1. January 10, 2006 1 Public Hearing: Proposed Solid Waste Collection Rate Increases Effective February 1, 2006

2. January 10, 2006 2 Background Solid Waste franchisees, Allied Waste and Waste Management, collect and dispose of Stockton residential and commercial waste at Allied’s Forward Landfill. Disposal cost is included in collection rates.

3. January 10, 2006 3 Background (continued) Effective May 1, 2005, San Joaquin County imposed $1.09/ton disposal fee surcharge on Forward Landfill –$1.00/ton for AB 939 recycling programs –$0.09/ton for road mitigation

4. January 10, 2006 4 Special Rate Review –Contract allows franchisees to request “Special Rate Review” if government-imposed disposal fee surcharges increase collection costs. –Franchisees requested review in May 2005. –Brown, Vence and Associates (BVA) conducted review at franchisees expense. BVA has served as City Recycling Coordinator since 2001and assisted City in renegotiating and implementing new franchisees in 2003-04.

5. January 10, 2006 5 Special Rate Review Results The Special Rate Review determined a $0.06 per 30 gallons residential increase and $0.08/c.y. commercial increase was needed to compensate Allied and WM for the $1.09/ton disposal fee increase. The proposed rate schedules reflect these unit increases. For example, a 60 gallon cart increases $0.12/mo. ($0.06 x 2), and a 90 gallon cart increases $0.18/mo. ($0.06 x 3). A 3-c.y. commercial bin picked up weekly increases $1.03/mo. (3 c.y. x 4.3 weeks/mo. = 12.9 c.y./mo. x $0.08/c.y. = $1.03/mo). The following slides show the impact of the increases on typical residential and commercial customers.

6. January 10, 2006 6 Impact on Typical Residential Customer Garbage Cart Size Current Rate/mo. Proposed Rate/mo. Increase/mo. 30 gallons$19.18$19.24$0.06 60 gallons$24.23$24.35$0.12 90 gallons$29.28$29.46$0.18

7. January 10, 2006 7 Impact on Typical Commercial Customer Garbage Bin Size Current Rate/mo. Proposed Rate/mo.Increase/mo. 3-c.y. wkly. pick up$144.95$145.98$1.03 4-c.y. wkly. pick up$160.10$161.47$1.37 5-c.y. wkly. pick up$204.00$205.71$1.71