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<br />
<br /> Managing Tomorrow’s Resources Today
<br />
<br />
<br />MEMORANDUM
<br />Page 10 of 11
<br /> RWC_Memo_19Dec2024
<br />Figure 8. Summary of Vehicle Impacts at Targeted Levels of Annual Funding
<br />
<br />Based on the assumptions in the analysis, Recology’s vehicles account for more than 30% of the total
<br />impact across the City’s road network. Consequently, Recology’s share of annual paving maintenance
<br />costs could range between $1,229,300 to $2,950,000, depending on the City’s costs incurred.
<br />SUMMARY
<br />Figure 9 summarizes the costs of services provided by the City, the range of the reasonable fee for the use
<br />of public right-of-ways for container placement, and the vehicle impacts attributable to Recology’s
<br />collection vehicles. Collectively, the sum of the City services ranges between $2,244,806 and $2,707,134.
<br />The range of a reasonable encroachment value for the use of public right-of-ways for container placement
<br />is between $507,383 and $2,854,381. The cost of Recology’s vehicle impacts to the City’s streets varies
<br />according to the current level of funding and the targeted level of funding. Therefore, the vehicle impacts
<br />attributable to Recology range between $1,229,300 and $2,950,000. The franchise fees collected in 2023
<br />totaled $3,260,305. Thus, the City’s franchise fee is less than the combined minimum value determined
<br />as the total amount of justifiable fees throughout the rate period. In 2024 the City is projected to collect
<br />$3,470,042 in franchise fees based on initial revenue projections.
<br />This justification of the franchise fees is based on 2023 and 2024 costs to date. It is recommended the
<br />value justified increases in line with inflation as the costs for City services and value provided by the
<br />Agreement increases. It is recommended the value of City services and the encroachment value for use
<br />of the right-of-way be increased using the Consumer Price Index for All Urban Consumers, using the San
<br />Francisco-Oakland-Hayward, CA area. Similarly, the cost of vehicle impacts is recommended to be
<br />Street Impacts at Target Level of Funding
<br />Redwood City Vehicle Type Residential
<br />Street
<br />Collector
<br />Street
<br />Arterial
<br />Street Total
<br />Percent of Total
<br />Impacts
<br />$946,100 $44,100 $11,100 $1,001,300 10.4%
<br />$953,600 $44,400 $11,100 $1,009,100 10.5%
<br />$745,200 $34,700 $8,700 $788,600 8.2%
<br />$0 $49,400 $12,400 $61,800 0.6%
<br />$0 $38,800 $9,700 $48,500 0.5%
<br />$0 $32,500 $8,200 $40,700 0.4%
<br />$2,644,900 $243,900 $61,200 $2,950,000 30.7%
<br />$2,233,600 $1,292,300 $3,124,100 $6,650,000 69.3%
<br />$4,878,500 $1,536,200 $3,185,300 $9,600,000 100.0%
<br />Residential Solid Waste Vehicles
<br />Residential Organics Waste Vehicles
<br />Residential Recycling Vehicles
<br />Commercial Solid Waste Vehicles
<br />Commercial Recycling Vehicles
<br />Commercial Organics Vehicles
<br />Recology Vehicle Subtotal
<br />Other Vehicles
<br />Total
<br />ATTY/RESO.0003/CC RESO 2025 SOLID WASTE COLLECTION RATES & ADOPTING FRANCHISE FEE STUDY - EXHIBIT B
<br />REV: 01-14-25 MI
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<br />Page 10 of 11
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