COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Public Works

DATE:

January 17, 2003

BOARD MEETING DATE:

February 4, 2003

TO:

Honorable Board of Supervisors

FROM:

Neil R. Cullen, Director of Public Works

SUBJECT:

Time Extension - Agreement for the Operation of the Pescadero Solid Waste Transfer Station

Recommendation

Adopt a Resolution authorizing an amendment of the Agreement for the Operation of the Pescadero Solid Waste Transfer Station (Transfer Station) which extends the term of the Agreement to September 30, 2003.

Previous Board Action

Contracted with Browning Ferris Industries to operate the Transfer Station and extended the term of the Agreement to December 31, 2002.

Key Facts

1.

The compaction equipment at the Transfer Station is at the end of its useful life and an evaluation is underway of the options for the future operation of the facility.

2.

The current County-BFI Agreement for the operation of the Transfer Station needs to be extended to keep the Transfer Station in operation while this evaluation is being done.

Discussion

Customer surveys have confirmed that the Transfer Station is a valued community resource in the County's South Coastal area, as it provides convenient recycling and solid waste disposal service and its customers are satisfied with BFI's operation of the facility.

However, the Transfer Station's compaction equipment is over seventeen years old and at the end of its useful life. We are in the process of evaluating the options which include replacing the existing compaction equipment with similar of different equipment; revising the disposal operation to eliminate compaction equipment; closing the station or increasing the rates. It is necessary, while that process is underway, to extend the duration of the current County-BFI contract so that the facility can remain open. We believe the terms and conditions of the current Agreement are fair to all parties and are recommending that your Board amend the Agreement to allow its term to be extended to September 30, 2003. BFI agrees with this extension and has executed the amendment.

Vision Alignment

We believe our recommendation is consistent with the Shared Commitment to be a "responsive, effective and collaborative government," and Goal Number 20, "government decisions are based on careful consideration of future impact, rather than temporary relief or immediate gain," as the extension of the agreement will allow us to fully analyze the options and obtain public input prior to making a recommendation to your Board.

Fiscal Impact

The cost of operating the Transfer Station ($263,280 in FY 2001/02 and projected to be approximately $271,000 in FY 2002/03) is funded by an appropriation from the Solid Waste Fund. This cost is offset by the disposal fees collected at the Transfer Station ($56,137 in FY 01/02 and projected at $60,000 in FY 02/03), which is a revenue to the Solid Waste Fund. There is no impact to the General Fund.

An amendment to the Agreement and a form of resolution has been approved by County Counsel.