Refuse Rates Administrator Hearing #1 On Rate Submissions For Rate Years 2024 and 2025

8:32 am - 1:26 pm  Tuesday, May 9, 2023 | (UTC-07:00) Pacific Time (US & Canada)

maurice quillen  Terry Duong Recology  Rick Simonson - HFH  Dave Hilton  jmarquez  Hilary  Jon Braslaw he/him  Michael Komorowski  Dan Shea  Tyrone Jue  Todd Rydstrom  Erin Corvinova  Call-in User_6 (415760****)  carol  Rachel Gordon, Publlic Works  Sarah Crowley  jack macy  Ben Becker  Manu Pradhan  Christine Beliveau  Terry Duong  Jay Liao  Call-in User_4 (Anony****)  Darryl West  Ian Schneider [Public Works]  Rachel Gordon, Public Works  Kevin Flanagan  Douglas Legg  Ian Schneider  Call-in User_5 (415271****)  .  Bruce Robertson  Hilary   Jamario Jackson  Robert Reed  Alexa Kielty  Anthony Crescenti  


WEBVTT

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Ben Becker 00:19:23.360 --> 00:19:26.560
Okay, we're, we're live here.

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Jay Liao 00:19:26.560 --> 00:19:47.040
Okay, great morning everyone. Thank you for joining. Our first refuse, right administrators hearing I'm Jay Leo, the refuse rate administrator just apologies and finding a cold. So I might call from my voice might crack, so our office is part of Controller's office. It's our responsibility to reco.

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Jay Liao 00:19:47.040 --> 00:20:08.160
Recommend rates to the refuse rate board and in order to make recommendations our offices gathering information to help inform those recommendations. So the sharing is a part of that process. It's the first of two refuse rate administrators hearing the information gathering process began and beginning of March.

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Jay Liao 00:20:08.160 --> 00:20:08.800
When recall

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Jay Liao 00:20:09.720 --> 00:20:21.200
We, San Francisco, which will refer to collectively as recology submitted a request for rate changes to our office.

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Jay Liao 00:20:23.160 --> 00:20:42.960
So since receiving the submission, we have conducted two public workshops, we've presented at the streets in Sanitation Commission and the Commission on Environment and we have had one refuse rate board hearing. We've been gathering information through the free public interrogatory process attracts written.

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Jay Liao 00:20:42.960 --> 00:21:03.440
Information requests to ecology and the response. So the purpose of this meeting is gather more detail information on specific assumption or areas or cost areas, and then the structure of this meeting is to hear presentations for each agenda item and the presentations will be from.

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Jay Liao 00:21:03.440 --> 00:21:09.720
Our office recology. in some cases from the environment department and the Department of Public Works.

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Jay Liao 00:21:12.400 --> 00:21:18.200
Er, before we open it up for a panel discussion.

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Jay Liao 00:21:19.440 --> 00:21:39.920
So that panel numbers will include members from our office recology environment and Public Works, in addition, comments and questions from the deputy administrator doubles leg and the PC financial planning director are also welcome before I go any further, I'd like to introduce Ben Beck.

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Jay Liao 00:21:39.920 --> 00:22:00.400
Her who is our refuse rate analyst during double duty, supporting the presentation and also kind of the backend logistics of all of this, and then we also have presentations from and participation from our consultants from HF and h.

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Jay Liao 00:22:00.400 --> 00:22:07.640
Rickson and Dave Hilton were supporting our work if you can go to next slide.

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Jay Liao 00:22:10.000 --> 00:22:29.200
Oh, so our gener day will start by looking at ecology's great proposal and our prelomary analysis of this proposal will be talking about outreach. In addition, we'll do a deeper dive into various program enhancements, beginning with abandoned materials and public subtacles and.

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Jay Liao 00:22:29.200 --> 00:22:35.080
And then other other enhancements mostly related to.

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Jay Liao 00:22:36.280 --> 00:22:56.720
Er, diversion contamination, then we have additional questions for college proposal on labor enhancements and vacancies. We'll, we've asked for a presentation on very scenarios for ecologies pension costs and then we have a discussion around the zero waste incentive count last topic.

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Jay Liao 00:22:56.720 --> 00:23:12.120
Will be around future work or proposing a set of studies and work that will need happen to inform the next rate cycle, which may cost or cost for this rate cycle and lastly will open up this, we'll open this up for public comment.

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Jay Liao 00:23:13.360 --> 00:23:16.120
Okay, next slide.

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Jay Liao 00:23:17.200 --> 00:23:37.680
So I think we're just gonna jump into the first agenda item, so just kind of give folks a bit of a status update and, and our interagatory process we've made seventeen scheduled requests. We've received a lot of responses. thirty- seven exhibit requests, thirteen respon.

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Jay Liao 00:23:37.680 --> 00:23:41.240
Es a hundred and fifty- six questions and ninety- six responses.

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Jay Liao 00:23:43.640 --> 00:24:03.280
So, a lot of these schedule requests exhibits, some questions are needed to be completed order a beth to validate the rate model and allow us to understand details in order to develop our re- order recommendations bring discussion. I think we'll talk through some of the items that, that might be missing that, that will be important for us.

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Jay Liao 00:24:03.280 --> 00:24:08.400
US to have an order for us to develop our rate model. Next slide.

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Jay Liao 00:24:11.640 --> 00:24:28.440
Er, for this topic, we are looking at some of the high level pieces of recology's proposal that are proposing that three point nine percent and two point zero- five percent increase for eight years, twenty, twenty- four and twenty- twenty- five respectively.

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Jay Liao 00:24:30.160 --> 00:24:43.480
These increases assume a cost of business adjustments program enhancements Organics preprocessing facility, other labor enhancements or backfills and new revenue from timination fees.

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Jay Liao 00:24:44.880 --> 00:25:02.640
These proposals so many one percent operating ratio and they shouldn't collages proposing to balancing count that would fully guarantee the operating ratio profit motion on eligible costs for our presentation. We'll share a little bit of preliminary analysis. We'll do it.

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Jay Liao 00:25:04.080 --> 00:25:12.920
We, we did some prelineary analysis on baseline rate change, so baseline, meaning.

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Jay Liao 00:25:15.640 --> 00:25:34.800
What, what the rates would look like without any enhancements as a starting point, we have Nage presenting on great comparisons across jurisdictions and a profit margin analysis as well, and then.

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Jay Liao 00:25:35.440 --> 00:25:50.120
An accounting of, of the current balancing account for radio twenty- twenty three and what is proposing for the balancing count for the next two years.

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Jay Liao 00:25:52.720 --> 00:26:11.920
In addition for future hearings will be performing analysis on SAS co- programs. These are programs that are, that are continuing, but don't have enhancements. We have, we'll have questions around disposal costs, particularly.

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Jay Liao 00:26:12.560 --> 00:26:32.280
As soon as the land fill audit from the controller's office released, we'll be analyzing the cost of business increases. This would be like inflation assumptions feel costs things like that, and then we've asked HF and H- to do efficiency analysis.

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Jay Liao 00:26:32.560 --> 00:26:38.800
And we'll be needing additional information in order to complete that.

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Jay Liao 00:26:40.720 --> 00:26:53.360
So first is the baseline rate change analysis that we've done, and like I said, this is, these are preliminary analysis. We're gonna work with.

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Jay Liao 00:26:54.800 --> 00:27:15.120
These numbers, but we wanted to get a sense of, kind of the magnitude of the changes from the enhancements that were calling is recommending. So the pulse assume ninety- one percent operating ratio the baseline.

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Jay Liao 00:27:15.280 --> 00:27:36.400
It's the two or three, the fifth column, the baseline estimate is what the rates would look like without the three point, three million cost program enhancements, four point, three million in unfilled labor enhancements and backfills and then removing the five million revenues for.

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Jay Liao 00:27:36.400 --> 00:27:45.400
For new contamination fees, we also have a column for the removal of the zero waste instead of account.

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Jay Liao 00:27:47.280 --> 00:28:07.120
This is a discussion topic for later in our initial look at this. We're likely proposing removal of zero waste counts. So wanted to show what the impact of that would be as well, and so looking at this table, she's proposal.

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Jay Liao 00:28:08.400 --> 00:28:27.040
Would have a dollar eighty three cent change in a minimum service for single unit residential account and that would be a three point nine percent change, if we remove their enhancements and remove the contamination fees.

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Jay Liao 00:28:27.600 --> 00:28:47.960
This would, the change would be a, a dollar forty- nine cents, which would be a three point one, seven percent change from current rates, if we remove zero waste instead of account eight point two million costs, that would be a thirty- nine cent change from current rates and.

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Jay Liao 00:28:48.080 --> 00:28:53.040
Eight three percent change from a current rates next slide.

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Jay Liao 00:28:54.480 --> 00:29:14.960
And so this is for break year twenty- twenty five for eight year twenty- twenty- five baseline, this would remove the three and a half million in cost program enhancements, four point, four, four unfilled labor and backfills and then five billion revenue for contamination fees for the zero waste, instead of count would remove the assumed eight point four cos.

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Jay Liao 00:29:14.960 --> 00:29:35.440
Cost for the count and the assumed two point, six million and add that for the two tiers achieved if we're not, if the baseline doesn't include the zero waste and center counter would be no add back and so what we're seeing here in terms of a baseline, so.

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Jay Liao 00:29:35.440 --> 00:29:55.920
The reccology proposal here is against recologies, twenty- twenty- four proposal, and so if we maintain conscious proposal for both years, that's a dollar seven increase in rates two point one nine percent, which is a two point one nine percent in.

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Jay Liao 00:29:55.920 --> 00:30:04.120
Increase the baseline here is for the estimated rate year, twenty- twenty- four baseline.

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Jay Liao 00:30:06.160 --> 00:30:26.000
Eric, as a compares as a starting point and that would be a forty- five cent change from the twenty- twenty- four baseline. That's a point. Nine, three percent increase removing zero waste instead of account, you would see a negative point three cent change, which is a point six.

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Jay Liao 00:30:26.000 --> 00:30:26.640
Three percent

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Jay Liao 00:30:27.480 --> 00:30:47.920
Rechange, I think the next three slides we're going to ask each of an h- two there comparisons of jurisdictions and their profit margin analysis. So I'm gonna hand it over to Dave Helpton, I believe.

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Jay Liao 00:30:47.920 --> 00:30:49.160
President presenting.

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Dave Hilton 00:30:51.120 --> 00:30:54.240
Daven Raym, right? Thanks.

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Dave Hilton 00:30:56.240 --> 00:31:16.080
So we put together some comparisons of other jurisdictions, either, you know, neighboring jurisdictions or similar demographic, make up population size as a comparison, we did this for both residential and commercial and for residential, what you can see here you have San Francisco.

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Dave Hilton 00:31:16.080 --> 00:31:36.560
Co- on top with these other jurisdictions down below, and we looked at the, what the minimum monthly cost you could get garbage service for would be, and for San Francisco, that's forty- six dollars and eighty seven cents and the combined volume of the recycling trash.

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Dave Hilton 00:31:36.560 --> 00:31:57.040
Compost for that would be about eighty gallons. Now that varies from place to place different jurisdictions have different levels of service and minimum levels of service, which they provide, and so that is noted in that column there, what the total volume is. So obviously this isn't exactly.

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Dave Hilton 00:31:57.040 --> 00:32:16.800
Apples to apples, but trying to show the different metrics and understanding why some places may be more or less expensive and in order to try and write size that and get it closer to apples and apples to apples. We have a combined monthly residential cost per gallon as you can see in the comparison.

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Dave Hilton 00:32:17.520 --> 00:32:38.000
Fact that we've provided San Francisco's combined residential costs per gallon for the total volume is about fifty- nine cents per gallon. Some other jurisdictions are as low as fifteen cents with the next closest with the highest being Oakland at about eighty cents.

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Dave Hilton 00:32:38.000 --> 00:32:58.480
Ger Gallon, overall the average we've seen for the compared jurisdictions. The average minimum monthly cost is about thirty- four seventy- eight. So San Francisco is, is in the middle of the pack in terms of cost, but quite a bit above average as well as their combined cost per GA.

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Dave Hilton 00:32:58.480 --> 00:33:06.040
Allan is on the higher end from what we've seen in these comparisons. Jay, you wanna move on to the next slide.

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Dave Hilton 00:33:08.720 --> 00:33:27.920
We also provided some comparisons for commercial customers, again, sort of looking at what the minimum level could be as there's mandated service. What's the lowest amount you could get away with paying for us provision of service and we've also noted the minimum monthly colle.

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Dave Hilton 00:33:27.920 --> 00:33:48.400
Election for solid waste Gallans being provided there for this comparison. We did notice that San Francisco has a lower than average costs for that minimum level of service provision with the monthly per gallon cost being around a dollar six.

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Dave Hilton 00:33:48.400 --> 00:33:58.520
Sixty four, a gallon, which is a bit below the average of about two dollars that we saw. We did look at beyond just the.

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Dave Hilton 00:34:00.560 --> 00:34:21.040
We also wanted to look at the bin service and while many of this city of San Francisco's customers are small businesses that are in CART containers. We did also want to look at those bin service containers as well, and that's where we do see that the cost provided to those customers, rather the rate charge to those customers.

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Dave Hilton 00:34:21.040 --> 00:34:41.520
Is quite a bit higher than the average. We see at about a hundred and eighty seven dollars in ninety- four cents, again, working that bin rate into a, per gallon equivalent, That would be about a dollar forty- one for San Francisco residents with the average for the other jurisdictions coming in just below a dollar at ninety- four.

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Dave Hilton 00:34:41.520 --> 00:34:43.120
Cents a gallon.

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Dave Hilton 00:34:47.280 --> 00:34:50.720
Jay, if you'd like to move on to the next slide.

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Dave Hilton 00:34:53.040 --> 00:35:12.240
So the next part of what we were tasked with after looking at some comparisons for the different jurisdictions is looking at the profit margin that's been requested by recology and recology cut forward a request for a ninety- one percent operating ratio, which equates to a nine point eight nine percent profit. Ma.

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Dave Hilton 00:35:12.240 --> 00:35:13.360
Margin.

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Dave Hilton 00:35:14.800 --> 00:35:28.760
They do also participate in an ESOP and that we believe there's a range there for some tax savings, which ultimately benefit the bottom line to the tune of about two to four percent, we compared a number of different.

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Dave Hilton 00:35:30.200 --> 00:35:50.640
Er, jurisdictions and their Halling companies and provided profit ratios based on some twenty- twenty- one data that we have that's over in this column to the right here, and you can see that there really is a wide range of different operating ratios and these are for municipal contracts and those municipal contracts.

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Dave Hilton 00:35:50.640 --> 00:36:09.920
The, the, we that we survey range from being down around seven point, five, three percent all the way as high for Oakland, which, which is really an estimate, but it's around thirty- six percent. So clearly a wide range there for these municipals.

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Dave Hilton 00:36:11.120 --> 00:36:31.600
We also looked at the risk management associations benchmark of solid ways collection companies for companies with over twenty- five million dollars a year in revenue and the average profit margin for those companies is six point nine percent obviously it's, it's interesting to notice that, that number's quite a bit smaller than the.

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Dave Hilton 00:36:31.600 --> 00:36:46.960
The smallest municipal number, we were able to find and we believe that's largely due to this more open market, not not including just these municipal contracts and therefore that, that should be a reduction in the profit margin.

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Dave Hilton 00:36:48.240 --> 00:37:08.720
Something else to consider along with recology's profit margin request is the current balancing account is fifty percent balancing risk share, and so as we consider, you know, whether recologies request for an operating ratio of ninety- one percent is reasonable. We also need to.

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Dave Hilton 00:37:08.720 --> 00:37:17.120
Consider what level of risk they're taking on, in conjunction with that nine point eight nine percent profit margin.

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Dave Hilton 00:37:18.320 --> 00:37:38.800
In all what we found in this municipal service comparison is that the average profit margin excluding Oakland's estimated and very high outlier, as well as jurisdictions that were under the same contract is around thirteen point. two, one percent we.

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Dave Hilton 00:37:38.800 --> 00:37:52.720
We also found that the reccology average from cities in this survey was thirteen point five, three percent with all others coming in at twelve point. Nine one percent.

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Dave Hilton 00:37:56.080 --> 00:37:58.920
So, j- back to you.

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Jay Liao 00:38:01.200 --> 00:38:21.680
Thanks, and I think the last part of our presentation is just around the balancing account proposal, so just for other audience, the purpose of balance count is most stabilization of rates and so under the December, twenty- twenty- two.

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Jay Liao 00:38:21.680 --> 00:38:42.160
The settlement agreement, twenty- five million dollar balancing it kind of was created the way this works is the mount of remaining notional balance is determined by how much ecology is below above or below their target profit or their target operating ratio. So we're collaging will.

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Jay Liao 00:38:42.160 --> 00:39:02.640
Increase or decrease the balance based on profits earned or loss, profits burn or losses occurred during the right year of twenty- twenty- three using that point, nine one percent or an eligible cost and then applying a fifty percent adjustment. So this amount is adjusted quarterly with a trip at the end of.

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Jay Liao 00:39:02.640 --> 00:39:17.200
Each subsequent quarter in the remaining balancing balance after the trip for right year, twenty- twenty three will be applied. Offset rate increases in equal amounts between rate years, twenty- twenty- five and twenty- twenty- nine.

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Jay Liao 00:39:18.640 --> 00:39:31.000
So we'll see the impact of this, any remaining balance for that second rate year, and then in future rate years after that next slide.

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Jay Liao 00:39:35.920 --> 00:39:47.080
Call, so right now the balancing account only applies around your twenty- twenty three. So what quality is proposing inclusion of a balancing account for eight years, twenty, twenty- five and twenty- twenty- four and twenty- twenty- five.

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Jay Liao 00:39:48.080 --> 00:40:08.560
Under the proposal, rather than a fifty percent adjustment recolloging is proposing a hundred percent adjustment the refues rate in administration, initial proposal is to continue to settle an agreement terms and maintain the fifty percent adjustment. So this, the next few bullet points are just what we've taken.

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Jay Liao 00:40:08.560 --> 00:40:29.680
From the refuse rate board comments from ECOLOGY in terms of justification for a hundred percent adjustments that we're calling, she still has incentive control cost because it's in, it's best interest to maintain business and expand ercology, still delivering service that rates below Oakland profit margin only applies to a portion of overall cost and does.

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Jay Liao 00:40:29.680 --> 00:40:30.320
Not guarantee sp

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Jay Liao 00:40:31.020 --> 00:40:51.500
Profit as a public process that renews where ECOLOGY still faces some risk in the terms are subject to change from rate cycle to rate cycle needs to generate adequate profess profits to attract capital and make investments and the hundred percent adjustment keeps the company's greenings in any period consistent with the target operating ratio.

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Jay Liao 00:40:51.500 --> 00:40:54.540
Show next slide.

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Jay Liao 00:40:59.180 --> 00:41:19.020
And so from our view, you know, the structure of the Balancy count can mitigate an internet consequences consequences that can also create new moral hazards and our concern is around that new moral hazard, you know, currently owns the ways collection permits in San Francisco and.

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Jay Liao 00:41:19.020 --> 00:41:39.500
To combine combine with the balancing count with a hundred percent and just just meant it feels as we're calling would have little incentive control costs, in addition to hundred percent adjustment guarantees that nine point, eight nine percent profit margin in comparison, the current risk rate of return on a ten year treasury is three point, three, seven percent.

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Jay Liao 00:41:40.780 --> 00:41:59.980
So that concludes our presentation. The idea was just to go through a, kind of the, the major assumptions around the proper rates compared to other jurisdictions and the impact of this balancing account proposal, so that will allow or I think it's propologies presentation.

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Jay Liao 00:41:59.980 --> 00:42:06.540
Next, we've sent Acologies a number of questions to.

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Jay Liao 00:42:07.700 --> 00:42:13.340
To go through and also to address these, these three issues as well.

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Anthony Crescenti 00:42:23.100 --> 00:42:33.260
Good morning before we get into the, the slides that we prepared as part of our formal presentation. I think there's a couple of points.

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Anthony Crescenti 00:42:33.900 --> 00:42:38.620
Our operations team wants to make regarding the comparisons.

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Jay Liao 00:42:39.020 --> 00:42:39.660
Okay.

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Anthony Crescenti 00:42:40.300 --> 00:43:00.140
Kevin, Anthony, good morning Jen Kevin plan again, I'm the general manager for back on slide seven and eight, just, just some concerns we have in here is how, how these rates were, or how they consider, like Incillary Services Union versus non.

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Anthony Crescenti 00:43:00.140 --> 00:43:20.620
Union sites manual versus automated collection and just the overall kind of, you know, operating environment that we see in San Francisco, compared to those other jurisdictions. The other thing we kinda wanted to point out is some time ago, you know, there was a pretty big initiative to reduce.

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Anthony Crescenti 00:43:20.660 --> 00:43:26.380
You know, the size of our black carts to sixteen gallon. So it's just something that plays.

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Jay Liao 00:43:26.380 --> 00:43:27.500
To.

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Anthony Crescenti 00:43:27.660 --> 00:43:40.460
Get a per gallon rate. Yeah, and I'll just add that. I appreciate HF and h- pointing out the, not necessarily an apples to apples. Comparison is difficult to compare the service environment in San Francisco.

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Jay Liao 00:43:40.460 --> 00:43:41.100
Okay.

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Anthony Crescenti 00:43:41.100 --> 00:43:43.660
The, and also the programs that are offer.

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Jay Liao 00:43:43.660 --> 00:43:44.300
And.

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Anthony Crescenti 00:43:44.300 --> 00:43:56.460
And, and I see the in the, but it is a challenging environment to provide service and leads, and, and somewhats the cost as well. The service levels that are requested by the city.

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Anthony Crescenti 00:43:57.740 --> 00:44:00.260
John, thank you. Okay.

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Anthony Crescenti 00:44:01.580 --> 00:44:06.700
If you can then forward to our first slide section.

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Jay Liao 00:44:06.700 --> 00:44:07.340
Then.

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Anthony Crescenti 00:44:07.340 --> 00:44:08.860
Who are.

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Anthony Crescenti 00:44:15.660 --> 00:44:17.540
Next slide, please.

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Anthony Crescenti 00:44:18.900 --> 00:44:20.980
Er, one more.

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Anthony Crescenti 00:44:23.340 --> 00:44:42.540
All right, I wanna talk a little bit about the, some of this discussion about profit margin and, or balancing account, we wanted to start and take a, take a quick step back. We're talking about operating ratio. We're talking about profit margin.

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Anthony Crescenti 00:44:42.540 --> 00:45:03.020
And I think Jay mentioned, you know, comparison to a risk free rate of return. I think it's important to make sure we, we remember in order to operate a business, you need to be able to attract financing lending capital in order to.

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Anthony Crescenti 00:45:03.020 --> 00:45:11.340
Make investment and in our case to make investments to serve the rates, those investments are not risk free.

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Jay Liao 00:45:11.340 --> 00:45:11.980
And.

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Anthony Crescenti 00:45:11.980 --> 00:45:22.740
Under the vendor's priced there, they priced their capital based on the risk that they see real and perceived.

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Anthony Crescenti 00:45:24.140 --> 00:45:43.980
Another reason that companies generate profitability generate profit is to provide a return to shareholders again, that's one of the, that's one of the things that drives investment in our case. The return is to our employee owners.

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Anthony Crescenti 00:45:45.260 --> 00:46:04.460
People that provide service in the city of San Francisco and other places throughout the, the municipalities that recology serves. So those are all reasons why it's important to generate enough profitability to maintain the health.

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Anthony Crescenti 00:46:04.460 --> 00:46:24.940
Th- of a business we've got in, in most years our capital investment requirement is often north of thirty million dollars and in order to make that kind of investment, even though those investments are recovered over time, we've got to have access to the.

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Anthony Crescenti 00:46:24.940 --> 00:46:45.420
Capital, we've got to have the ability to maintain our financial integrity and health in order to continue to make those investments and to continue to work with the city to achieve the environmental goals and to provide the, the level and quality of service.

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Anthony Crescenti 00:46:45.420 --> 00:46:51.340
That we've been able to do over the last hundred years.

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Anthony Crescenti 00:46:52.460 --> 00:47:12.940
Next slide can, can you just make a couple of comments or things that, you know, I observed and, and had questions about is, you know, I, I just wanna point out that we keep talking about these tax savings on our e- stop and it, it, it- it, I just wanna be clear to everybody that it doesn't account for our buy back, we're obligations and the standard measure of, of companies.

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Anthony Crescenti 00:47:12.940 --> 00:47:33.340
His e- bit, which is before interest in taxes and we'll get into that a little bit later in our presentation, but I also, I also want to point out cause we talked about or range and profitability that, you know, at nine point, eight nine percent is not an actual profit. Sean will get into the details of that, but I just wanna be very clear that's not our actual profit.

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Anthony Crescenti 00:47:33.540 --> 00:47:53.860
In that, that is much higher than when you compare it to this chart. We're, we're far more into the average and down at the lower end of the spectrum. So, and it's really wanna highlight those points for people to pay attention to John's presentation, cause I think there are important points. Thank you Dan. All right, next slide. Please.

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Anthony Crescenti 00:47:55.820 --> 00:48:14.380
Again, as Dan mentioned one of the, you know, one of the primary measures is EBT that's earnings before interest and taxes. It's a typical earnings measure that incorporates your operating costs and incorporates the return on the co- on the cost of capital. So either.

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Anthony Crescenti 00:48:14.380 --> 00:48:34.860
Appreciation or least cost is included in there. You can see in this chart, there's a clear difference between, in this case, our public competitors and where recology operates, you could see by the shape of the, the lower curve where recology, our profit subured considerably.

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Anthony Crescenti 00:48:34.860 --> 00:48:55.340
During the pandemic, we continued to provide uninterrupted service in spite of the fact that with decreasing profits, we earn well below the profit margin that was prescribed in the rate and operated to some extent at an operating ratio.

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Anthony Crescenti 00:48:55.340 --> 00:49:16.460
That was closer to a hundred percent than the ninety one that we've been that was referenced in some of the earlier discussion. So clearly there's a difference and as we talk about profitability and looking at, you know, various various ways to measure that various comp.

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Anthony Crescenti 00:49:16.460 --> 00:49:36.940
Comparisons, one of the benchmarks that we use is our place in the industry and if, you know, you look at other jurisdictions where the large companies provide service, there's a lot of pressure on those margins.

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Anthony Crescenti 00:49:36.940 --> 00:49:57.420
And it really changes the nature of the way that's business is addressed. I'm gonna get into in a moment, some of the things that were raised by Mr. Hiton and the discussion of profitability, but I think one of the issues he.

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Anthony Crescenti 00:49:57.420 --> 00:50:17.900
Raised was, there was a benchmark in RMA benchmark of solid waste companies. I think that's a dangerous comparison, it's national. It doesn't really speak to the variability as he mentioned of open market versus versus franchise and Contra.

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Anthony Crescenti 00:50:17.900 --> 00:50:38.900
Actual business or business consistent with the business arrangement in San Francisco, and I think we need to be careful to make sure that we work to try to get as many comparisons as we can and really focus in on those, those light comparisons.

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Anthony Crescenti 00:50:39.220 --> 00:50:39.660
It's go

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Anthony Crescenti 00:50:43.860 --> 00:51:01.780
This is what we had prepared prepared to speak to. So I'll go through this quickly. one of the things we've been talking about is that with the ninety- one percent operating ratio, there was statement that there was a nine point, eight- nine percent profit margin first profit margin is gener.

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Anthony Crescenti 00:51:01.780 --> 00:51:22.260
Generally measured on your revenue, basically it's not measured against your expenses. so that would be a ninety- a nine percent profit margin on a ninety- one percent or that's kind of a technical point, but I think as we're comparing that to other companies and the rest of the world.

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Anthony Crescenti 00:51:22.260 --> 00:51:42.740
World, I think it's important to make sure we understand that distinction more importantly, the way that we set rates in using the operating ratio that, or is only applied to a portion of our expenses for sunset and Golden gate. That's only sixty- five.

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Anthony Crescenti 00:51:42.740 --> 00:52:03.220
Percent of the expenses. So a ninety- one percent or in fact for sunset and Golden gate translates to about ninety two and a half percent. So as we're talking about what is a comparable or you need to make sure that you understand what's allowed and disalowed and it does vary by jurisdiction.

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Anthony Crescenti 00:52:03.260 --> 00:52:23.700
Who'll get into a minute, We had, we had Chro and accounting and consultancy firm do a survey as you can see below the results of their survey. They found that the average o was eighty nine point four percent versus the ninety one. We've been talking about.

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Anthony Crescenti 00:52:23.700 --> 00:52:44.180
For San Francisco and again, using a ninety- one percent leads us to an effective oar of ninety- two point four and that leaves to a profit margin of just over eight percent. So as we're talking about a nine point eight nine percent.

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Anthony Crescenti 00:52:44.180 --> 00:53:04.660
We're talking about eight percent profit margin and just real quickly. We, we talk about that in comparison to a risk free rate, a risk free rate reflects, you know, putting your money into a money market account sitting on your couch and watching it return what we do is a lot more.

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Anthony Crescenti 00:53:04.660 --> 00:53:25.140
More complicated, it's a lot more difficult and it carries a lot more risk. There's all kinds of risks that the company faces operating risks, financial risk and, you know, to try to equate what we do back to that back.

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Anthony Crescenti 00:53:25.140 --> 00:53:45.620
Back to that level of profitability doesn't reflect the activity that we're undertaking or the work we do in really in partnership with the city to try to meet the environmental goals to continue to, to provide unrepted service in the face of.

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Anthony Crescenti 00:53:45.740 --> 00:53:50.740
Penemic or whatever else that, that we're facing.

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Anthony Crescenti 00:53:52.020 --> 00:54:12.500
In order to operate in that environment again, it's important that we're able to generate a enough profit to remain healthy and to have the flexibility to address the issues that come up, often unexpected or unanticipated risks. Let's go on.

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Anthony Crescenti 00:54:12.620 --> 00:54:14.580
Next slide, please.

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Anthony Crescenti 00:54:17.620 --> 00:54:36.180
So the balancing account now I wanna, I wanna get in and, and address specifically some of the issues that, that j- raised in, in the discussion and kind of talk through where we see the balancing account and just to step back from some history.

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Anthony Crescenti 00:54:36.180 --> 00:54:56.660
The balancing account came about as a result of the settlement agreement between the city and recology related to an analysis of prior performance and some other issues. The city was, you know.

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Anthony Crescenti 00:54:56.660 --> 00:55:17.140
Looking through and the terms of that settlement were really a negotiated agreement. So the fact that the balancing account reflected a fifty percent adjustment for profitability was solely based on the elements of that settlement and the numbers ***.

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Anthony Crescenti 00:55:17.140 --> 00:55:37.620
Ciated with it. It wasn't something that was built on a rationale as to why the variance from profitability would be at, at fifty percent as o- as opposed to a hundred percent most importantly from our perspective. a balancing account is a mechanism.

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Anthony Crescenti 00:55:37.620 --> 00:55:58.100
That's designed to hold recology to the profit levels that are approved in the radar. That's the purpose of the balancing account, The balancing account does not promote stabilization of rates in some instances, it can lead to.

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Anthony Crescenti 00:55:58.100 --> 00:56:18.420
Greater stabilization in some instances, it can lead to greater volatility, The purpose of the account is to set a target profit level or recology based on the expenses that are approved in the rate.

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Anthony Crescenti 00:56:18.580 --> 00:56:39.060
And then making sure irrespective of the actual results that those results are subsequently adjusted through a future rate so that recology earns a profit based on as we've been discussing a ninety- one percent operating.

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Anthony Crescenti 00:56:39.060 --> 00:56:59.540
Ratio, that's the, that's the purpose of the balancing account. If, if our goal is to create better stabilization of rate than we're, we're probably better off, looking at another system whether it's a long term rate, whether it's using co.

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Anthony Crescenti 00:56:59.540 --> 00:57:20.020
La- with Periodica adjustments, there's some mechanisms to allow for better stabilization, but a balancing account again, and not, I wanna repeat this, this is core too. I think the discussion, the purpose is to ensure that recally earns a.

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Anthony Crescenti 00:57:20.020 --> 00:57:40.500
Ter return and does not earn excess profits as the city has has characterized some of the past some of the past performance. I think it's important to think about it in that context because in as an example, in two thousand.

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Anthony Crescenti 00:57:41.140 --> 00:58:01.620
Nineteen when the economy was booming, you know, was an earlier time before, before the pandemic kind of a different world at a fifty percent balancing account recology would have generated additional. I believe eight to ten million dollars of what was deem.

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Anthony Crescenti 00:58:01.620 --> 00:58:22.100
You know, in the, the reports as excess profits through no, you know, no real effort of our own. The economy was booming yet. We would have been able to enjoy the benefits of those profits. We just feel like we wanna set up a system if we're gonna go and.

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Anthony Crescenti 00:58:22.100 --> 00:58:42.580
Use a balancing account. We wanna system that's fair to the rate payers fair to recology and doesn't necessarily get swung by things that are outside of our control or things outside of the city's control. One of the concerns and I, I, I understand.

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Anthony Crescenti 00:58:42.580 --> 00:59:02.900
In, and this is something we have been discussing, there's a concern about an incentive for reccology to control costs and I think the first and primary thing we have to remember is we're engaged in this process, we're providing information.

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Anthony Crescenti 00:59:03.700 --> 00:59:23.540
That, you know, the, the controller's office and their consultants are reviewing so that we agree on a fair and reasonable rate based on a specific set of costs that we provide that are reviewed and validated in some cases.

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Anthony Crescenti 00:59:23.540 --> 00:59:44.020
ES- audited and that we all agree reflect the cost to provide the level of service that's being requested as was included in the, you know, in, in the earlier presentation, there's some question about some of the enhancements.

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Anthony Crescenti 00:59:44.020 --> 01:00:04.500
That, that we have proposed as you'll hear later, they're all in response to service requests. There's nothing in the proposals that are new things that ecology feels. Oh, we'd like to do this or like to do that. It's really in response to things that we've seen either seen in the city and, and.

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Anthony Crescenti 01:00:04.500 --> 01:00:24.980
Recognize that there's new efforts are required for things that we're doing in response to requests often from our partners at FS and Public Works to make sure that we keep the city clean. We provide good service and we're responsive.

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Anthony Crescenti 01:00:25.620 --> 01:00:45.460
To the needs to the needs of a rate payers and the needs of the city. So really, again, our, our focus on the balancing account is that, that is intended to bring profitability back to that level that.

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Anthony Crescenti 01:00:45.460 --> 01:00:46.100
Approved

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Anthony Crescenti 01:00:46.700 --> 01:01:07.180
Yes, one other issue I wanna touch on and then we can move to discussion is that we talk about the balancing account as a guarantee and, and Jay appreciate it and Jay included some of the bullet points that we have provided some of the information.

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Anthony Crescenti 01:01:07.860 --> 01:01:14.740
About why we don't believe it's a guarantee. I think the.

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Anthony Crescenti 01:01:16.140 --> 01:01:36.620
I think the most important thing is that this is a process we're going through today. We may agree on a structure of the balancing account. We may agree it's fifty percent. It's a hundred percent and that it flows back in one year three years five years there's, there's specific details we can go through, but.

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Anthony Crescenti 01:01:37.260 --> 01:01:57.100
In our investigation, what we found in many communities is that they've instituted balancing accounts and then over the years as a balance accumulated the regulators decided that they wanted to change the rules and so the balancing account was absorbed back into the rate process or.

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Anthony Crescenti 01:01:57.100 --> 01:02:17.580
It wasn't respected and that's a sense. This isn't a contractual obligation between the city and recology. It's part of a rate setting process, we could create a balancing account. We can, you know, unfortunately suffer, you know, Shortfa.

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Anthony Crescenti 01:02:17.580 --> 01:02:38.060
LLS that accrue to the account and then in two years, the rake board could decide that they don't really like balancing account and they wipe it out and there's no, there's no protection on our part and really, from the perspective, then of a lender or a third party.

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Anthony Crescenti 01:02:38.060 --> 01:02:59.180
It's not gonna be reflected or valued as a guarantee again, it's not a, it's not a contractual obligation. There's some other specific mechanisms, so if our non or eligible costs go up greater than our eligible cost.

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Anthony Crescenti 01:02:59.220 --> 01:03:09.300
Then the effective or we talked about ninety to point four percent is actually gonna go up and our profitability would continue to decrease.

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Anthony Crescenti 01:03:11.340 --> 01:03:31.820
Let me, let me stop there and let's move, we can move into discussion and you've got. okay, so Ben, I'll, I'll turn it back to you to guide us through the next step with respect to this.

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Anthony Crescenti 01:03:31.820 --> 01:03:34.260
Part of the, of the meeting.

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Jay Liao 01:03:36.300 --> 01:03:37.420
Er.

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Jay Liao 01:03:39.500 --> 01:03:46.860
Thanks, John, so I think the next part is we're just gonna open it up to discussion. We do have a few, we can probably.

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Jay Liao 01:03:47.820 --> 01:04:01.260
Er, open forum of folks from ECOLOGY again, Douglas and Aaron, if you want to chime in feel free, we do have a few questions, maybe we can start with.

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Jay Liao 01:04:02.540 --> 01:04:09.100
Er, I think some of the initial questions around.

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Jay Liao 01:04:12.780 --> 01:04:19.700
The, the rate comparisons and try to make things from apples to apples. I just wanted to go back. I forgot who made the comments about.

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Jay Liao 01:04:21.100 --> 01:04:30.140
Other other items that need to be counted for I was hoping that they could reiterate that they mentioned on our slide seven and eight.

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Jay Liao 01:04:31.980 --> 01:04:38.020
That we need account for ancillary service universe non, I was hoping that they could.

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Jay Liao 01:04:39.020 --> 01:04:41.380
Talk a little bit more about that.

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Anthony Crescenti 01:04:41.580 --> 01:04:47.340
Yeah, Jay, it was okay, it was exact.

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Jay Liao 01:04:47.340 --> 01:04:47.980
Yeah.

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Anthony Crescenti 01:04:47.980 --> 01:05:08.460
Yeah, this is Kevin just things that need to be considered in the rate, just given the dynamics here in the city and the things that we're up against on a daily basis when we provide service, for example, we provide manual service. The streets are very heavy. There's a lot of insight services cars parked, We're not able to provide.

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Anthony Crescenti 01:05:08.460 --> 01:05:28.940
An automated or fully automated service similar to a lot of the comparable jurisdictions that are provided on the slides, but that was just an example, the ancillary services, we offer a full menu of those. I know many jurisdictions do as well, but again, something that should be considered, and it.

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Anthony Crescenti 01:05:28.940 --> 01:05:42.100
Also, so just some of the jurisdictions that are noted, there are not union, however, you know, San Francisco is many others on there are as well, so just again, just something that needs to be factored into that.

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Jay Liao 01:05:46.220 --> 01:05:58.780
And also I apologize since this is the first time we're doing this, if you are speaking, if you can just introduce yourself and, you know, your role as well before speaking.

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Anthony Crescenti 01:06:00.300 --> 01:06:03.500
Following again, the general manager for COVID.

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Jay Liao 01:06:03.500 --> 01:06:04.620
Takes.

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Jay Liao 01:06:08.700 --> 01:06:22.140
And Kevin, you also mentioned a few other things I just wanted to make sure that we had heard all of them. I, I don't remember what they were, but you had mentioned not just the Ancila Services and Union, but there were, I think a couple of other items.

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Anthony Crescenti 01:06:22.700 --> 01:06:43.180
I think the last thing that I didn't mention in the second go around was just the initiative that was done several years back to reduce the black cart size to sixteen Gallon and just just a note when we look at a, per gallon comparison, I, I know it'd be hard to factor in, but just.

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Anthony Crescenti 01:06:43.180 --> 01:06:45.740
Just, just wanna mention that.

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Anthony Crescenti 01:06:47.660 --> 01:07:07.500
Well, I think that's a good example of the difference in the operating environment between San Francisco and most of if not all most of the other cities in comparison is one of the, you know, one of the initiatives from SF.

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Anthony Crescenti 01:07:07.500 --> 01:07:27.980
E- is reduced and reused. So we're, we're pushing, we've talked about this in the past and as Kevin said, the move to a sixteen gallon black, we have, we have been partners in pushing people to reduce the amount of material.

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Anthony Crescenti 01:07:27.980 --> 01:07:48.460
That they generate, it's not in our best financial interest to do that and quite honestly, we believe that there'll always be, you know, plenty of stuff to pick up and process and move around, but that's part of the environmental goal of the city. So if you go through and.

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Anthony Crescenti 01:07:48.460 --> 01:08:08.940
Compare the, the Gallans of service that's provided it's our intention and it's the city's intention and bi- policy to try to drive people to smaller containers because they want them to throw away less stuff. That's, that's part of what we all see as.

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Anthony Crescenti 01:08:09.580 --> 01:08:29.420
A wasteful practice and, you know, we play our part. I think it's important to make sure we understand that though in looking at comparisons between cities, you know, we, we like to, to kind of walk around proudly and say we're unique, but in the context of.

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Anthony Crescenti 01:08:29.460 --> 01:08:49.900
The service that's provided the environment that it's provided in and the kind of programs that we promote frankly, I, I've seen over, you know, the time I've been involved, I think that's really true and also like to point out that, you know, a- per gallon comparison is a poor.

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Anthony Crescenti 01:08:49.900 --> 01:09:10.380
Way to compare across cities because like you said, it's hard to get an apples to apples. Most cities don't have a universal tip fee that covers the expenses that are cycling in other portions of it, and as you saw in our earlier presentation, the disposal piece of your cost and a total is only a very small amount, which is why that sixteen percent increase only twelve at three point nine percent.

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Anthony Crescenti 01:09:11.020 --> 01:09:30.859
Increase in the actual fee that the customers see the real cost is in the labor to move the truck from stop to stop to stop, which is the physical labor, the disposal. So on a- per gallon basis, you know, your cars aren't moving, but it's a very poor way to make that comparison across jurisdictions and so, you know, I think there's a lot, I think.

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Anthony Crescenti 01:09:30.859 --> 01:09:51.339
Data, this data warrants a lot more analysis from HF and H- to do a true comparison to the, the value you're getting from ECOLOGY in San Francisco. when you consider all the additional services that are included in that rate, was that rate normalized for the CWI and impound account to, to compare it against other jurisdictions based on what I see it.

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Anthony Crescenti 01:09:51.380 --> 01:10:07.700
Does not, and also in the commercial, it doesn't appear that they accounted for the diversion discount, but I'd have to see the underlying data to do that comparison. So I think each F and each might have missed a few things here and, and I think that if we're gonna do a comparison, I think there's probably a better way to look at it.

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Jay Liao 01:10:07.980 --> 01:10:09.900
Hey, thanks I do want to give.

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Anthony Crescenti 01:10:10.540 --> 01:10:13.100
Danshay know, vice president.

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Jay Liao 01:10:13.100 --> 01:10:20.780
Thanks, Dan, I do wanna give h- of chance respond by Docus has his hand up. So Douglas, if you wanna ask your question.

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Jay Liao 01:10:21.420 --> 01:10:22.060
No.

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Douglas Legg 01:10:22.060 --> 01:10:25.260
I was gonna ask for HR to talk about...

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Jay Liao 01:10:25.260 --> 01:10:25.900
Yeah.

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Douglas Legg 01:10:25.900 --> 01:10:30.580
Why they're using this per Gabline measure because I also.

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Douglas Legg 01:10:31.660 --> 01:10:38.060
I agree that we're trying to drive volume down. I know, you know, I think about when I look at my water bill...

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Douglas Legg 01:10:38.700 --> 01:10:57.820
All your metric caugh, the vol volume metric charges. and this is true about garbage disposal. Aren't mostly tied to the volume and the gala, you know, measuring the cost or the charge per gallon.

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Douglas Legg 01:11:01.700 --> 01:11:20.900
Is, is not it, it disconnects it from the cost of the service. I guess, so I'd really like to understand why HF and H- thinks that the cost per Galon is a meaningful number for us to be considering this in this process.

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Ben Becker 01:11:22.180 --> 01:11:34.820
I, I'll just cut in quickly and say that it was actually my request for the cost per Gallon to be included, and this was part of the initial schedules we had sent out in December, January.

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Douglas Legg 01:11:36.900 --> 01:11:44.020
So I guess I'm interested in why you think it is a pertinent or useful.

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Douglas Legg 01:11:45.860 --> 01:11:52.260
Metric in the process. I- it seems really understand that.

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Ben Becker 01:11:52.260 --> 01:12:12.740
Yeah, it seems interesting because from the customer's perspective, especially for residents, they're paying based on the size of their bins and some residents have made requests that they could have bins that are even smaller, thus somehow reducing their bills or that they could have pick up once every two.

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Ben Becker 01:12:12.740 --> 01:12:33.220
Weeks instead of weekly because they are a low generators and then we have other residents who are producing more and so I think for the public to be able to see what is the cost of, for the, per gallon for their, for their pick up to be able to see, you know, how that might not change that much.

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Ben Becker 01:12:33.220 --> 01:12:42.180
If you were able to reduce your total Gallans being collected because there are these underlying costs of.

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Ben Becker 01:12:42.820 --> 01:12:55.580
Of collection or to be able to see, you know, how that varies from one community to another. I, I think is still valuable, but, but these points are, are absolutely valid. It's just another metric...

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Jay Liao 01:12:56.260 --> 01:13:05.220
Yeah, so I see a number of hands up. I do wanna give HMP and h- a chance to respond and then we'll go to Erin and then John. So if you wanna go.

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Dave Hilton 01:13:05.220 --> 01:13:25.700
Or thanks, Jay. Yeah, it, as, as Ben pointed out, obviously, you know, the, the per gallon is, is not the best benchmarking metric, however, you know, we do know that these rates are not cost or service. We do know that different rates rate structures are set based on the service provided. So what we were trying to do here with that.

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Dave Hilton 01:13:25.700 --> 01:13:46.180
Was we didn't want to stick, you know, San Francisco with that lower volume amount and put that rate next to a jurisdiction that may offer this offer US standard sixty four gallon service and ninety- six is for recycling and organics, and there is no other option that would really be a fair comparison. We agree that, you know, the disposal or processing comp.

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Dave Hilton 01:13:46.180 --> 01:14:07.940
Component of the rate is very minimal. We don't have access for what the cost differential and components of each of these rates are by jurisdiction based on operating efficiencies and metrics and whether it's, you know, two man routes, automatic side loader front loader et cetera. So this was really just the best we have available and we tried.

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Dave Hilton 01:14:07.940 --> 01:14:28.420
Digit note, you know, where are those differences are two point that out, but trying to equalize it as much as possible. We also agree, there's a lot more we'd love to do in terms of the benchmarking. We've requested some additional data such as lift information. There's obviously higher route density in San Francisco than there are in other.

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Dave Hilton 01:14:28.420 --> 01:14:48.140
Jurisdictions you can see that in the service square miles at, you know, forty- n- forty- nine square miles with eight hundred and fifty thousand residents in that area. So there's, obviously there should be better route efficiency there, and that's also something that's not factored in here. So we completely agree we'd love to do some more digging and try and get some better benchmark comparisons.

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Jay Liao 01:14:51.460 --> 01:14:52.580
Erin.

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Erin Corvinova 01:14:53.380 --> 01:15:13.860
Hi, I'm Aaron Corvinova with San Francisco Public Utilities Commission and I just wanted to, you know, put in my two cents as Bill comparisons or something we do here on the water and waste water and power side for our own utilities and I am sympathetic to the idea that San Francisco's much lower usage of utilities on a, per gallon basis in our case.

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Erin Corvinova 01:15:15.140 --> 01:15:35.620
Often makes the per gallon costs. look very, very high. However, that is reflective of San Francisco's commitment to greater environmental and, you know, conservation and I think those are very salient points that make the par Galon comparison, not as valued for thinking about things. I do though, go back to the.

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Erin Corvinova 01:15:35.620 --> 01:15:56.100
Slide, you know, I have pulled up here where we're able to get the comparison and we have the overall total bill for service. They're the minimum service across different jurisdictions. That's typically what we end up doing on the water and Suside as a sort of apples to Apple's way to look at it and, you know, you can see there that San Francisco is in the middle, but still on the higher end of.

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Erin Corvinova 01:15:56.100 --> 01:16:16.580
That, so I think without getting too caught up in the per gallon, I think it is important to compare your bills and to look at other jurisdictions and we are still, you know, in the middle, but on the higher end, at the per month basis and I'd be very interested to see from HF and h- you know, based on the data that Ecolog.

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Erin Corvinova 01:16:16.580 --> 01:16:32.900
Is gonna provide some of the ways to adjust for density in the operating cost in San Francisco and see how that changes things, but I, I really appreciate these bill comparisons and I think they're very important to look at and not just solely focus on the Bay area, but as well as our other peers across the state.

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Jay Liao 01:16:35.780 --> 01:16:36.900
John.

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Anthony Crescenti 01:16:37.700 --> 01:16:58.180
I'll, I'll be real brief two, two comments first. This is the by I get that the benefit of knowing the history going back to two thousand and thirteen, we implemented a, a new rate structure that was contemplated the move towards zero waste and it's a pretty unique structure.

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Anthony Crescenti 01:16:58.180 --> 01:17:18.660
In terms of fixed cost, variable cost trying to incentivize people and trying to recognize the fact that the ultimate goal is to reduce the overall amount of material. I agree a, as Aaron said, it's important still to measure the overall.

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Anthony Crescenti 01:17:19.300 --> 01:17:39.140
The overall cost and the overall rate and how it compares. We're, we're fine with that, and we're happy to provide additional information and contacts to help adjust for those things that may be unique or, you know.

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Anthony Crescenti 01:17:39.140 --> 01:17:59.620
More consistent with San Francisco, San Jose, Okland, then some of the smaller or more, the more spread out cities. I, I think the other thing that, that we found and we see here versus our other jurisdictions is that it's.

235
Anthony Crescenti 01:17:59.620 --> 01:18:20.100
Unfortunately, the cost of providing the services, like Organics Management Collection and, and processing and a lot of specialized recycling programs is there's more cost associated with that than picking everything up in one big bin and.

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Anthony Crescenti 01:18:20.100 --> 01:18:40.580
And bringing it to a land fill we're not gonna do that. We don't, we don't support that the city obviously doesn't support that, but I think when you do those comparisons, it's also important to keep that in mind as you do that. I know we're time time is, is moving so we're, we're happy to, to move.

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Anthony Crescenti 01:18:40.580 --> 01:18:45.420
Move on from here. Happy to provide additional information.

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Anthony Crescenti 01:18:46.340 --> 01:18:46.980
As, as.

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Anthony Crescenti 01:18:47.620 --> 01:18:49.540
To help support the analysis.

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Jay Liao 01:18:50.180 --> 01:19:10.420
Shawn and, and so I think Dave has outlined a few items that he like to see. I think recally you all have pointed out a few areas where we might need to make adjustments, so we'll work together on.

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Jay Liao 01:19:10.660 --> 01:19:31.140
Gathering that information may ask you to provide some comparative illustrations as well, if they want to help us make those adjustments. I think it also be interesting to see kind of the breakout of fixed and variable costs in relation to these rates as well. So I just wanna move over.

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Jay Liao 01:19:31.140 --> 01:19:51.620
So there's three items here. The next part was the profit margin comparison, so we talked about re- comparisons wanted to see if there are any comments on that. My first question was really just around the EBAT slide, if just kind of why other compan.

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Jay Liao 01:19:51.620 --> 01:20:06.540
Companies during the pandemic. didn't see how their emit sustained or the profitability stain and not equalities during that period, but also wanted to open up further questions around kind of the profit margin comparisons.

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Anthony Crescenti 01:20:10.180 --> 01:20:30.660
No, I, I thi, I think Jay to be fair and, and realistic the profit margin comparisons certainly with the public companies. There's a lot of, there's a lot of factors involved and that's not the primary data point that I think we would lean on. I think it's important to remember.

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Anthony Crescenti 01:20:30.660 --> 01:20:51.140
Remember though and, and important to keep that in mind, we're not saying, yeah, we should be earning, you know, twenty percent either, there's a lot of other businesses that those companies are involved in and we wanna be clear. We're, we're not that we don't wanna be.

246
Anthony Crescenti 01:20:51.140 --> 01:21:11.620
Like that, but we do need to generate generate a fair profit. So I think that in looking at that, even chart, they had different businesses that provided some installation from the pandemic and in many cases, there was a lot of.

247
Anthony Crescenti 01:21:11.620 --> 01:21:12.260
Service interruption

248
Anthony Crescenti 01:21:13.040 --> 01:21:33.520
Necessarily provided at the same, you know, level of continuous service that we provided, we also provided support for the community, a lot of businesses we allow people to suspend their service for periods of time.

249
Anthony Crescenti 01:21:33.520 --> 01:21:54.000
We made accommodations while we got through the worst of the pandemic beyond that I can't really speak to that from those public companies. I think it was notable though to see where recology went during this during this process and an- and really, it's.

250
Anthony Crescenti 01:21:54.000 --> 01:22:14.480
Part of the, the reason why we're here and we've talked about the need to adjust, especially adjust our disposal and processing system because it was, you know, was hit and continues to perform actually the, or is north of, of a hundred percent based on the cost.

251
Anthony Crescenti 01:22:14.480 --> 01:22:19.320
ISTS of running the system and amount of material that's coming in.

252
Anthony Crescenti 01:22:24.720 --> 01:22:45.200
I have one if I can, Jay, there is one point I wanna make Dan brought it up. briefly is there was a point in the slide and it said that, that you saw presents additional tax savings of two to four percent and it's absolutely the case that the company.

253
Anthony Crescenti 01:22:45.200 --> 01:23:05.680
Through its a hundred percent employee ownership and the current tax rules we are exempt from federal income tax because the ESOP is the, basically, the owner of the company, the shareholder in trust for the.

254
Anthony Crescenti 01:23:05.680 --> 01:23:26.160
Employee owners what's important to point out though is the cost of maintaining that benefit are exceeds the cost of the tax that we would pay at current tax rates. Were we to forego that benefit.

255
Anthony Crescenti 01:23:26.160 --> 01:23:46.640
Net basically dissolve the esop and, and become a taxpayer. So, in fact, while the company does enjoy some level of benefit associated with the ESOP structure from a tax perspective, it's far outweed by the cost of.

256
Anthony Crescenti 01:23:47.280 --> 01:24:07.120
Funding and, and, you know, distributing past earnings to retirees that, that reach payout status. So I think it's important if we go through and look and say, well you get tax savings, so there's benefit, there's also a.

257
Anthony Crescenti 01:24:07.120 --> 01:24:27.600
Cost a, as I said at, at a cost that's greater than, in fact what the tax liability would be associated with it. So in, in ter, in the context of looking at profitability, that's something that is important to take into consideration when trying to.

258
Anthony Crescenti 01:24:27.600 --> 01:24:30.200
To determine a profit level.

259
Anthony Crescenti 01:24:31.440 --> 01:24:32.680
Okay, good.

260
Jay Liao 01:24:40.400 --> 01:24:45.520
Okay, thanks John. and we would probably want to see kind of.

261
Jay Liao 01:24:48.080 --> 01:24:58.680
I, I guess see see the cost benefit to the structure, if you can provide that information, we can send, we can add that as an exhibit.

262
Ben Becker 01:25:00.240 --> 01:25:09.200
Yeah, I think that would be quite helpful in my own research, you know, I had seen that for your average.

263
Ben Becker 01:25:09.840 --> 01:25:30.320
Their tax rate would be somewhere around thirty percent federal state and local San Francisco taxes, and he saw benefits in all of those areas. The difference is about twenty nine and twenty- eight and a half percent less. So, so.

264
Ben Becker 01:25:30.960 --> 01:25:50.800
Twenty- nine to thirty percent taxes on a one point five percent for an ESOL. So those would need to be some pretty significant expenses for where maintaining the, on recology side, it would be interesting to see where those costs are coming from, and which.

265
Ben Becker 01:25:50.800 --> 01:25:52.720
Staff are, are supporting it.

266
Jay Liao 01:25:52.720 --> 01:25:54.000
Eh, eh.

267
Anthony Crescenti 01:25:54.000 --> 01:26:14.480
Absolutely and, and we'll go back and, and we've put some information together, but I think we'll expand it accordingly, we do a, as part of the valuation process that we do on an annual basis, we do a theoretical tax calculations, so we actually have a third party eval.

268
Anthony Crescenti 01:26:14.480 --> 01:26:34.960
Ation firm calculate. What would be, what are theoretical tax liability would be as I, as I mentioned the repurchase obligation, which is the obligation to fund payments to retirees far exceeds the, the calculation of the taxes.

269
Anthony Crescenti 01:26:36.240 --> 01:26:42.560
And we expect it to, to continue to do so for many years.

270
Jay Liao 01:26:43.920 --> 01:26:46.240
There and you have your hand up.

271
Erin Corvinova 01:26:47.760 --> 01:27:08.240
Might just be interested in when you provide that information to understand how you're thinking about payments to retirees because if those payments are associated with the employee ownership model, they're essentially shareholders getting payout, which is like profit for a publicly traded company. So the way you're talking about it.

272
Erin Corvinova 01:27:08.240 --> 01:27:27.040
Is if it's an expense, but I don't think that, you know, most shareholders in a public company would think of themselves as an expenditure when they get a share of profit. So they're very different set- ups and obviously very difficult to compare, but I think it's important not to.

273
Erin Corvinova 01:27:28.080 --> 01:27:35.040
Treat payments to your employee owners as not something related to profit.

274
Anthony Crescenti 01:27:38.960 --> 01:27:55.600
Understand, and, and again, we'll, we'll provide the numbers, we'll provide the numbers in the context of, you know, comparisons to a public company, they would distribute, you know, they, they would distribute...

275
Jay Liao 01:27:55.600 --> 01:27:56.720
Okay.

276
Anthony Crescenti 01:27:56.880 --> 01:28:12.240
Those profits after taxes in the context of an ESOP and in an effort to encourage employe ownership, the tax law was structured to allow those a.

277
Jay Liao 01:28:12.240 --> 01:28:14.160
Mounts to be.

278
Anthony Crescenti 01:28:14.160 --> 01:28:21.080
Through the employee owners without tax, those payments are taxable, but any.

279
Anthony Crescenti 01:28:22.480 --> 01:28:42.960
Basically, any retirement payments generally are, are taxable. So there is, there's some complexity in the comparison, but there's a way to kind of get through and I will make sure we provide some information on that Aaron so that it'll help kind of understand at least from our perspective.

280
Anthony Crescenti 01:28:42.960 --> 01:28:46.400
How those things tie together?

281
Jay Liao 01:28:49.440 --> 01:28:55.920
So, for the sake of time, I'm gonna move on to the, the last piece of this is the balancing account.

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Jay Liao 01:28:58.960 --> 01:29:05.360
So, wanted to open it up for discussion on, on that piece of this here.

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Jay Liao 01:29:07.920 --> 01:29:10.240
Yeah, Douglas, please.

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Douglas Legg 01:29:12.400 --> 01:29:15.520
I would like to hear both.

285
Douglas Legg 01:29:17.520 --> 01:29:25.760
The controller and recologies perspective on how the balancing account.

286
Douglas Legg 01:29:27.760 --> 01:29:44.280
Impacts the incentive toward efficiency it in without the balancing account and I, and I respect what John was saying about why it was implemented in this settlement agreement.

287
Douglas Legg 01:29:46.320 --> 01:29:53.280
But without the balancing account, it seems like the companies have.

288
Douglas Legg 01:29:55.920 --> 01:30:06.920
Have a greater incentive to work to be as efficient as they can and with a balancing account and I don't know how much the fifty percent versus one hundred percent.

289
Douglas Legg 01:30:09.360 --> 01:30:27.840
Impact that it, it seems to remove the incentive to control or related expenses because if there are or eligible expenses because if or eligible expenses go up and the company's.

290
Douglas Legg 01:30:28.560 --> 01:30:49.040
Don't have control over that. They're guaranteed to get those covered. So how are we, how are we ensuring, you know, continued efficient operation with the presence of the balancing account and also potentially with the elimination of the zero waste.

291
Douglas Legg 01:30:49.040 --> 01:30:50.880
Incentive account.

292
Jay Liao 01:30:56.080 --> 01:30:57.200
Yeah.

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Jay Liao 01:30:59.280 --> 01:31:19.120
Thanks circles, So from our perspective, that's, I think our main concern, particularly with a hundred percent adjustment is that doesn't feel like there's incentive to control costs or be efficient, and so the fifty percent proposal, I, I think for.

294
Jay Liao 01:31:19.120 --> 01:31:19.760
Us

295
Jay Liao 01:31:21.840 --> 01:31:26.160
I think it kinda goes both ways as also partly to.

296
Jay Liao 01:31:28.880 --> 01:31:45.520
Adjust for rate pairs. If there is excess profits to help stability, if they're... yeah, there's access to help stabilize rates to lower to lower rates if there are excess profits and prior years, so.

297
Jay Liao 01:31:46.800 --> 01:31:55.240
That was kind of, I think the intent of keeping it at fifty percent and then in terms of.

298
Jay Liao 01:31:56.400 --> 01:32:13.040
The efficiency piece we still have some analysis done, some work efficiency ratio work to do coming from HF and H- and internally, so we'll be answer some of those questions once we get to those analysis.

299
Anthony Crescenti 01:32:18.800 --> 01:32:26.960
Thanks, and, and just from ECOLOGY perspective, a couple of things again, I think as, as I mentioned the primary.

300
Anthony Crescenti 01:32:28.400 --> 01:32:48.880
The, the primary driver of efficiency is this process and I, I, I will say having been involved in it over the last four years than I carry to admit this process has changed. It was intended to change with the move to.

301
Anthony Crescenti 01:32:48.880 --> 01:33:09.360
The controller's office and based on our discussions and, and based on, you know, kind of recognition of where we are and where we're going. I think going forward, it will be much more metric, driven much more focused on providing efficient service. So we think that.

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Anthony Crescenti 01:33:09.360 --> 01:33:29.840
The primary control is the process that we're going through that we're going through today again, I think that, that the reason that we have concern, we also don't wanna be in a position where we believe that we've, we've submitted an application where.

303
Anthony Crescenti 01:33:29.840 --> 01:33:50.320
For a service we believe, you know, let's say that the service we have six people dedicated to it. We believe that it's gonna take six people to do that if all of a sudden we can do it with four people because there's some balancing account incentive to harder. I think.

304
Anthony Crescenti 01:33:50.320 --> 01:33:57.960
That in itself that raises the question. Well, why didn't we, why didn't we submit with four people and.

305
Anthony Crescenti 01:33:59.280 --> 01:34:04.400
If we fou we needed five, you know, we, we would suffer the consequences.

306
Anthony Crescenti 01:34:05.040 --> 01:34:07.600
We have, we have.

307
Anthony Crescenti 01:34:08.240 --> 01:34:15.280
Submitted an application that has taken out.

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Anthony Crescenti 01:34:15.280 --> 01:34:35.760
Anything that we think was excess, we have that, that's what happened. First of all, during the pandemic and we have focused down our efforts in, in an effort be efficient in part because we were living under an environment where our profitability was.

309
Anthony Crescenti 01:34:35.760 --> 01:34:50.480
You know, seriously squeeze and now we're in this process and frankly in anticipation of, of having SA- having a balancing account, we pushed.

310
Anthony Crescenti 01:34:50.480 --> 01:34:54.320
Get more efficient and reduce it because.

311
Jay Liao 01:34:54.320 --> 01:34:54.960
Let's.

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Anthony Crescenti 01:34:54.960 --> 01:34:56.240
Home historical.

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Anthony Crescenti 01:34:56.880 --> 01:35:01.360
Provided the service and one of our partners, public works come in and say.

314
Anthony Crescenti 01:35:01.360 --> 01:35:08.400
Hey, we, we need more work in this area and we historically always been able to provide that work because.

315
Jay Liao 01:35:08.400 --> 01:35:09.040
Seven.

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Anthony Crescenti 01:35:09.040 --> 01:35:10.320
Work was.

317
Anthony Crescenti 01:35:10.960 --> 01:35:16.720
Essentially part of the overall workings and structure.

318
Anthony Crescenti 01:35:17.360 --> 01:35:18.640
As we kind of.

319
Anthony Crescenti 01:35:19.280 --> 01:35:25.680
Really focused down on the minimum effort and cost to provide the service...

320
Jay Liao 01:35:25.680 --> 01:35:26.320
Since.

321
Anthony Crescenti 01:35:26.320 --> 01:35:38.480
All of those ancillary things will either go by the wayside or there has to be a mechanism to allow us in partnership with the city partners.

322
Jay Liao 01:35:38.520 --> 01:35:39.120
S.

323
Anthony Crescenti 01:35:39.120 --> 01:35:46.160
To be able to do that and, and to provide those additional services. So I think that there's.

324
Jay Liao 01:35:46.160 --> 01:35:47.440
S- s.

325
Anthony Crescenti 01:35:47.440 --> 01:35:51.280
From our perspective, understanding that.

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Anthony Crescenti 01:35:51.280 --> 01:36:05.360
We move to use a balancing account that we have, you know, structured our proposal to do that rather than add a bunch of extra costs that we think will.

327
Anthony Crescenti 01:36:06.000 --> 01:36:18.120
N- you know, now come to fruition. I think we've pushed to make sure not that we haven't in the past, but to really make sure that, that we've true everything we can.

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Jay Liao 01:36:18.160 --> 01:36:18.800
And.

329
Anthony Crescenti 01:36:19.440 --> 01:36:21.360
We've presented what's most efficient.

330
Jay Liao 01:36:21.400 --> 01:36:22.000
Change.

331
Anthony Crescenti 01:36:22.000 --> 01:36:42.480
There's often events there's issue that come up that change the way our, our service gets provided. We see a new initiative to, you know, fix the streets and increased traffic as the economy starts to come back. It's gonna impact our cost of providing service.

332
Anthony Crescenti 01:36:43.120 --> 01:36:59.760
And in that sense, we feel, it's fair to make sure that there's some, some protection likewise and more importantly the economy starts to take off and all of a sudden, there's a bunch of additional profit generated.

333
Jay Liao 01:36:59.800 --> 01:37:00.400
Eh.

334
Anthony Crescenti 01:37:00.400 --> 01:37:03.600
On the same routes because there's service.

335
Jay Liao 01:37:03.600 --> 01:37:04.240
Things.

336
Anthony Crescenti 01:37:04.240 --> 01:37:06.800
Then we don't think that, that's something that.

337
Anthony Crescenti 01:37:08.720 --> 01:37:10.640
We think that's something that.

338
Anthony Crescenti 01:37:11.280 --> 01:37:28.560
Long belongs back to the rateer in, in isn't something that the company necessarily has a right to, if it's outside of the control, I think if you go with less than a hundred percent, I think that there are some other unintended consequences.

339
Jay Liao 01:37:28.560 --> 01:37:29.200
Say.

340
Anthony Crescenti 01:37:29.200 --> 01:37:30.320
Feel.

341
Anthony Crescenti 01:37:31.760 --> 01:37:41.360
Would be potentially more difficult than that through then going to a hundred percent we recognize that.

342
Jay Liao 01:37:41.360 --> 01:37:42.000
Three.

343
Anthony Crescenti 01:37:42.000 --> 01:37:48.400
We have to learn how to live a new regulatory environment and I think.

344
Jay Liao 01:37:48.400 --> 01:37:49.040
I.

345
Anthony Crescenti 01:37:49.680 --> 01:37:52.240
Our conversations with the controller's office.

346
Anthony Crescenti 01:37:53.520 --> 01:37:59.280
And we talked a lot about.

347
Anthony Crescenti 01:37:59.920 --> 01:38:08.880
The new field of regulation and, and where we're going and we believe that a balancing account with a hundred percent.

348
Jay Liao 01:38:08.880 --> 01:38:10.000
Eh.

349
Anthony Crescenti 01:38:10.160 --> 01:38:18.800
You know, recognition of the difference between prescribed profit natural profit makes the most sense.

350
Jay Liao 01:38:22.960 --> 01:38:37.080
I, I, I would just know that. I, I know John said that this process is, we're supposed to create the controls, are, are, are spell out how.

351
Jay Liao 01:38:40.360 --> 01:38:46.480
We incentivize efficiency, but I think, I, I feel like a hundred percent balancing account.

352
Jay Liao 01:38:47.920 --> 01:38:49.040
Er.

353
Jay Liao 01:38:51.120 --> 01:38:56.240
Kinda makes this process a little bit moved because it just allows them to, it would allow.

354
Jay Liao 01:38:57.520 --> 01:39:16.080
It would cover any, any excess costs from whatever is spelled out in this process. So I think that's kind of our concern is that moral hazard and then that a fifty percent adjustment would mitigate some of that. Aaron, you had a- your hand up.

355
Erin Corvinova 01:39:17.360 --> 01:39:37.840
I think it would be helpful for me to understand the balancing account discussion to see a couple examples with plugged in numbers of what would happen under the controller's proposal and ecologies proposal in years where profits were above the allowable and below the allowable and what happens to the excess just to really visualize how this flows through. I think.

356
Erin Corvinova 01:39:37.840 --> 01:39:40.040
For the next meeting, that'd be very helpful.

357
Anthony Crescenti 01:39:40.400 --> 01:40:00.880
Erin and, and Jay and team, we have prepared, it's still in draft form an analysis of the balancing account and the impact on rates stabilization of rates, cause I think that, that was a question that came up earlier and Aaron will, will.

358
Anthony Crescenti 01:40:00.880 --> 01:40:19.920
Include both scenarios, So we can see the impact that's your requesting. So we'll- we'll produce that and provide that in the next week so that you'll get a chance to take a look and, and understand.

359
Anthony Crescenti 01:40:21.360 --> 01:40:34.920
Th- the question of stability versus Volatility and the balancing account and the impact of, of going at fifty percent or a hundred percent.

360
Anthony Crescenti 01:40:36.080 --> 01:40:48.400
And this is something that obviously we, we can have differences of opinion. That's what this process is about, and, you know, we look forward to continuing the discussion.

361
Anthony Crescenti 01:40:50.160 --> 01:41:02.720
Pro, you know, providing more input where, where we can and ultimately working to come to a decision and then, you know, o- whatever that decision is, we'll figure out.

362
Anthony Crescenti 01:41:03.600 --> 01:41:06.080
Hundred and again, I think.

363
Anthony Crescenti 01:41:07.440 --> 01:41:15.760
Given the time kind of where we are, but it makes sense. We're, we're certainly comfortable moving forward.

364
Jay Liao 01:41:17.040 --> 01:41:32.720
Thanks, Aaron and, and I think that would be helpful. John simulations maybe of, of kind of using past actuals, you know, when there was excess profit during Pandemic, when you were under, so that would be interesting to see.

365
Ben Becker 01:41:34.420 --> 01:41:42.380
A lot of them, sorry, go ahead. Yeah, just as a hypothetical questions or ecology here.

366
Ben Becker 01:41:43.380 --> 01:42:03.860
W- what if we were to have a hundred percent balancing account, but to, at the same time, set appropriation limits for a different expenditure categories, essentially make it so that Pcology is profit is guaranteed, but also.

367
Ben Becker 01:42:03.860 --> 01:42:24.340
Ensuring that the city can't come to reccology and say, Hey, we need two extra drivers on this route because of so, and so political and a situation, but also at the same time, controlling costs as a whole, so, you know, saying this is the amount that.

368
Ben Becker 01:42:24.340 --> 01:42:40.020
That, you know, reccology would spend on, on labor total. This is the guaranteed profit and ourcology is going to work internally to maximize its in efficiency.

369
Anthony Crescenti 01:42:42.260 --> 01:42:49.300
You know, it's something that, that internally we've talked a little bit about that it's, you know, kind of moves.

370
Anthony Crescenti 01:42:50.580 --> 01:43:11.060
Towards the accounting that, that, that you do. It's towards the government accounting structure and I think some, some hybrid model makes sense. We have in our current reporting, we have elective cost, you know, we have elective cost structure that we report on.

371
Anthony Crescenti 01:43:11.060 --> 01:43:31.540
So there's a couple of different mechanisms we can use and that's something again, we'll complete the, the analysis of the history and what it does, and then we can talk about wh- what's what's ways to do that? We recognize the, you know, we recognize where we are.

372
Anthony Crescenti 01:43:31.540 --> 01:43:52.020
In terms of the regulatory process and structure, and I think some, some modified balancing account and as you describe, then with that mechanism, that, that may make sense. So we're happy to sit down and, and work through the Mechan.

373
Anthony Crescenti 01:43:52.060 --> 01:44:04.300
ICS so that we've got some things I think that we can provide that, that'll be a good jumping on point to then model to see, you know, what kind of impacts there are.

374
Jay Liao 01:44:08.020 --> 01:44:17.900
So we're ten, thirty, I just wanna see if there are any additional quest balancing account that are pressing otherwise we should probably move on to the next agenda item.

375
Jay Liao 01:44:20.180 --> 01:44:24.740
Okay, if not, we should move on. I think the next item's outreach.

376
Ben Becker 01:44:26.580 --> 01:44:30.060
Just share the screen again here for a moment.

377
Ben Becker 01:44:32.340 --> 01:44:33.460
Yeah.

378
Ben Becker 01:44:38.740 --> 01:44:41.380
So I, I think for this section.

379
Ben Becker 01:44:42.580 --> 01:44:46.300
Just so the public can see we're going to include.

380
Ben Becker 01:44:47.700 --> 01:44:59.900
Public works and SF Department of Environment envi- sorry, SF Environment Department, and of course we're following up on the.

381
Ben Becker 01:45:01.140 --> 01:45:21.620
The discussion and the presentations given last month at the re- first refuse rate board hearing at, at the report hearing recology. Public Works and SF environment all presented on the number of full time employees ftes that they.

382
Ben Becker 01:45:21.620 --> 01:45:42.100
Had working on outreach that are all funded through the rates that rate payers pay for their refuse collection and disposal and we put together this slide, just kind of laying out for ECOLOGY, public works SF environment.

383
Ben Becker 01:45:42.180 --> 01:46:02.580
How many ftes are currently assigned to work on outreach, which is a very broad category. How many PR- additional ftes they might be proposing to hire and to add over the next two rate.

384
Ben Becker 01:46:02.580 --> 01:46:22.980
Years and what the impacts might be. So just kind of looking at, at this basic table here we've got eleven outreach ftes ever college. They're proposing a three additional one is focused on low diversion customers.

385
Ben Becker 01:46:23.060 --> 01:46:43.540
One would be o- an additional way zero specialist and one additional FTE would evaluate contamination photos related to the camera system that they're pro- proposing to add to their vehicles to document contamination as it's getting dumped into the trucks into bet to better do outreach to.

386
Ben Becker 01:46:44.180 --> 01:47:04.660
Customers, you know, who have found to be contaminating, especially the compost streams, the current cost and, and really, I've got this in parentheses because we're, we're really estimating and, and still working with you to get specifics. We think somewhere around one point, three, seven, five.

387
Ben Becker 01:47:05.940 --> 01:47:16.020
A million for current eleven FTE outreach and maybe an additional million for the three proposed.

388
Ben Becker 01:47:17.460 --> 01:47:37.940
Those being more expensive because of the camera and other technology elements that are related to them. Public works has what could be considered twenty- six existing outreach ten from the one team and sixteen from Liter Patrol will.

389
Ben Becker 01:47:37.940 --> 01:47:58.420
Give public works a moment after, you know, I speak here and, and they can comment to whether they would consider all twenty- six to be considered outreach and, and to talk about the differences in the type of work that they're doing. Total cost is six point seven million excuse me two point.

390
Ben Becker 01:47:59.060 --> 01:48:18.260
Eight four, the one team specifically, and then as up environment has, I, I believe just short of twenty- four outreach ftes, you know, including nine temporary training positions cost for salaries is about two point. Nine million.

391
Ben Becker 01:48:19.540 --> 01:48:39.380
If including overhead grants for outreach materials, something around a five point eight million, so, you know, looking at all three together, we've got sixty- one Ftes related to outreach an additional three proposed total co.

392
Ben Becker 01:48:39.380 --> 01:48:59.860
Cost to rate payers is somewhere between eleven to fourteen million dollars, a- plus a potential extra million proposed and, and so that's kind of an impact of three to four percent of the annual rate. So for, you know, a residential rate payer who has kind.

393
Ben Becker 01:48:59.860 --> 01:49:20.340
Kind of minimum service paying around fifty dollars per month. That's up to a two dollar per month out of their fifty dollar per month. Bill is covering these different outreach efforts and, and we're gonna ask, you know, percology, Public Works SF environment to present some slides now and to talk about their own.

394
Ben Becker 01:49:20.340 --> 01:49:40.820
Own out outreach efforts and how the type of outreach and the specific groups that they're meeting with in the specific work that they're doing differs between these different organizations. One thing I wanted to show before we launch into that.

395
Ben Becker 01:49:40.860 --> 01:50:01.300
Is just kind of a metric looking at since twenty- fourteen, the total tones received versus the tons recovered versus tons disposed, and this is not the only way to look at outreach and outreach is efficacy.

396
Ben Becker 01:50:01.300 --> 01:50:21.780
ACY, right, but it is one thing to kind of keep in mind to look at this brown line on the top and see that the total tones received over this past ten year period and sorry, in twenty- twenty three is, is estimated just based off of a quarter one so far, the total tones received has been.

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Ben Becker 01:50:21.780 --> 01:50:42.260
Been reducing over time, the green line in the middle shows that the total tons recovered has also been reducing at, you know, in a, in a way, somewhat mirroring the total times received, but that black line running across the center that's actually slightly increasing is the total.

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Ben Becker 01:50:42.260 --> 01:51:02.740
Guns disposed, so you can see that the total tons recovered is slipping the total tones disposed is stable if not increasing over this ten year period, and these blue bars show the percentage of total tones received that ends up being recover.

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Ben Becker 01:51:02.740 --> 01:51:23.220
Ed and you can see that the blue bars are pretty steadily decreasing over time. So again, this is, this is not the only metric for looking at outreaches efficacy, right? But it is a way to kind of keep in mind that over this ten year period, you know, two prior rate cycles, you know, we.

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Ben Becker 01:51:23.220 --> 01:51:29.220
Have been funding and expanding outreach and trying to look at how best to.

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Ben Becker 01:51:30.260 --> 01:51:49.380
To make an impact and, and really a lot of what outreach is focused on is teaching customers how to sort their refuse and how to reduce contamination and, and during this time we have also had the, the, with China, the knife policy, which.

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Ben Becker 01:51:50.740 --> 01:51:51.380
Created

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Ben Becker 01:51:51.600 --> 01:52:12.080
Get hurdles for ECOLOGY, which I'm, I'm sure they'll talk about in terms of their ability to recycle and materials and to even get the materials accepted by China for recycling, but I- it does show the challenge involved in outreach.

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Ben Becker 01:52:14.000 --> 01:52:33.200
So I think with that, I am going to go to ECOLOGY first to talk about their outreach, and then we will go to a Department of Public Works and then we can go to SF environment to speak about their outreach efforts. Excuse me. I'm gonna.

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Dan Shea 01:52:34.480 --> 01:52:37.040
Share reccology slides first.

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Ben Becker 01:52:37.680 --> 01:52:41.400
And then we'll have a discussion section afterwards.

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Anthony Crescenti 01:52:42.800 --> 01:52:46.960
A- can you just go back to your graph for a second?

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Anthony Crescenti 01:52:49.200 --> 01:53:08.400
I, I just wanna point out a significant change in the business environment that you're graft doesn't account for, and it gives it an inaccurate perception of, of outreach and how we handle it. Your graph includes tons from sustainable crushing, which no longer exists past.

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Anthony Crescenti 01:53:08.400 --> 01:53:28.880
Twenty- twenty, so not only not only does it include the change of deviation for COVID, but, you know, you have to normalize this graph and back those tons out to look at how diversion works based on the amount of tones because at any given time, if you look through the past annual rate reports, sustainable crushing goes around twenty percent or more.

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Anthony Crescenti 01:53:28.880 --> 01:53:30.240
Of the diversion.

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Ben Becker 01:53:30.800 --> 01:53:31.920
Okay.

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Anthony Crescenti 01:53:32.080 --> 01:53:35.280
I'll write a fact. It's throwing your graphs way off.

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Ben Becker 01:53:35.280 --> 01:53:55.760
I, I understand that facility was shut down because of the health health impacts in the Bayview and, and that it was never properly licensed. So the, the data that I took here was from the rate reports as they were delivered to the city and published.

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Ben Becker 01:53:55.960 --> 01:54:00.960
And so maybe we can work together to develop.

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Ben Becker 01:54:02.160 --> 01:54:22.160
Guess a metric that would factor in or factor out sustainable crushing as that is no longer included in this metric perhaps remove it entirely and see and see what the impact is.

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Anthony Crescenti 01:54:25.200 --> 01:54:44.400
Ben were happy to work with you, but just as a point of clarity pure ninety four was properly set up in permanent and suited it. It was an application technical techni technicality when we had to update it. So I just wanna make sure for the record that we're clear that, that.

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Anthony Crescenti 01:54:44.400 --> 01:54:56.560
Things operating in compliance with all applicable laws and that the permit change had to do with when we reapplied it missed a deadline why, because it was not properly permanent.

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Ben Becker 01:54:56.560 --> 01:54:58.440
Okay, thank you.

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Anthony Crescenti 01:55:07.440 --> 01:55:27.280
Yep, for the record Kevin fine, again, Gentle manager for ECOLOGY, Golden gates. I'm gonna start and just provide a brief overview or are we zero teams outreach efforts? So way zero outreach comes in a wide variety of forms, for example, commercial accounts are staff, provides training.

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Anthony Crescenti 01:55:27.280 --> 01:55:47.760
ING, in person or virtually these training can be conducted in English, Spanish or Chinese. The team also trains multi- family staff, as well as residential both in person and virtually, and in those same languages, additionally, we conduct property walkthroughs to advice property managers.

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Anthony Crescenti 01:55:47.760 --> 01:56:08.240
Of waste diversion, best practices deliver or male waste separation brochures, posters and stickers and we conduct tabling events and ensure the property management has have the waste stream data reports needed to track the buildings wastream on a monthly or quarterly basis. These data reports are critical for buildings.

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Anthony Crescenti 01:56:08.240 --> 01:56:28.720
Track their data for environmental reporting and to track programmatic outcomes recology. Also coordinates with SF on outreach to prevent overlap in several different ways in partnership with SFEE. We establish annual goals specific for Ecologies team to focus on these goals are tracked and.

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Anthony Crescenti 01:56:28.720 --> 01:56:49.200
Reviewed monthly and re- and created for ECOLOGY to focus on areas that SF does not. These goals are also used to align specific tasks for ECOLOGY to perform. So overlap with SFP does not occur an example. One of these specific deliverables would be the refuse Separation Compliance ordinance, which.

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Anthony Crescenti 01:56:49.200 --> 01:56:58.920
Focuses on large quantity generators by ordinance every customer that falls within this category must be audited about every, every three years.

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Anthony Crescenti 01:57:00.080 --> 01:57:20.560
One goal recollege is responsible for is auditing these customers and their way streams and document in the findings. according to the ordinance we conduct these audits each year right now, there's roughly five hundred or so customers that fall into that large quantity generator bucket, and again, they're, they're too be audited every three years.

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Anthony Crescenti 01:57:20.560 --> 01:57:30.880
So we provide the reporting information back to SFE and SF is responsible for communicating the findings back to the customer and enforcing the ordinance when necessary.

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Anthony Crescenti 01:57:33.360 --> 01:57:35.200
So next slide, please.

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Anthony Crescenti 01:57:39.280 --> 01:57:57.040
One of the ways that effectiveness of its outreach is by documenting specific types of education and outreach provided to our customers, the way zero team documents, this outreach at an account level and have the ability to query that data. The documentation appears chronologically.

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Anthony Crescenti 01:57:57.040 --> 01:58:17.520
On an account history, which allows our team to note no problems and trends on the account in order to offer assistance to maximize waste of version and minimize contamination, documenting and tracking on an account level also allows for cross- functional collaboration within the better understand the nature of problems at an account.

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Anthony Crescenti 01:58:17.520 --> 01:58:38.000
And to arrive at a positive outcome, an example of this is a, a way serial staff member. We'll see the operations team documenting plastic bag contamination in the compost container. The way serial staff would then reach out to the customer and really focus account outreach on education in that area. The table on this.

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Anthony Crescenti 01:58:38.000 --> 01:58:55.920
Slide shows several of our goals around education and outreach that, that were created in partnership with SAP, to improve our customers waste and recycling programs and ultimately the diversion improvements across our entire customer base. So next slide, please.

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Anthony Crescenti 01:58:57.920 --> 01:59:17.520
This particular slide is intended to show how targeted outreach positively impacts diversion the chart on this slide. Provides several examples of diversion rates for collogy as seen over several years of targeted outreach. These examples are, are of highly engaged customers that have been receptive to our outreach and education efforts.

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Anthony Crescenti 01:59:17.680 --> 01:59:38.160
Are we here team work closely with these specific customers by doing onsite presentations, installing signage and working with the property managers and onsite with zero champions to understand the dynamics of their facility. Outreach in education is extremely effective, not only for customers with very low diversion or contamination issues, but also for.

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Anthony Crescenti 01:59:38.160 --> 01:59:58.640
Customers with very high diversion, like customer number two on the slide who went from seventy- three percent, which is a very respectable diversion number to eighty two percent. So couple of things I wanted to point out that, that the diversion numbers listed in the table are based on the customers individual service levels in the average diversion.

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Anthony Crescenti 01:59:58.640 --> 02:00:19.120
On the last bullet as for our entire site, which factors all San Francisco volume into the equation, the customer level diversion on the table does not account for contamination, whereas the site diversion does just as an example, so contamination has a, a negative impact as we've talked about and, and degrade.

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Anthony Crescenti 02:00:19.120 --> 02:00:33.680
The material on the marketing ability of the commodity and one of the ways we are looking to address this is by identifying contamination at the point of collection and burdening those generating the contamination instead of the entire customer case. So if we could go to the next slide.

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Anthony Crescenti 02:00:35.760 --> 02:00:55.600
Er, one more there, J- so on this slide, as you know, we built in additional five million, an annual revenue for contamination fees recology estimated the annual revenue by analyzing your current fees and contamination efforts and applying those findings to our enhanced program.

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Anthony Crescenti 02:00:55.800 --> 02:01:16.080
That was part of our application. so, across both collection companies, we complete, you know, well, over thirty million lifts annually, which is a significant number of customer touches this includes all collection categories, just as an example, residential and commercial and several others by increasing the number of.

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Anthony Crescenti 02:01:16.080 --> 02:01:36.560
Cameras that we proposed to thirty eight. We have, we have on our collection trucks, we, we'll increase our ability to identify contamination and our streams at the point of collection, the table on this slide provides a very high level calculation of how contamination fees were estimated, and this enhancement does require an.

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Anthony Crescenti 02:01:36.560 --> 02:01:53.160
TT on additional ft to administer the program, but I think it's important to note that without these enhancement container contamination revenue would be lower, which would result in a higher revenue requirement from the next slide. Please.

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Anthony Crescenti 02:01:59.380 --> 02:02:15.380
So if, if this is approved, it would be rolled out during rate year. twenty- twenty- four we estimate the ability to identify roughly six hundred more accounts per month, which is just over seven thousand per year of.

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Anthony Crescenti 02:02:15.380 --> 02:02:35.860
Accounts with instances of contamination. The bottom of the slide shows how contamination fees are currently represented by customer type, which was one of the questions from the rating administrator. We do not really anticipate this allocation to change significantly, but we do expect that some slight movement, especially in the residential.

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Ben Becker 02:02:37.140 --> 02:02:57.620
Customer base may increase. So with that, I'm going to pause for questions or we can turn it over to. I believe Anthony is next on abandoned material. Oh, no, I, I think we'll thank you very much. We'll, we'll go to a public works now to allow them to.

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Ben Becker 02:02:57.620 --> 02:03:02.100
Present unless SF wanted to jump ahead.

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Alexa Kielty 02:03:05.940 --> 02:03:09.540
I'm fine going after public works.

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Ben Becker 02:03:09.780 --> 02:03:16.820
Okay, great and whoever will be speaking for public works. Please just introduce yourself at the start. Thank you.

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Bruce Robertson 02:03:16.820 --> 02:03:24.460
Thanks, Ben, Bruce Robertson, Deputy Director of Finance and Administration for Public Works if you could go ahead to slide three.

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Ben Becker 02:03:27.060 --> 02:03:28.180
Sorry.

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Bruce Robertson 02:03:41.780 --> 02:04:02.260
So perfect, thank you so Ben and, and to put on the record publicly, the outreach efforts of Public Works are not the little patrol team. Those are staff that are sweeping cleaning Debrie off the sidewalks. So the FT is actually ten and remains unchanged in this current proposal. So.

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Bruce Robertson 02:04:02.260 --> 02:04:22.740
On the side, I've got a picture of our zone map because that really is what drove the staffing level initially for this program and remains working at a high level to the state. So the city for Public Works is divided into six zones, so we have one dedicated staff member and a supervisor for each of those zones during the day. Shift.

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Bruce Robertson 02:04:22.740 --> 02:04:43.220
And that supervisor that staff member and the supervisor working close collaboration with the zone supervisor for each zone within Public Works also has what we call a zone supervisor that is really the, the supervisor that knows the hot spots, the trouble spots within that zone in the city. So if.

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Bruce Robertson 02:04:43.220 --> 02:05:03.700
If you just look at Zone C, they may know where there's a hot spot for illegal dumping or legal activity when it comes to refuse or other debrie in that zone zone a zone B and, you know, de enough as well, then we also have three staff for the night shift. We have three staff for swing, two line staff, and then a sup.

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Bruce Robertson 02:05:03.700 --> 02:05:24.180
Supervisor we need to partner up because it's dangerous out there at night. So we need to make sure that we have the appropriate staffing levels, that's our staffing level, and it really is all about collaboration internally with our frontline staff, helping keep the city clean, but also with forcology. so the main difference for the public works.

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Bruce Robertson 02:05:24.180 --> 02:05:44.660
Outreach and one team and their name is outreach and enforcement. It is that enforcement term it is code compliance and it is code enforcement. So for instance, under section two ninety- one point, two of the San Francisco Health Code, a property owner must initiate adequate.

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Bruce Robertson 02:05:44.660 --> 02:06:05.140
Refuse collection within fifteen days of vaccupancy, if they don't, it is public works staff to go out there and enforce those codes and ensure compliance. we not only do it for codes for the health code. We do it for the police code and we do it for the public Wars code that was asked by general Manager where at the last meeting, so.

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Bruce Robertson 02:06:05.140 --> 02:06:25.620
So I wanna just put on record th- those are the three per section where we are out there doing proactive code compliance and enforcement, but it is more than just code compliance and code enforcement. Again, we're educating residents on waste disposal. Many people may not even know that there is a requirement.

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Bruce Robertson 02:06:26.260 --> 02:06:46.740
Roughly service and then a lot of the code enforcement in compliance does come from three one, one complaints and, and issues around people just dumping Debrie and refuse on the sidewalk. So to ensure that we engage with community groups, neighborhood organizations as well as our weekly commercial corridor.

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Bruce Robertson 02:06:46.740 --> 02:07:07.220
So once a week we have commercial cordo operations where we do a blitz and a commercial corridor to clean a section of the town, especially, you know, a longer heavily used commercial corridor West portal Client Street in the Richmond to give two examples Valenciat Street, Emission Street in the mission, but there were also doing.

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Bruce Robertson 02:07:07.220 --> 02:07:27.700
ING, significant focus targeted outreach to the commercial owners, and then we also do that with our staff again, in the area. So really that is what we do, and again, one of the main notice of violations we give, if we could go to the next slide is really that section two ninety- one point two and the health code is on no garbage service.

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Bruce Robertson 02:07:28.980 --> 02:07:48.180
And then, so here's some of the data, some of the data that was being asked by the controller's office for this. So again, you can see the impact overall the pandemic on the, the table and the data on, on the bottom, but I really wanna highlight embedded in these numbers is the number of no garbage service violations and.

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Bruce Robertson 02:07:48.180 --> 02:08:08.660
We've issued, you know, several hundred of these, just in the past few months where staff are not, are not staff where staff are issuing citations and notice of violations for the staff that have not for the city folks and residents who have not gotten proper inadequate garbage service. Again, we coordinate withology on this.

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Bruce Robertson 02:08:08.660 --> 02:08:29.140
This, but we are very much driven by three, one- one requests. So the coordination we do withcology and our staff is where we see a legal dumping, but we also get many many items from three one one, and that's really what the top is showing just the number of enforcement related issues that come through us from three, one, one.

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Bruce Robertson 02:08:29.180 --> 02:08:29.780
One.

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Bruce Robertson 02:08:29.780 --> 02:08:50.260
So, a lot of times we try to perform proactive inspections of hot spots as well. Scheduled inspections of commercial corridors, which then drive our enforcement actions on the bottom when we've had on the bottom chart when we've had fewer staff because of vacancies and staff resource to the COVID- comma.

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Bruce Robertson 02:08:50.260 --> 02:09:10.740
Command center we've had to do fewer scheduled inspections and much less proactive hot work. I wanna make sure though that I'm, I'm clear here, and I, I put them publicly because of the short staff. We're not able to respond as quickly so we may go out and find issues that have been reported to us that either no longer exist.

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Bruce Robertson 02:09:10.740 --> 02:09:31.220
Or don't lead any enforcement action. Our staff are literally digging through an Olympi and illegal dumping pile to see if we can find evidence of resident or commercial entity or some form of verification of someone is not getting garbage service. So it's not.

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Bruce Robertson 02:09:31.220 --> 02:09:51.700
Just you go there, go there and, and you're looking at an organi at a house or a business or an organization that's not doing garbage service. We are literally dumpster diving and looking for the illegal activities. So while it's called outreach, we are certainly doing much much more than tradition.

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Bruce Robertson 02:09:51.700 --> 02:10:12.180
Tional outreach in the sense of what you think about when you hear the term outreach. again, we're looking to make sure we keep repeat violated accountable whether through the notice of vacation or in the administrative citation or responding to three, one, one and we're working, you know, with our, our clean and personnel to make sure.

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Bruce Robertson 02:10:12.180 --> 02:10:26.900
People are doing it. It's one of just the overall initiative that public Works provides the city to help keep the city clean, and here we clearly and, and partner quite a bit with Hercology in terms of trying to find those hot spots.

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Bruce Robertson 02:10:27.540 --> 02:10:42.820
I thought I'll open it up for any questions. Anyone may have, but I just wanna reiterate the kind of the key difference for public works that we're doing compliance and enforcement actions as opposed to less kind of true outreach and is, you may think about it.

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Ben Becker 02:10:43.540 --> 02:10:57.140
Thank you, Bruce. I think we'll move over to SF environment first and then we can open it up discussion. Alexa, did you want me to present or would you like to take the, the deck?

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Alexa Kielty 02:10:58.500 --> 02:11:04.660
Oh, if I, if I'd say share or you're gonna move through it, I think you can just move through it. It's fine.

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Ben Becker 02:11:04.660 --> 02:11:09.780
Okay, I'm just gonna switch this over and please just introduce yourself.

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Alexa Kielty 02:11:09.780 --> 02:11:30.260
Yeah, hello everybody. My name's Alexa Kelti. I'm the residential zero wave senior coordinator at the Environment Department and today I'm gonna be presenting on SF environments communication and community engagement program for shorthand. I'll just call it also outreach next slide.

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Alexa Kielty 02:11:30.260 --> 02:11:31.380
Please.

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Alexa Kielty 02:11:34.100 --> 02:11:53.300
Outreach makes up about forty percent of our total impound budget. The outreach program creates culturally relevant campaigns on zero waste toxics reduction and climate policies to enh advance climate protection and enhance quality of life for all San.

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Alexa Kielty 02:11:53.300 --> 02:12:13.780
Skins we invest heavily in our, our outreach PR programs because our environmental policies in our initiatives are only successful if IM implemented successfully, and this requires extensive outreach to residents and businesses and business owners and traditionally underserves commun.

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Alexa Kielty 02:12:13.780 --> 02:12:14.420
Communities

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Alexa Kielty 02:12:14.560 --> 02:12:16.880
Next slide, please.

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Alexa Kielty 02:12:19.040 --> 02:12:38.880
Great, great, I am gonna talk about our outreach staff kind of in sections here first we have our, well total we have as Ben mentioned, just under twenty four ftes and I did wanna make a correction bend to your original slide. We are requesting.

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Alexa Kielty 02:12:38.880 --> 02:12:59.360
One position under the Environmental education program, which I'll talk about a little bit more and when we get to that slide the sections, I'm gonna talk about, I'm gonna break it down in our communication and marketing team, which includes our data person who manages our Salesforce CRM data and then I'm gonna talk about.

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Alexa Kielty 02:12:59.360 --> 02:13:19.840
About environment, now our field staff and then our environmental education program as you'll note here, and Ben mentioned this earlier the environment now team has five ninety- nine, twenty- two class classified positions. This is the train, the public service Traine.

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Alexa Kielty 02:13:19.840 --> 02:13:34.960
Ee position, it's a three year position. These are folks kind of new to the environmental field and yeah, these are entry- level positions and then the environmental education program has four of these positions. Next. I please.

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Alexa Kielty 02:13:38.400 --> 02:13:39.520
Er.

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Alexa Kielty 02:13:40.960 --> 02:13:57.400
What set sort of our outreach apart from what recologies doing in public works, even though we do work quite collaboratively with phyology, a lot of our work is now centered towards reducing upstream waste. So what does that mean?

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Alexa Kielty 02:13:58.880 --> 02:14:19.360
We have increasingly more focus on upstream solutions, eliminating waste as at the source as opposed to solely educating people on composing or recycling working on upstream solution. Not only prevents waste and contamination in the first place, but has tremendous climate benefits as well as reducing.

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Alexa Kielty 02:14:19.360 --> 02:14:27.640
Letter, it's also helps us meet our twenty- thirty generation reduction goals. next slide, please.

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Alexa Kielty 02:14:28.960 --> 02:14:49.440
So our outreach kind of falls into four different categories. We do a lot of environmental code policy implementation, which essentially means when we, there's a new environmental policy past requires educating the public as well as business owners or whoever is affected by that policy, so that requires a lot of field work.

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Alexa Kielty 02:14:49.440 --> 02:15:09.920
Work we do source reduction campaigns. I'll talk about that. I have some examples, we do do basic recycling compassing education in collaboration with ecology, ours is more focus on difficult to reach population under certain communities. We have folks working specifically on affordable housing, for example.

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Alexa Kielty 02:15:09.920 --> 02:15:24.960
Example, and then we have our environmental education team that does in regarding through twelve grade ongoing outreach to that to those classes on an ongoing basis. Next slide, please.

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Alexa Kielty 02:15:26.560 --> 02:15:46.400
So the first set of staff I'm gonna talk about is our communication marketing, there's five point, two, three staff at work in that they design and execute inclusive marketing and behavior change campaigns in the area. Zero waste toxics, reduction and climate action. This is done in collab.

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Alexa Kielty 02:15:46.400 --> 02:15:54.280
Ation with our community partners and environment. Now our field Saas and sometimes with recology, next slide.

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Alexa Kielty 02:15:56.000 --> 02:16:02.080
An example of a, a type of campaign is our, when the.

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Alexa Kielty 02:16:03.680 --> 02:16:24.160
The back charge at the checkout sound went from Tensins to tw twenty- five cents. That's the plastic back reduction ordinance. We did a tremendous amount of outreach to the community, the marketing team developed this wire to educate the public as well as packets. So in order for this Earnance to be succes.

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Alexa Kielty 02:16:24.160 --> 02:16:44.639
FUL, both businesses and customers needed to be informed of the increase in the charge communication and marketing staff design, the collateral in house and environment. Now, field staff visited inspite packars at the checkout stands for each business effected. This approach has been used for numerous environmental code.

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Alexa Kielty 02:16:44.639 --> 02:17:05.120
Codes including our expanded police staring band, our plastic liter reduction on toxics reduction law, which essentially was the straw band and our refuse separation orninance isn't all an example of how the community, right? Communication and community engagement team works together.

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Alexa Kielty 02:17:05.120 --> 02:17:07.719
Together next slide. please.

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Alexa Kielty 02:17:12.160 --> 02:17:29.280
And the outreach team ensures that the materials are designed and multilingual and culturally complica competent. This Packer was designed for business owners to communicate the classic background into their customers. Next slide to.

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Alexa Kielty 02:17:29.440 --> 02:17:49.920
Increase the scale of messaging we often include in person engagement. So this is example of a bus shelter ad that was designed by our marketing team to ensure that we were choosing achieving, sorry, we were reaching every resident in the city. We assess these campaigns using market research.

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Alexa Kielty 02:17:49.920 --> 02:18:09.559
Ch- where we learn that our approach works by driving the change research. Recent research shows that over eighty percent of San franciscins use reusable bags to go grocery shopping next slide please and addition to.

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Alexa Kielty 02:18:11.679 --> 02:18:30.880
Environmental code implementation, the outreach team also designs more standard outreach of what goes where in each of the bins along with promoting bulk, Yetam collection, we do this in collaboration with Hercology, typically focuses their outreach on the bill pair where, as we'll, we'll be dealing.

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Alexa Kielty 02:18:31.519 --> 02:18:52.639
More directly with residents who may not be paying their bill directly. So the distribution of this fire went out to every apartment resident and the impacts of this fire, we saw at twenty- four percent increase in bulky item collection, appointments the hope for this is that well, we'd see less illegal dumping on.

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Alexa Kielty 02:18:52.639 --> 02:19:13.120
Streets and we also got folks living in apartment buildings aware that the service was available to them as well. Next slide, please next, I'm gonna talk about environment now that's our field staff, like I mentioned earlier, there's five point, nine FTE and five of those POSI, in addition to that.

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Alexa Kielty 02:19:13.120 --> 02:19:33.599
We have five positions that are the public service training position, the entry level position next slide, please environment now is our field staff who provide direct outreach through events, staffing, dord or outreach technical trainings and community presentations to underserved communities in San Francis.

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Alexa Kielty 02:19:34.240 --> 02:19:54.080
And speakers and Bypask staff who have natural connections to these communities, for example, that is a property. They're at, it's aim co- property. It's an affordable housing property in the baby where we conduct.

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Alexa Kielty 02:19:54.080 --> 02:20:02.240
Order outreach educating residents of our environmental programs that are available to them next slide.

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Alexa Kielty 02:20:03.680 --> 02:20:24.160
Environment now also conducts tabling events throughout San Francisco. Typically on zero waste intoxics reduction next slide, and I'd also like to highlight our commercial reuse campaign. This is an example of always prevention strategy, a campaign that we did and environment now conducted.

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Alexa Kielty 02:20:24.160 --> 02:20:44.640
The outreach technical and financial assistance, the campaign involved working with small business to swap out their disposable food service where, for reusable food service where also offering a small subside to do that, swap out, we designed the collateral inhouse with the expertise from our communication team.

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Alexa Kielty 02:20:46.560 --> 02:21:05.120
Our next slide, in addition, a webpage was designed to accompany the collateral to provide additional information to businesses and that web page was in English, Spanish, Chinese and Popino next slide, please some of the results from this Camp.

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Alexa Kielty 02:21:05.120 --> 02:21:13.400
Mpaign, we, they, the environment now field staff visited seven hundred and thirty- one businesses throughout San Francisco.

511
Alexa Kielty 02:21:16.000 --> 02:21:36.480
To promote the swap out program ninety, one of those businesses actually swapped out there disposable food service where these are businesses, that would be serving disposable food service were in house typically, and we offered them bishwar and eighty- five percent of those businesses that signed up were.

512
Alexa Kielty 02:21:37.760 --> 02:21:58.240
Or LGBTQ owned and just this shows a little bit of the distribution of the businesses that signed up and we did a lot of pre- surveys before we went out in the field in order to better focus our outreach efforts and our success rate was twelve percent.

513
Alexa Kielty 02:21:58.240 --> 02:22:18.720
Which is much higher than the industry standard of, or percent next slide, please collectively out of all the small businesses that did the swap out. They saved three hundred thousand dollars annually from avoided cost of disposable food service were next.

514
Alexa Kielty 02:22:18.720 --> 02:22:19.360
Slide please

515
Alexa Kielty 02:22:20.080 --> 02:22:40.200
It's estimated that two hundred thousand pounds of soloways per year were avoided with this campaign, and so those, the food service were no longer going in our land fill nor, is it contaminating our compost ending up on City streets or any app in the wrong bed.

516
Alexa Kielty 02:22:40.560 --> 02:23:01.040
Which saves the rate payer money in the long run next slide, please we did some post survey campaign after to, to find out whether or not these programs were continuing and the businesses did say that they would continue to use their reusables in the future over ninety percent said, yes, so we see.

517
Alexa Kielty 02:23:01.680 --> 02:23:22.160
As a, as a success, next slide, please the last team I'm gonna focus on is our environmental education team. There's two point eight one FTE with four, nine, nine, twenty- two positions. Those are the public service training positions. One of those positions is a new.

518
Alexa Kielty 02:23:22.160 --> 02:23:42.640
Position, in fact that we're being, we're proposing, and this is a fifty- six forty classification and this is a position that would work with the San Francisco Unified School District to build out integrated zero waste and climate education into the science curriculum so that they could be the next climate in zero waste leaders in San Francis.

519
Alexa Kielty 02:23:42.640 --> 02:24:03.120
Co- the goal is to create a seamless experience for the students between zero waves outreach. They're receiving in the schools and their science curriculum and this team right now is working with PK through twelve PK. I guess that's t- TK or PK.

520
Alexa Kielty 02:24:03.760 --> 02:24:23.600
Youth with a primary for focus on source reduction, zero waste pollution prevention and climate field trips this position, These positions collaborate with educators and city partners to support the city's goals to educate the spire empower youth to make more just in make.

521
Alexa Kielty 02:24:23.600 --> 02:24:44.080
Them more just and sustainable future and the, this program reaches thirtie over thirteen thousand students per year, so they do this through field assemblies. They also do a lot of interactive lessons with the children where the children become auditors of the zero waste.

522
Alexa Kielty 02:24:44.080 --> 02:24:49.440
Programs next slide please. in addition to this.

523
Alexa Kielty 02:24:50.480 --> 02:25:10.960
Environment education stuff also work with faculty to go beyond typical composing recycling, but move into reuse. So this is an example of Chinese Newcomer school where they swapped out all the disposal food trades for our reusable trades, which.

524
Alexa Kielty 02:25:10.960 --> 02:25:13.400
Also have lower toxicity.

525
Alexa Kielty 02:25:15.440 --> 02:25:35.920
Next slide, please in closing. I just like to highlight some future campaigns that we are exploring to promote. One is our fixed clinics, we've tested three of these throughout the city and we've gotten a tremendous interest hundred and fifty folks showed up to get their clothing repair their bicycles repaired.

526
Alexa Kielty 02:25:35.920 --> 02:25:56.400
Ed, so there's a huge interest that we will continue to promote these throughout working with the San Francisco Public Library and we will also be rolling out our household food waste reduction campaign communicating to residents through Billboard social media in store grocery stores, how to better preserve their fo.

527
Alexa Kielty 02:25:56.400 --> 02:26:10.840
Food so that it doesn't end up in our land fill or in our compass, so we can continue to meet our generation reduction goals. Thank you for listening that concludes my presentation.

528
Ben Becker 02:26:15.600 --> 02:26:29.160
All right, I think this is the section now where we will open everything up for, for comment and discussion. There is anybody who wants to go first and raise a point or ask a question.

529
Anthony Crescenti 02:26:35.520 --> 02:26:47.720
Then Kevin fine, again, just a point of clarification on the deck page. Thirteen, I believe it was definitely your deck.

530
Ben Becker 02:26:52.120 --> 02:26:56.480
I think maybe fourteen is, is it the chart or is it the table?

531
Anthony Crescenti 02:26:56.560 --> 02:26:59.760
It's the table that just shows ECOLOGY public.

532
Ben Becker 02:26:59.760 --> 02:27:02.880
My, my me share it. hold on just a moment.

533
Ben Becker 02:27:06.800 --> 02:27:08.080
Go ahead.

534
Anthony Crescenti 02:27:08.080 --> 02:27:14.480
Our current headcount is ten and we're asking for two additional, one.

535
Anthony Crescenti 02:27:15.120 --> 02:27:20.520
One of those headcount is associated with the contamination and then the other is.

536
Anthony Crescenti 02:27:21.520 --> 02:27:23.440
An additional goal from.

537
Jay Liao 02:27:23.440 --> 02:27:24.080
Partnership.

538
Anthony Crescenti 02:27:25.360 --> 02:27:45.840
Will require additional headcount and then estimated additional estimated costs including the headcount and the marketing material for the additional goal was eight hundred and thirteen. K. and that included two hundred and forty- three thousand for the camera system, which.

539
Anthony Crescenti 02:27:45.840 --> 02:27:47.760
Which would be a capital expenture.

540
Jay Liao 02:27:47.760 --> 02:27:48.400
Ture.

541
Anthony Crescenti 02:27:48.400 --> 02:27:49.040
Doesn't.

542
Ben Becker 02:27:49.040 --> 02:27:49.680
And.

543
Jay Liao 02:27:49.680 --> 02:27:50.320
And, and, and.

544
Ben Becker 02:27:50.320 --> 02:27:59.640
And then one of the positions for this was, was higher, just recently, right in the, after the twenty- two rate year.

545
Anthony Crescenti 02:27:59.920 --> 02:28:08.240
I think we're, the confusion came may have been on our headcount slide presentations back where it was an open position, but it was still.

546
Jay Liao 02:28:08.240 --> 02:28:08.880
Still.

547
Ben Becker 02:28:09.520 --> 02:28:12.720
Okay, so, so the position is filled now.

548
Anthony Crescenti 02:28:12.720 --> 02:28:14.000
It was a backfill. Yes.

549
Ben Becker 02:28:14.000 --> 02:28:15.120
Okay.

550
Anthony Crescenti 02:28:16.560 --> 02:28:17.200
Yep.

551
Ben Becker 02:28:17.200 --> 02:28:26.800
All right, thanks. I'm gonna close out of this unless anybody else wants to ask about a particular slide either in the RA presentation or anybody else.

552
Jay Liao 02:28:26.800 --> 02:28:27.920
's.

553
Ben Becker 02:28:33.840 --> 02:28:35.120
All right, I'm gonna.

554
Ben Becker 02:28:35.760 --> 02:28:42.960
Close out of this and I guess the question that I would like to ask.

555
Ben Becker 02:28:44.080 --> 02:28:50.480
You know, I guess my first question would be for Bruce and for Public Works is.

556
Ben Becker 02:28:51.120 --> 02:29:11.600
Public Works one team. I understand that Liter Patrol is not involved in outreach. Is one team in any way involved in contamination issues of contamination and does one team in any way improve recover.

557
Ben Becker 02:29:11.600 --> 02:29:12.240
Ory rates.

558
Ben Becker 02:29:14.800 --> 02:29:16.120
Our stream.

559
Ben Becker 02:29:19.920 --> 02:29:32.080
And this is really just to help try to differentiate, you know, where each individual entities stream is, and, and I guess.

560
Ben Becker 02:29:32.720 --> 02:29:35.920
Ultimately, where responsibility lies, right?

561
Ben Becker 02:29:42.320 --> 02:29:44.720
Sorry, Bruce, so you might be muted.

562
Bruce Robertson 02:29:45.520 --> 02:29:52.160
I'm gonna turn it over to my colleague guy and Snyider, who can respond to that more thoroughly than I can.

563
Ben Becker 02:29:55.760 --> 02:29:56.400
And, and I.

564
Bruce Robertson 02:29:56.400 --> 02:29:58.320
And if you could just introduce.

565
Ben Becker 02:29:58.360 --> 02:30:03.920
Yes, yeah, and, and just introduce yourself before you start speaking.

566
Ben Becker 02:30:14.960 --> 02:30:15.600
Sorry.

567
Bruce Robertson 02:30:15.600 --> 02:30:18.160
We can't hear him. I'll, I'll take it.

568
Ben Becker 02:30:18.160 --> 02:30:18.800
Okay.

569
Bruce Robertson 02:30:18.800 --> 02:30:39.280
Short answer is no, the primary focus again, is really on code compliance and enforcement. Most of the, the diversion there is some diversionary activities that happen, but that is pertiary compared to the main goal and objective of really that, that code enforcement and, and the, the compliance.

570
Bruce Robertson 02:30:39.280 --> 02:30:55.920
Components of making sure proper disposal of refuse is, is happening. I mean, they do look at it to make sure a little bit of the bands is appropriate, but again, it's really just making sure that to mitigate a legal dumping and making sure you have garbage service.

571
Ben Becker 02:30:55.920 --> 02:31:16.400
Okay, and, and then could you just speak to how the one team and DPW communicates with recology. So when you have the situation where, you know, somebody has recently remodeled a home and they've moved in and they don't yet have.

572
Ben Becker 02:31:16.400 --> 02:31:19.600
Have collection service.

573
Ben Becker 02:31:20.320 --> 02:31:36.240
M- is it Recogn. that's reaching out to DPW or is DPW identifying an initiating. Our is DPW confirming with reccology before going out and noticing. How, how does that process look?

574
Jay Liao 02:31:36.240 --> 02:31:36.880
Look.

575
Bruce Robertson 02:31:36.880 --> 02:31:57.360
It's really a two ways process where ecology is reaching out to us, you know, their drivers, their staff, you know, they're doing field observations we will, you know, so a college will reach out to us. We'll reach out to recology. Our staff have field observations, but then we're also partner up a little bit on some of the nightwalks as well. So.

576
Bruce Robertson 02:31:57.360 --> 02:32:17.840
They're out there hand in hand with us as much as our staff are, but as they get a new account, either activated or deactivated, you know, we'll make sure that we're, we're in commute in close communication with each other. It really is a very much a partnership with recology in terms of really trying to make sure that again, I'm focus on, you know.

577
Bruce Robertson 02:32:17.840 --> 02:32:28.200
Refugee service in particular, making sure that people are having roughly service and properly, you know, get into services that they're required to under the health code.

578
Jay Liao 02:32:29.360 --> 02:32:30.000
Well

579
Jay Liao 02:32:32.560 --> 02:32:35.400
Looks like I am, Can you.

580
Ian Schneider 02:32:35.760 --> 02:32:38.320
Yes, is my audio working now?

581
Jay Liao 02:32:38.320 --> 02:32:38.960
Yeah, maybe.

582
Ian Schneider 02:32:38.960 --> 02:32:40.240
Maybe one go apologies.

583
Jay Liao 02:32:40.240 --> 02:32:40.880
Yes...

584
Ian Schneider 02:32:40.880 --> 02:33:01.360
My inch Snyder government affairs. Thank you Bruce. For addressing that just to add on to, I, I missed some of Bruce's response, but just to add on the one team does enforce for overflowing bins, that's one of the key code sections that they enforce for, and of course, contamination is related to overflowing bins of people are not sorting their.

585
Ian Schneider 02:33:01.360 --> 02:33:21.840
Ways appropriately, then they might there bins might end up overflowing, so when we are looking at when we're looking at mechanisms to address overflowing bins, advisement on contamination and proper diversion is part of the messaging and.

586
Ian Schneider 02:33:21.840 --> 02:33:31.440
When customers have more specific questions around that, we'll refer them to our colleagues at SF environment and ecology for more direction.

587
Jay Liao 02:33:35.280 --> 02:33:55.760
So just a couple questions on, I think this is more directed at DPW on recology around particularly enforcement use of citations or use contamination fees. I'm curious about the effectiveness and if there's data on repeat offenders, I mean, particularly with the contamination bees.

588
Jay Liao 02:33:55.760 --> 02:34:05.920
You would assume that if they're effective that you were gonna have a declining revenue, if they're really preventing folks from contaminating.

589
Jay Liao 02:34:08.560 --> 02:34:21.600
Continating that there way some just kinda curious to hear about if there are metrics on, on, on the impact of disinforcement contamination, so both DPW and citations and.

590
Jay Liao 02:34:22.640 --> 02:34:25.040
Ation fees and, and their outreach.

591
Ian Schneider 02:34:30.440 --> 02:34:50.800
Hey, I and San Francisco Public Works. thanks for the question as far as repeat offenders, you know, it's, it's always a challenging aspect in, in a shifting server where we have different tenants moving in properties that appear to be repeat might be have, have new residents living there. So it's, it's not always.

592
Ian Schneider 02:34:50.800 --> 02:35:11.280
The easiest thing to compare apples to apples when we're enforcing liter codes, some of which go towards the violator, some of which go towards the property owner. One thing that we definitely wanna track closely is no garbage service and making sure every property in the database is either connected to a garbage service account or verified as.

593
Ian Schneider 02:35:11.280 --> 02:35:13.960
As, as vacant per DPH regulations.

594
Anthony Crescenti 02:35:14.480 --> 02:35:15.120
Alright.

595
Ian Schneider 02:35:15.120 --> 02:35:19.120
In, in Jan, I wanna make sure I'm answering your, your question entirely.

596
Anthony Crescenti 02:35:20.240 --> 02:35:21.360
And.

597
Anthony Crescenti 02:35:22.800 --> 02:35:43.280
Anthony Krishna with the werecology real quick just wanna clarify our partnership with Public Works related to things like overflowing bends. we, we maintain obviously the record customer records of extra materials that we may service that is outside of the bin and DPW request that information for enforcement were able to provide that as far as contamination. I, that's not something that we.

598
Anthony Crescenti 02:35:43.280 --> 02:36:03.760
We coordinate with probably works on that would be more of an environment item, but for public Works, they handle any code enforcement and we provide information much like Bruce mentioned partner with them to ensure that the proper levels of service are being had and they were able to go in there and work with the customers. We also provide additional education for the customers once.

599
Anthony Crescenti 02:36:03.760 --> 02:36:11.440
Were referred to by the city, but just to be Clearj as far as contamination. That's not something that we refer over to Public Works.

600
Bruce Robertson 02:36:14.000 --> 02:36:34.480
And j- one of the things I'm looking at the data. Now one of the things we do often see is we will issue, you know, we will do warnings before we actually issue an administrative citation and so you do see some evidence of that in, in our data, but there's not a lot of instances where, and I can give you the speci.

601
Bruce Robertson 02:36:34.480 --> 02:36:54.960
Specific numbers of, of what our data shows where there's actually repeat vendors. There's some that you'll see where it's more where you'll see a smaller, very smaller number of not just repeat offenders for the second time, but you'll see two three, four times. That's more what you'll see, and that's a very deminious number.

602
Ben Becker 02:36:57.520 --> 02:36:58.160
Okay.

603
Ben Becker 02:36:58.160 --> 02:37:18.640
An Anthony, could you, could you speak how many customers who, as you've been piloting contamination fees, how many customers are resolving their contamination issues as they see this on their bill and how many customers do you have who are continu?

604
Ben Becker 02:37:18.640 --> 02:37:26.560
Uing month after month to have to have this contamination fee because they haven't addressed the issue.

605
Anthony Crescenti 02:37:27.600 --> 02:37:48.080
Thanks, I'll turn over to kept for that answer Kevin's fine again, excuse me. Yeah, so on an ongoing basis, right now we're just over, I believe two hundred and fifty customers or so that on reoccurring charge charges, which could include a reoccurring contamination charge or a full partial removal of the diversion.

606
Anthony Crescenti 02:37:48.080 --> 02:38:08.560
Ent discount and, and it does change and, and folks do come off of that list and once they get on there, they, they get a lot of attention from our V- zero staff to help them try and resolve that issue. So we do see that, that change every, every month if we look on like a, per instance.

607
Anthony Crescenti 02:38:08.560 --> 02:38:29.040
Basis, I believe last month we were just over five thousand tags where we issued just warnings to customers advising them. Hey, you have some contamination things of that nature, so it's a pretty big number, but as I shared earlier when you look at the, the total number of lifts that we perform on an annual BA annual.

608
Anthony Crescenti 02:38:29.040 --> 02:38:49.520
Basis, it's, it's significant and our goal with this, this contamination is really just a initially identify the, the really bad offenders and address that, and I believe you, you saw my slid earlier, it showed roughly sixteen accounts per route with a camera system. So it's, it's very nominal compared to the.

609
Anthony Crescenti 02:38:49.520 --> 02:38:52.040
Overall number of lists that we performed.

610
Jay Liao 02:39:05.520 --> 02:39:25.880
I think the other question I have is really just, I, I feel like I have a good sense of kind of how Dpw's efforts kind of differentiate from other outreach efforts where it's mainly in enforcement in these citations, but maybe with environment and.

611
Jay Liao 02:39:26.640 --> 02:39:27.760
Phology.

612
Jay Liao 02:39:31.760 --> 02:39:37.760
If someone can help me kind of articulate, kind of where the difference there is there. I, I think.

613
Jay Liao 02:39:38.800 --> 02:39:41.840
And what I understand environment does some upstream.

614
Jay Liao 02:39:43.400 --> 02:40:03.760
Some upstream outreach, but I just wanna kinda understand a little more detail about kind of recology outreach efforts. There's a list here with one of your slides with kind of a num, a number of activities you guys also have collateral. I'm just kinda curious what that colla.

615
Jay Liao 02:40:03.760 --> 02:40:20.800
Al is really related to. I think we've seen with environment what their collateral is related to, and I just wanna make sure there's no overlap and types of messaging that's going out there. Just kind of understanding what, you know, audiences you're trying to reach if they're, they're saying.

616
Jay Liao 02:40:22.320 --> 02:40:33.760
So, yeah, if I think of the two departments can kind of addre environment and, and reccology can help me kind of articulate where the differences are in the various outreach and education efforts.

617
Alexa Kielty 02:40:41.520 --> 02:41:02.000
I'm happy to go first. I, I'll just sort of reiterate a little bit what I mentioned in, in the slide deck, but yeah, I mean we do, as I mentioned when a new environmental policy is passed, we'll roll out a campaign to communicate what, what, how that affects, you know, businesses or.

618
Alexa Kielty 02:41:02.000 --> 02:41:22.480
Or residents that's something that recology when it do directly, right? So we're, we're the voice of the city and the city's policies. So we're, so that's why I gave the example of the classic bag reduction ordinance, so it's distinctly different from recology, what they would do, for example, source reduction is.

619
Alexa Kielty 02:41:22.480 --> 02:41:42.960
Is not something typically does I mention their, their reasonables campaign where we do overlap is the recycling compassing education and Kevin, who did the presentation for ECOLOGY mention that we, we work in collaboration, so we're not stepping on each other's toes.

620
Alexa Kielty 02:41:42.960 --> 02:42:03.440
And most of their outreach is with property managers of apartment buildings and we'll be dealing directly with the residents of apartment buildings, for example, in affordable housing. So that's sort of the cleve. I don't know if Hilary, if you wanna talk a little bit if add anything about how.

621
Alexa Kielty 02:42:03.440 --> 02:42:23.920
The commercial outreach differs Hillary is our commercial zero waste coordinator, and then the last thing I would say is that environmental education program is very specific to SF environment. Staff does support the environmental education.

622
Alexa Kielty 02:42:23.920 --> 02:42:44.400
Team in terms of services at that location at that school, for example, obviously they would be provide those services, but they're typically not in the schools, doing the assemblies, right? Our ASSEMB environment stuff is doing that. So hopefully that clears it up, I'll ask Hillar if you wanna add anything about.

623
Alexa Kielty 02:42:44.400 --> 02:42:45.040
How how

624
Alexa Kielty 02:42:46.040 --> 02:42:50.080
Outreach differs between our team and reccology.

625
Alexa Kielty 02:42:56.280 --> 02:42:58.520
Can't hear you hilary.

626
Hilary 02:43:03.320 --> 02:43:03.960
How's.

627
Alexa Kielty 02:43:04.600 --> 02:43:05.720
Yep.

628
Hilary 02:43:05.880 --> 02:43:26.360
Three near sher commercials. They're wasting your coordinator. I'll touch on Jay also. I think you had a question about collateral and making sure it's a coordinated that we, that is something we, we do commit in house and work closely to usually co- Brian brand Recogn, you know, it's not.

629
Hilary 02:43:26.480 --> 02:43:46.840
It's not a perfect system or it's not, you know, I think we'll continue going forward that we usually develop the graphic design, et cetera in house and work on the content, and then we're calling generally has been doing the printing and sort of hosting inventory of things. So that's, that's some amount of guideline and then we both do sort of.

630
Hilary 02:43:46.840 --> 02:44:07.320
Order fulfillment where our commercial team as mentioned has been much more focused on upstream policy and programs. She mentioned the commercial reuse sort of look sounded as if it's in the past it's ongoing and even ramping up to support our food businesses on waste prevention. So that's what I would.

631
Hilary 02:44:07.320 --> 02:44:18.120
Mention on the collateral and sort of how we work together. We meet monthly plus to be sure to talk about specifics make sure we're, we're on the same page.

632
Ben Becker 02:44:22.680 --> 02:44:32.600
And then R- regarding, I guess recology and, and some of these collaborations with city departments.

633
Ben Becker 02:44:34.240 --> 02:44:54.680
What are the elements that o- only recology can do in outreach and that the cities cannot because with reccology, any outreach efforts in any outreach positions, ftes have that profit margin or operating rati.

634
Ben Becker 02:45:00.200 --> 02:45:09.200
Not so w- what are the things that only reccology can do that SFE and DPW can't do.

635
Anthony Crescenti 02:45:10.440 --> 02:45:30.920
Yeah, Ben, I think the, the best way to explain that is, is reccologies zero team is designed and, you know, their primary, our primary responsibility is customer facing and then in addition, we work in partnership with SFD, but that's, that's the intent of our department. It's customer.

636
Anthony Crescenti 02:45:30.920 --> 02:45:33.600
Face where the boots on the ground.

637
Ben Becker 02:45:36.720 --> 02:45:38.640
Th- that's helpful, but.

638
Ben Becker 02:45:40.520 --> 02:46:00.360
Why could the one team or SFE not ask for customer accounts and information and, and do customer facing work. What is it specifically? what, what's the strength of that recology has in its.

639
Ben Becker 02:46:00.360 --> 02:46:16.280
Systems and in its operations, that makes it better and able to do this work or uniquely, you know, do to either law or other situations. The only the only one who can do the, the specific outreach work that you're doing.

640
Anthony Crescenti 02:46:22.120 --> 02:46:35.680
Yeah, I would say that it's primarily, it's coordination with operations and, you know, are it's an integrated approach on our part and I think that's the differentiator between the two departments.

641
Anthony Crescenti 02:46:37.480 --> 02:46:38.120
Okay.

642
Alexa Kielty 02:46:38.120 --> 02:46:58.600
I was just gonna add Ben if I could step in for a second. Yeah, I would just, you know, reccology has access to live service level data along with the cost of their services, which we do not have access to, on a regular basis live, and so when talk.

643
Alexa Kielty 02:46:58.600 --> 02:47:06.560
Talking to a customer or about their contamination charges, for example, is something that our staff can't do.

644
Ben Becker 02:47:08.840 --> 02:47:13.200
And, and how frequently does reccology share.

645
Ben Becker 02:47:14.600 --> 02:47:19.760
Cu customer information with Department of Environment.

646
Ben Becker 02:47:22.920 --> 02:47:26.760
For, for the pertinent issues that you're trying to address.

647
Alexa Kielty 02:47:30.600 --> 02:47:35.840
Hey, do you wanna answer that she's been working more closely with the de- the data uploads.

648
Hilary 02:47:37.640 --> 02:47:58.120
I, I, yes, ideally we get monthly data. There has been some pretty serious delays on recology's part in getting us consistent and comprehensive data, but ideally the system going forward is that they will be stopped sufficient to respond all the, all the reporting reques.

649
Hilary 02:47:58.120 --> 02:48:18.600
Ques to help us do primarily the, we do the stick part, but not as fine part around communicating a CPW does as the one team does mandatory service and we focus on the source separation, some of the upstream requirements integrating messages around environmental preferable purch.

650
Hilary 02:48:18.600 --> 02:48:39.080
Asing we, we have on the books related to food where so we provide more of an integrated and some compliance messaging when necessary and that's often at the referral overcology. Oh, this is an ongoing issue. We have a containmentation charge. Our staff is sort of a more gentle approach. Can't get this customer to be compliant and to take responsibility and.

651
Hilary 02:48:39.080 --> 02:48:59.560
Then the Rocky Separation Compliance ordinance is a great example of that where Collogy does drive on the grounds capturing a photos cause they steward the material. They're collecting the compactors, so they have their staff coordinate to be on the ground at the time, especially in the case of compactors to service to take pictures on the floor of the tipping.

652
Hilary 02:48:59.560 --> 02:49:20.040
Floor our software legality, you know, insurance, we're not gonna be there, but then they forward those photos and we administer any relevant communications to a business and then require them to take steps to address the containation. So that's sort of an example of how very uniquely positioned to administer a component of.

653
Hilary 02:49:20.040 --> 02:49:36.080
Ity cities requirements and zero waste schools, and then we are part in getting that information and, and administry subsequent violations or often a good conversation. Oh, you're doing well, thanks for source, operating.

654
Ben Becker 02:49:37.960 --> 02:49:47.040
Okay, and so does environment issue Any citations in the same way that the one team does.

655
Ben Becker 02:49:48.240 --> 02:49:48.840
W.

656
Hilary 02:49:48.840 --> 02:49:55.080
Hilary, again, waste commercial coordinator, we have limited.

657
Hilary 02:49:56.520 --> 02:50:17.640
In enforcement capabilities, outlined environment code related to mandatory recycling and composing those chapter nineteen and the refuse separation compliance ordinance. We don't have a code sort of compliance book like DPW around the regular maintenance of mandatory refuse service. That's, that's their wheelhouse would be very limit.

658
Hilary 02:50:17.640 --> 02:50:38.760
Limited enforcement capabilities. Like I said, related to chapter nineteen that's around sharing service. Do we do some amount of conversations with businesses who wanna share with tenant or a neighbor and not maintain the required recycling and compost team collection services and let me know if I'm getting two in the weeds.

659
Hilary 02:50:38.760 --> 02:50:55.400
And then we administer the Racky separation compliance ordinance and it's not a, it's not a code via maybe it is a code violation, but we don't, we and minister notice of compliance and all of the regulations that are spelled out in the code.

660
Ben Becker 02:50:56.040 --> 02:51:09.040
Okay, so it, it sounds like environment is pretty reliant oncology in order to be able to bill rate payers, collectly correctly in timely and get this information.

661
Ben Becker 02:51:12.040 --> 02:51:27.280
Can recally speak to why there may have been delays in providing this information to environment in the past is recalled to require to pay anything back regarding that.

662
Ben Becker 02:51:28.680 --> 02:51:31.200
Damages or, or otherwise.

663
Anthony Crescenti 02:51:39.560 --> 02:51:43.880
Oh, Terry's logging in right now. One second.

664
Anthony Crescenti 02:51:45.960 --> 02:51:57.040
Hi Terry, Dam. Regional controller for San Francisco. The reason for those delays is, you know, previously we were asked to open.

665
Anthony Crescenti 02:51:58.120 --> 02:52:18.600
Data for our accounts receivable customers since I've been on board and working more closely with Hilary, you know, we talked about being able to provide, you know, comprehensive data across all of our customers and right now our system is just, it's takes.

666
Anthony Crescenti 02:52:18.600 --> 02:52:32.160
A lot of manual work to be able to do that right now and we are working with our ITT and to be able to come up with that set of data, so that is, you know, one of the main reasons for the delay.

667
Ben Becker 02:52:34.600 --> 02:52:43.120
Thank you Terry. That makes sense. I think we're gonna need to move on to the next section, cause we're definitely running behind. Thank you.

668
Ben Becker 02:52:44.360 --> 02:52:48.040
I'm gonna share this screen again, just with our.

669
Jay Liao 02:52:48.040 --> 02:52:48.680
President.

670
Ben Becker 02:52:48.680 --> 02:52:49.320
Discussion.

671
Jay Liao 02:52:49.320 --> 02:53:01.760
We maybe give people two minutes if you need bio- breaks or anything like that, and then we'll, we'll be back eleven, forty- one. That's okay.

672
Jay Liao 02:53:02.760 --> 02:53:03.880
Cool.

673
Bruce Robertson 02:53:15.560 --> 02:53:16.840
How many minutes two.

674
Jay Liao 02:53:16.840 --> 02:53:20.040
Two minutes, yeah, just quick quick break.

675
Ben Becker 02:53:20.680 --> 02:53:21.960
Really quick.

676
Jay Liao 02:53:21.960 --> 02:53:23.080
Yeah.

677
Jay Liao 02:54:15.720 --> 02:54:16.840
Yeah.

678
Jay Liao 02:55:28.620 --> 02:55:29.740
Okay.

679
Jay Liao 02:55:37.580 --> 02:55:38.700
See.

680
Jay Liao 02:55:45.900 --> 02:55:48.060
We have folks back.

681
Jay Liao 02:55:59.980 --> 02:56:07.060
Take for this one, we're pretty interested in making sure the DPW team is there Bruce and I, and.

682
Jay Liao 02:56:11.500 --> 02:56:12.620
Okay.

683
Anthony Crescenti 02:56:19.820 --> 02:56:30.060
If you can only see you or, or the other folks from ecology back. Oh yeah, we got people just filtering back. I, I think I'm handling most of this part, anyways.

684
Jay Liao 02:56:30.060 --> 02:56:31.180
Okay.

685
Jay Liao 02:56:31.340 --> 02:56:32.460
So.

686
Anthony Crescenti 02:56:32.620 --> 02:56:34.540
You know, get started whenever you're ready.

687
Jay Liao 02:56:34.540 --> 02:56:55.020
Great, great, so we'll start the first, the next agenda items around program enhancements. The first are specific to abandoned materials and public receptacles. So these are enhancements that phologies requesting for these two.

688
Jay Liao 02:56:55.020 --> 02:56:56.140
Programs.

689
Jay Liao 02:56:57.580 --> 02:57:18.060
Specific entampment enhancements based on their refuge rate board presentation about nine hundred sixty- nine thousand and band of materials and eight hundred and eight six thousand for public receptical service for, for both years during the board sharing, we didn't estimate based on.

690
Jay Liao 02:57:18.220 --> 02:57:38.540
The estimates in the presentation, there's about six point four million in total for abandoned materials costs close to five million for public receptacles. Yesterday we received new estimates for this hearing for total expenditures for.

691
Jay Liao 02:57:38.540 --> 02:57:59.020
A band materials was about seven point, eight million and six point, three million in eight year, twenty- twenty- four to eight million for benda materials and six and a half million for public receptacles in regular twenty- twenty- five. So there's some variance here from the previous estimates.

692
Jay Liao 02:57:59.260 --> 02:58:18.260
In addition is requesting two new ft for bit of materials to new ft for public recipacles, beginning and right year twenty, twenty- four, no new FTE for twenty- twenty five we had sent recology.

693
Jay Liao 02:58:19.500 --> 02:58:39.980
Some questions related to both these items, mainly request for undeplicated calls tonage changes and baby service detail for bidding materials and questions for public recepticals details around schedules and routes adjustment to downtown zones during the pandemic and reallocation of resources to neighborhoods and.

694
Jay Liao 02:58:39.980 --> 02:58:48.900
Then they expected impact will be barrels. So with that, I just wanted wanna turn it over to Acology for their presentation.

695
Anthony Crescenti 02:58:50.860 --> 02:59:01.100
Thank you Jay. Yeah, and I'll just comment that the update on the program process that are shown there were result of a, a request for some additional detail in those costs.

696
Anthony Crescenti 02:59:02.380 --> 02:59:06.140
That, that number change reflects that additional detailed requested.

697
Jay Liao 02:59:06.220 --> 02:59:26.700
And so one, one before we jump into this, we asked for additional detail, particularly how these programs, how the cost of these programs match up with the expenditure line items and the submission. So I think we're still waiting for that right now. The detail in there is, is it just says like, various line it.

698
Jay Liao 02:59:26.700 --> 02:59:32.900
Items, so I think we need those breakouts in order to kind of help developer rate model.

699
Anthony Crescenti 02:59:34.380 --> 02:59:39.500
Yeah, and yeah, we have got that one of that as soon as possible.

700
Anthony Crescenti 02:59:40.780 --> 02:59:46.780
Okay, Anthony Krenti, general manager for Sunset Staffinger. Next slide, please.

701
Anthony Crescenti 02:59:49.500 --> 03:00:09.580
In looking at our abandoned materials program information that was requested, we here have your information from prior year showing our tonage, in addition to our adjusted three, one, one request being unique. E- three, one, one request for moving any potential duplicates.

702
Anthony Crescenti 03:00:10.220 --> 03:00:28.740
Using an adjustment factor in response to requested information. I think what is important to glean from this, this chart is that Tony John, it's own is not indicative of, of the demand of the program. We obviously see spikes with the pandemic years, which were outliers.

703
Anthony Crescenti 03:00:30.060 --> 03:00:50.540
In material being left in the public right away, but it's very important to look at the three one, one request adjusted to understand where the, the demand of the program is at we respond to all three, one- one request, regardless of the nature of the material that's set out there. Some of it may be heavier than other stops.

704
Anthony Crescenti 03:00:50.540 --> 03:01:11.020
And I think we're seeing that prove out in the amount of times that were picking up. However, our calls, most notably twenty eighteen versus twenty- twenty- two are up fourteen percent that twenty eighteen being a year to, to focus on as it was POS.

705
Anthony Crescenti 03:01:11.020 --> 03:01:14.380
Twenty, seventeen great application, which with the six.

706
Anthony Crescenti 03:01:15.500 --> 03:01:36.620
Er, existing zones that were involved and now this in twenty- twenty two, the program has continued to, to show higher demands, we are meeting these higher demands just to be to be very clear with our current resources, however, our request for the additional zone is really to improve our response by it.

707
Anthony Crescenti 03:01:36.620 --> 03:01:57.100
Response time our response time has eroded as the demand of the program has increased and the additional zone will will allow us to better address calls and within a, a four hour time period, which is our goal and also provides us the opportunity to proactively clean the streets. So.

708
Anthony Crescenti 03:01:57.100 --> 03:02:12.580
The additional zone is really about keeping the city clean. We are not only just partners with San Francisco, but we weren't work here and it's very important for us to be a part of the solution and we feel that this additional zone gives us that opportunity.

709
Anthony Crescenti 03:02:15.020 --> 03:02:16.980
The next slide, please.

710
Anthony Crescenti 03:02:19.500 --> 03:02:39.340
Okay, a couple of other programs that are related to the materials that are existing currently and are included in the two continue in the rate application, one of which is a hard word collection cardboard is traditionally not been an item that has been source separated during abandoned materials collection.

711
Anthony Crescenti 03:02:39.340 --> 03:03:00.460
Ation we was with the recent increase in abandoned cardboard on the streets as we've seen over the last six months, it was requested of us to collect that material. We are doing so with two current headcount two ftes, we're filling these Ftes through overtime and we are collecting this mater.

712
Anthony Crescenti 03:03:00.460 --> 03:03:20.940
Material and we propose in our rate application to continue providing that collection if the city wishes it to continue next, we have the Babe service that we provide and partnership with the Department of Public Works. This program has existed for a number of years this, in, in a very highly impacted are.

713
Anthony Crescenti 03:03:20.940 --> 03:03:41.420
Area and we partner directly with public work staff that has recently been increased from four days a week to five day Monday from Friday and we are proposed to continue that programming partnership with Department of Public Works here. We have the requested schedule in generally the area that we provide.

714
Anthony Crescenti 03:03:41.420 --> 03:03:51.940
Service to Blue dots, just as a representation of some of the hot spots that, unfortunately, that seed quite a bit of abandoned material that we respond to on a regular basis.

715
Anthony Crescenti 03:03:54.860 --> 03:03:56.740
Next slide, please.

716
Anthony Crescenti 03:04:00.620 --> 03:04:05.180
Wanna cover public receptives requested some information.

717
Anthony Crescenti 03:04:06.380 --> 03:04:26.860
To break it out there was adjustments made already to the dedicated public receptical routes that were done during the pandemic. Pre- pandemic. We ran week day routes and eleven week and routes, and again, these are dedicated, second pass collection routes. These are, in addition to.

718
Anthony Crescenti 03:04:26.860 --> 03:04:47.340
The first past collection routes that go out and provide not only the pickup of the public receptacles, but also of the cans that they normally pick up from residential commercial and department customers. Initially, there was a shelter in place phase of the immediately in the eliminated, a down.

719
Anthony Crescenti 03:04:47.340 --> 03:05:07.820
Round route, which is the one change that is noted here and of course, eliminated quite a bit of the weekend routing as the weekend did not see the foot traffic that we had normally seen pre- pandemic. So seven of the routes were temporarily removed as the pandemic contin.

720
Anthony Crescenti 03:05:07.820 --> 03:05:08.460
Ud

721
Anthony Crescenti 03:05:08.760 --> 03:05:29.240
And shelter in place eased and people began to get outside more as that became very popular to do. we were, we did not bring back any weekday routes and we ended up bringing back, er, six of the weekend routes, so these would be providing second pass dedicated.

722
Anthony Crescenti 03:05:29.240 --> 03:05:49.720
Collection to Kans that we're seeing a lot of use as people got out of their houses and needed service. The allocation of resources was done during the pandemic. The realgation, so as the question comes, what can we do for continued reallocation of resources.

723
Anthony Crescenti 03:05:49.720 --> 03:06:10.200
Any additional reallocation of existing second pass services would require the elimination of a pickup to a can, and while material may be less in this cans, they still require at least twice a week twice a day service.

724
Anthony Crescenti 03:06:10.200 --> 03:06:30.680
At, at second pass, and so we wanna avoid any blind issues or an unintended consequences, especially in absence of data to support what can's require additional service and what can's do not require as much service and there's opportunity there and the.

725
Anthony Crescenti 03:06:30.680 --> 03:06:42.200
Sensors that are currently being deployed. I think we'll perhaps in the future, Enlighten that in us on, on where we can make adjustments and, and move resources.

726
Anthony Crescenti 03:06:44.120 --> 03:06:45.960
Next slide, please.

727
Anthony Crescenti 03:06:51.160 --> 03:06:53.600
So I was mentioned, I think the additional.

728
Anthony Crescenti 03:06:55.000 --> 03:07:15.480
Ceptacles, there's quite a bit of them as a question was asked and we add additional receptacles to places to offset the need for additional passes. I think that would be further studied in the, the censors may and provide that information, However, there are many spots through.

729
Anthony Crescenti 03:07:15.480 --> 03:07:35.960
For San Francisco, specifically the ones that receive a lot of good traffic that the Department of Public Works is responsible for the, the siting and quantity of the public percepticals and those have a over the years have been adjusted based upon demand in the area. So in many places, you'll see multiple public receptacles. They've one.

730
Anthony Crescenti 03:07:35.960 --> 03:07:42.520
Ter section and that is a response to that demand. So I believe that in some many cases, this already exists.

731
Anthony Crescenti 03:07:44.280 --> 03:08:04.760
As far as the sensor impact, I've mentioned the censors have begun to roll out and we have some, some limited data as I mentioned during the rate hearing, I think there's time there's a need to validate the information that's being brought in from these sensors. However, we are seeing.

732
Anthony Crescenti 03:08:04.760 --> 03:08:25.120
A significant increase in the number of requests that come from three, one, one, the three one, one handles all of our dispatching out overflow requests for city cans, In this case, with the addition of the sensors, it's sending out data to tell us to provide service to the cans.

733
Anthony Crescenti 03:08:25.240 --> 03:08:45.720
When we adjust out the sensors are number of requests are in line for the four month period, January to April with twenty- twenty- two. So, twenty- twenty- three versus twenty- twenty two is in line with the number of normal three, one, one request that a person who may see an issue may report to three, one, one with the addition of the sensors. We're seeing a two hundred.

734
Anthony Crescenti 03:08:45.720 --> 03:09:06.200
Hundred and eighty- five percent increase in these service requests over that four month period, and that's creating again, a demand upon us to respond to the requests we respond to all of them, and it's important that the additional routing resources that were requesting or provided.

735
Anthony Crescenti 03:09:06.200 --> 03:09:26.680
So that we can meet the demand and we believe these as the centers come online as more information is provided and more data could be analyzed, we're able to adjust the resources to, to what's actually out there, but initially two headcount and the two routes we believe are necessary to respond to.

736
Anthony Crescenti 03:09:26.680 --> 03:09:36.560
This new, as well as providing additional services that are being requested over time for additional passes and areas that traditionally.

737
Anthony Crescenti 03:09:41.400 --> 03:09:50.840
I, I think that concludes a number. Is there no slides Ben. So before the public wanna stop here, jade, you wanna continue with.

738
Jay Liao 03:09:54.840 --> 03:09:57.520
Sorry, and we can stop there.

739
Jay Liao 03:10:03.800 --> 03:10:12.120
So I think that opens it up for discussion. I don't know if public works had anything they wanted to present on this, but no.

740
Bruce Robertson 03:10:12.120 --> 03:10:14.680
Over a couple of slides, Jay and I can go through a real quickly.

741
Jay Liao 03:10:14.680 --> 03:10:17.320
Yeah, okay, why don't we do that.

742
Jay Liao 03:10:24.880 --> 03:10:24.920
Thank.

743
Bruce Robertson 03:10:24.920 --> 03:10:45.400
So once again, Bruce Robertson, Public works, you know, a lot of what Anthony said really I would echo it is in many ways a partnership with Phychology on the abandoned materials, we've adjusted the time of the abandoned materials program based on where we think it could be more effective. The Bay View program has highlighted. w- again, these are colla.

744
Bruce Robertson 03:10:45.400 --> 03:11:05.360
Proabitive partnerships and, and working efforts with the ultimate goal of, of trying to keep the, the city clean there is an SOA on some of these Soas a little bit more informal and it really wanna, you know, use this process to try to formalize some of these, but roughly a four hour SOA for abandoned materials electronics.

745
Bruce Robertson 03:11:05.880 --> 03:11:26.360
Matts furniture appliances, contained garbage shopping car. Some of some of the usual large items and this really is a key collaborative service with Public Works be with public Works and we're ecology. Public Works does a lot of our, our cleanup and pickup.

746
Bruce Robertson 03:11:26.360 --> 03:11:46.840
Talks, so if we were to pick up matrixes or a refrigerator or a large appliance, that one item is gonna take up the entire back of that truck recology has the packers. They've got the large scale equipment, so it does create a lot of efficiency in terms of, of keeping the city clean that said public works.

747
Bruce Robertson 03:11:46.840 --> 03:12:07.320
Does do some of this after hours. So, again, it's, it's really that collaboration, so, you know, there, there were in this application has proposed some expanded coverage and the continued focus on, on hot spot areas, so, you know, I think generally speaking the goal of keeping the city clean as a daunting and, and diffic.

748
Bruce Robertson 03:12:07.320 --> 03:12:27.800
ICULT challenge, so any additional effort would be helpful and warranted on next slide and if possible, so city can service again, same bullet point it really is a partnership with Rcology. This allows us to focus on other refuse on the street on the sidewalk.

749
Bruce Robertson 03:12:27.800 --> 03:12:48.280
Elsewhere in the public, right away from a college can handle the, the pickup of the city cans, again, some, some high level Soas that we need to revise and, and make sure that they are not informal, but actually are codified and, and written down. These were from three, one, one. So we need to, to look at those Soas, but I think.

750
Bruce Robertson 03:12:48.280 --> 03:13:08.760
Think the, the main discussion point is a lot of what Anthony talked about is the changes in the, in the service level and, and what that's gonna look like, you know, I, I think we're running the pilot on the Trashcan sensor data now I think is highlighted in their presentation. Some of the impacts of that preliminary data and, and what we're seeing it. So the one thing that we.

751
Bruce Robertson 03:13:08.760 --> 03:13:29.880
I have asked for, in this application is a new analyst, really help do that. The, the, analy the analysis and really crunched the data to see what does the reallocation look like. Do some areas need a F- second pass, maybe even a third pass do whether areas need maybe once a week pass, depending on what it is.

752
Bruce Robertson 03:13:29.880 --> 03:13:50.360
Where is the location? you know, how are we analyzing what is the impact of the foot traffic and the adjustments on, on the overall demand and, and the pick up frequency? So hopefully, you know, between the center data, when we roll out our new trashcans, that will all have sensors in the, roughly three thousand trash cans that we have really, it will create a way to have.

753
Bruce Robertson 03:13:50.360 --> 03:14:08.040
Sufficiencies and really focus on the high impact areas on an, as needed basis. So again, you know, really just high level overview on the public works side, what we're looking to see out of this refuge rate application. so, so thanks Ben and Jay and happy to answer any questions.

754
Jay Liao 03:14:11.480 --> 03:14:30.680
Speaking we can open this up to discussion. I, I do wanna get recologies reaction to Bruce had the service level agreements or those are the ones that we want memorialize in a rate order. It seems like the previous one there was a four hour for abandon.

755
Jay Liao 03:14:30.680 --> 03:14:34.400
Ed material pickup two hours for campus subcles.

756
Anthony Crescenti 03:14:39.640 --> 03:15:00.120
Yeah, Jay Andy Gracety again, yeah, I think we would need to really do a deep dive on the data to understand what the appropriate levels of, of the would be, especially when it comes to the public receptacles that, that one I think, and, and also specific to the addition of sensors, what, what impact that has.

757
Anthony Crescenti 03:15:00.120 --> 03:15:20.600
Of not on knowing the, the daily location and level of service that's required to be provided due to the dynamic nature of a sensor edition would obviously drive a revision possibly to that SLA, and I think what would work control is office and us we need to really have a good understanding of.

758
Anthony Crescenti 03:15:20.600 --> 03:15:21.240
What what

759
Anthony Crescenti 03:15:20.960 --> 03:15:23.160
Something that would be appropriate.

760
Jay Liao 03:15:25.000 --> 03:15:31.280
Would be, and it's achievable, but it's a stretch for us as well. Not something that is out of the.

761
Jay Liao 03:15:35.040 --> 03:15:41.040
Okay, I think that's what the plan was something we'll have to sort out. I think ahead of, out of the rate order.

762
Jay Liao 03:15:47.920 --> 03:16:08.240
So I, the other question I have is around, I think the addition of FTE does when you're calculating the cost of these enhancements, I'm assuming that is, that include savings from, from less overtime. I'm assuming there's overtime for folks.

763
Jay Liao 03:16:08.600 --> 03:16:17.760
To cover the service levels needed. So if we're adding new FTE, this is cost include savings from overtime.

764
Anthony Crescenti 03:16:20.480 --> 03:16:35.200
Yeah, great question. I, I think I would wanna go look at the remodel again, just to validate to make sure that we have that in there, but again, the, the overtime that we're occurring, particularly on the abandoned material side.

765
Anthony Crescenti 03:16:36.480 --> 03:16:43.080
Maybe we could see potentially an offset, although I don't believe it'll be a significant dollar value.

766
Ben Becker 03:16:43.520 --> 03:17:04.000
Yeah, I just wanted to reiterate a request that we've had as well for just to go along with this entire submission here over time for all of these different roles over the past, you know, since right year, twenty- twenty to the present we wanna see, you know, how much over.

767
Ben Becker 03:17:04.000 --> 03:17:24.480
Time, are you doing for your regular group pickups how much overtime for abandoned materials, How much overtime for the public street bins and so on cardboard, you know, seems to be a significant overtime cost, so, you know, in, in terms of hours and in terms of dollars, thank you.

768
Jay Liao 03:17:24.520 --> 03:17:25.640
Ence.

769
Anthony Crescenti 03:17:27.040 --> 03:17:31.520
And yes, absolutely we have the request and we'll make sure that we get to.

770
Jay Liao 03:17:31.520 --> 03:17:32.160
Yeah.

771
Anthony Crescenti 03:17:32.160 --> 03:17:52.640
I think to be clear, one of the, the challenges with that is that as an example with cardboard, is that my understanding we made assign somebody to do with the cardboard and what it, what happens is it leads to some overtime in another area to cover one of the reg.

772
Anthony Crescenti 03:17:52.640 --> 03:17:53.920
Regular routes.

773
Anthony Crescenti 03:17:53.920 --> 03:17:57.120
So you got as- as we've talked before.

774
Anthony Crescenti 03:17:57.760 --> 03:18:09.920
I think as we sit today and as we have managed historically, you know, we've run a lot of individual programs, but for the most part, we've managed.

775
Anthony Crescenti 03:18:10.560 --> 03:18:29.760
All of those, you know, specific programs, but also managed our overall system. So part of the reason why we, we have been working to, to provide information, but haven't readily been able to, you know, provide everything that you've asked for this.

776
Jay Liao 03:18:29.760 --> 03:18:30.400
Point.

777
Anthony Crescenti 03:18:30.400 --> 03:18:31.680
Is that.

778
Anthony Crescenti 03:18:31.680 --> 03:18:46.400
There's a lot of kind of detailed question you're asking for which we don't really have the data broken down that way, and the concern is, if we go through and make, you know, make allocations that.

779
Anthony Crescenti 03:18:47.680 --> 03:18:50.880
To do our day- to- day management today.

780
Jay Liao 03:18:50.880 --> 03:18:51.520
Hey.

781
Anthony Crescenti 03:18:51.520 --> 03:18:53.440
Who wanna create a, a false.

782
Jay Liao 03:18:53.440 --> 03:18:54.080
St.

783
Anthony Crescenti 03:18:54.080 --> 03:18:56.000
Idea of the cost.

784
Jay Liao 03:18:56.000 --> 03:18:56.640
Specific.

785
Anthony Crescenti 03:18:56.640 --> 03:19:01.760
Program as we've discussed going forward. We are.

786
Jay Liao 03:19:01.760 --> 03:19:02.880
For.

787
Anthony Crescenti 03:19:03.040 --> 03:19:06.240
You know, we're in the, the starting the planning phase.

788
Jay Liao 03:19:06.240 --> 03:19:06.880
Six.

789
Anthony Crescenti 03:19:06.880 --> 03:19:17.840
Update our systems and our practices to be able to report at much more granular level at a program level.

790
Anthony Crescenti 03:19:19.040 --> 03:19:24.160
Which is again, something, unfortunately today we've struggled with a little bit.

791
Anthony Crescenti 03:19:24.800 --> 03:19:30.560
By virtual of the, the structured that we've used in the past today.

792
Jay Liao 03:19:30.560 --> 03:19:31.200
I.

793
Anthony Crescenti 03:19:31.280 --> 03:19:35.680
You know, it's one of the ad that I think one of the key to remember here is, is that.

794
Anthony Crescenti 03:19:35.680 --> 03:19:50.400
Flexibility that our system does offer city, you know, the city came to us with a problem that was based on a park thing abandoning cardboard and we were able to adjustment and create that instantly.

795
Anthony Crescenti 03:19:51.040 --> 03:20:03.200
Meeting with Ben Rosenfield and Carla Short and make that adjustment very quickly to service the city and meet that demand because of the way that structure is off.

796
Anthony Crescenti 03:20:03.840 --> 03:20:07.680
Further more that also is also evidence why you need a decouple tonuage.

797
Jay Liao 03:20:07.680 --> 03:20:08.320
Change.

798
Anthony Crescenti 03:20:08.320 --> 03:20:13.440
Service calls because as you can see, you know, you can pick up a ton of cardboard and take eight hours.

799
Anthony Crescenti 03:20:14.080 --> 03:20:29.440
You get one ton of cardboard as opposed to picking up a ton of things which would add tonages and so that's why we wanna really stress also that the number of calls, the time it takes to get there the time it takes to provide it services is really the driver. The number of calls.

800
Jay Liao 03:20:29.440 --> 03:20:30.080
Meetings.

801
Anthony Crescenti 03:20:30.080 --> 03:20:37.760
Need a need for these drivers to fulfill those roles and not incur over time, perhaps.

802
Jay Liao 03:20:37.760 --> 03:20:38.400
Place...

803
Anthony Crescenti 03:20:38.400 --> 03:20:39.040
Certain delay, certain.

804
Anthony Crescenti 03:20:39.040 --> 03:20:40.160
Time.

805
Jay Liao 03:20:40.960 --> 03:20:41.600
So.

806
Anthony Crescenti 03:20:41.600 --> 03:20:42.720
So.

807
Jay Liao 03:20:43.520 --> 03:21:03.360
Thanks for that. And just an, another question about, I, I think that point of service calls kinda looking it back at that, that chart you had that table you had, you were comparing it tw twenty eighteen, but looking at twenty- nineteen the service call under did it adjusted number seems fairly close to what we have.

808
Jay Liao 03:21:03.360 --> 03:21:22.400
Today, and I'm, I'm curious, and that was also pre- pandemic service. I'm curious, you know, of recall these ability to address service in twenty nineteen without the additional zone and resources if you were still meeting kind of the.

809
Jay Liao 03:21:23.840 --> 03:21:29.080
They agreed upon service level agreement and, and without having kind of the overtime.

810
Jay Liao 03:21:30.880 --> 03:21:31.520
Yeah.

811
Anthony Crescenti 03:21:31.560 --> 03:21:38.560
I would say as I mentioned, Jay, during the, my brief presentation there, we are.

812
Anthony Crescenti 03:21:38.560 --> 03:21:59.040
M- even the demand, right? The, the, the need ex in twenty nineteen, we, we up our overtime or we respond and just go a little bit longer, but we get to the calls as the program as demanded more, and it's, it's not that we were.

813
Anthony Crescenti 03:21:59.040 --> 03:22:19.520
Doing it in twenty nineteen and now we're not serviced material in twenty- twenty three. It's an important that we just make that distinction as far as the time goes. I think it's an, I don't have the number in front of me, what our twenty nineteen response time was, but I'm happy to look at that and, and share that in subsequent.

814
Anthony Crescenti 03:22:19.520 --> 03:22:29.760
Meeting, but it, it is just to make note of the addition of the zone that we're asking for is to be able to provide, you know, a faster response time, which one material.

815
Jay Liao 03:22:29.760 --> 03:22:30.400
Been...

816
Anthony Crescenti 03:22:30.400 --> 03:22:50.880
Follow the light issue that we, we do not want and allows us also to really get to that material before is needed. The, the sooner that we're able to service material the better and not necessarily requiring it to be seen by, by the public or anybody else. Jay, this is.

817
Anthony Crescenti 03:22:51.520 --> 03:22:54.080
Also response to your SLA question.

818
Jay Liao 03:22:54.080 --> 03:22:55.200
Ah.

819
Anthony Crescenti 03:22:55.360 --> 03:22:59.200
Smart, it's hard to make that comparison as the twenty- three.

820
Anthony Crescenti 03:22:59.200 --> 03:23:04.320
Information the way that, that was set up in twenty nineteen and the numbers services in the.

821
Jay Liao 03:23:04.320 --> 03:23:05.440
Areas.

822
Anthony Crescenti 03:23:05.600 --> 03:23:12.000
Had certain times that change due to the city's request, for instance, change the time of serving.

823
Anthony Crescenti 03:23:12.000 --> 03:23:14.560
Maybe in the middle of the day during the highest amount of traffic.

824
Jay Liao 03:23:14.600 --> 03:23:15.200
IC.

825
Anthony Crescenti 03:23:15.200 --> 03:23:19.040
For DPW and other sources.

826
Anthony Crescenti 03:23:19.040 --> 03:23:20.320
So the program as it looks.

827
Jay Liao 03:23:20.320 --> 03:23:20.960
Today...

828
Anthony Crescenti 03:23:20.960 --> 03:23:21.600
Is not.

829
Jay Liao 03:23:21.600 --> 03:23:22.240
Side.

830
Jay Liao 03:23:22.880 --> 03:23:23.520
The, the.

831
Anthony Crescenti 03:23:23.520 --> 03:23:28.000
Design is set up for the rate because it was adjusted due to the city city asking.

832
Anthony Crescenti 03:23:28.640 --> 03:23:29.920
Just adjustments in.

833
Jay Liao 03:23:29.920 --> 03:23:30.560
Couple of years and.

834
Anthony Crescenti 03:23:30.560 --> 03:23:31.200
Others.

835
Anthony Crescenti 03:23:31.840 --> 03:23:37.240
Them making that comparison would be very difficult.

836
Jay Liao 03:23:39.520 --> 03:24:00.000
Okay, I, I think the, I do want to ask our folks at DPW if they have any concerns or about this proposal, or if there are any questions they would have, since it does kind of impact, I think our public works.

837
Jay Liao 03:24:00.640 --> 03:24:03.720
Goals in terms of a clean streets.

838
Bruce Robertson 03:24:08.320 --> 03:24:28.160
Jay, you know, I, I think Anthony and Dan and, and the folks that have been speaking on their college side have kind of reiterated the point, you know, it's a partnership and the programs change and adjust based on the requirements that are identified by both parties, you know, Dan, I think in particular mentioned the meeting that he had with Ben, Ross and Field and car.

839
Bruce Robertson 03:24:28.160 --> 03:24:34.560
Ish, to talk about some of the change programs. So as long as that continues, I think it's gonna help.

840
Bruce Robertson 03:24:34.560 --> 03:24:55.040
Public, the public works goals of, of clean and safe city streets that are in alignment with the top priorities from the mirror's office. So I, I, I think there was a good synergy there. I just think the only other thing I, I would add is, you know, really, once we do a deep dive into, and, and we're laser focused on the efficiency of the trash can.

841
Bruce Robertson 03:24:55.040 --> 03:25:07.840
Hands and the data from the centers. I think that's really gonna be the, the interesting element that we'll, we'll see, but I, I, at least for the public works that, I, I, again, I think it's a, it's an exciting proposition to see what the data says.

842
Jay Liao 03:25:08.480 --> 03:25:18.920
Yeah, in one of the things that were calling had outlined, is that there that it might increase the need for service?

843
Jay Liao 03:25:20.000 --> 03:25:39.000
Is there, I, I feel like there's a scenario where maybe it creates, it's supposed to create efficiencies and I'm, I'm wondering is, is this just kind of a based on, is that increased in service based on kind of this initial data and what we expect adjustments where we would see kind of efficiencies down the line.

844
Jay Liao 03:25:41.340 --> 03:25:55.420
My anticipation is exactly that. I think the initially we are participating the increase and we're seeing that and we are required to respond to those and we do, I anticipate that.

845
Anthony Crescenti 03:25:56.060 --> 03:26:06.300
It's sharpening of that data that will guide potential efficiencies We will always open to making sure that it was in line with whatever service level being asked.

846
Jay Liao 03:26:06.300 --> 03:26:07.420
Asked.

847
Anthony Crescenti 03:26:08.220 --> 03:26:27.420
I, you know, J, I imagine that once you have a full set of data, there'll be a reimagination of that program and what will be up to, you know, DPW to the city and, and us in part of how that works, but, you know, I think it, it, in my experience in these types of scenario.

848
Jay Liao 03:26:27.420 --> 03:26:28.060
But.

849
Anthony Crescenti 03:26:28.060 --> 03:26:29.340
You up tech.

850
Anthony Crescenti 03:26:31.260 --> 03:26:44.060
Certain areas, you know, these can't we're gonna find out probably, you filled up more often than we figure because if the material ends up on the sidewalk or other places abandoned material when you start applying the appropriate service level.

851
Anthony Crescenti 03:26:44.700 --> 03:26:49.180
Maybe one it needs to be service five times a day. You should see responding reduction.

852
Anthony Crescenti 03:26:50.460 --> 03:26:56.220
So those efficiencies may not be totally linear, but as Anthony said, we'll find.

853
Anthony Crescenti 03:26:56.860 --> 03:26:57.500
Sufficiencies.

854
Anthony Crescenti 03:26:58.140 --> 03:27:18.620
Whole data, so it actually would actually may end up happening is you may have end up all resources in the public receptacles because more than materials ending up in them because they're being service more frequently or correctly or in the right frequency in certain areas unless in other areas, I think, you know, the work that proved like Bruce said, I think it's exciting. I think.

855
Anthony Crescenti 03:27:19.260 --> 03:27:19.900
Data.

856
Anthony Crescenti 03:27:19.900 --> 03:27:28.860
You can re- imagine the program to the benefit of the citizens. The DPW in our ability to service it, but in the meantime, what it's really telling us is that we.

857
Anthony Crescenti 03:27:29.500 --> 03:27:31.300
Fall off their.

858
Anthony Crescenti 03:27:33.340 --> 03:27:37.820
Through I'd be curious how Bruce feels about that statement and, and everybody else, but I, I think that.

859
Bruce Robertson 03:27:41.660 --> 03:27:48.700
Yeah, I, I think the only thing I would add is it may change the frequency for some of the cans and the opposite direction as well.

860
Bruce Robertson 03:27:49.340 --> 03:28:09.820
See some are getting, are getting less use than we think, and then that requires one of two potential options, you know, just off the top of my head one is, do we need that can, or should it be moved to a different location or is it just a candidate useful and beneficial for that area, but just maybe needs, you know.

861
Bruce Robertson 03:28:09.820 --> 03:28:16.660
Service and less frequently than we currently think. I think it's gonna go both ways.

862
Anthony Crescenti 03:28:16.860 --> 03:28:19.220
I agree with Deboras that's right.

863
Jay Liao 03:28:22.620 --> 03:28:30.940
Okay, okay, wait a beat to see if there are any other questions, otherwise we'll move on to the next agenda item.

864
Jay Liao 03:28:32.860 --> 03:28:46.820
Okay, why don't we go on to the next gender item? See other program enhancements? And I know there's already presentation contamination fees, but we'll, I think we'll revisit that here.

865
Jay Liao 03:28:48.220 --> 03:29:09.220
Cause I think we still have some additional questions around that. So there are four program enhancements here. district cleanup with zero enhancements. We have already talked about contamation outreach and then the Organics reprocessing facilities. So the district cleanup events, wey, zero enhancements.

866
Jay Liao 03:29:10.620 --> 03:29:28.540
During the refuse rate board hearing, I've heard fifty- nine thousand, so there was actually a, we do want to get some clarity on this during the presentations. The number was just five hundred fifty- nine thousand dollars for the enhancements and the total program as a whole, and so.

867
Jay Liao 03:29:31.100 --> 03:29:41.900
Just wanna make sure that this covers the entire cost of the district cleanup events in the way zero program or this is just the enhancement portion.

868
Jay Liao 03:29:43.900 --> 03:30:01.820
So just getting clarity on that. So, for the, for the sorry for the, for this hearing submitted some updated estimates for these programs. Six hundred and forty thousand for district cleanup events.

869
Jay Liao 03:30:02.460 --> 03:30:22.940
Fifty thousand for enhancements and then an increasing two, six sixty- six hundred sixty thousand for distric cleanup and four hundred and sixty thousand enhancements, and then we have a small portion here for the Organics pre- processing system, which went from two hundred, five thousand, two hundred and sixteen thousand in the right year. Twenty- twenty- five and so that.

870
Jay Liao 03:30:22.940 --> 03:30:43.420
Would be a partial cost for the entire facility that we'd be spread across later, right years as well. In addition, there's contamination fees, estimated five million. There's a presentation on that already. So some of the questions we've asked around the district cleanup in.

871
Jay Liao 03:30:43.420 --> 03:31:03.860
Always zero program enhancements focus on details and resources needed level service and effectiveness of the programs for the contamination outreach fee questions wanted to understand the expected impact of the cameras in the FTE details on the estimate of the five million dollar fee revenue and who the fee would impact.

872
Jay Liao 03:31:03.900 --> 03:31:12.220
Then with the Organics preprocessing some questions related to effectiveness the facility and the requirements for stability.

873
Jay Liao 03:31:13.500 --> 03:31:18.700
So with that, I'll turn it back to Acology for their presentation.

874
Jay Liao 03:31:21.180 --> 03:31:22.460
On this item.

875
Anthony Crescenti 03:31:22.900 --> 03:31:33.540
And is Anthony, again, I will be presenting just the first part which will be the cleanup events and I'll turn it over and we'll pass this one around a little bit.

876
Anthony Crescenti 03:31:37.820 --> 03:31:55.100
For the weekend cleanup events, this will be brief stand to your question. The cleanup events are structured obviously on the weekends they themselves do not require like additional fts, but it is posted through overtime.

877
Anthony Crescenti 03:31:55.100 --> 03:32:15.580
To, to staff the events, the total number you saw, there is the cost of the excuse me, the cost of the event, as well as the addition of a supervisory headcount that's required to coordinate the twenty- two events, in addition to providing support in other areas where possible. So as far as the.

878
Anthony Crescenti 03:32:15.580 --> 03:32:36.060
Cleanups themselves, they are benefit to rate payers by allowing pairs the opportunity to dispose of smaller a more easily transportable items, Things that they might put into the trunk of their car apartment, residents may have some smaller items that they can take to.

879
Anthony Crescenti 03:32:36.060 --> 03:32:56.540
These cleanup events and that's where it compliments the BIR program and not necessarily operates as any offset to be IR and what I mean by that is the IR is really a program that goes more difficult to handle awkward items refrigerators, couches, large things such.

880
Anthony Crescenti 03:32:56.540 --> 03:33:17.020
Such as that may be put into CURB on a scheduled service date through the book item recycling the weekend cleanup events are just taking, you know, allowing people to bring items without having to schedule a bio or use up their appointment for items that they may able to easily transport and also the cleanups themselves offset AMC, we hope by.

881
Anthony Crescenti 03:33:17.020 --> 03:33:37.500
Providing people opportunities to properly dispose of the material as opposed to them potentially leaving things in the public drive way as far as notice for our customers. We do a public notice of the each event we do approximately four thousand mailers that are.

882
Anthony Crescenti 03:33:37.500 --> 03:33:57.980
Sent to the surrounding areas where the event is cited and that number mailers, you see, it really generates the amount of demand that we anticipate for the program that demand will, you know, show itself in the amount of tonage that we collect at the event and, but also very important, the amount of wait time.

883
Anthony Crescenti 03:33:58.620 --> 03:34:18.460
That is, somebody may experience when they come to these events. They're quite popular in the past and we want to ensure that people have positive experience when they come to de- to the event and they're able to dispose of their material in a reasonable amount of time for historical data was unfortunately fairly limited when it came to the amount.

884
Anthony Crescenti 03:34:18.500 --> 03:34:38.860
Er, service needed for each event, what information we were able to glean was in line with what we would anticipate anecdotally. So we anticipate about five degree boxes from average from a given event, weighing in just a little bit under three times that.

885
Anthony Crescenti 03:34:38.940 --> 03:34:59.420
Aligned to what we would anticipate, given the size of the boxes that we would want to use to provide service, so we look at about thirteen point six five times being collected to answer the question. I was post. So these events are we believe will be a positive benefit to the city again, our efforts, not only with abandoned materials, the public receptical.

886
Anthony Crescenti 03:34:59.420 --> 03:35:19.900
Routing these weekend cleanup events All surround keeping the city clean improving the street cleanliness that we have here in San Francisco is our most priority and we believe these three program enhancements will hopefully help in that endeavor with that we j. I can turn it over or would you like to pause on this one?

887
Anthony Crescenti 03:35:19.900 --> 03:35:22.900
Ju, just like us to do.

888
Jay Liao 03:35:25.020 --> 03:35:38.940
I think the other item was the, I think maybe just go through each of the programs. I items that we had listed out, so it'd cleanup events. The, sorry.

889
Anthony Crescenti 03:35:39.740 --> 03:35:42.300
I think it was same service that was next.

890
Anthony Crescenti 03:35:43.420 --> 03:35:46.300
We're falling in safe service to.

891
Jay Liao 03:35:47.900 --> 03:35:50.660
For the labor enhancements. So I got that.

892
Jay Liao 03:35:51.740 --> 03:36:01.100
Little bit of coordination here. So the way zero enhancements in the Organics preprocessing facilities be the other two.

893
Anthony Crescenti 03:36:03.260 --> 03:36:08.500
Kevin, I'll turn it over to Kevin plan again for that part.

894
Anthony Crescenti 03:36:10.300 --> 03:36:29.060
And Jay, as far as the cost breakdown for the way zero enhancements, I need to make sure that these numbers are correct. I believe they are correct as you have them here earlier when I was speaking to slides routine, they were coming. So I may have.

895
Anthony Crescenti 03:36:30.140 --> 03:36:33.980
Miscalculated that, but let me confirm this and get back to you.

896
Jay Liao 03:36:33.980 --> 03:36:35.100
Okay.

897
Jay Liao 03:36:37.220 --> 03:36:46.780
And then can we go to the. I don't know. I think there were presentations for ecology related to the, these other two items.

898
Ben Becker 03:36:51.900 --> 03:36:57.540
Sure, sure, so we're looking at contamination outreach and the Organics preprocessing.

899
Jay Liao 03:36:58.980 --> 03:37:03.500
I think we've already done the contamination outreach. We're looking for the.

900
Jay Liao 03:37:05.340 --> 03:37:07.900
Candidates compliance, I think would be the next one.

901
Ben Becker 03:37:09.820 --> 03:37:12.660
Do you know what slide that would be on?

902
Anthony Crescenti 03:37:13.540 --> 03:37:16.860
So, twenty- sixth of our, our deck.

903
Ben Becker 03:37:16.860 --> 03:37:17.500
Thank you.

904
Anthony Crescenti 03:37:27.740 --> 03:37:29.220
Okay, yep.

905
Anthony Crescenti 03:37:31.580 --> 03:37:38.620
General manager of the San Francisco. I've been processing and transfer operations for the San Francisco region.

906
Ben Becker 03:37:38.620 --> 03:37:43.140
Sorry, Maris, you're, you're a little bit quiet if you can get closer to the microphone.

907
Anthony Crescenti 03:37:44.380 --> 03:37:48.820
So how about my shout.

908
maurice quillen 03:37:50.140 --> 03:37:51.620
Is that better?

909
Ben Becker 03:37:52.060 --> 03:37:54.260
Yes, but with an echo.

910
maurice quillen 03:37:56.540 --> 03:37:58.460
About now you should not have an actual now.

911
Jay Liao 03:37:58.500 --> 03:37:59.620
So.

912
maurice quillen 03:37:59.740 --> 03:38:20.860
Perfect, alright, Collin, general manager Ofcology, San Francisco, I manage the transferring processing operation and Bloss and Valley Organics is established essentially a ten percent maximum contamination threshold for all loads of Organics being delivered to the facility for processing the contamination percentage established by.

913
maurice quillen 03:38:20.860 --> 03:38:41.340
On is based upon historical observations, the processing equipment's contamination removal capabilities, finish compost quality and consumer and market feedback improvements can either be route based or facility- based and recally is definitely committed to pursuing both avenues with education and incentives at the route level and with the post.

914
maurice quillen 03:38:41.340 --> 03:39:01.820
Collection contamination removal system. I'm at the transfer station. Not improving feedback. Could jeopardize our ability to deliver material to bloss and value organics and repositioning the San Francisco tonigence of the market occur contamination levels would be extremely difficult and potentially more expensive phology is already established at the organic.

915
maurice quillen 03:39:01.820 --> 03:39:20.060
Speed stock being delivered to bloss and valley contains up to twenty- four percent of non- composed material and San Francisco is being asked to make significant improvements of the contamination levels present within the Organics waist stream in order to maintain our ability to tip our material blossom valley by December of this year.

916
maurice quillen 03:39:21.020 --> 03:39:41.500
Cology, San Francisco was working with several of our equipment vendors to help produce near term and long- term organic contamination rule solutions. We've initiated a series of design sessions to work on finalizing the permanent organics cleaning system to be acquired and deployed and rate your twenty- twenty- five to put calculations indicate that we.

917
maurice quillen 03:39:41.500 --> 03:40:01.980
Would be required to process between thirty- five and forty- tons per hour to effectively process all the incoming organics tonage over two shifts. The proposed equipment is being designed with a fifty ton per hour throughput capacity to allow for variability and the feed stock and other real world factors based upon our experience, maximum design CAPA.

918
maurice quillen 03:40:01.980 --> 03:40:22.460
IES rarely translated into real world throughput numbers every way stream is nuanced and presents the equipment with issues specific to the material being processed. The level and types of contamination material density, or weight per cubic foot availability to load equipment as well as runtime maintenance schedules and equipment, cleaning requirements all factored into the.

919
maurice quillen 03:40:22.460 --> 03:40:42.940
Maximum throughput for any given piece of equipment for Colloge, You believe the processing system will be capable of limiting the majority of the prohibitive materials from the organic feed stock, but the final product will still need to be required to be subjected to additional processing at the composting operation quality. San Francisco anticipates the screening system will be capable.

920
maurice quillen 03:40:42.940 --> 03:41:03.420
Over removing fifty- eight percent of the contamination contained within the organic feed stock. This represents five point, ten to four point five tons per hour, assuming a thirty- five to forty- ton per hour processing rate item counselor typically not considered in this type of calculation as it is very difficult to determine what any given piece of the contamination ways.

921
maurice quillen 03:41:03.420 --> 03:41:23.900
And industry standards do not tend to focus on density and tons given that we've been tasked with making improvements of the quality of the San Francisco feed stock by the end of the year. The ecology is also proposing to run the portable screening system to be placed within the Organics transfer area to process the most highly contaminated loads last week we had operations.

922
maurice quillen 03:41:23.940 --> 03:41:44.380
's personally observe a piece of equipment that was being utilized to clean up organics within the Pacific Northwest and we are currently in the process of preparing a permit application to establish an Organics cleaning system demonstration project for college. You believe it operating an interim piece of equipment on site that produces processes a limited fraction of the incoming tenage.

923
maurice quillen 03:41:44.380 --> 03:41:50.860
Will provide us with detailed information and assist with informing our design decisions for the permanent equipment installation.

924
maurice quillen 03:41:54.620 --> 03:42:05.580
The temporary system could potentially be installed as early as fall twenty- twenty three. assuming that we can accomplish all of our permitting hurdles next slide please.

925
maurice quillen 03:42:10.620 --> 03:42:13.220
That you just know. There we go.

926
maurice quillen 03:42:15.100 --> 03:42:34.940
Right, is proposing a composing contamination removal system that's capable of processing five hundred and fifty- tons per day hourly throughput we dependent upon the total number of operating hours and the system would be tasked with processing thirty- five tons per hour during sixteen hours of production or forty- tons per hour or fourteen hour production shift.

927
maurice quillen 03:42:35.140 --> 03:42:51.580
This means they would have to remove between five point, nine, six and four point nine tons of material per operating hour. The graph represents a total system design capacity and visually represents the total amount of organics, the percentage of contamination that exists and what recolly proposes to remove.

928
maurice quillen 03:42:52.860 --> 03:42:56.860
Do you have any questions? Are you happy to answer them about the Organics cleaning system?

929
Jay Liao 03:43:01.180 --> 03:43:07.060
Okay, I think we'll open it up for discussion, so there's really three.

930
Jay Liao 03:43:08.220 --> 03:43:09.420
Two, two.

931
Jay Liao 03:43:10.780 --> 03:43:20.700
Three programs we're talking about here or four, actually, since we're being configuration back, Douglas, you have your hand up.

932
Douglas Legg 03:43:21.660 --> 03:43:42.140
Ice, I have a couple questions about the Organics contamination. How does San Francisco's contamination rate compared to other loss and valley users. Other, other disposers at Blossom Valley, we're at twenty- four percent.

933
Douglas Legg 03:43:42.140 --> 03:43:43.620
Ent and.

934
Douglas Legg 03:43:44.700 --> 03:43:45.980
Contamination rate.

935
maurice quillen 03:43:45.980 --> 03:44:06.460
Yeah, I, I believe they work towards the, the top of, of the contamination rates going into that facility right now. A lot of the product that gets in there comes from smaller jurisdictions tends to be a bit cleaner doesn't have quite a robust commercial component as we do in San Francisco.

936
maurice quillen 03:44:06.460 --> 03:44:15.380
And based upon our experience, the commercial component, especially the multi- family and in fact, introduce quite a bit of contamination into the product.

937
Douglas Legg 03:44:16.700 --> 03:44:26.540
Then has that contamination rate been going Operats. It always been around twenty four percent. I mean, we've been doing composting for a long time now.

938
maurice quillen 03:44:28.220 --> 03:44:48.700
I, I believe that it has been going up as we've been moving our programs along doing mandatory rollouts. We're not getting into the more challenging components of the customer base who, who were, in fact, maybe opposed to the notion of pro, you know, providing or doing composting and now they're being required to do it. So I think we get a little.

939
maurice quillen 03:44:48.700 --> 03:44:54.940
Little bit of apay and programming tends to be a little bit challenging when we get into that market segment.

940
Douglas Legg 03:44:57.220 --> 03:45:05.660
And are there other jurisdictions or urban areas? I know we've been a leader in, in composting, but are there other people that are doing.

941
Douglas Legg 03:45:07.260 --> 03:45:11.740
Reprocessing like we're proposing to do in San Francisco.

942
maurice quillen 03:45:11.740 --> 03:45:32.220
So I've in my conversations with our equipment and vendors, this tends to be their number one ask that they're receiving as of late, the Organics clean up is becoming an issue across the state thirteen eighty three is getting more tonage into the marketplace and the quality of the tons is a little.

943
maurice quillen 03:45:32.220 --> 03:45:53.340
Little bit skeptical. So this is new territory. The equipment vendors are slowly responding to this process. So in fact, we're, we're sort of all learning a little bit about the Wastream as we, as we try to solve this process together, that's why we had some of our staff head up the Pacific Northwest to see a system.

944
maurice quillen 03:45:53.340 --> 03:45:53.980
An oper

945
maurice quillen 03:45:53.600 --> 03:46:14.720
Operation, there are some other opportunities to see similar systems, that would be installed later this year, but quite, honestly, this is sort of an emerging problem that we're having to address, you know, the fact that San Francisco has a fairly substantial amount of punch coming into the facility. It puts us at the front of the line if you will in the, in the requirement to address it.

946
Douglas Legg 03:46:16.640 --> 03:46:17.760
Thanks.

947
Jay Liao 03:46:21.120 --> 03:46:23.760
Then I saw Jack's hand up and then Alexa.

948
jack macy 03:46:24.480 --> 03:46:44.800
Yes, Hello, Jack, Macy, zero waste manager for SF environment. I guess Maurica, you know, I just start off with sort of a historical perspective that I have that, you know, I, we've heard in years past that there were other sources such a super market backball with.

949
jack macy 03:46:44.800 --> 03:46:58.240
A lot of the plastic coming in that had higher levels of containation, Do you know whether the accomplish facility bloom value organics, North Aren, are they still taking super market?

950
maurice quillen 03:47:00.160 --> 03:47:13.200
The, but Jack based upon our conversations with, they have terminated those agreements with, with the back haul operations from the super markets because of the contamination.

951
jack macy 03:47:13.600 --> 03:47:20.000
Okay, so, you know, Bevonne has extensive pre- processing.

952
jack macy 03:47:20.760 --> 03:47:21.920
They have, they do a lot.

953
maurice quillen 03:47:21.920 --> 03:47:22.560
Lot of.

954
jack macy 03:47:22.560 --> 03:47:37.280
Screening they do mechanical screening. They do manuals sorting to remove plastic and other contaminance before the composting process. How, how would this preprocessing different, not be redundant.

955
jack macy 03:47:37.280 --> 03:47:37.920
To, to what...

956
maurice quillen 03:47:37.920 --> 03:47:39.200
Actually, what the.

957
jack macy 03:47:39.200 --> 03:47:41.680
Compass result is already doing.

958
maurice quillen 03:47:41.760 --> 03:48:02.240
This, this particular approach would deal with the contamination immediately when it comes out of the route truck or from the compactor or from whatever source we would be collecting the material from the challenge that we have right now is that once we get it, we'll stockpile the material it'll get blended bags will get broken material gets further contaminated. We loaded the trucks. It goes.

959
maurice quillen 03:48:02.240 --> 03:48:09.280
Into a storage file. It sits for a little bit every time you touch and move the material. It just gets, you know, hard and harder to sort that material.

960
jack macy 03:48:09.280 --> 03:48:09.920
Out...

961
maurice quillen 03:48:09.920 --> 03:48:30.400
So this Attamp would be essentially attacking the material at the scene, the minute it comes to our facility, you know, we, we know that we can't get all of it. We also know that if, you know, we, if we can get at least fourteen percent or so that would be a, a significant improvement on the product that was being delivered and would more than likely get.

962
maurice quillen 03:48:30.400 --> 03:48:34.800
US to, with an acceptable contamination rates at you.

963
jack macy 03:48:36.160 --> 03:48:41.920
Yeah, and speaking of the contamination rates, the way we, one thing that we would like to see is.

964
maurice quillen 03:48:41.920 --> 03:48:42.560
Connect.

965
jack macy 03:48:42.560 --> 03:49:03.040
Communication that's come, you know, any documentation from communication from or Stannis lost county that you're referenced previously stating the need to drop that contamination. So let me ask the, the process that you envision, which we'd like where, you know, we've asked questions to get more information.

966
jack macy 03:49:03.040 --> 03:49:19.680
Ation on how much of that removal is relying on mechanical screening versus labor. Is there, is there a hand sort component to this or is it all mechanical screening or it combination? Can you say more about that?

967
maurice quillen 03:49:19.680 --> 03:49:26.080
We are relying completely on mechanical screening, so it would be a dimensional separation process.

968
jack macy 03:49:26.080 --> 03:49:27.200
Process.

969
maurice quillen 03:49:28.000 --> 03:49:46.400
The thought would be that we would be using a horizontal rotary screen. fairly new piece of equipment into the market. Couple equipment vendors have multiple pieces of equipment on order, but no deployments at this point in time in the market.

970
jack macy 03:49:48.480 --> 03:49:53.600
No, deployment you, you mean they did, they don't have a track record doing this. Can you say.

971
maurice quillen 03:49:53.600 --> 03:50:08.000
Er, this is a brand new piece of equipment that's been developed in Germany in order to remove contamination from Organics and then the, it's different than any of the screens that we've employed historically in our industry.

972
jack macy 03:50:08.960 --> 03:50:29.440
Okay, yeah, I made a concern that I've had is, you know, seeing a lot of processing of organics around the globe for decades. It's very easy to end up, removing the good stuff, removing organic materials that we wanna.

973
jack macy 03:50:29.440 --> 03:50:48.000
Being diverting from land fill and whether it's, you know, potentially food that's wrapped up in packaging or whether it's larger pieces of cardboard and fiber that are acceptable in the program. So the fact that this is a new equip.

974
jack macy 03:50:48.640 --> 03:51:09.120
Th- that might be more promising then it, it's clear as you indicated earlier that this is really a test to see how well this equipment would be done and given that this is a, a test, are you proposing then to just do a temporary lease on this equipment while you, while.

975
jack macy 03:51:09.120 --> 03:51:10.720
Did you test it?

976
maurice quillen 03:51:11.040 --> 03:51:12.320
We were proposing to.

977
maurice quillen 03:51:13.080 --> 03:51:33.440
RANT or, or lease essentially, which would be a portable piece of equipment, and that would be, that would allow us to essentially attack the worst loads that we currently receive The vast majority of the tonage that we receive would not go through the interim step. Once we decide to move forward.

978
maurice quillen 03:51:33.440 --> 03:51:53.920
Ward with an actual installation. That would be a permanent piece of equipment, which would be sized to process all of the times that we received from the routes. So it's a, it's a two step approach and we're hoping that the temporary piece of equipment will inform our decision as to what peace of equipment will actually be deployed for the long term solution.

979
jack macy 03:51:55.840 --> 03:52:04.800
And how, how long do you have a sense of how long you would be doing the temporary testing before you finalize it for the long term.

980
maurice quillen 03:52:05.440 --> 03:52:19.840
Upon our submission where we have the permanent equipment sitting in rate, your twenty- twenty- five towards the middle of the rate cycle. So we would be operating on an interim basis for eighteen months or so.

981
jack macy 03:52:22.080 --> 03:52:37.360
And so are you in the, in the rap proposal? Are you basically only s- you know, counting for costs for the permanent or are the costs for the temporary lease as part of this as well?

982
maurice quillen 03:52:38.080 --> 03:52:48.560
We are going to be including some minor costs for the rental of the temporary piece of equipment and I believe that that will be included in the revision, that'll be forthcoming.

983
jack macy 03:52:50.240 --> 03:53:06.080
So you have material coming in and I guess the, the driver or when the material is tipped, if it's, if it's, you know, got a certain level of contamination, then that would be run through this process, Whereas other material might go straight to transfer.

984
maurice quillen 03:53:06.880 --> 03:53:08.160
De December.

985
jack macy 03:53:08.160 --> 03:53:09.280
Yeah.

986
jack macy 03:53:15.200 --> 03:53:18.920
Okay, well I think, you know, to the extent that you have.

987
jack macy 03:53:21.600 --> 03:53:37.600
The spectrum you're, you're you mentioned trauma and so that's, this is a trauma screens have been around for a very long time, but this is a new type of trauma that's from Germany. Is that right? With the unique des.

988
maurice quillen 03:53:37.600 --> 03:53:38.240
Design.

989
jack macy 03:53:38.240 --> 03:53:40.640
For the step in material.

990
maurice quillen 03:53:40.800 --> 03:54:01.120
No, Jack, we would be implementing a travel on an interim basis. The trauma is a new design. It has internal bakers which is something that we have not seen, typically in Traumas so that it will essentially be a dual purpose piece of equipment when we move forward to the more permanent installation.

991
maurice quillen 03:54:01.280 --> 03:54:11.720
That, that would include a formal bag breaking process, in addition to a screening process more than likely in two separate piece of equipment sized to handle all of our tonage.

992
jack macy 03:54:12.800 --> 03:54:19.680
Okay, but the, the, the equipment that you mentioned coming from Germany, that is that is this, this trauma.

993
Anthony Crescenti 03:54:21.120 --> 03:54:41.600
Jack, you know, we, we can answer more technical questions about this, but the key processing is going to be an essential thing cause at the, at the end of the day, you know, as we've discussed a numerous occasions and had you out at the evon, the Bioplastics in the San Francisco and the plastics in the San Francisco Feed stock or a giant problem and.

994
Anthony Crescenti 03:54:41.600 --> 03:55:02.080
You know, we let, you know, back the spring, be a letter that, you know, the, the pro that we are able to compost in the timeframe and so in order to get San Francisco's program back on track, you know, we came up with this solution because we understood and heard you when you said that, you know, the Bioplastics were critical to being able to get.

995
Anthony Crescenti 03:55:02.080 --> 03:55:22.560
Participation and, you know, facilities around the state are finding that they can't take these materials, especially as the, as the environment has changed due to thirteen eighty three and the amounts of them are coming in and so I, I think it's like ninety- five percent of the composting facilities aren't taking these materials. So either.

996
Anthony Crescenti 03:55:22.560 --> 03:55:43.040
Whether we have to remove them from the program, which is something that we've heard you on that you're not willing to do and it's not to the benefit of participation or we have to find a way to get him out of the stream and so the team has has gone out of their way to really find creative solutions to get us to the point where, you know, not only, are we leading the edge because people in the market.

997
Anthony Crescenti 03:55:43.040 --> 03:56:03.520
Just start doing this yet. We're already, but we're trying to keep San Francisco's program on the forefront and, you know, where other communities have actually already pulled these things out of their stream. So, like I said, we can get into all the technical details of the mechanics of how we wanna do it. We, we've witnessed and went out and tested a machine on an interim basis that has a new design.

998
Anthony Crescenti 03:56:03.520 --> 03:56:04.160
That

999
Anthony Crescenti 03:56:04.020 --> 03:56:24.500
We think it's gonna keep the yield lost to a minimum, but achieve our goals of getting that stuff in the right way. Stream is also other savings associated with that because by pulling the materials out and putting them in the right stream, we're saving air quality and truck trips and other things that are also benefits to the environment by not having a transport, the material more than one time.

1000
Anthony Crescenti 03:56:24.500 --> 03:56:35.380
Time, so I, I think there's a lot of a lot of benefits on a lot of levels of this, but it, it's a critical process. That's, that's gonna need to happen regardless.

1001
jack macy 03:56:37.300 --> 03:56:57.140
Yeah, I would just say we do see that there's benefit for doing preprocessing. I mean, I do wanna make a comment that, you know what you're, you're, you're saying Dan and what was presented previously emphasizing the Bioplastics. What we've observed is that most of the plastic contamination is.

1002
jack macy 03:56:57.140 --> 03:57:17.620
Is not bioplastics and when we've taken samples at the compass facility after the composing process, all those bits of film plastic were regular plastic and not composed all plastic, which is really, it's not the issue. It's bioplastic, it's composable, which may or may not be bio. So EMP.

1003
jack macy 03:57:17.620 --> 03:57:38.100
Ethesizing that this is almost entirely caused by or composal plastics, you know, with, without actually doing a, a test of all the plastic contamination, you know, I, I think that's sort of a characterization that.

1004
jack macy 03:57:38.100 --> 03:57:45.380
I is, you know, ma, maybe maybe distort it cause I, I think most of the plastic contamination.

1005
jack macy 03:57:47.060 --> 03:58:07.540
What we've seen is not from composed to plastics, but regardless, you know, I think contamination is an important issue that needs to be addressed at multiple multiple levels and we just wanna make sure that this process doesn't come at a big sacrifice of losing val.

1006
jack macy 03:58:07.540 --> 03:58:12.020
Able Organics, that's the main main concern.

1007
Anthony Crescenti 03:58:12.020 --> 03:58:33.140
So Jack recalled, you has no interest in Lu having yield loss on the Organics, but your, your point of distinguishing between Bioplastics and plastics of Bootprint, their plastics and they don't, and they don't deserve they, they shouldn't be in the contamination. It should be in our food sources and, you know, the fact of the matter is, is that not only is the law and the ordinance is moving that way within.

1008
Anthony Crescenti 03:58:33.140 --> 03:58:53.620
In the state, but for health and food regulations and safety, it's moving that way too. So it, it's a fine distinction you're right, you know, maybe maybe they are mostly regular class versus bioplastics, but it's an irrelevant point. It's a contaminate and the feed stock that we are unable to process in that all the other co- posting facilities are not able to.

1009
Anthony Crescenti 03:58:53.620 --> 03:58:54.900
Process, so.

1010
jack macy 03:58:54.900 --> 03:58:55.540
Right?

1011
Anthony Crescenti 03:58:55.540 --> 03:59:00.940
Connecting to do is to is to remove it and, and capture as much material as humanly possible.

1012
jack macy 03:59:05.780 --> 03:59:09.620
Worried I will stop my questioning for now.

1013
Jay Liao 03:59:09.620 --> 03:59:12.100
Thanks Jack, Alexa.

1014
Jay Liao 03:59:15.380 --> 03:59:16.700
You're muted.

1015
Alexa Kielty 03:59:17.940 --> 03:59:21.780
And is now a good time to ask some questions about the district cleanups.

1016
Jay Liao 03:59:21.780 --> 03:59:23.060
Okay, please, yeah.

1017
Alexa Kielty 03:59:23.700 --> 03:59:25.100
Okay, great.

1018
Alexa Kielty 03:59:26.260 --> 03:59:46.740
Yeah, so the main, the main question was about your zero waste strategy will there be recycling compassing. I'm assuming maybe, but could you talk a little bit about that and will the material be sorted on the target line or kind of how will you be processing that material? and do you have any estimates for.

1019
Alexa Kielty 03:59:46.740 --> 03:59:57.780
Recovery right now, it looks like it, it was all going to disposal and I know in the past, you know, we, we used to report on those recovery rates. so if you could talk a little about that recology appreciate.

1020
Anthony Crescenti 03:59:58.900 --> 03:59:59.540
Yeah, of course.

1021
Anthony Crescenti 03:59:59.540 --> 04:00:02.100
Course Alexa, so.

1022
Anthony Crescenti 04:00:03.380 --> 04:00:23.740
As in the past, we anticipate this program or anticipate what we're looking to do for this program is to make it more for a book year items and things of that nature. We're not putting out recycling a composting collection that that's not a component of the program.

1023
Anthony Crescenti 04:00:23.860 --> 04:00:44.340
We would run the material across the line in an effort to recover as much as we could, and I think that, that would be an important step to take and we would, of course, continue doing that, but that would be the extent of the program would be mostly servicing items, generally at your harder to dispose of items may not be appropriate for bin service per.

1024
Anthony Crescenti 04:00:44.340 --> 04:00:51.260
Per say, but are better suited being in Rebox style and do our best effort to recover what we can.

1025
Alexa Kielty 04:00:52.660 --> 04:00:59.620
And you talked about small items will you be accepting electronic electronics and monitors.

1026
Anthony Crescenti 04:01:00.340 --> 04:01:20.820
So we've discussed this program and one of the things that we wanted to do was coordinate, particularly with public works as well as SFE on how that program looks going forward. We would wanna recover some of the e- waste items where possible and provide the, you know, transport.

1027
Anthony Crescenti 04:01:20.820 --> 04:01:24.580
Within guidelines to a limited extent.

1028
Alexa Kielty 04:01:29.260 --> 04:01:37.940
I have two more questions. I'll try to be quick. Sorry, are you open to partnering? I, I have had some conversations.

1029
Alexa Kielty 04:01:39.380 --> 04:01:48.500
All right, all right. Openness to partner with, or a reuse organization at one of the, at the district cleanups.

1030
Anthony Crescenti 04:01:49.620 --> 04:02:10.100
We were, we, I would wanna understand, you know, obviously what that would look like in any potential needs. That would, that they would have for being at the site to make sure that they're in aligned, but if there's an opportunity to prevent disposal that is always ultimately the goal as part of our shared environment goals, but we were open to the idea, but we would wanna have a, a more robust conver.

1031
Anthony Crescenti 04:02:10.100 --> 04:02:13.820
Conversation about the, the, what was required to do that.

1032
Alexa Kielty 04:02:13.940 --> 04:02:30.900
Okay, great, and then last question was, there was a mention in some of our dialogue about combining the compass giveaways with the district cleanups and if you could talk a little bit how that might work. I have some concerns about traffic and management around that.

1033
Alexa Kielty 04:02:32.500 --> 04:02:33.700
Yeah, yeah.

1034
Anthony Crescenti 04:02:35.060 --> 04:02:55.540
Okay, then go ahead, Alex, So the Compos giveaway was something that we've always done. It's not something that's run through the rate. It's just something that we do to give away there's no, it's no cost to the repair, which is something we did as a nice thing because the people liked it for their little guards and their yards they came and took small amounts. This is not something that I, we put.

1035
Anthony Crescenti 04:02:55.540 --> 04:03:07.500
And included a cost for. It was just something that we gave away and so, you know, if, if you don't want us to give it away and you have concerns about it, you know, we, obviously happy to not include it.

1036
Alexa Kielty 04:03:08.980 --> 04:03:29.460
Yeah, I don't, I don't think the concern was about doing the Giveaway. We, we encouraged that we want to see those, we were just trying to better understand the. there was talk about combining the district cleanup with the compost Giveaway and I was having difficulty kind of visualizing how that would work operationally. So, yeah, I'm, I'm, we're on, in full support of the.

1037
Alexa Kielty 04:03:29.460 --> 04:03:30.740
Compost giveaways.

1038
Anthony Crescenti 04:03:30.740 --> 04:03:34.540
They've always existed in coexisted at the same event.

1039
Anthony Crescenti 04:03:35.860 --> 04:03:56.340
Yeah, in the years past Alexa, we have provided the, the Giveaway and we cite the Giveaway in a way that it doesn't impact traffic patterns as much as possible so that the flow is maintained and again, the experience is a positive one for people to come, especially the way peace and historically we've had that like a degree box.

1040
Anthony Crescenti 04:03:56.340 --> 04:04:08.060
Follow the material and then we, we help people come and grab someone. They take it home. There's also safety and traffic people there to ensure that the flow keeps moving and that there's, it doesn't impact public safety in the streets.

1041
Alexa Kielty 04:04:09.780 --> 04:04:11.260
Okay, thank you.

1042
Jay Liao 04:04:14.260 --> 04:04:35.380
So I've, some additional questions about tamination fee, but before we get into that, I just want to propose some agenda changes since we're close to one PM here. I think the few, the items towards the end we might be able to move towards address in other ways. So like the pension cost, we can.

1043
Jay Liao 04:04:36.020 --> 04:04:57.140
Ha have as an exhibit and discuss through the interactories, the future work. I think we can might be able to do through in arrogatories with the zero waste instead of account, just wanna get environments thoughts on this, but maybe we can have that discussion during the commission on the Enviro.

1044
Jay Liao 04:04:57.140 --> 04:05:01.180
Environment unless the preference would be to have that discussion here.

1045
Jay Liao 04:05:03.540 --> 04:05:05.380
Pay thoughts on that.

1046
Jay Liao 04:05:06.740 --> 04:05:08.660
Or objections to moving it.

1047
jack macy 04:05:08.660 --> 04:05:09.780
Yeah.

1048
jack macy 04:05:11.220 --> 04:05:16.980
I think we're, we're happy to talk about that at the commission and I, I think that's a good topic for the commission.

1049
Jay Liao 04:05:17.020 --> 04:05:17.620
Okay.

1050
jack macy 04:05:17.620 --> 04:05:24.020
Mine talking about it here as well, but maybe for efficiency, we just be good for the commission.

1051
Jay Liao 04:05:24.020 --> 04:05:25.140
Right?

1052
Jay Liao 04:05:26.580 --> 04:05:35.580
I do wanna get to kinda the labor enhancements issues as well, so, but before we jump into that, the.

1053
Jay Liao 04:05:36.820 --> 04:05:40.820
With the contamination fees. I did, I did have some questions around.

1054
Jay Liao 04:05:41.980 --> 04:05:43.100
Er.

1055
Jay Liao 04:05:46.420 --> 04:06:04.860
I, I guess some of our concerns are of work kind of really expanding the fees we applying right now, the fees aren't in the rates. They're not something we regulate, and so is recally suggesting that we add these contamination fees to the, to the rate sheets as.

1056
Jay Liao 04:06:04.980 --> 04:06:05.620
Are we

1057
Anthony Crescenti 04:06:05.460 --> 04:06:20.820
Are we suggesting that we start to regulate this, you know, this item here? I think we're, we're suggesting that it be included in a raid order in the rate sheets.

1058
Anthony Crescenti 04:06:23.380 --> 04:06:34.260
Yeah, at this point in going forward, you know, our, our position is that I think everything that goes to great payers.

1059
Jay Liao 04:06:34.260 --> 04:06:34.900
But.

1060
Anthony Crescenti 04:06:34.900 --> 04:06:43.860
Something that should be disc and then flow through the rate process. I think specifically with contamination there's been a bit.

1061
Jay Liao 04:06:43.860 --> 04:06:44.980
Confusion.

1062
Anthony Crescenti 04:06:45.780 --> 04:06:55.340
Section of public Health and if there's city departments and customers.

1063
Anthony Crescenti 04:06:55.380 --> 04:07:01.780
So, especially given the increase in focus and emphas.

1064
Anthony Crescenti 04:07:03.060 --> 04:07:22.100
You felt this was important to have the discussion and ultimately included in something that, you know, the controller's officer, ultimately the rate board is aware of, and, and support.

1065
Jay Liao 04:07:22.260 --> 04:07:23.380
Okay.

1066
Jay Liao 04:07:24.820 --> 04:07:39.420
I think one of the things we do want to see, I think this is a question asked earlier is, is kind of the, the effectiveness of the contamination fees and deterring kind of repeat offenders that information's available.

1067
Jay Liao 04:07:41.460 --> 04:07:43.740
That's been a data request.

1068
Anthony Crescenti 04:07:55.540 --> 04:07:59.380
And, and we're happy to do that. I do wanna point out.

1069
Anthony Crescenti 04:08:00.020 --> 04:08:03.220
They were really that, that's the ultimate goal.

1070
Anthony Crescenti 04:08:03.860 --> 04:08:22.420
The, you know, the kind of short term and interim goal is in part to put more of the cost of this on the generators, so higher contamination, it, it, we're just talking about pre- process.

1071
Anthony Crescenti 04:08:23.700 --> 04:08:44.140
That's, you know, that proposal moves forward either way, there's a lot of cost involved in managing contamination it degrades the value of the material. It takes extra to transport it, et cetera.

1072
Anthony Crescenti 04:08:44.180 --> 04:08:51.220
And so, in addition to ultimately changing behavior through, you know, economic.

1073
Jay Liao 04:08:51.220 --> 04:08:51.860
Ic...

1074
Anthony Crescenti 04:08:51.860 --> 04:09:06.460
Motivation in the short run, We're also looking to shift some of that burden brought from the broad population of rate payers more to those who are responsible.

1075
Jay Liao 04:09:11.740 --> 04:09:15.700
Just wanna see if there's any other questions for this agenda item.

1076
Jay Liao 04:09:17.460 --> 04:09:32.900
And I know we're only four minutes if folks can kind of bear with us for one last item, and then public comment. I think that we can close after that. So I think the last agenda item is around the labor enhancements.

1077
Ben Becker 04:09:43.700 --> 04:09:44.940
All right.

1078
Ben Becker 04:09:46.260 --> 04:09:55.540
This table is a, a little busy. So I'll try to simplify it to the extent that I can.

1079
Ben Becker 04:09:57.780 --> 04:10:17.620
The positions represented here were submitted by recology. They are, they were originally identified in the refuse rate board meeting last month and we submitted additional requests for information regarding them.

1080
Ben Becker 04:10:17.660 --> 04:10:38.100
Oh, which reccology submitted yesterday and we can see the individual job classes or their roles in this column here whether they are a new hire or, or a vacancy that's being filled and the number of positions here.

1081
Ben Becker 04:10:38.100 --> 04:10:58.580
Here, some information about the number of employees supporting these roles in right year twenty- two. I think that, you know, I, I was imputing some of this data, so I'm sure that at least some of these numbers are wrong, if not all of them. My, my apologies for that.

1082
Ben Becker 04:10:58.580 --> 04:11:19.060
If and please and recalls you feel free to point it out and then just here kind of breaking down and sorry, I don't know if folks can see my mouse or not with this display mode, but the hired yet in rate year, twenty- three column shows whether they have been hired yet, whether the job.

1083
Ben Becker 04:11:19.060 --> 04:11:39.540
Has been posted and then you can kind of see the second half our positions that have been filled in this past quarter or two quarters and, or, you know, one position, one of two positions filled their costs in rate year, twenty- three rate year, twenty- four and rate year, twenty.

1084
Ben Becker 04:11:39.540 --> 04:12:00.020
Five, and then across the bottom, we can see the total unfilled ftes versus the total ftes that were originally posted to the refuse rate board a month ago and then their total costs. So, and write your twenty- four.

1085
Ben Becker 04:12:00.140 --> 04:12:20.500
We would be looking at three point, three million for the unfilled positions, but a total of five point, six million for those unfilled plus the recently filled positions that are, that are listed here. I, I, I think that our general question.

1086
Ben Becker 04:12:20.500 --> 04:12:40.980
Tions to reccology, you know, still revolve around how can we control costs and how can we ensure that employees employee owners are being allocated to best fill these role.

1087
Ben Becker 04:12:40.980 --> 04:12:45.700
Roles and to ensure that.

1088
Ben Becker 04:12:46.740 --> 04:13:07.220
The operations are meeting the goals that we need, but are also as efficient as possible, you know, as, as we are looking at some of these positions, the, our office refuse rates administrator, you know, is.

1089
Ben Becker 04:13:07.220 --> 04:13:27.700
Questioning whether or not we would want to, if we were in this position to approve some of these positions, additional waste zero specialists when, you know, they're already is this team that's, that's working on this hard board collection drivers, I understand.

1090
Ben Becker 04:13:27.700 --> 04:13:48.180
Understand that they are currently doing this additional work was, which was requested by supervisor Puskin's office and others in the city of leadership, You know, they're doing this work with overtime and I, and I understand that the request is.

1091
Ben Becker 04:13:48.180 --> 04:14:09.300
Is to hire two new positions for this. Are there other ways to get the cardboard collection done is the overtime more cost- effective than hiring two new positions, which require pension, which require benefits that are, you know, quite honestly better than.

1092
Ben Becker 04:14:09.300 --> 04:14:25.140
Then those for a city employees, the pension is fully paid bycology and through the rates and benefits are fully covered health benefits through the rates. Whereas city employees have to pay.

1093
Ben Becker 04:14:26.580 --> 04:14:47.060
Proportional amounts to, to cover their side of health benefits. pension other retirements and so on, And so we're, we're looking at these positions and trying to figure out, you know, what, what is absolutely necessary, the artists in residents program, you know, it, it's, I, I understand.

1094
Ben Becker 04:14:47.060 --> 04:14:59.380
Understand the value for education and, and for the community, but are these, you know, tasks that department of environment can be doing.

1095
Ben Becker 04:15:00.500 --> 04:15:06.740
Ch- tech, clearly not, that's something that seems to be something obvious for.

1096
Ben Becker 04:15:08.220 --> 04:15:24.660
Er, for reccology to do, you know, relief drivers, these were previously described to, in the refuse rate board meeting in April as being drivers that were necessary due to the COVID.

1097
Ben Becker 04:15:26.100 --> 04:15:46.580
I believe requirements that during a public health emergency employees be allowed up to eighty hours of COVID sick leave the public health emergency ended on February twenty eighth. So this rate year, twenty- four wouldn't begin.

1098
Ben Becker 04:15:46.580 --> 04:16:03.900
In until October, first of this year, so the public health emergency is over, I understand that, you know, there are changes in behavior that we're calling needs to work through with staff in order to ensure that.

1099
Ben Becker 04:16:05.140 --> 04:16:05.780
Everybody is

1100
Ben Becker 04:16:05.920 --> 04:16:26.400
Coming into work as they are required to, of course, you should encourage workers to use their approved sick time when, when they are sick at the same time, the city required that all employees be vaccinated for COVID, right? And that was.

1101
Ben Becker 04:16:26.400 --> 04:16:46.880
A very, it was a large political issue from our understanding overcology did not require that its employees be vaccinated for COVID and, and the difference there is that you end up with a lot more employees getting sick, taking sick time needing to use.

1102
Ben Becker 04:16:46.880 --> 04:16:52.880
Se their medical benefits for potentially life- threatening situations, you know.

1103
Ben Becker 04:16:53.920 --> 04:17:14.400
I understand the argument towards that. This is perhaps an individual's choice, but as an employer we do have to look at the bottom line and identify where are the costs where are the benefits? What, what is the greater good and, and how do we serve the rate payers and Ulti.

1104
Ben Becker 04:17:14.400 --> 04:17:23.840
Ulate all of us here together are trying to work to identify what is in the best interest of the rate payers in going through this, this process.

1105
Jay Liao 04:17:25.920 --> 04:17:42.440
I, I think, I think that, that sums it up. I'm, I'm gonna leave the slide up here for a second and Jay did you wanna ask any questions or should I open it up to recall you to comment? I think has a presentation.

1106
Ben Becker 04:17:42.560 --> 04:17:43.200
Excuse.

1107
Jay Liao 04:17:43.840 --> 04:17:47.040
Cross management and the labor pieces.

1108
Anthony Crescenti 04:17:47.040 --> 04:17:47.680
I'll.

1109
Anthony Crescenti 04:17:48.960 --> 04:17:50.240
Cool we start J.

1110
Jay Liao 04:17:50.880 --> 04:17:51.520
Yeah.

1111
Anthony Crescenti 04:17:51.520 --> 04:18:12.000
He said a lot there about it, and I just wanted to, so just just for clarity's sake relief driver is an industry term here we use for somebody who is a, an unrouted back up driver, you know, any business has to have extra people for people who call in sick vacations or other things. It wasn't a specific to the.

1112
Anthony Crescenti 04:18:12.000 --> 04:18:32.480
Pandemic or propy and more specifically behavior is not just at reccology, but across the nation changed as a result of COVID and, you know, when you have, when you have a workforce of our size and we have a responsibility to the city, you know, we have to take COVID- seriously people even though the pandemic is over are still getting COVID. I just got an email.

1113
Anthony Crescenti 04:18:32.480 --> 04:18:52.960
Email that somebody got COVID and, you know, we can't have them in the workforce getting the rest of the workforce infected or cause a pandemic within the public and so, you know, people's behavior, whether we like it or not across the nation has changed and has driven higher need for people to augment and cover route. So there's no service interruptions and I think.

1114
Anthony Crescenti 04:18:52.960 --> 04:19:13.440
That is a trend. We see across the nation. So that is a factor and I, and I understand your point about, we never required employees to get a vaccination, but again, you know, that is a matter of bargaining in this more than one party involved and we have to bargain on the effects of it, and while we didn't mandate it, our vaccination rate is.

1115
Anthony Crescenti 04:19:13.440 --> 04:19:33.920
Is, is almost perfect. It has been since the start of this, so we didn't, you're correct. We did not mandate it, but we know who is vaccinated who is not, and we have an extraordinarily high vaccination rate and so, you know, it, we can't just mandate it like the city. Did we, we are required because of.

1116
Anthony Crescenti 04:19:33.920 --> 04:19:48.320
Our collective barging agreements. So while those are good points, we still have to deal with the reality of providing uninterrupted service, not only throughout the pandemic pandemic, but on an ongoing basis, but we're happy to go through our presentation and take any other questions.

1117
Jay Liao 04:19:48.640 --> 04:20:02.160
Yeah, and it's just a note. I, I know we're, well over, I wanted to give this item about another fifteen minutes and then maybe five minutes for, for a few minutes for public comment.

1118
Jay Liao 04:20:03.360 --> 04:20:16.280
So, but I understand folks have other obligations they need to go to just wanna acknowledge that we're, we're, we're going over for a little bit and I'll try to have the time.

1119
Jay Liao 04:20:19.360 --> 04:20:20.000
Alright.

1120
Anthony Crescenti 04:20:20.760 --> 04:20:40.480
So, Terry dog here San Francisco regional controller out, Go through the next couple of slides formercology. So the first one you see here to answer your question about managing or flaw during the pandemic. The takeaway for this slide is really if.

1121
Anthony Crescenti 04:20:40.480 --> 04:21:00.960
Look at rate year nineteen kind of at the height kind of at the peak of our revenue or at three, forty- nine, and then at the pandemic or what you're twenty- one we dip to two ninety- four. So that's a decrease in our revenue of sixteen percent and you.

1122
Anthony Crescenti 04:21:00.960 --> 04:21:21.440
Can see that how our expenses are trending also for that same timeframe went down eleven percent as well. So just wanna illustrate that, you know, we are managing our costs or sunset and golden gate for the next slide, and if you wanna move to SLI.

1123
Anthony Crescenti 04:21:21.440 --> 04:21:22.840
Slide thirty.

1124
Anthony Crescenti 04:21:24.720 --> 04:21:44.480
This illustrates how, you know, recology is managing the cost for RSF because you can see the blue line at the peak or rate year nineteen at one fifty, three compared to the DIP in great year. Twenty- one kind of, you know, near the end of the pandemic at one twenty- six.

1125
Anthony Crescenti 04:21:44.480 --> 04:22:04.960
Six, we saw a decrease in our revenue of eighteen percent and you can see that by the time we get to right here, twenty- one, our expenses are starting to exceed the total revenue that's being retained and that's because, you know, our revenue of decreasing faster than we can pull up the cost and.

1126
Anthony Crescenti 04:22:04.960 --> 04:22:08.240
Our cost per unit is also going up.

1127
Anthony Crescenti 04:22:09.440 --> 04:22:26.760
You know, this is one of the reasons why we are asking for rate increase is to be able to, you know, level set and get RSF back to, you know, more of a stable state to run our operations. Next slide, please.

1128
Anthony Crescenti 04:22:31.840 --> 04:22:52.320
Dan touched on this a little bit earlier and, you know, just wanna reiterate that our response to the pandemic is that we decreased our number of ftes we did reallocate our personnel for services were being reduced, we left positions vacant during that time frame.

1129
Anthony Crescenti 04:22:52.320 --> 04:23:12.800
And the chart that you see below, you know, goes back to what Dennis mentioned about the behavior of the workplace during the pandemic. so you can see that, you know, we need a more relief drivers to be able to ensure that we had uninterrupt.

1130
Anthony Crescenti 04:23:12.800 --> 04:23:13.920
Service.

1131
Anthony Crescenti 04:23:20.480 --> 04:23:40.960
And the other slides after this, I'm not gonna go into too much detail, but the next three slides basically explained, you know, why we need the roles that we have detailed out in the previous rate hearings and also in this rate hearing.

1132
Anthony Crescenti 04:23:40.960 --> 04:24:01.440
ING, the one that I really wanted to call out for an example of unnecessary role is the right analyst. That's the first role that you see in this flight here and, you know, the right analyst is necessary, you know, to meet our quarterly.

1133
Anthony Crescenti 04:24:01.440 --> 04:24:21.920
Library reporting requirements, you know, we're now reporting on the balancing account elective expense analysis, you know, quarterly reconciliation to our financials, you know, this workflow right now is, you know, currently beyond our staffing capacity and to be able to meet our reporting deadline.

1134
Anthony Crescenti 04:24:21.920 --> 04:24:42.400
Clients and clients, you know, we really need this headcount, you know, other responsibilities under this great analyst will be to make sure that our rates in our billing system are up- to date and accurate finally, you know, as we mentioned, we wanna get to the point where we can, you know, report.

1135
Anthony Crescenti 04:24:42.400 --> 04:25:02.880
Out on the granular data that, you know, the controller's office is asking for SF is asking for. So this position will really help support our future, you know, accounting ERP upgrade that's currently, you know, in the pipeline, it will take place over the next two years.

1136
Anthony Crescenti 04:25:03.520 --> 04:25:18.080
And lastly, you know, we've been partnering very closely with the controller's office on all of their request and, you know, we just need the extra set of hands to make sure that we have the bandwidth to answer all of these questions.

1137
Anthony Crescenti 04:25:24.000 --> 04:25:25.120
Shoot.

1138
Anthony Crescenti 04:25:27.200 --> 04:25:43.280
I think, you know, we, we've kind of talked about the needs for the relief drivers some of these head count, obviously will go to support the program enhancements that we have put in the rate application.

1139
Anthony Crescenti 04:25:45.760 --> 04:26:05.600
So I'm not gonna go through each one, but, you know, happy to answer any questions after you kinda go through our explanations for each role. One thing to point out the last one on this list, the list of drivers includes the drivers to support.

1140
Anthony Crescenti 04:26:05.720 --> 04:26:06.240
S

1141
Anthony Crescenti 04:26:08.220 --> 04:26:15.260
She do you want me just, I can walk through the safe service really quickly. Yep, probably take me less than two minutes.

1142
Anthony Crescenti 04:26:16.540 --> 04:26:21.140
You wanna put the slide up? It's number twenty- two, Ben.

1143
Anthony Crescenti 04:26:30.620 --> 04:26:47.900
Oh, twenty- three. Sorry, thanks, mad. Appreciate it. So in regards to save service, our employees came to us and the union jointly with complaints about the frequency and severity of incidents that were taking place on their route and the tandealin area of the city.

1144
Anthony Crescenti 04:26:48.620 --> 04:26:59.540
You know, I, I, we worked through the system jointly with the Union, we've met with the appropriate people in the city supervisor preston, it was his area.

1145
Anthony Crescenti 04:27:00.700 --> 04:27:21.180
Let me just say everybody has been very helpful throughout the process. We met with people from the Das office and the San Francisco Place Department, the tender line to talk about things that we can do to help our drivers and help produce the number of incidents. they're all very helpful, you know, post that meeting and then conjunctual of the union we've changed start times.

1146
Anthony Crescenti 04:27:21.180 --> 04:27:41.660
So that people are there at different times of days, we reroute it, so there's less exposure and most importantly, we've added second people to the routes and this is, this is particularly important because I mean the two big things are building security and equipment security, and when I say that let's start with the billing security as an example, one of the places where our.

1147
Anthony Crescenti 04:27:41.660 --> 04:28:02.140
People are being confronted is when they have to go into apartment buildings or other buildings to bring and drag out containers for disposal. People are trying to get in and, you know, our guys have a responsibility to make sure those doors are secure and people can't get into the residents into the business owners, and so that's where a point of contention is, is where people are coming in and interacting with our people.

1148
Anthony Crescenti 04:28:02.140 --> 04:28:22.620
People in a negative way also, you know, to secure those doors and make sure that they're not proper stay open in our, our drivers and our employee owners feel a deep sense of obligation to make sure that they meet those obligations to the people that live in that neighborhood to make sure that that's safe, you know, additionally, we have to keep the equipment secure on the street. There's.

1149
Anthony Crescenti 04:28:22.620 --> 04:28:43.100
Numerous times for people to come back and people are climbing all over the truck, there are cables, hydraulics if that, that truck is a dangerous of equipment, It compose a public safety danger, just as just as when that, that bus get stolen driven around town and so in this error, in this particular area, the frequency of assault on our people and things that have happened have.

1150
Anthony Crescenti 04:28:43.100 --> 04:29:03.580
Just increased to a level. That was, that was an appropriate, but with the help of the San Francisco PD, the DA and everybody, we've made some changes and since we've made those changes and added those people, we haven't had the incidents and, and we've seen a sharp decline and so I think it, I think it's proof that their advice has worked. We also are having ongoing conversations about.

1151
Anthony Crescenti 04:29:03.580 --> 04:29:24.060
About the escalation training through the police department for our guys and those in those routes, and if you go to the next slide, I'll just give you a quick look at just kinda where you, I think you ask where and what was happening? You see all the stars in the map. That's a heat map of the incidents in where they happened. We shared all this information with the police department.

1152
Anthony Crescenti 04:29:24.060 --> 04:29:44.540
When we met with them and, and the Das office and like I said, everybody in the city has been very helpful to addressing it. They understand that the position, these, our drivers are in and, you know, traditionally, you know, there was a trust between the people and the tender line and, and them and, and they were all they realized these guys were there to do a job, but for whatever reason.

1153
Anthony Crescenti 04:29:45.260 --> 04:30:00.700
M- since Covid recently there's been an incredible increase in the, in the frequency and severity and I, and I think to thank all those, those departments for helping us with the problem because adding the driver, changing the routes and coordinating with them has made a huge difference.

1154
Ben Becker 04:30:03.100 --> 04:30:11.420
I understand and you will, you're gonna submit to us the police reports as well. that accompany this, this map, right?

1155
Anthony Crescenti 04:30:11.460 --> 04:30:15.900
I will also, we can submit the incident report numbers. I don't know that I physically.

1156
Ben Becker 04:30:15.900 --> 04:30:16.540
Back.

1157
Anthony Crescenti 04:30:16.540 --> 04:30:17.180
Or.

1158
Ben Becker 04:30:17.180 --> 04:30:37.660
That's fine that- that's fine. and in your negotiations with the driver unions, why are drivers the most appropriate response to this situation rather than hiring, for instance, a security.

1159
Ben Becker 04:30:37.660 --> 04:30:48.580
Guard or something of that sort, especially paying in mind that the drivers are- are one of your highest paid job classes.

1160
Anthony Crescenti 04:30:49.700 --> 04:31:09.660
So security guards, you know, this was discussed with actually with we, we actually took the recommendations of the San Francisco Police and the Das office, but, you know, part of that trust and part of that thing with these guys, and they don't wanna be viewed as stitches. They don't wanna be viewed as bringing security and other people down because there's drug dealing and other things going on in the streets down there.

1161
Anthony Crescenti 04:31:09.660 --> 04:31:30.780
That make those people uncomfortable that will add to agitation to the situation as to op as opposed to alleviating the situation, whereas having our having extra ecology personnel down there looks like they're just doing their job. They secure the vehicle they secure the door. There's no, there's no, there's no connection to law enforcement.

1162
Anthony Crescenti 04:31:30.780 --> 04:31:51.260
Or to some sort of added burden on the, that neighborhood, and like I said, traditionally in, in those neighborhoods, not just here in other cities, people recognize that the garbage collectors are just doing their job. This is really been a recent spike in the level of activity, Benn, I'm not sure.

1163
Anthony Crescenti 04:31:51.260 --> 04:31:58.820
That security guards are putting people who aren't really properly trained to handle those situations. It is actually gonna make people safer.

1164
Jay Liao 04:32:04.700 --> 04:32:20.940
So I think we have time for just one more question before I close it out here. I don't know if Benny have had any more if we can, otherwise I- we've submitted a lot of questions around kind of labor enhancements through the interrogatories and we can address some of those through that.

1165
Ben Becker 04:32:21.980 --> 04:32:27.740
I might have had some items and I, I just wanna give them the chance.

1166
Jay Liao 04:32:27.740 --> 04:32:28.860
S.

1167
jack macy 04:32:33.500 --> 04:32:38.060
Are you referring to this gender item, Ben or something else?

1168
Ben Becker 04:32:42.500 --> 04:32:48.220
I'm sorry, I thought I had seen a message from Ty asking for fifteen minutes.

1169
Jay Liao 04:32:48.220 --> 04:32:53.340
Yes, oh, no, I was saying that I was giving this item fifteen more minutes.

1170
Ben Becker 04:32:53.340 --> 04:32:55.260
Excuse me, sorry.

1171
Jay Liao 04:32:55.900 --> 04:33:06.699
Okay, so I think with that will go to a public comment. We'll give anyone that wants to do public comment, maybe three minutes to speak.

1172
Jay Liao 04:33:09.980 --> 04:33:11.100
Okay.

1173
Ben Becker 04:33:17.020 --> 04:33:21.500
Sorry, just give me a moment. I'll, I'll set up the public comment.

1174
Ben Becker 04:33:22.779 --> 04:33:23.900
Okay.

1175
Ben Becker 04:33:26.740 --> 04:33:29.820
So if you are calling.

1176
Jay Liao 04:33:29.820 --> 04:33:30.461
In...

1177
Ben Becker 04:33:30.580 --> 04:33:44.141
I believe you need to hit start three to raise your hand, and if you are connected online, I think there is a, a raise hand function that you should see.

1178
Ben Becker 04:33:45.900 --> 04:33:51.580
I see one raised hand I've been a call on you and you'll have three minutes to speak.

1179
Ben Becker 04:33:52.859 --> 04:33:57.020
Let's see, I'm, I'm on muting you now just somebody with a period.

1180
Ben Becker 04:33:58.619 --> 04:33:59.939
Go ahead.

1181
Ben Becker 04:34:01.180 --> 04:34:02.301
Okay.

1182
. 04:34:05.660 --> 04:34:06.939
Hello, can you hear me now?

1183
Ben Becker 04:34:06.939 --> 04:34:07.580
Yes.

1184
Jay Liao 04:34:07.580 --> 04:34:08.221
S.

1185
. 04:34:08.221 --> 04:34:19.381
They, it's David, so I prepose that since I listened to you all for just over four hours that you give me just over four minutes, is that a fair deal.

1186
Ben Becker 04:34:20.381 --> 04:34:22.141
Okay, David.

1187
. 04:34:22.301 --> 04:34:42.779
Okay, so I'm feeling a bit faster and I sense that in others, staff here, perhaps this process is just trying to do too much too fast and we should think about that. I think we're dealing with materials that were posted at late, er, just before the, the.

1188
. 04:34:42.779 --> 04:35:03.100
The hearing today, Some of that support will be up all night. Preparing those materials and we're trying to digest and respond to, to things a bit on the fly here. Nevertheless, I think there's a fundamental need for fair just and reasonable rates as help code section two ninety point, six.

1189
. 04:35:03.260 --> 04:35:23.020
Es that, you know, earlier comparing, er, error and profit. I think there are different arguments on, on different sides there. I, I'm not sure, but I've heard enough about other cities, but receive a franchise.

1190
. 04:35:23.740 --> 04:35:44.221
And it's been suggested in the past that the impound account is high of like an equivalent to a franchise fee, maybe there's a way to, to think about that in my view with that similar count idea, whether it's fifty percent or a hundred percent does reduce not eliminate, but reduce the relative risk.

1191
. 04:35:44.381 --> 04:36:04.699
K- to add to recology or some revenue aspects here and that may in, in my view reason to adjust or poor down or slice it in different ways that, that's for a future discussion. I've said before, to, to some of.

1192
. 04:36:04.699 --> 04:36:25.180
You, but I see costs as the cost could be classified as our mandated in transit or discretionary are those things that are required. Those things that are fundamental to the business and those things that are dispersionary and nice to have, but not required. I would ask in each case, how does each item.

1193
. 04:36:25.180 --> 04:36:25.820
S

1194
. 04:36:26.260 --> 04:36:46.100
Great payers directly or benefit the rate payers by aware of reduced that's been in non- for agreement or other benefits in terms of outreach staff. There is a, a lot of discussion earlier about repology environment and DPW. I.

1195
. 04:36:46.141 --> 04:37:06.580
See their focus as being directly on the customers with regard to ecology directly with regard to programs and policies, but really programs and environment and directly with the streets as relates to public works and I think that if each of those portions keep to their core competency.

1196
. 04:37:06.580 --> 04:37:27.061
Willing a served by that doesn't mean that we should have more or less outreach staff. I leave that to, to future discussions, but that's just a- a lens that I look at it. I don't have enough time to go to discuss program enhancements labor and pension costs or is it. I would like to see more focus in the future.

1197
. 04:37:27.061 --> 04:37:47.539
And day and night routes and trucks and whether there could be fewer trucks by having some of them work both days and notes, contamination, screening and processing, which was talked about earlier and facility planning and real estate. I think today she highlights the need for a quarterly public review.

1198
. 04:37:48.180 --> 04:38:08.020
Where program starting with the quarterly report and having this kind of a, a bad discussion, it was tedious. It was slow. It was awkward, but I think this is the kind of thing that we need to have at quarterly in the future and we should all be brief about it. I would ask the controller stuff. The proposed.

1199
. 04:38:08.020 --> 04:38:28.500
Options and the questions for the public and the policy makers to think about in future sessions are asking when is the next hearing date and time positions listed as number one, And I think they were supposed to be two and finally I may follow up directly with some of you. So if you see a, a- a.

1200
Jay Liao 04:38:28.500 --> 04:38:45.301
ID, that, that may be me, and I'm also concerned that now I'm from DPDH or without seems to be participating and I think they have a way here and should be invited if not required to attend those are my thoughts today. Thanks for listening.

1201
Ben Becker 04:38:46.420 --> 04:38:47.779
Daisy, David.

1202
Ben Becker 04:38:49.221 --> 04:38:55.381
I don't see any other callers raising their hand again, if you're on the phone, it's a star three.

1203
Ben Becker 04:38:56.020 --> 04:39:03.381
Just to raise your hand or with the computer. So raise hand function, I'll give you just a minute and then I think we'll close it out.

1204
Ben Becker 04:39:10.100 --> 04:39:12.660
All right, I think we're ready to close this out.

1205
Jay Liao 04:39:12.660 --> 04:39:30.660
Yeah, thank you everyone for your time and the work that went into this, I know it was, it was long. It's indicative, I think of this process of trying to do too much in a short amount of time, but we'll get through this. We have a few other hearings to get through to the work through all the questions. So really appreciate the work and the time thank you all.

1206
Alexa Kielty 04:39:36.980 --> 04:39:39.060
Oh, I guess.