COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Public Works

DATE:

May 22, 2003

BOARD MEETING DATE:

June 10, 2003

TO:

Honorable Board of Supervisors

FROM:

Neil R. Cullen, Director of Public Works

SUBJECT:

Increase in the County Compensation Rate at the Ox Mountain Sanitary Landfill to Help Finance the Healthy Kids Project of the Children's Health Initiative

Recommendation

Adopt a resolution increasing the County Compensation Rate at the Ox Mountain Sanitary Landfill from $5.02 per ton and $1.25 per yard to $6.02 per ton and $1.50 per yard effective July 1, 2003; and to $7.02 per ton and $1.75 per yard effective July 1, 2004, to help finance the cost of the Healthy Kids Project of the Children's Health Initiative (Healthy Kids Project).

Previous Board Action

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Entered into an agreement with Browning Ferris Industries (BFI) in 1999, which covers landfill operations at Ox Mountain and obligates BFI to pay the County a compensation fee as determined by your Board.

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Adopted a resolution in October of 2002 committing to provide up to $2.7 Million a year in matching funds to support the Healthy Kids Project.

Key Facts

The County/BFI agreement provides that the County may adjust at its discretion, the Compensation Rate that is used to calculate the compensation fees paid to the County by BFI for the Ox Mountain facility.

We believe that it is appropriate to increase the fees paid to the County at Ox Mountain to help finance the Healthy Kids Project, as the fee is based on the waste received from both city and county areas, and the Healthy Kids Project finances health insurance for children who qualify for the program that live in both city and county areas.

Discussion

The Healthy Kids Program provides comprehensive health insurance for children who are ineligible for Medi-Cal and Healthy Families and who come from families with incomes at or below 400 percent (400%) of the Federal Poverty Level (FPL). An estimated 17,000 uninsured children live in San Mateo County, with 14,600 residing in households earning an annual income below 400 percent (400%) of the FPL (approximately $61, 000 for a family of three). Your Board has agreed to provide matching funds up to $2.7 Million a year for the next five years for the program, and currently, the "matching" County funds are from the fund balance in the Solid Waste Fund. However, we anticipate that the cost of the program will increase as the program enrolls eligible children and the funds coming into the program that need to be matched, grow. Therefore we are recommending that the compensation rate at Ox Mountain be adjusted over the next two years to help finance the "match" to insure that eligible children can receive health care that will be financed through the comprehensive health insurance that is being offered.

Vision Alignment

We believe our recommendation is consistent with the Shared Commitment to "ensure basic health and safety for all," and Goal Number 5, "residents have access to health care and prevention care," as the funds will help finance health care coverage to all children from families that qualify for this insurance.

Fiscal Impact

The increases are proposed to be effective on July 1, 2003, and then on July 1, 2004. Each increase will provide approximately $800,000 per year, beginning in October 1st of each year as compensation fees are received on a quarterly basis from BFI. The additional revenue needed to meet the maximum $2.7 Million dollar per year match will come from the available fund balance in the Solid Waste Fund.

The rate of a single can pickup for a residential customer will increase approximately $0.08 per month for each dollar increase in the compensation rate paid to the county by BFI.

There is no impact to the General Fund.

A form of resolution authorizing the increase in the compensation rate has been approved by County Counsel and we have notified BFI of the proposed increase as required by the County/BFI agreement.