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HomeMy WebLinkAboutReso 56-2014RESOLUTION NO. 56 -2014 CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION CONFIRMING AN INCREASE IN SOLID WASTE COLLECTION RATES AS SUBMITTED BY THE SCAVENGER COMPANY EFFECTIVE JULY 1, 2014 WHEREAS, the City Council approved a franchise agreement on July 9, 1997 with the South San Francisco Scavenger Company for collection and disposal of solid waste ( "Agreement "); and WHEREAS, Section 6.2 of the Agreement stipulates that rates for residential collection and disposal of solid waste may increase annually by 80% of the Bay Area Consumer Price Index (CPI), and that increase is 1.63 %; and WHEREAS, Section 5.9 of the Agreement, as amended on May 9, 2002, stipulates that the sludge hauling fees may increase annually by 80% of the Bay Area Consumer Price Index (CPI), and that increase is 1.63 %; and WHEREAS, the calculations have been verified by Finance Department staff, and a complete fee schedule is attached hereto as Exhibit A. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that the City Council hereby confirms the increases in the solid waste disposal and collection fees as shown in Exhibit A as consistent with the terms of the Agreement. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a regular meeting held on the 14th day of May, 2014 by the following vote: AYES: Councilmembers Mark N. Addiego, Pradeep Gupta, and Liza Normandy Vice Mayor Richard A. Garbarino and Ma oryl Matsumoto NOES: ABSTAIN: ABSENT: None ATTEST: Anna Brown, Deputy City Clerk SOUTH SAN FRANCISCO v � _ March 27, 2014 COMPANY, + N C. Ms. Kathy Mount, Assistant City Manager City of South San Francisco 400 Grand Avenue South San Francisco, CA 94080 Dear Ms. Mount, In accordance with the terms of Section 6.2 of the Franchise Agreement, please accept this letter as our Notice of Intent to adjust the current rates for service in South San Francisco. The Franchise agreement has a specific procedure for rate adjustments, and this notice is due to the City by March 31" each year. The procedure has a three year cycle, and two of those three years call for an adjustment based on the Consumer Price Index. The third year in the cycle calls for a rate study and rates are based on those in 30 plus cities in the SF Bay Area. The next rate study is due next year, March 31, 2015. For 2014, the rate adjustment would be equal to 80% of the change in the Consumer Price Index for Urban Wage Earners and Clerical Workers, as published by the U.S. Bureau of Labor Statistics. The adjustment for this current year equates to 1.63 %. The calculation is attached for review. A proposed rate schedule is also attached. As per the Franchise Agreement, the rate adjustments would be effective as of July 1, 2014, if approved. Also, the Second Amendment to the Franchise Agreement, regarding the transport of sewage sludge, Section 5.9, states that the Tonnage Rate is also subject to the same percentage increase as the service rates referred to in Section 6.2. Therefore, the current rate of $54.44 per ton would increase to $55.33. Thank you for your consideration of these matters. If you have any questions, please contact us at (650) 589 -4020. 1 realize you have not had to deal with this before, and we usually work with Jim Steele and his staff. We are sending it to you because the franchise agreement indicates all correspondence is to go to the City Manager's office. If you Mould like to meet to discuss this, we are, of course, available to meet with you at your convenience. S' ormosa, CFO PO Box 301 • 500 East Jamie Court South San Francisco. CA 94083 -0348 V (650) 589 -4020 F: (650) 589 -7385 info @ssfCcavenger.com • web: Www.%tscavencger,r:om 01 South San Francisco Scavenger Co. City of South San Francisco Rate Computation March 31, 2014 CPI Index February 2013 240.262 CPI Index February 2014 245.148 Numerical change 4.886 Percentage change 2.03% 80% of change Index Used - Consumer Price Index Urban Wage Earners and Clerical Workers San Francisco - Oakland -San Jose, CA All Items 1882 -84 = 100 Series ID - CWURA422SAO P2 A to Z Index ' =-%K Ahout :LS ConWcY Us SubsWbe to E-malt UpdVm w Follow us I What's New I Rdrase Calendar + Site Map Search BLS,90v Home Sublects Data Tools Publications I Economic Releases Students I Beta Databases, Tables & Calculators by Subject rawrSize; - + Change Output Options: From: 2008 To: ,2014 v Cindude graphs o►. Data extracted on: March 27, 2014 (1:19:58 PM) Consumer Price Index - Urban Wage Earners and Clerical Worker's Series Id-- CWURA422SAO Not seasonally Adjusted Ames: San Francisco - Oakland -San Jose, CA Itea: All items Sass Period: 1982 -84 -100 Download:ICl Year San Feb 1 Mar _Apr Ma)I Sun Sul Att� Sep Oct Nov Doc Annwl . HALF1 HALF2 _-. .. . 2008 -214.913 217.913 221.454 221.385 22i.192! .213.685 T IISA41 r 217.487 219.396 2009 216.797 218.597; 1220.996 _ 1221.279 221.708 _220.121; 219.645 ' 218.182.221.109 2010 222.049 223.821 • 224.185 224.195 224.352 224.152 223.624'223. 012 224.236 2011 226.638 ` 231.600 1 230.605 231.445 232.371 231.109.230.337 ; 229.074 2012 ; X234. '236.626 , 236.890 238.445 240.864 _231.600 236.454: 237.097' 235.572 238.622 2013: 1 240.262. ; 241364 '243.0521 242.903 243.711 _ 242.602.242.12S 241.141 243.109 2014 ;.245.148. 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Service Level By Container Volume 20 Gallons $ 21.78 1.63% 22.14 32 Gallons 28.24 1.63% 28.70 64 Gallons 62.13 63.14 96 Gallons 97.42 99.01 128 Gallons or more 135.49 137.70 Commercial Can Service 30 Gallons 25.64 26.06 32 Gallons 27.33 1.63% 27.78 40 Gallons 34.19 34.75 45 Gallons 38.42 39,05 55 Gallons 46.98 47.75 Commercial Compactor Service Per Cubic Yard 52.91 1.63% 53.77 Debris Box Service, Residential and Commercial Temporary I One Time Use 5 Yard Mini -box 247.73 251.77 7 Yard 541.29 550.11 14 Yard 541.29 1,63% 550.11 20 Yard 736.99 749.00 30 Yard 1,063.24 1,080.57 Regular / Permanent Service 7 Yard 456.68 464.12 14 Yard 456.68 464.12 20 Yard 652.39 663.02 30 Yard 978.59 994.54 Rental Charge (per day, over 7 days) 20.41 20,74 Page 1 P4 SOUTH SAN FRANCISCO SCAVENGER CO., INC. City of South San Francisco Proposed Fees for Refuse Service, Effective July 1, 2014 Current Proposed Rates Maximum Rates Overweight Charge Content weight in excess of 3 tons, per ton 127.52 129.60 Commercial Bin Service A. Regular Pick -up 1 -yard Container 173.06 1.630% 175.88 2 - yard (Front End Loader Bin) 259.49 263,72 3 - yard (Front End Loader Bin) 389.29 395.64 4 - yard (Front End Loader Bin) 519.03 527.49 5 - yard (Front End Loader Bin) 648.83 659.41 6 - yard (Front End Loader Bin) 778.55 791.24 B. On Call Pick -up, Per Yard 29.98 30.47 Per Pick -up, Per Yard Plus Container Rental Per Month Rental Charges 1 - yard Container 45.34 46.08 2 - yard Container 49.21 50.01 3 - yard Container 52.82 53.68 4 - yard Container 56.67 57.59 5 - yard Container 64.21 65.26 6 - yard Container 68.11 69.22 Sludge Hauling Per Ton (Treatment Plant) 54.44 1.63% 55.33 Page 2 PS SOUTH SAN FRANCISCO � 'IV INOU.-Y'lla- COMPANY, INC. SUSTAINABILITY "'iW° ^sT•t°m• ^t HIGHLIGHTS REPORT "South San Francisco Scavenger Company is committed to providing OCTOBER2013 solid waste management services of the highest quality delivered with pride and professionalism to all our customers, utilizing environmentally sensitive equipment that is safe, efficient, reliable and appropriate to the work we perform. In carrying out our mission, we intend to provide and maintain the best possible work environment for our employees, fully cooperate with all governing and regulating agencies, and do our part to help create a sense of partnership between our company and the communities we serve." n,Meraa ssw �,are�, ao��mso+��p�: Greetings from South San Francisco Scavenger I am pleased to present our 2013 Highlights report. This past year has been filled with plans for the future, where we are expecting to significantly advance our capabilities to divert materials away from landfills and reduce our greenhouse gas emissions. We look forward to this time each year when we reflect on how far we have come, and how quickly we are moving forward in achieving our goals. By late spring 2014 we will have completed a large step towards sustainability with the completion of Blue Line Biogenic CNG Facility which will take the organic portion of the waste stream and through anaerobic digestion technology, create Biogenic Compressed Natural Gas (CNG) to fuel our collection vehicles. Not only is this advanced technology the first of its kind, but this will be the first facility in the United States to convert the organics we collect into CNG to fuel those same collection vehicles - a true closed -loop full -circle process that captures the inherent value of the organic portion of the waste stream. Furthermore, we are making great strides in other environmental goals. Reducing our water usage, enhancing our green purchasing program, achieving greater fuel efficiency and reducing greenhouse gas emissions are all examples of our achievements in sustainability. We have been publicly reporting our Sustainability goals for three years now. Having these goals published keeps us accountable in our sustainability mission and pushes us to greater heights. Our biggest focus in the coming year, beyond completion of the Anaerobic Digestion facility, will be to build upon our community service programs and expand our employee appreciation program. While SSFSC has been giving back to the community for generations, it is our goal to integrate our employee appreciation program into our charitable giving and to better focus our charitable dollars into effective community programs that support our local communities. We have been overwhelmed by the positive feedback we have received from our Sustainability Programs which encourages us to do even more. We are looking forward to the coming year that will bring about major innovations in our company, just in time for our centennial. It will be a time for further reflection, and a celebration of how truly far we have come. We promise to continue including you, our readers, in our progress on the road to total sustainability. Sincerely, Doug Button President, South San Francisco Scavenger Company P7 Our Achievements (2011 -2012) CLIMATE ACTION PLANNING Our plan to reduce our facility emissions ahead of the statewide greenhouse gas (GHG) reduction goals is highly aggressive. We are pleased to announce that we are currently meeting this goal. Through our conversion of diesel vehicles to compressed natural gas (CNG), more efficient lighting programs and overall operational efficiency, our 2012 GHG emissions are over 22% lower than our 2006 baseline inventory. We project these emissions reductions to continue, as we purchase additional CNG vehicles to replace diesel, and bring biogenic CNG from our anaerobic digester online. The graph below shows how our operational GHG emissions have changed since we started reporting in 2006, and our current projection of our 2020 emissions'. 4,500.00 4,000.00 3,500.00 Y 3,000.00 2,500.00 2,000.00 1,500.00 1,000.00 500.00 Current and Projected Facility GHG Emissions 2006 2007 2008 2003 2010 2011 2012 250,000 200,000 150,000 F 100,000 50,000 �WWMOWW "aDkedStadomy ®Irdredfle k4 ®Ngldvefmisdovs �Twrmp Our recycling program reduces GHG emissions in our community, by avoiding fugitive landfill emissions and avoiding the harvesting and processing of virgin materials for products. In 2012, we managed to avoid 18.5 times the emissions we produce, which is slightly short of our goal of avoiding 20 times the emissions we produce. Our plan is to bring on more recycling and diversion programs to ensure that we meet and maintain our goal. Net Zero: In 2013 the California Air Resources Board released the next phase of their GHG Scopmg Plan designed to guide the State towards the next set of GHG reduction targets outlined in AB 32. This included a goal for the waste and recycling industry to achieve net zero emissions, where avoided indirect emissions from waste diverted from landfills offset operation emissions. SSFSC is a Net Zero Fadlity, well ahead of the State targets. ' These do not include emissions from the sterilization cookers. € P8: ,. FLEETS AND FUEL We are maintaining our current GHG reduction goal of 20% lower emissions in our fleet than our 2006 fleet emissions. Our future goal is a 30% reduction by 2020. New CNG trucks, and our anaerobic digestion technology, combined with our consistent maintenance programs and commitment to efficient driving makes us feel confident we will meet our fleet goals and targets. We do understand that we cannot only depend on fuel conversions to meet ca"� " our air emissions targets. An important factor in reaching our goals is the of continued education of our drivers and maintenance staff. Through safety meetings and continued engagement we work to make good habits a part of • the daily routine. GREEN BUILDING AND FACILITY ENERGY USE We have met our goal of receiving LEED accreditation for our office building. We continue to work towards higher levels of LEED accreditation as we make improvements and enhancements to our program. We are investigating solar panels for our office building. We expect solar technology to further reduce, or offset, GHG emissions associated with our electricity and energy use. Through enhancements to our sterilization cooker, we have managed to reduce GHG emissions from natural gas usage by over 80%. Carbon intensity of Sterilization Cooks 3.50 3.O0 2.50 - - -- 2.00 -- - - - - - - -- - - -- 1.00 _T _ 0.50 i 2009 2010 2011 2012 ,,. W_ RECYCLING AND RESOURCE MANAGEMENT Our internal recycling, compost and purchasing programs have been extremely successful. We achieved a recycling rate of 83% in our offices, an increase of 8% from the previous year. We still have work to do in order to achieve our goal of 90% diversion of office material waste, and plan to do that through increased monitoring, staff education and our Environmental Purchasing Program. The communities we serve are on -track to achieving or exceeding the State goal of 750A recycling by 2020. We continue to work with our commercial customers to help them take advantage of recycling and waste reduction opportunities. We look forward to achieving greater diversion of organics when our AD facility comes on line in the spring of 2014. We are proud to assist the San Francisco International Airport (SFO) in their efforts to achieve Zero Waste. We provide SFO with comprehensive recycling and organics programs, waste audits and assistance with tracking their waste reduction recycling efforts. In 2012 they achieved a recycling rate of 77% well on their way to their Zero Waste goal. Improve Current Efficiency Introduce Equipment as Needed Increase Ability and Capacity to Deal with Organics A P,,.: P10 •increase floor sorting of metals, carpet and large ftwtanals •Increase paper and wood waste diversion *Enhance Commerdal pick line •Increase amount end quality j of food waste cdlection •tookfor opportunities and solutions with harder to dean food waste materials ENVIRONMENTALLY PREFERABLE PURCHASING (EPP) We are committed to selecting office products when possible that meet the EPP standards. Our efforts to discourage use of disposable products, purchase paper and other office supplies that are recyclable and /or are made from recycled materials paid off when we exceeded the 50% goal set in 2011. FACILITY WATER USE The decrease in our water usage at SSFSC is one of our most striking successes. Our cookers have become more efficient at 5.2 C(F per cook, which is well below our goal. We will continue to monitor our usage and set a new target to maintain in our next report. Our landscape water use has dropped dramatically again for the calendar year 2012. The goal for 2012 was a 30% decrease in landscape water use from 2009. We exceeded our expectations by accomplishing a staggering 175% decrease from 2009 usage! Small practical changes to our watering schedules and installation of drought tolerant native species, which were both simple and sustainable, have played major roles in us achieving these decreases. standard Cubic Feet (CCF) per stereCization cook sow 2s.o to.o U. 1S0 1U sa 0.0 sa -0 - -, 26" 2010 2011 2072 LOCAL ECONOMY AND COMMUNITY SUPPORT Annual Landscape water thage 2000 2070 2011 3072 Our management supports the communities we serve through their involvement in many civic and charitable organizations. We set a goal to participate in ten community events per year, which we do with great pleasure. This type of community engagement encourages our employees to become more visible and active locally, which in turn promotes community within the work place. Another goal for 2012 was to implement programs to encourage employees to participate in local events, charities and projects. This goal is a part of a re -vamp of our program to 1) better understand how the organizations we support meet our goal of making the local community better, 2) better support, engage and show our gratitude to our employees and 3) tie these 4 Estimations based on current waste generation amounts and expected population growth published by CalRecycle and ABAG respectively} a; 1311 goals together to engage our workforce in our service communities. We have a I ready begun to see an increase in participate at some events, including a family oriented annual truck rodeo, where drivers are engaged in friendly competition that encourages safety and honing their skills. In addition, there are many free activities for children that are all sponsored by SSFSC and their industry peers. EMPLOYEE SUPPORT AND SAFETY We continually make our employees' health and job safety our number one priority. We succeeded again in 2012 in having no OSHA violations. However we did have some reportable injuries. The injury rate for Blue Line Transfer was 13 injuries in 120,000 hours worked, which is up slightly from last years 11 injuries in 120,000 hours worked. Our goal remains to have zero injuries each year, which we promote through our ongoing safety training programs and monthly safety meetings. Thank you for your continued interest and support in our Sustainability Programs. We remain committed to transparent, annual reporting as we strive towards meeting all of our Sustainability Goals. Local and Global Environment Key: N—New, A— Achieved, M— Missed, OT -0nTradk Targets: 1.1 Reduce Direct and Indirect GHG emissions ahead of statewide GHG emissions reduction goal. N OT OT 1.2 Increase recycling and composting to avoid GHG emissions by over 20 times what our operations generate. N OT OT Fleet and Fouls Targets: 2.1 Convert 86% of fleet to low /no emission technology by 2020. N OT OT 2.2 Increase route efficiency and reduce fuelfton for collection vehicles by 5% by 201 S. N OT 2.3 Replace lights in MRF to fluorescents by 2013 N OT i A Reduce natural gas and electrk ty GHG emissions by 25% by 2020 compared to 2006 Or A A Green Buildina and Facility Energy Use Targets. _. . 3.1 Obtain LEER accredttation for office building by 2012. OT OT A 3.2 Wtati more solar ponds at our facility to offset electricity usage. N 3.3 Replace lights in MRF to fluorescents by 2013. N A A 3.4 Reduce natural gas and electricity GHG emissions by 25% by 2020 compared to 2006 baseline. OT OT OT Continued on pope 8. { k P12 Loral and Global Environment ttecyd2tng ano tsesouree managemem °°� �.� �:. x ``�L��%.�i �Y z'� r? ' •!� � i=f1 .r12.�.� i-r � +l {��T�.�atLVt �}; i1_ _ �T.t�i i?i�..%.�+ �i �� ate, w;� � u . _�.... .. I Targets: 4.1 Recycle or compost 90% of waste generated by SSFSC office by 201 S. N 4.2 Increase waste diversion to a rate of 75% or above for Millbrae and South San Frandsen by 2020. N OT 4.3 Assist SFO International Airport to meet their goal of zero waste. N OT 4.4" Assist the commercial and Industrial sectors to increase recycling and waste reduction efforts in 2011. OT Or A 4.5 Increase waste dhmsion to a rate of 90% or above for Brisbane by 2020. N OT Envimnrnerhtaly Prelkirable Purchasing d '-rr •h ;efa� „. }�(� 1 l�? § r t. •� • - ;: is `.. !t� `;= Y • . �3 It1 a 33i • "M Targets: S,1 Implement a formal preferable purchasing program which covers 90% of office supplies by 201 S. N OT OT .mom ._ ..Y•'. .e .,y"j'Y � ,. -�.wy .r^+ *Y+° -_ y. v:. ».; s.• Targets: e+ „»,. �n•Y 'any'-; .. } �J s h k`t tii].� a .�.:? :E ice.: + 1 „l's,.' „a. r ten: 1 ,has h+#•�11� .,Jk y:_ .�, _ ::' n `` >. .,.s „s, z; �.r.,” .._.�_ ....�__. 6.1 Optimize water usage in each cook to 12 ccf /cook.. N A 6.2 Reduce water usage associated with landscaping by 30% by 2012. N OT A 6.2" Maintain landscaping water efficiency and took for opportunities to further reduce water In offices. N Socially Responsible Procttrentent r 1 •ih ?art X43 �ti JI; 45i a � - ."A _ ' M'. ^ "'NZ Targets: 7.1 Purchase 30% of products and/or services through local businesses by 2015. N OT 7.2 Purchase 20% of products and/or services through minority owned businesses by 201 S. N OT OT �r . <- }� J,„i rY• 4,i!�I�l�l ;��� r �;. • ��t . ..h�'�.i,.. -�., - =ae;.. ,,.as�:,_'�" -..f _... .�, ,�.� v.�z, �_ Targets: 8.1 Work with local community organizations to make the SSFSC communities a better place to live. N OT LAtal puertts„ 17tarltles aria t ommunq mvion►ement ••r• � .�tr cy'y y� ..w4g.�,&8a „�!, e�;.,,�gk 9e [)'A�1 it �..r' �1 �� -1'. _ i�z!i'�'- ,l� {�A+�t-1 rl.._r i�r �', . Y•5. did 'A.��ew'^�� ►A',raa�� „_ er�.,��%�w x�#. � �'" Targets: 9.1 Engage 100% of management in local charities and organizations. N A A 9.2 Participate in 10 local events per year. N A A 9.3 Implement programs to encourage employees to participate in local events/charitie0projects. N N OT iployea Support and Safety S � j -.. 3 _. � �„� ��� . '� I' • i ' R'p � 1 547 F• rf 4� b i � li�� .!Ali.i z7't� ;A � Targets: 1 }1 kuure each employee Is provided with 4o hours of training for all clew equipment and Show of annual refresher tr smog. 10.1 Continually upgrade health and safety policies to ensure employees are never put at risk while working. N OT OT 10.2 Strive for zero lost tkne work place injuries. N M M 10.3 Strive for zero violations. OT A A EmployeeTrairtingand Satisfaction • r� .._... ._. . ,l...w..!r.? "mot �i _:t�+ »rt .)r_i+,{tr�.L *'�1' .:ijg11 � .., .. �_..� C l.r,.<1�! �•- �,.�,.- ,,...a.. ih i•,r.. Targets: 1 }1 kuure each employee Is provided with 4o hours of training for all clew equipment and Show of annual refresher tr smog. N A A 11.2 Enable upward mobility for high potentW employees. N A A 11,? Provide on -site activities and employee perks to increase and encourage employee. N A A '1 Scavenger Company of SSF 2014 -15 Rates Mq 14,2014 Franchise Agreement • Council approved franchise agreement with Scavenger Company in 1997 and approved a 20 -year extension in 2013. • Every 3 years, rates are set at no more than 95% of average of 32 Bay Area cities. • For all other years, including FY14 -15, rates adjust by 80% of the Bay Area CPI. • The next rate survey will be for FY 15 -16. FY 14 -15 Rates • Increase in Bay Area CPI = 2.03% • Rate Increase, effective 7/1/14 = 1.63% ANAMOd lyr w d (WUMWh) 2DASIbe Can $2173 Sn 14 324abaCW $2$24 M70 r (PO •mot (par month) 304ROW Can $2&" s2ba S54n$•n do $44.46 $4773 MrmalYoa WN M) (PW —) S WO Had" $54,44 $S533 P]4 5/7/2014 Increased Residential Recycling • Due to increased recycling by SSF residents, solid waste collection is decreasing. In the last year, use of 20- gallon trash cans has increased from 7% to 16 %, while the use of 32-gallon cans has decreased from 80% to 75 %. • Questions for Staff Scavenger presentation of Capital Investments and Sustainability Initiatives Sc.3vf�.vGr�� P15 5/7/2014 71. � South San Po ancisco Scavenger Company :.2014 City Council Update s�er®bicp�gester - compietton sedwled for early September *. Ri�d'tas�d` six (6) CNG vehicles ` � A�ieved LEED oertrflcation *Increased efficiency of cooker technology • Software upgrade- online billing /auto pay - launched, April 2014 `::Capital Investments P16 5/8/2014 Capital Investments- Digester Construction Progress AriasrcoWe Digester Creates Renew", . a0d Fuding Station Energy Truck and Equipment Decreased pollution Upgrades 1100 and GHG emissions Capital Investment = Lower GHG Emissions P17 5/8/2014 2 AyyrsNe approach to reduce facility �eriAis�slons indudes- :wt LEED Certification for office building 83% recycling rate in offices Reduction in water use facility-wide `Capital Investment = Energy Efficiency `and Resource Management p9 Cglif+�rnia Air Resources Board sad next phase of GHG reduction to ei3 in AS 32; a goal for the waste and: tjecyding industry to achieve net zero erriissions, where avoided indirect emissions from waste diverted from IandfiUs offset operation emissions. Capital Investments = Net Zero `1Facility Ahead of State Targets ��� lN}iwsyseraersurn�.w�w Pis 5/8/2014 3