FROM
David P. Donery, Town Manager
RECOMMENDATION
1) Conduct a public hearing to consider the proposed Marin Sanitary Service (MSS) collection rates.
2) Adopt the attached Resolution establishing maximum rates collected by Marin Sanitary Service for solid waste, recycling, and organic waste services, to be effective January 1, 2022 (Attachment 1).
BACKGROUND
Each year, the Town Council holds a public hearing to set the maximum collection rates that can be charged by MSS in the Town of San Anselmo. These rates are based on a specific methodology contained in the Franchise Agreement with MSS. This methodology was changed in 2019 when the Council adopted the Amended and Restated Franchise Agreement with MSS.
The rate-setting methodology requires a detailed analysis, which was conducted by R3 Consulting Group. (Attachment 4). Based on R3's review, the proposed increase in 2022 for San Anselmo customers is 2.88%. In 2021, the rate was increased by 3.95%
DISCUSSION AND ANALYSIS
At the December 14, 2021 Town Council meeting, the Town Conducted a public hearing to consider the proposed Marin Sanitary Service (MSS) collection rates. At that meeting, Councilmember Greene questioned the use of Federal Paycheck Protection Program (PPP) funds in the rate calculations for 2022.
Garth Schultz from R3 Consulting prepared the attached memo (Attachment 5) and Town staff and Mr. Schultz met with Councilmember Greene and discussed his concerns. The memo provides background and analysis of MSS's PPP loan forgiveness. The memo explains how the PPP funds are being used within MSS.
As stated in the memo, collection services provided under the MSS agreements are funded by solid waste rates paid by ratepayers, which are heard and approved annually by the franchising public agencies. Annual adjustments to rates considered by the agencies take into account either a) projections of compensation due to MSS via an "indexed rate adjustment" methodology, or b) projections of MSS's fore...
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