
the
rate
increase.
The
agreement
was
basically,
let's
take
real
data
at
the
end
of
the
fiscal
year,
then
we'll
have
actual
numbers
to
to
look
at
in
terms
of
identifying
what
that
potential
rate
adjustment
would
be
using
actual
data.
Okay,.
C
B
There
are
some
calculations:
if
I
may,
there
were
some
calculations
that
were
done
up
front
of
a
migration
rate,
currently
there's
about
7,800
households
that
use
the
32-gallon
service.
So
if
a
15-percent
migration
were
to
occur,
that
would
translate
into
an
increase
or
loss
of
revenues
and
increase
in
cost
when
I
say
increase
in
cost.
B
The
components
of
the
increasing
cost
includes
obviously
providing
the
20
gallon
container,
which
is
an
insert
that's
added
on
to
the
32-gallon
and
also
the
some
delivery
costs
associated
with
that
using
the
fifteen
percent
migration
rate
that
works
out
to
be
about
a
74
thousand
dollar
amounts,
which
then
converts
into
an
additional
twenty
cents.
Approximately
twenty
cents
increase
in
terms
of
rates.
So
that's
obviously
just
a
hypothetical
thank
you
for
them.