PUBLIC HEARINGS BELVEDERE CITY COUNCIL JULY 9, Mayor and City Council. To: Felicia N. Wheaton, Acting City Manager

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1 PUBLIC HEARINGS BELVEDERE CITY COUNCIL JULY 9, 2012 To: From: Subject: Mayor and City Council Felicia N. Wheaton, Acting City Manager Mill Valley Refuse Service Application Recommended Motion/Item Description That the City Council adopt a resolution authorizing a 2.6% rate increase for the collection of residential and commercial garbage, recycling, yard waste and compostable materials by Mill Valley Refuse Service effective July 1, 2012 through June 30, Background On April 9, 2012, the City Council approved amendments to the Mill Valley Refuse Service (MVRS) franchise agreement. The amendments were the first significant changes to the franchise agreement in nearly 17 years. The amendments were designed to bring the agreement into the present day with respect to current operations and rate methodology. It was a cooperative process between the City and MVRS that entailed a significant amount of work on both sides. The new agreement is used as a foundation on which to review the rate application submitted by MVRS in April. Each year, by April 1, MVRS submits a rate application for adjustments, if necessary, to the refuse service rates in the community. Sometimes, the rate application is merely an increase consistent with the Consumer Price Index (CPI) and other times the requested increase is beyond the CPI due to increases in costs (fuel costs, costs of insurance, tipping fees, etc.). Upon receipt of the rate application in April, the City coordinated with other MVRS service jurisdictions, including the Town of Tiburon, the Town of Corte Madera and the County of Marin, to conduct a formal rate review of the proposed rate increase. R3 Consulting Group was chosen to perform the review. On June 11, 2012, the City Council reviewed the original rate application from MVRS and the draft report prepared by R3. The Council continued the item pending receipt of the final report. R3 has since completed its formal rate review and has recommended a number of-adjustments resulting in a revised rate of 2.6% for the City of Belvedere. The attached report from R3 presents the scope and findings of their rate review and includes the rate increases for all MVRS service areas. The revised rate increase of 2.6% is consistent with the CPI based on the agreement for the rate year. Under the terms of the franchise agreement, a rate increase consistent with the CPI would not require a public hearing. AGENDA ITEM NO.: 15

2 PUBLIC HEARINGS BELVEDERE CITY COUNCIL JULY 9, 2012 Pa e 2 Historical and proposed rate increases are as follows: Year 0 /o Increase Program Changes? % No % No % No % No % No % No 2008 None No % No % Yes % No % No Findings The term of the initial franchise agreement began in 1995 and ran through December 31, At the end of each year, the franchise agreement provides that the agreement is automatically extended (evergreen) for another year unless either party provides written notice cancelling such extension. The additional year is added to the end of the term. Because there has not been a request for cancellation, the current franchise agreement would expire in December Pursuant to the franchise agreement, MVRS may submit an application for rate review on an annual basis. MVRS is required to submit any and all data justifying any rate adjustment as requested by the City. MVRS timely submitted the attached rate application. Fiscal Impact The City receives revenues from MVRS through franchise fees. The City receives a franchise fee often percent (10%) for basic collection services and a separate fee for debris boxes based on the number of boxes contracted. Franchise fees received for the fiscal year were budgeted for 56,000 in revenue. The operating budget projects franchise fees at 60,000 for the fiscal year. For a household with a typical 32-gallon garbage can, including recycling and green can service, the requested collection rate would result in a monthly cost of for "Flat Area" service (an increase of 1.52 per month), and for "Hill Area" service (an increase of 1.17 per month).

3 PUBLIC HEARINGS BELVEDERE CITY COUNCIL JULY 9, 2012 Pa e3 Recommendation 1. Conduct a public hearing. 2. Adopt the attached resolution authorizing a 2.6% rate increase for the collection of residential and commercial garbage, recycling, yard waste and compostable materials by Mill Valley Refuse Service effective July 1, 2012 through June 30, Attachments 1. Draft resolution with exhibt: Proposed MVRS 2012 Sheets and Miscellaneous Terms and Conditions. 2. R3 Consulting Group rate review final report.

4 CITY OF BELVEDERE ATTACHMENT 1 RESOLUTION NO A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELVEDERE ESTABLISHING RATES FOR SOLID WASTE COLLECTION AND DISPOSAL FOR THE PERIOD JULY 1, 2012 TO JUNE 30, 2013 WHEREAS, pursuant to the franchise agreement entered into between the City of Belvedere (City) and Mill Valley Refuse Service, Inc. (MVRS) on July 1, 2012, an application has been presented to the City for an adjustment in the rates charged by MVRS for the collection and disposal of solid waste. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Belvedere that, following review of the rate application, the City Council of the City of Belvedere finds that an adjustment of 2.6% in the residential and commercial base rates is warranted for the Fiscal Year as shown on Exhibit "A." PASSED AND ADOPTED at a regular meeting of the Belvedere City Council on July 9, 2012 by the following vote: AYES: NOES: ABSENT: Mayor Leslie Carpentiers, City Clerk

5 Resolution No Belvedere City Council Effective July 1, 2012 Increase 2.6% Exhibit "A" Belvedere..,,,' : '"' Monthly. Qu.arterly.. ~: ' 32:03_;.' ~6.93_: ; - 1'1(}79. 58':46~. ~ '.. ~3.18.': J: :, :126.()3. '84.78'.'" " , 58A '.38' : t;t e ,. 496:08.., "2011 ' l\!lonthly Quar,:terly : '45.: 19 _ 135:57' : ' A:1 3A : : : 196, 7~ ;'i :... 15a:24 ~::.,: _ /:, 62.8.' ':223.95:. 1' f4'.:'2g. ':' t,. 26@.64 I,' '"' Base Recycling 2012 Monthly :J Hill Area Base Recycling 2012 Monthly Quarterly ' Quarterly J;~~, ' (, J \ '!,,,.. #of Cans/Size/1 Pick Up 1-20 Gallon 1-32 Gallon 2-32 Gallon 3-32 Gallon 1-45 Gallon 2-45 Gallon #of Cans/Size/2 Pick Ups 1-32 Gallon 2-32 Gallon 3-32 Gallon.. # of Cans/Size/1 Pick Up 1-20 Gallon 1-32 Gallon 2-32 Gallon 3-32 Gallon 4-32 Gallon 1-45 Gallon 2-45 Gallon 3-45 Gallon 4-45 Gallon #of Cans/Size/2 Pick Ups 1-32 Gallon 2-32 Gallon 3-32 Gallon 1-45 Gallon ~ ~- -: ~'.:'.'.... ;"' : :."''. [Qj'{'J'... :-. ~ ;;::<:~ r2 '-~ :1,_.,,."'. ' '"''.... ::~~ ~ ''" + "''':....,. ';;..FlafArea ' ,), :J -~, 1..." Base Recycling 2012 Container Monthly Monthly Rental # of Cans/Size/1 Pick Up ' ' Gallon Gallon. ' yd container i 47.1-:38' yd container *See Residential Miscellaneous Terms and Conditions for additional information

6 Resolution No Belvedere City Council Effective July 1, 2012 Increase 2.6% L :.. ~i; ~,~,;~.,j:~~- "';., n. ;... ;:,.2011 Base..Monthly._.., 16V :to?: ' '. 643: ~05.22, ' t ~1... Base 'iylonfhly : ;288:35 1, :1, , , , '. I "". :'' " ' 20.1_1 Base "' Monthly ,.. ; ' 2011 Base Monthly : Exhibit "A" Belvedere ~.vc " '~ <'f'\ 1::"' -.. ~-~ <rr tl.11"':\t.. i1' ~-.S '''.f'~~ A~ 1 :;}: Extra trash charge: per yard r ":. 1 'Yard Contain~r _,,. ' Recycling 2012 Container Monthly Rental #of Pick Ups/Container Pick Up Pick Ups Pick Ups _ Pick Ups Pick Ups Pick Ups <L. 2 Yard Container ,...., Recycling 2012 Container Monthly Rental #of Pick Ups/Container Pick Up Pick Ups Pick Ups , Pick Ups , Pick Ups , Pick Ups ~ "''... ; ~ frash Cans. I Recycling 2012 Container Monthly Rental #of Cans/Size/1 Pick Up Gallon Gallon.,.,... Saturday Ser-vice Recycling 2012 Container Monthly Rental #of Cans/Size/1 Pick Up nla 1 Yard Container Yard Container *See Commercial Miscellaneous Terms and Conditions for additional information :...

7 Resolution No Belvedere City Council Belvedere Residential Miscellaneous Terms and Conditions Service Service includes pickup of trash, recycling and compost cans, two-times-per-year on-call Bulky Waste Collection Services, and on-call pickups of limited household hazardous wastes listed on the MVRS website. MVRS provides one (I) compost can and one (I) recycling can per customer. Extra compost and recycling cans are available for 6.00 per can per month. Additional Quantities of Cans Service for additional cans over the quantities listed on the rate sheet will be charged a multiple of the single can, one-time-per-week pick up rate (i.e. four 32-gallon cans are charged the three-can rate plus the one-can rate). Low Income A 20% discount off the applicable residential rate is available to residential Single-Family customers who have already qualified for the PG&E CARE/FERA Program. A copy of the customer's PG&E bill showing the qualified CARE/FERA Program is required for the discount. To maintain the discounted rate, customers must submit a new PG&E bill annually showing the CARE/FERA discount. Apartment/Multi-Unit Residential (A/MUR) s A/MUR complexes are defined as multi-unit residential housing with four or more units all paid for by the property owner. A/MUR complexes are charged a minimum of one 32-gallon can per unit per trip at the applicable once-per-week Apartment as shown on the current, approved rate sheet. Additional 32- gallon cans over the minimum will be charged at the additional applicable per-can rate. In cases where 45-gallon cans or I-yard and 2-yard containers are used instead of, or in addition to, 32- gallon cans, the following equivalency formulas will be applied to determine whether additional 32-gallon cans (over the minimum set forth immediately above) shall be charged at that location: Each 45-gallon can will be considered to hold one-and-one-half 32-gallon cans. Each I-yard container will be considered to hold seven 32-gallon cans, and each 2-yard container will be considered to hold fourteen 32-gallon cans. (If I-yard or 2-yard containers supplied by MVRS are used, standard commercial container rental rates will be charged in addition to the applicable apartment rate). If the foregoing equivalency formulas result in a higher number of32-gallon cans than the minimum of one per unit, the applicable once-per-week rate shall be applied to such higher number of32-gallon cans. If the result is a lower number of 32-gallon cans, then the minimum one-can-per-unit charge set forth above shall be applied (unless composting services are being used). Exception to the above: A/MUR complexes that use the available yard/food waste composting service 'vvill be charged a rate reflecting the actual amount of garbage collection requested, measured in 32-gallon equivalents and applied on a per-trip basis at the applicable 32-gallon, once-per-week rate as shown on the current, approved rate sheet. MVRS will provide A/MUR complexes with up to one recycle can and one compost can per unit at no extra charge. Extra cans are available at 6.00 per month per can. Multiple trips in a week to a single location will be charged a multiple of the applicable once-per-week rate.

8 Resolution No Belvedere City Council Miscellaneous and Extra Charges 32-gallon extra trash can/bag: gallon extra trash can/bag: gallon extra yard waste can/bag: 6.00 Customers should call in advance for free quotes on other loose trash and bulky items. Delinquent Accounts If an account is put on "stop service" due to a past due balance, a processing fee will be charged in addition to the past due amount to reactivate service. Vacation Holds on Service Accounts may be put on Vacation Hold for a minimum of three months only with no administration fee upon reactivation of service. Commercial Miscellaneous Terms and Conditions Service s Service s include trash, recycling and compost can service. MVRS provides one (1) compost can, but an unlimited number of recycle cans upon request. Extra compost cans are 6 per can per month. Multiple Cans/Pickups Multiple cans/pickups of quantities listed on the Commercial sheet are charged a multiple of the single can, one-time-per-week pick up rate. Container Rental Fee Rental fee covers all repairs due to normal wear and tear and steam cleaning of the container once per year. Additional steam cleanings during the year are 100 per container per cleaning. Saturday Service There is no special charge for Saturday service if the customer already has five (5) times a week service during the regular workweek (Mon-Fri). The special Saturday rate is available to customers with a minimum of three (3) times a week service during the regular workweek. Sunday Service Sunday service may be available depending on demand. Delinquent Accounts Ifan account is put on "stop service" due to a past due balance (net 30), a processing fee will be charged in addition to the past due amount to reactivate service.

9 ~ -~ , ATTACHMENT 2 Consulting Group, Inc. Resources Respect Responsibility 1512 Eureka Road, Suite 220 Roseville, CA Tel: Fax: June 22, 2012 Mr. Eric Erickson Director of Finance and Human Services Mill Valley City Hall 26 Corte Madera Avenue Mill Valley, CA Subject: Final Letter Report - Review of Mill Valley Refuse Service's 2012 Request for Increase Dear Mr. Erickson: R3 Consulting Group, Inc. (R3) was engaged by the City of Mill Valley (City) on behalf of the City, Belvedere, Corte Madera, Tiburon and parts of unincorporated Marin County (County) (collectively, "Contracting Jurisdictions") to assist with a review of the Year 2012 rate increase requested by Mill Valley Refuse Service (MVRS). This letter report presents our findings. We wish to thank MVRS, and in particular Jim Iavarone and their consultant Claudia Hayes. The Application was well organized and we were provided with all requested information in a timely manner. Objectives 1. To review MVRS's 2012 Base Year Change Application (Application) and supporting documentation and recommend any appropriate adjustments; and 2. To determine, for purposes of handling as part of this Application and future Applications: a) MVRS's targeted profit level to be used in Mill Valley, Belvedere, Tiburon and the County (i.e., a 90% operating ratio (11.1 % profit) or 10.0% profit); b) If rate revenues associated with recycling collection service are to be included in the gross revenue base upon which franchise fees are to be paid in Mill Valley, Tiburon and the County; c) The handling of specific City services that are specified as "free services" or nonallowable expenses in Belvedere, Corte Madera and Tiburon; and d) Whether MVRS's expenses for officer life insurance and company cars are to be fully allowed, partially allowed, or fully disallowed (for all jurisdictions). Requested Adjustment On April 1, 2012, MVRS submitted its Application to the City on behalf of the Contracting Jurisdictions. MVRS requested a 5.06% cumulative rate increase for its franchised jurisdictions based on a projected revenue shortfall of 712,538 for Year The July 1, 2012 through June 30, 2013.

10 Mr. Eric Erickson June 22, 2012 Page 2of11 projected revenue shortfalls for Mill Valley, Belvedere, Corte Madera, Tiburon and the County are 4.38%, 4.15%, 4.37%, 5.18% and 4.98%, respectively. MVRS identified worker wage and pension increases (after a year of no increases), as well as considerable increases in health care costs and Office of Waste Management fees, as factors contributing to the calculated rate increase. Table 1, attached, provides a summary of MVRS's rate adjustment calculations for each of its franchised jurisdictions. Summary Findings Based on our review of MVRS's Application, we recommend adjustments that result in a decrease in MVRS's 2012 projected expenses of 482,353, which results in a corresponding decrease to MVRS's projected 712,538 revenue shortfall (deficiency). Our recommended adjustments, which are indicated with red numbers, are provided in Table 2, attached. The net result is an overall recommended cumulative rate increase of 3.42% as compared to MVRS's calculated 5.06% rate increase. The projected rate increases for Mill Valley, Belvedere, Corte Madera, Tiburon and the County are 2.81 %, 2.26%, 3.43%, 2.33% and 4.80%, respectively, as shown at the bottom of Table 2. Overall, MVRS projected increased expenses of approximately million for Year 2012 as compared to calendar year 2011, an increase of approximately 7.9%. This projected net increase in expenses was driven by a number of factors, including increased expenses for the following categories: Franchise Fees (-199,000, 11%); 2 " Salaries and Wages (-176,000, 6%); 11 Dump Expense (-158,000, 12%); 11 Union Health and Welfare (-112,000, 12%); " Union Pension (-88,000, 12%); " Insurance - Workers Compensation; (-84,000, 20%); and " Office of Waste Management Fees; (-42,000, 20%). While these projected increases in expenses are offset, in part, by a projected increase of approximately 362,000 in rate revenues, recyclable material sales revenues are projected to decrease by more than 106,000 (-27%), reflecting the trend in decreased commodity prices for the first five months of 2012 as compared to Limitations Our review was based on the information presented in MVRS's Application and additional requested information provided in support of that application. In various cases, the franchise agreements lack specific guidelines for what constitutes non-allowable and passthrough costs, as well as "fair and reasonable compensation" for MVRS. As part of our review, Franchise fee percentages increased as follows: Belvedere increased fee on debris boxes from 2/box to 10% effective ; Belvedere increased recycling franchise fee from 0% to 10% effective 111/2012; Corte Madera increased franchise fee on garbage, debris and recycling from 18% to 20% effective 7/112011; and Tiburon increased franchise fee on garbage from 10% to 15.5% effective

11 Mr. Eric Erickson June 22, 2012 Page 3of11 we have identified various major expense items for which the franchise agreements do not specify whether they are to be treated as an allowable or non-allowable expense. In those cases, we have requested specific direction from the associated jurisdictions as to how those items should be handled for purposes of this and future rate adjustments. The fact that the "allowability" of a specific expense item has not been specifically addressed as part of this rate review process does not, however, mean that we consider any such expense to be allowable. As discussed below, we suggest the following guidelines for determining whether an expense should be allowed in the future: Costs that are not reasonable, or are not necessarily incurred in the performance of the service provided in accordance with the franchise agreement, are non-allowable; and Any benefits provided to the MVRS's owners that are different from other employees, including health insurance, life insurance, retirement benefits, etc., are non-allowable. Background MVRS provides solid waste (Franchise Jurisdictions): City of Belvedere 11 City of Mill Valley Town of Corte Madera Town of Tiburon Marin County management services to the following nine (9) jurisdictions Almonte Sanitary District Alto Sanitary District Homestead Valley Sanitary District Strawberry Recreational District All services are provided with rear loading vehicles. Recycling and composting routes all use semi-automated vehicles with one-person crews. Garbage routes are all manual and are predominantly one-person crews, although two-person crews are used at times. Bulky waste collection services are provided with the existing scheduled routes. Tiburon entered into a new franchise agreement with MVRS effective July 1, 2011 and Belvedere entered into a new franchise agreement effective July 1, Both of those agreements, as well as the Corte Madera agreement, define the Year as the twelve (12) month period beginning on July 1st in one year and ending on June 30th of the immediately following year. The basic process that has been used by the Contracting Jurisdictions to adjust rates is for MVRS to submit a Base Year Change Appiication not iess than once every three (3) years. That application is then reviewed and appropriate adjustments are made to the rates. In interim years, rates are adjusted based on the change in the Consumer Price Index (CPI). Actual reported revenues and expenses for the most recently completed calendar year form the basis for a Base Year Change Application. Those actual results are adjusted to project revenues and expenses for the Year, which are then allocated among the Franchise Jurisdictions. The rate adjustment necessary to achieve the associated revenue requirement3 The revenue requirement is calculated as follows: Allowable Costs (i.e., all costs reasonably incurred in connection with providing the required franchise services) plus Pass-Through Costs (i.e., costs that are not subject to profit, such as franchise fees, other governmental fees and

12 Mr. Eric Erickson June 22, 2012 Page 4of11 for each of the Franchise Jurisdictions is theri calculated, based on the projected revenues prior to the rate adjustment. Methodology As part of our review of MVRS's 2012 Application, R3: o Reviewed the Application for mathematical accuracy and logical consistency; Tied MVRS's calendar year (CY) 2011 draft Trial Balance 4 to the CY 2011 revenues and expenses reported in the Application; o o o Reviewed the allocation of CY 2011 revenues and expenses as reported on the draft Trial Balance among Collection, Street Sweeping (allocated to those jurisdictions that are provided that service) and Portable Toilets (non-franchised service) for general reasonableness and consistency with the Year 2010 detailed rate review; Reviewed the adjustment factors applied by"mvrs to CY 2011 revenues and expenses to project Year 2012 results for reasonableness; Reviewed the factors used by MVRS to allocate Year 2012 revenues and expenses among the Franchise Jurisdictions; Reviewed MVRS's depreciation schedule to identify any major one-time or periodic expenses that would be fully depreciated within the next three (3) years; Documented the following items from the various franchise agreements and reviewed their handling in the Application to determine consistency with the franchise agreements: o o o o o Profit level; Franchise fee percentage and application (e.g., as a percentage of gross revenues); Free services; Non-allowable expenses; and Pass-through expenses. Reviewed the projected impact associated with MVRS's planned mid-summer 2012 route consolidation efforts that will eliminate two trash collection positions; Adjusted MVRS's projected Year 2012 revenues and expenses, as appropriate, and recalculated the rate adjustments for each jurisdiction; and o Presented preliminary findings to MVRS for review comment to ensure that we did not misinterpret or misreport any of the information provided by MVRS, and made appropriate revisions based on comments received from MVRS. excess disposal expense) plus target profit. The Trial Balance is a list of all the General Ledger accounts {both revenue and capital) contained in the ledger of a business. The profit and loss statement, balance sheet and other financial reports can be produced using the ledger accounts listed on the Trial Balance.

13 Mr. Eric Erickson June 22, 2012 Page 5of11 Findings This section provides a list of the findings noted by R3 during our review of MVRS's Application. Any corresponding adjustments to the Application are detailed in the following section ("Adjustments"). Audited Financial Statements - MVRS did not have audited financial statements, as required by a number of the franchise agreements. Rather, it provided a draft profit and loss statement that we tied to its CY 2011 reported actual revenues and expenses that formed the basis for the Year 2012 projections and the cal cu lated rate adjustments. Officers - MVRS is an S-corporation with four (4) officers (i.e., owners), each of which it reported are actively involved in the operation of the company and work a full schedule... Related Party Transactions - MVRS reported that it does not have any related party transactions. Pension - MVRS reported that the owners receive the same pension contribution as other employees per the union contract. In addition, the owners may make a profit sharing contribution, although none has been declared yet for 2011 and no amount is included in the 2012 estimates. Workers Compensation Insurance - MVRS reported that approximately 451,000 of Workers Compensation Insurance was omitted from its 2010 Application and that 180,000 was deferred into the 2011 rate review, leaving a balance of 271,441. The Company originally requested that it be compensated for this omission as part of this 2012 rate adjustment process but has since withdrawn that request. The recommended rate adjustments do not reflect any additional related expense. Route Consolidation - MVRS reported that its latest route consolidation efforts will eliminate two positions on its trash routes, reduce seasonal employment and reduce/defer replacement truck purchases. The Application, however, did not accurately reflect the associated savings. Upon review, MVRS projected a net annual labor savings of 59,505 (wages, pension and payroll taxes). Street Sweeping Costs - Street sweeping costs are a'llocated to Mill Valley, Tiburon and the County. No street sweeping costs are allocated to Belvedere or Corte Madera, per their franchise agreements. Portable Toilets - There was no allocation of Advertising and Promotion expense to portable toilets. The prior detailed rate application allocated 35% of that expense to portable toilets. Depreciation - No major one-time or periodic expenses will be fully depreciated within the next three (3) years. Basis for Calculating Franchise Fees - MVRS did not account for the payment of franchise fee.s on Recycling Revenues 5 for Mill Valley, Tiburon and the County, which are shown on the residential rate schedules for these jurisdictions, provided in The monthly service fee (rate) that is allocated to recycling service internally by MVRS and is shown on the associated rate schedules as "Recycling ".

14 Mr. Eric Erickson June 22, 2012 Page 6of11 Attachment 1. MVRS reported that the long-standing practice has been to exclude non-garbage related receipts unless specifically included by contract. The County and Mill Valley's franchise agreements both require payment of franchise fees on gross receipts. They do not, however, define gross receipts. Tiburon's franchise agreement defines gross receipts as "... any and all revenue received by Collector for performing the collection services within the Town... provided, however, that revenue received by Collector as a result of Collector's collection, sale or disposal of Recyclables collected within the Town shall not be included in the definition of "Gross Receipts."" The County requested that MVRS pay franchise fees on Recycling Revenues consistent with the franchise fee methodology the County uses for its other franchises. Tiburon confirmed that franchise fees are not to be applied to Recycling Revenues. In the case of Mill Valley, we have not made any change to the method used by MVRS to calculate franchise fees (i.e., franchise fees are not applied to Recycling Revenues). Were Mill Valley to set a 20% franchise fee on Recycling Revenues, similar to that applied to garbage rate revenues, the result would be an increase of approximately 103,000 in franchise fees and an additional 2.12% rate increase, bringing the total rate increase from 2.81 % to 4.94%. Profit - With the exception of Corte Madera, where profit was based on 10% of allowable costs, MVRS projected its profit based on a 90% operating ratio applied to allowable expenses, which is equivalent to an 11.1 % profit on allowable costs. The Belvedere, 6 Corte Madera 7 and Tiburon 8 franchise agreements set profit at 10%. The County and Mill Valley franchise agreements reference a "fair and reasonable profit" and a "fair and equitable return" respectively. The franchise agreements in the other jurisdictions call for -a "fair and reasonable profit" and MVRS's position is that this is provided for by continuing to use the historical method of the operating ratio. Based on direction received from the jurisdictions, profit has been based on a 90% operating ratio in all jurisdictions with the exception of Corte Madera and Tiburon, where the profit has been set at 10% of allowable costs. Mill Valley, Belvedere and the County confirmed that a 90% operating ratio was to be used as its basis for calculating profit. MVRS also reported that for "Debris" (i.e., debris boxes), it used a 90% operating ratio in the original calculation, but that the correct profit should be 10% of allowable costs, consistent with the method specified in the Corte Madera franchise agreement "... the parties acknowledge, however, that the Operating Margin Method is not the only basis upon which the City may review or analyze rates in the future, and that other reasonable methods of regulating rates that provide a fair return to Collector may be utilized by the City, even if such methods should permit rates Jess than those that the Operating Margin Method might otherwise allow or indicate and result in lower than a ten percent (10%) margin of profit." (Section 6.8, pg. 24) "The parties agree, however, that rates equal to Collector's allowable costs (as herein defined) for the relevant period, plus ten percent (10%) of those allowable costs plus Pass-Through Costs for the relevant period (collectively referred to as "the operating margin method'j shall be deemed reasonable and provide Collector a fair rate of return." (Section 6.8; pg. 24) "... an operation margin of ten percent (10%) profit on Allowable Costs" (Section 16G, pg. 36)

15 Mr. Eric Erickson June 22, 2012 Page 7of11 " Free Services 9 Corte Madera Bulky Waste Collection - Section 5.B(3) of Corte Madera's franchise agreement states that, "Upon the prior request of the customer up to four (4) times per year... Collector shall collect and remove from each Residential Property up to three (3) cubic yards of dry, non-putrescible materials and/or Bulky Goods... None of the services described by this paragraph may be considered in the Collector's determination of Pass-Through Costs or allowable costs... " Corte Madera Town Functions - Section 5.B(4)(a) of Corte Madera's franchise agreement states that for Town Functions and Operations: "Collector shall collect, remove and dispose of all Solid Waste 10 from appropriate containers located at or originating from the buildings, 'properties, official functions or operation of Town... Collector shall provide regular street sweeping services to each of the four zones of the Town... None of the services described in this paragraph may be considered in the Collector's determination of Pass-Through Costs or allowable costs... " Tiburon City Services - Section 5.B(5)(a) of Tiburon's franchise agreement states that "Collector shall collect, remove and dispose of all Solid Waste from appropriate containers located at or originating from the buildings, properties, official functions and operations of the Town... All Collector's costs for services provided under this Section 5.8(5)(a) shall be considered Non-Allowable Costs under the terms of this Agreement." MVRS did not make any adjustments to expenses associated with any of the above services in its Application. MVRS reported that regular route drivers perform the various "free services" in Corte Madera and Tiburon in the course of their normal workday. With respect to the Corte Madera Bulky Waste Collection, MVRS reported that the four-times-a-year service became "free" years ago because of a change in the way it delivers this service. It used to pick up the entire town during a single week each quarter. It needed extra crews to do this because everyone was putting items out at the same time. MVRS agreed to perform the service for free, meaning they would not charge the cost of the extra crews. Later, this service was changed to personal, oncall pickups, which enables residents to use the service when they actually need it, rather than at set times that might not be convenient for individual needs. The randomness of on-call pickups allows their regular route drivers to do the work, thereby eliminating the need and costs for extra crews entirely. Currently, no extra costs for these crews appear on the Application, so nothing is charged for that service and no!3mount needs to be backed out. MVRS's position is that there is no additional collection cost for this service, which does not seem unreasonable, although there is still the cost of disposal. No adjustment has been made for any costs associated with this service, including disposal expense MVRS disallowed franchise fees and profit on "Free Services: Debris and street cans" in Mill Valley, Belvedere, Corte Madera and Tiburon, which the agreements define as "pass-through costs." Solid Waste is defined as "... a// Garbage, Recyclables and Green Waste... " (Section 2.S)

16 Mr. Eric Erickson June 22, 2012 Page 8 of 11 With respect to the Corte Madera Town Functions and Tiburon City Services, MVRS reported that it used to total up a bill for city services, and then add that total into the rate application. When it agreed to provide these services for free, it was understood that it would accomplish this by no longer adding these specific charges into the rates. MVRS reported that it was never anticipated that they would back out amounts from the other costs that count toward their rates. The language in the franchise agreements, however, clearly specifies that the costs related to these services are "non-allowable" and should therefore be excluded from MVRS's revenue requirement, regardless of the fact that regular route drivers perform those services in the course of their normal workday. 11 An adjustment has been made to reflect the projected cost of disposal associated with Corte Madera Town Functions and Tiburon City Services, but no other adjustments have been made for this item. Other Services Provided to Tiburon - Tiburon's franchise agreement also states that up to 5,000 annually, for picking up illegally dumped trash, is to be a non-allowable expense. MVRS reported that these services are available to Tiburon upon request but that there were no such requests, and associated costs, in Belvedere City Services - Belvedere's franchise agreement, which becomes effective July 1, 2012, states that "In addition to the City services in Section 11. 1, which are without charge to the City, Collector has offered to donate the following services as corporate good will, and such provisions of donated services 13 shall not be charged to the City." MVRS did not make any adjustments to expenses associated with any of these services in its Application. It is not clear from the agreement language if those costs are to be allowable or non-allowable, although it is not uncommon to treat "good will" as a non-allowable expense, as is the case in the City of Corte Madera's franchise. Additionally, "good will" is not a recognized accounting expense. Belvedere reported that there should be no adjustment for this item (i.e., MVRS handled it correctly in its original rate application). " Non-Allowable Expenses - The franchise agreements do not provide guidance as to the handling of certain expenses, including the expenses listed below, that may or may not be considered allowable. R3 is not aware of any formal or informal agreement specifying how such expenses are to be handled. Without clear direction as to the handling of a specific expense, R3 suggests the following general guidelines for establishing non-allowable costs: With the.exception of Corte Madera Bulky Waste Collection, the associated costs can be projected by multiplying the rate for these services (less franchise fees and profit) times the number of annual services. Section 5.8(5)(b) of Tiburon's franchise agreement also states that "Collector's cost of salary for the first fifteen (15) hours of providing [Storm Drain Cleaning Services}... shall be considered Non Allowable Costs." MVRS does not allocate any street sweeping labor costs to Tiburon; therefore, this requirement does not have any financial impact. Code Enforcement, City Sponsored Events and Abandoned Waste Notification.

17 Mr. Eric Erickson June 22, 2012 Page 9 of 11./ Costs that are not reasonable, or are not necessarily incurred in the performance of the service provided in accordance with the franchise agreement, are nonallowable; and./ Any benefits provided to the MVRS's owners that are different from other employees, including health insurance, life insurance, retirement benefits, etc., are non-allowable. Owner's Whole Life Insurance Policies - The Application included approximately 104,000 in owners' insurance policies, including whole life policies. MVRS's stated that it holds the owners' life insurance policies solely for the purpose of guaranteeing that the company has the funds to repurchase a deceased owner's shares as required in the event of the death of an owner. R3 does not recommend that this type of insurance be allowed since we do not believe that there is any benefit to the ratepayers. What is effectively occurring is that the ratepayers are covering the cost of the owners acquiring additional interest (and associated benefits) in their business at no cost to the owners. Upon review, MVRS has agreed to remove this expense. Company Cars - Each of the four (4) owners has a company car that is included in the rate base. The total annual depreciation expense is approximately 27,000. MVRS reported that it has been the case for over 30 years that each partner has had a company car and that it was not aware of any discussions with the jurisdictions related to company vehicles. The issue of company cars for owners of private garbage companies is not uncommon. Our general recommendation in such cases is to allow no more than two (2) company cars for owners in the rate base and treat any additional related expenses as non-allowable. The thought behind this recommendation is that a chief operating office and general manager need a working vehicle (pickup truck or SUV, not a sedan) at times in support of the operation of the company. Even in this case, however, some jurisdictions have limited the "allowability" of such company cars to reflect a percentage that is for personal versus company use. Fully allowing the expense associated with two company cars and disallowing the remaining two cars would result in a reduction of 13, in expenses, which MVRS has agreed to. Owners Health Insurance Premiums in Excess of those Offered to Other Emolovees Annual Officer Health Insurance premiums average approximately 30,800 per officer versus an average of approximately 19,200 for all other employees. MVRS reported that the health plans provided to the owners and office and other staff are the same but separate. The company offers two plans, Anthem PPO and Kaiser HMO. In conjunction with these plans, there are Health Savings Accounts for the deductible and co-pay amounts. The owners are not permitted to participate in these accounts and therefore must be in a separate plan, but the premiums are still based on the same rates. The company reported that variations in rates by line of business and for the owners as compared to other employees are due to the plan each employee uses and the number of dependents. The Kaiser rates are set for the 14 This represents 50% of the total annual depreciation expense for the four (4) existing company cars.

18 Mr. Eric Erickson June 22, 2012 Page 10of11 Adjustments entire region according to the number of dependents. As a demographic group, the owners generally live in areas with higher rates, are older and.have dependents and are therefore at the higher end of the premium range. We have not confirmed MVRS's representations as stated above, but do not recommend any adjustments for this expense item based on those representations. As discussed above, based on our review of MVRS's Application, we recommend adjustments that result in a net increase in projected expenses of 23, 187. The recommended adjustments are discussed below and shown in Table JPA Fees - Increased JPA Fees by 6,742 to reflect updated figure provided by County and increase "One-Half JPA Fees" Pass-Through Expense by 3, Route Consolidation Cost Savings - Reduce overall labor expense by 59,505, reflecting the savings associated with route consolidation. 3. Portable Toilet Advertising and Promotion Cost Allocation - Reduce Advertising and promotion expense by 4,200 to reflect the allocation of 35% of the total 12,000 expense to portable toilets. 4. Debris and Street Cans (Corte Madera Debris Box Free Service) - The rate application incorrectly referenced the full cost of Corte Madera's debris box free service rather than just the franchise fee and profit portions, which results in decreasing the free service "cost savings" by 38, 138 from 62,408 to 24, Corte Madera Portable Toilet Overage - Reduce Corte Madera's Portable Toilet Overage figure by 1,431 from 13,864 to 12, Corte Madera and Tiburon City Services - Reduce Corte Madera and Tiburon City Services by 3,605 and 1,202 reflecting the associated disposal expense. 7. Corte Madera Administration Fees - Reduce Corte Madera Administrative Fees by 9,000 to reflect that portion that is to be handled as a non-allowable expense. 8. Owners' Life Insurance Policies - Disallow this entire expense of 103, Owners' Company Cars - Allow the expense associated with two company cars and disallow the remaining two cars, which results in a reduction of 13,398 in expenses. 10. Belvedere, Corte Madera and Tiburon Corporation Yard Debris Boxes - Set the cost of servicing debris boxes provided to the jurisdictions as a pass-through expense rather than an allowable expense per Section 5.B(5)(c) of the franchise agreement. This adjustment is reflected as a reduction in the profit line item listed below. 11. Tiburon Street Sweeping - Set the cost of street sweeping in Tiburon (23,303) as a pass-through cost, rather than an allowable expense. This adjustment is reflected as a reduction in the "Profit (Operating Ratio Allowance)" line item listed below. 12. Belvedere Excess Dump Charge - Set the Belvedere excess dump expense (5,522) as a pass-through expense. This adjustment is reflected as a reduction in the profit line item listed below.

19 Mr. Eric Erickson June 22, 2012 Page 11 of Profit (Operating Ratio Allowance) - Set profit at 10% of allowable costs in Tiburon, rather than the 90% operating ratio proposed by MVRS, and set profit on "Debris" at 10% of allowable costs, rather than the 90% operating ratio used in the original application, consistent with the Corte Madera franchise agreement language. The net impact of adjustment items 1, 10, 11, 12 and 13 is a reduction in profit of approximately 56, Franchise Fees at Current s - Apply franchise fee to recycling rate revenue in the County, resulting in an increase of approximately 7,000 in franchise fees. * * * * * * * We appreciate the opportunity to be of service to the Contracting Jurisdictions. Please feel free to contact me by phone at (916) , or by at wschoen@r3cgi.com, if you have any questions or comments regarding this submittal. Sincerely, R3 CONSUL TING GROUP William Schoen Principal Tables: Table 1 Table 2 MVRS Adjustment Calculation MVRS Adjustment Calculation - Adjusted Attachments: Attachment 1 Mill Valley, Tiburon and County Schedules R:\Projects\ Mill Valley Review\Reports\Mill Valley Final Report docx

20 Table 1 MVRS RA TE ADJUSTMENT CALCULATION MILL CORTE 2012 FORECAST VALLEY BELVEDERE MADERA ALTO TIBURON COUNTY HOMESTEAD STRAWBERRY ALMONTE DEBRIS TOTAL RevenUe (net of franchise fees) 3,756, , 132 2,401, ,980 2,319, , ,384 1,264, ,628 73,392 12,037,195 Add: Franchise fees 778,120 72, ,293 14, ,310 84,968 18, ,584 5,024 2,052,540 4,534, ,553 2,986, ,425 2,689, , ,760 1,388, ,652 73,392 14,089,735 Total Operating Costs 3,497, ,139 2,262, , 164 2,170, , ,930 1, 196, , ,805 11,501,812 Add Franchise fees 778,120 72, ,293 14, ,310 84,968 18, ,584 5,024 2,052,540 Free Services: Debris and street cans (5,475) (1,199) (62,408) (10,000) (79,082) Portable Toilet Overage 13,864 13,864 Total gross operating costs 4,269, ,362 2,799, ,608 2,530, , ,305 1,320, , ,805 13,489, 135 Less Pass through expenses Excess Disposal expense /ton (20,432) (18,568) (39,000) Franchise fees (778, 120) (72,422) (585,293) (14,445) (370,310) (84,968) (18,376) (123,584) (5,024) (2,052,540) Road impact fees (135,000) (39,082) (174,082) One-hall JPA lees (38,947) (6,948) (24,900) (3,286) (24,049) (5,634) (4,358) (13,111) (2,806) (761) (124,800) Officers' retirement plan Admin. Fees CM/Zero Waste Cnty 9,000 13,351 22,351 Profit basis 3,317, ,992 2,159, ,877 2,117, , ,571 1,183, , ,045 11,076,361 Operating Ratio Allowance (90%) 368,624 67, ,964 32, ,286 49,891 43, ,487 31,738 29,783 1,206,711 Add back pass through expenses Excess D1~posal expense /ton 20,432 18,568 39,000 Road impact fees 135,000 39, ,082 One-hall JPA fees 38,947 6,948 24,900 3,286 24,049 5,634 4,358 13,111 2, ,800 Officers' retirement plan Adm in. Fees CM/Zero Waste Cnty 9,000 13,351 22,351 Franchise fees at current rates 820,216 75, ,484 15, ,482 89,503 20, ,855 6,230 2,158,968 Total revenue requirement 4,680, ,859 3,037, ,470 2,787, , ,840 1,459, , ,588 14,802,273 Net Excess (Deficiency) (145,781) (13,305) (50,506) (16,045) (98,091) (18,056) (23,080) (71,719) (50,759) (225, 196) (712,538) Allocated debris deficiency (52,701) (17,500) (79,875) (1,896) (41,200) (13,267) (4,634) (10,092) (4,030) 225,196 Net Excess (Deficiency) (198,482) (30,806) (130,381) (17,942) (139,291) (31,324) (27,713) (81,811) (54,789) (712,538) Percentage Excess (Deficiency) -4 38% -4.15% -4.37% -5.41% -5.18% -4.98% -6.32% -5.89% % -5 06% Scheduled franchise fee increase 000% 0 00% 0.00% 000% 0.00% 0.00% 0.00% 0.00% 0.00% Total Percentage Excess (Deficiency} -4.38% -4.15% -4.37% -5.41% -5.18% -4.98% -6.32% -5.89% % -5.06%

21 Table 2 MVRS Adjusment Calculation - Adjusted 2012 FORECAST MILL CORTE Adj # VALLEY BELVEDERE MADERA TIBURON COUNTY HOMESTEAD STRAWBERRY ALMON1E DEBRIS ORIGINAL TOTAL NET ~.QJJJSJME~T Revenue (net of franchise fees) Add Franchise fees 3,756, ,132 2,401, ,980 2,319, , , , ,293 14, ,310 92, ,384 1,264, ,628 18, ,584 5,024 73,392 12,037,195 2,052,540 12,037,195 2,052,540 Total Operating Costs 4"',5"'-34"',6"'2'-5 7-'4~2,=55cc3 ~2~,98=6"',9-"'16'--'-'33~1,-"'42~5--2"',6'-'8-"9,'-87=-2--'6"'28"-.4'-"23'---'-4=38'-',7"'60'---'1,"'38=8'-'-, 1-"17 c2"-7"'5,=65=-2---'7"'3,3=9=-2--'1"'4,"'08"'9"-,73=-5 14,089,735 3,4Sl9,4C1:.l,;, G ,024 ::'.!.<9, ''j1j )15r, ,1';17290 '! 288, ,849 11,508,554 11,501, Add Franchise fees WC 778,120 72, ,293 14, ,310 92,058 18, ,584 5,024 2,059,631 2,052, Free Services.Debris and street cans Portable T 01let Overage Con"' Mar:J.,.ra & Trl:,uron C.1t1 Services Non-Allowable Services Corte Madera Adm1rno.1rat1voe Fee, OwnersUfo::lns1;rrmc"- 01 m"r"' :..cr11.uc0n~r:;:ir", (18 322) 11311\ (5,475) (1,199) r?r 4'Jll!4.884) \4 125)!_7~1) (12,333) 1831'1; il,013) (111) [ ) 24,2/(1) (10,000) 12,433 (3,605) (1,20::'1 (187; l'j,q()ij1 (21 1:F,I 1 Ji:'.,/:1'11 (3,403) (2,777) [2,' '3) 16,5%\ (4411 ::'6) (59,505) (4,200) (40,944) 12,433 (4,806) 0 (9,000) n 123) (10,405) t ~r,'1) (103,864) 146CJJ (1 472, 1332) (13,398) (79,082) 13,864!59 50')1 14,200) '.JrJOO) 113 Total gross operatmg costs 4,219, ,577 2,787, ,358 2,499, , ,687 1,302, , ,655 13,344,901 13,489,134 Less Pass through expenses Excess D1sposa! expense!ton Franchise fees Road1mpactfees One-halfJPA fees Officers'rebrementplan Adm1n Fees CMfZero Waste Cnty T1buronCorporat1on Yard O-:br15 Soxd> T1burcr1 Srr.;<"!!:dl""Plfl<;; Bt>lve-dere E<r>::&s Dump C 1arge (778,120) (72,422) (135,000) 14110'2'.:') (10.447) (5,5221 (20,432) (18,568) (585,293) (14,445) (370,310) (92,058) {39,082) 175,5871 tj.3171 {~4.713) (31,7"54) (13,351) (39,000) (18,376) (123,584) (5,024) (2,059,631) (174,082) 1'1470) 11-~.4??.1 (lfl21 (128,171) (13,351) (104,609) (23,303) (5,522) (39,000) (2,052,540) (174,082) (124,800) (22,351) 123.::031 Profit basis 3,266, ,047 2,094, ,537 2, , ,833 1,164, ,\%5 256,874 10,797,233 11,076,361 (279,128) Operating Ratio Allowance (90%) Add back pass through expenses Excess Disposal expense /ton Road impact fees One-halfJPAfees Officers' retirement plan Admm Fees CMfZero Waste Cnty T1t-uronCorpl)rat11)n Yard Deb11s Bo es T1bwon Str-::etSv1eep1ng Franchise fees at current rates , ,000 10,0:.:.:: 808,411 64,561 5,522 7,140 10,;47 74, ,408 20, ';81 62, ,979 32,393 15,212 18,568 _;1ib4 23 :~n~ 382,075 49,113 39, ,351 43, ,440 31,296 1,151,009 1,206,711.\ , ,859 6, , , ,H1 39, , ,800 13,351 22, ,609 23,303 2,135,809 2,158,968 (';5-02) 19,00C ~3.:,o: 1')0) Total revenue requirement 4,613, ,018 3,014, ,518 2,714, , ,298 1,437, , ,343 14,572,089 14,802, ) Net Excess (Deficiency) Allocated debris deficiency Net Excess (Deficiency) (78,420) (49,134) (127,553) (465) (16,316) (16,780) (27,980) {74,468) (102,448) (11,093) (1,768) (12,861) {24,162) (38,411) (62,573) (17,789) (12,369) (30,159) (16,538) (4,320) {20.858) {49,617) (9,409) (59,026) (46,338) (209,951) (3,757) 209,951 (50,095) (482,354) (712,538) (482,354) (712,538) 230,184 Percentage Excess (Deficiency) Scheduled franchise fee mcrease Total Percentage Excess (Deficiency) -281% 000% -2.81% -2 26% 000% -2.26% -343% -388% 0 00% 0 00% -3.43% -3.88% -233% -480% 0 00% 0 00% -2.33% -4.80% -475% 0 00% -4.75% -425% -1817% 000% 000% -4.25% % -342% -5 06% 1 63}o

22 Attachment 1 Mill Valley Effective July Increase 13.83% Base :~ :~ Recycling Monthly Quarterly #of Cans /1 Pick Up 1-20 Gallon 1-32 Gallon 2-32 Gallon 3-32 Gallon 4-32 Gallon 5-32 Gallon 1-45 Gallon Base Recycling Monthly Quarterly # of Cans /1 Pick Up 1-20 Gallon 1-32 Gallon 2-32 Gallon 3-32 Gallon 4-32 Gallon 5-32 Gallon 1-45 Gallon Base Recycling Monthly Quarterly #of Cans /1 Pick Up Gallon - Flat Area Gallon - Hill Area Base Recycling Monthly Quarterly # of Cans /1 Pick Up 1-32 Gallon - Flat Area 1-32 Gallon - Hill Area A Low Income Rale ls available to residential Slngle-Famlly customers who have already qualified ror lhe PG&E CARE/FERA Program. A 20% discount off the applicable resldenlli!i rate shown above will apply. A copy of lhe custome!'s PG&E blll showing the qualified CARE/FERA Program Is required for the discount. To meiintaln lhe discounled rate customers must submit a new PG&E bill annually.

23 Attachment 1 Mill Valley Effective July 1, 2011 Increase 13.83% Base Recycling Monthly Container Rental s s per yard extra trash charge #of Pick Ups 1 Pick Up 2 Pick Ups 3 Pick Ups 4 Pick Ups 5 Pick Ups 6 Pick Ups ~' Base Recycling Monthly Container Rental , , , , , per yard extra trash charge #of Pick Ups 1 Pick Up 2 Pick Ups 3 Pick Ups 4 Pick Ups 5 Pick Ups 6 Pick Ups Base Recycling Monthly Container Rental #of Cans/1 Pick Up 1-32 Gallon 1-45 Gallon Base Recycling Monthly Container (per yd/month) Rental #of Pick Ups s nfa 1 Pick Up Maximum Weight: B tons. Overweight charge: 100 per ton. Saturday Recycling Monthly Container Base Rental # of Cansf1 Pick Up Gallon - Saturday Yard Container - Saturday Yard Container - Saturday

24 Attachment 1 TIBURON Base Recycling Monthly Quarterly # of Cans /1 Pick Up Gall~_n 3_0._7_1 4_._36 ~ 1 1 ~_ G l!_q_q L 5_9.48! ~ Gall.~_n Gallon Gallon Gallon ; :\.:-., :I, ":'!,:;,:, YHWi,:-:. :::J:i:i!:h: ::: :Jil!!!L.i::;- _.: ::<1:: t:o11 Ar~-~1:c-- J!!!:Jlii!iiik..:,--::w:r: :: : _,,;:;;-: - " Base! ' ~ ! ~ Recycling Monthly ~--~ Quarterly # of Cans /1 Pick Up Gallon.. ~ Gallon -~ Gallon ---, " - N,>« Gallon, Gallon Gallon ~ Gallon # of Cans/2 Pick Ups Gallon , Gallon Gallon Gallon I E1oomm1m11mmmm m11~111m1~11mm m11mmi1111m Base * Recycling Monthly Quarterly # of Cans /1 Pick Up 1-32 Gallon - Flat Area -n-/a, 1-32 Gallon--= Hill Area Base Recycling Monthly * l-, , I Quarterly #of Cans /1 Pick Up 1-32 Gallon - Flat Area 1-32 Gallon - Hill Area

25 ~---- Attachment 1 TIBURON. " Base Recycling Monthly Container Rental #of Pick Ups Pick Up Pick Ups _~ Pick Ups Pick Ups Pick Ups PTck Ups per yard extra trash charge ' '.,;;,::::::::;,:.:. ' : :. ::.:::ii(:i!;r,.: )~?(~ira: c.~:r.italned;:t;' 11. ::, "..:. ::'::: :: ".:: : ',-' ' ~.' '.:: ij..,.':... Base Recycling Monthly Container Rental #of Pick Ups Pick Up Pick ~_ps,..,.., i Pick Ups _,, 1, , Pick Ups 1, , Pick Ups 1, , Pick Ups per yard extra trash charge ',:: I.,' ' Base Recycling Monthly Container Rental #of Cansf1 Pick Up 1-32 Gallon 1-45 Gallon!i...:,, " Base Recycling Monthly Container (per ydfmonth) Rental #of Pick Ups Pick Up Maximum Weight: 8 tons. Overweight charge: 100 per ton. Saturday Base Recycling Monthly Container Rental #of Cansf1 Pick Up 1 Yard Container - Saturday 2 Yard Container - Saturday

26 Attachment 1 county 1-4 Effective July 1, 2011 Increase 14.73% r111m1mm111m m m ~oom1mm11m~1mmm11mmmm1mmmrnmml;.l4.11.~j.:- ' ~mmmmmi1m111111fi~1111m~~ m~ m m111m1111r11111f11m111m111. Pi i'ji;ji/.!.i ' c Base Recycling Monthly Quarterly # of Cans /1 Pick Up Gallon ~ ~ Gallon Gallon -:r-~ , _, s-2- -,-._4-.ti-c.:;- -ai-io-n Base Recycling Monthly Quarterly # of Cans /1 Pick Up Gallon Gallon Gallon Gallon Gallon Gallon Base Recycling Monthly Quarterly # of Cans /1 Pick Up Gallon Gallon Gallon Gallon Gallon Gallon Gallon Base Recycling Monthly Quarterly # of Cans /1 Pick Up Gallon Gallon Gallon Gallon ~32 Gallon Gallon

27 Attachment 1 County 1-4 Effective July 1, 2011 Increase 14.73%.:1mmmm1111mmmm1ID1llllll1mm111m1m11m1111~~ m111mm1111i1r '' ' '.... ~,,~ :, :JJ:111m~::~::.: :::::r:!i!j!!!:: : 1 'Y ~l'f:et.l ~e>nta.rn:~t!:'i 1 ::~:::mm1:,r1 >:-,:;,i:: l--"1,!;,,, Base Recycling Monthly Container Rental #of Pick Ups,, _j Pick Up ~- --,,_ Pick Ups Pick U_ps Pick Ups Pick Ups " Pick Ups County 1-3: per extra yard trash charges. County 4: per yard extra trash charge.....,.:.,:u;1-rnw1;::!::! :" +Hf::,: : : i '! : ; ; : i : : ;!'!' '. ; H::?.1:Yarcf p~~~aitil:fr.:,::;i:11:::!:!'::'y'..,:,.. :::.,,,..,,, '!, " " ; " Base Recycling Monthly Container Rental #of Pick Ups Pick Up ~Pick - Ups Pick Ups ,, Pick Ups ~-~ , , Pick Up~ H""- 1, , Pick Ups County 1-3: per extra yard trash charges. County 4: per yard extra trash charge.,..: :,... ;;,::' ". '''' E., Base Recycling Monthly I Container Rental I # of Cansf1 Pick Up 1-32 Gallon -~- Base Recycling Monthly Container Rental # of Cans/1 Pick Up 1-32 Gallon Gallon Gallon 98.44!f Gallon l-' t ~ ' :!',',,,,, 'i,' : ; ~::!~::~:fl~.ptt[.:;:,;,:!.1,1': :'.::: ; : 1 :sp~~j~fgqrrhne~ci~l.:,~~'µr<tay!!s rvi.~~-,;, :' '".:,'.,,, Saturday Recycling Monthly Container Base Rental #of Cans/1 Pick Up Yard Container - Saturday Yard Container - Saturday ---