COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Public Works

DATE:

January 12, 2004

BOARD MEETING DATE:

January 27, 2004

TO:

Honorable Board of Supervisors

FROM:

Neil R. Cullen, Director of Public Works

SUBJECT:

Commercial Organics Collection Program in County Service Area No. 8 - North Fair Oaks Area

Recommendation

Adopt a resolution authorizing the President of the Board to execute the Third Amendment to the Franchise Agreement Between the County of San Mateo and BFI Waste Systems of North America, Inc. (BFI) for Solid Waste, Recyclable Materials and Plant Materials Collection Services which provides for a Commercial Organics Collection Program in County Service Area No. 8 ("CSA8" or "North Fair Oaks").

Previous Board Action

Entered into the Franchise Agreement with BFI for garbage and recyclables collection service for the CSA8 area effective January 1, 2000.

Background

The County for CSA8, is a member agency of the South Bayside Waste Management Authority (SBWMA), a joint powers authority of the cities of Burlingame, Hillsborough, San Mateo, Foster City, Belmont, San Carlos, Redwood City, Atherton, Menlo Park and East Palo Alto, the West Bay Sanitary District and the County.

Key Facts

·

The SBWMA and BFI have developed a new Commercial Organics Collection Program at the request of the SBWMA's member agencies, which includes the County for CSA8.

·

The Commercial Organics Collection Program will benefit the County and the North Fair Oaks area by diverting the organic wastes of qualifying commercial customers in CSA8 from landfill disposal.

·

Increasing the waste diversion of commercial customers in CSA8 has been a common goal of the County and the North Fair Oaks Council.

·

Implementation of the Commercial Organics Collection Program in the North Fair Oaks area requires the amendment of the County's Franchise Agreement for CSA8.

·

The Franchise Agreement for CSA8 allows for the incorporation of new or modified programs.

·

All other member agencies in the SBWMA with potential commercial customers have amended their franchise agreements.

·

This recommendation will be presented to North Fair Oaks Council at their January 15, 2004, meeting, and comments of the Council will be reported to your Board at your January 27th meeting.

Discussion

The Commercial Organics Collection Program developed by BFI and the SBWMA is modeled after a successful organics collection program underway in San Francisco. The program will target businesses that generate significant quantities of organic waste materials such as vegetables, meat, poultry, fish, bakery goods, waxed cardboard, wooden crates, floral trimmings, tree trimmings, brush, leaves and grass. The participants are typically restaurants, hotels, grocery stores, corporate campuses with a cafeteria, produce markets, bakeries, food banks, floral shops/nurseries and schools.

Businesses that agree to participate will receive new collection containers for organic waste and the collected material will be composted at BFI's Newby Island facility in San Jose. Possible candidate businesses in the North Fair Oaks area include: St. Anthony's Padua Dining Room, Key Market, Chantilly Restaurant, Chevy's Restaurant and the schools.

BFI will order new collection equipment and containers, develop marketing materials and start outreach to potential customers once the program has been authorized by the SBWMA jurisdictions The actual collection of the organic material will begin no later than September 1, 2004.

We are recommending that the rate paid for solid waste collection service by commercial customers in the North Fair Oaks area who participate in the Commercial Organics Collection Program be reduced by 25 percent (25%) from the rates your Board approves for CSA8, in order to encourage participation in the program.

Vision Alignment

We believe our recommendation is consistent with the Shared Commitment to be a "responsive, effective and collaborative government," as the proposed commercial organics collection program will increase the diversion of waste from landfill disposal in the County and in the North Fair Oaks area, a goal the North Fair Oaks Council and the County have worked together to realize.

Fiscal Impact

The rate impact of the Commercial Organics Collection Program SBWMA-wide is expected to be in the range of two percent (2%), or approximately $0.36 per customer per month based on the proposed rate in CSA8 of $18.05 per month. The cost of the program will be prorated among the participating member agencies and the actual rate impact to an individual member agency, like CSA8, will depend on how many commercial customers in a member agency participate in the program, and the level to which participating customers reduce their regular garbage service.

There are a small number of candidate customers in CSA8 relative to the number of candidate customers in the total SBWMA service area and therefore we expect the cost to CSA8 to be small. We propose to address the rate impact, if any, in the 2005 rate review since the program will commence around September 2004.

There is no impact to the General Fund as the cost of the program in CSA8 will be funded by the rates paid for solid waste services in CSA8.

A form of a resolution and an amendment has been approved by County Counsel and BFI has executed the amendment.