COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Public Works

DATE:

July 3, 2007

BOARD MEETING DATE:

July 10, 2007

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

James C. Porter, Director of Public Works

SUBJECT:

Adoption of the Garbage/Recyclables Rates in County Service Area No. 8 (North Fair Oaks), and

Adoption of the 2007-08 Garbage and Recyclables Collection Service Charges Report

Recommendation

At the close of the Public Hearing, acting as the governing board of San Mateo County Service Area No. 8, adopt a resolution:

1.

Adopting the Garbage/Recyclables Rates for County Service Area No. 8, North Fair Oaks, “Exhibit A” and “Exhibit B”,

2.

Adopting the 2007/08 Garbage and Recyclables Collection Report for County Service Area No. 8, North Fair Oaks,

3.

Directing the filing of the Report with the Clerk of the Board per County Ordinance Code, Chapter 4.04, Section 4.04.220-4.04.270,

4.

Authorizing the Director of Public Works as appropriate to approve refunds during the fiscal year.

Vision Alignment

Commitment: Responsive, effective and collaborative government.

Goal 21: County employees understand, support and integrate the County vision and goals into their delivery of services.

The 2007/08 Garbage and Recyclables Collection Charges Report is the result of a collaborative effort between County staff, South Bayside Waste Management Authority, North Fair Oaks Community Council, and property owners in North Fair Oaks. Adoption of this resolution contributes to this commitment and goal by completing the public process for setting the 2007/2008 garbage and recycling collection rates.

Background

Previous Board Action

On May 22, 2007, your Board adopted a resolution setting July 10, 2007, at
9:15 a.m. in your Board Chambers, as the time and place of a public hearing to adopt the proposed 2007/2008, 2008/2009 Garbage and Recyclables Collection Rates Increase (Exhibit “A” and Exhibit “B”) and to set the public hearing to consider the adoption of the “2007/08 Garbage and Recyclables Collection Charges Report for County Service Area No. 8 (North Fair Oaks).”

History

CSA-8 provides garbage and recyclables collection service in the North Fair Oaks area through a franchise agreement with Allied Waste (AW). The County generates the revenue to pay AW by charging fees based on pick-up units for each affected parcel that meets the criteria outlined in County Ordinance Code 4.04.180. These fees are defined and adopted each fiscal year in the “Garbage and Recyclables Collection Service Charges Report for County Service Area No. 8”, and placed on the tax roll. All other commercial and industrial properties that are not placed on the County tax roll are billed directly by AW.

The proposed rate schedule was adopted on May 22, 2007, Resolution No. 068737, Exhibit “A” and Exhibit “B”. The rate schedule (Exhibit “A” and Exhibit “B”) was used to prepare the “Notice of Intent to Increase Solid Waste Collection Rates” brochure (Exhibit “C” and Exhibit “D”) and to prepare the Collection Charges Report for County Service Area No. 8.

Staff reported to the North Fair Oaks Community Council on April 19, 2007 and
May 17, 2007. The North Fair Council received a presentation by staff on the
South Bayside Waste Management Authorities report, “REVIEW OF ALLIED-SAN MATEO’S REFUSE, RECYCLABLE, AND PLANT MATERIALS COLLECTION RATE APPLICATION FOR 2007 (Jan 17, 2007).” Discussions were held between staff and the Council on the report, the predicted revenue shortfall in CSA-8 for the next two fiscal years if the rates were not increased, public outreach programs, scope of services provided by Allied Waste, and the brochure that will be sent to property owners about the proposed rate increases and public hearing. All issues by the Council concerning the rate increase for CSA-8 were appropriately addressed at these meetings.

Articles X11C and X11D of the State Constitution (Proposition 218), require a notice to be sent to property owners alerting them of the public hearing to consider any new or increased property related fees, thereby providing property owners a mechanism for rejecting the fees via a majority protest at the public hearing. On May 24, 2007, the Public Works department mailed to property owners a Spanish and English brochure titled “Notice of Intent to Increase Solid Waste Collection Rates in the CSA-8, North Fair Oaks Area” (Exhibit “C” and Exhibit “D”). This brochure informs residents of the proposed new rate schedule for Garbage/Recycling for the next two fiscal years, the date and time of the public hearing, and the process for filing a protest.

In addition, the date, time and location of the public hearing has been published in a newspaper of general circulation in the Service Area once a week for two consecutive weeks prior to the hearing in accordance with County Ordinance Code, Section 4.04.240.

Discussion

The South Bayside Waste Management Authority (SBWMA) report, “Review of Allied -San Mateo Refuse, Recyclable, and Plant Materials Collection Rate Application For 2007” identified a revenue shortfall to provide garbage/recycling services for the CSA-8 area for 2007/2008 and 2008/2009. The report recommended a proposed rate increase of 9.1% for 2007/2008 and a second rate increase of 6.3% for 2008/2009 to meet projected expenses and cover the revenue shortfalls. If the new rates are not adopted, the added costs will accrue as a debt to CSA-8. This debt must be paid in full by December 2010, which is the expiration of the current franchise agreement. The current CSA-8 reserves allocated for garbage service cannot support the rate increases beyond this fiscal year.

If the rate adjustments as proposed in this report are approved, the CSA-8 Fund will be able to meet all of its anticipated financial obligations for the next two years.

The adoption of the “2007/08 Garbage and Recyclables Collection Charges Report” and its filing with the Clerk of the Board will result in the user charges contained therein being placed on the tax roll. These charges will appear on the 2007/08 tax bill of each affected property and will be collected in the same manner as the property tax.

Solid Waste collection services provided in the North Fair Oaks area cover costs for the following:

Ø

Residential and commercial garbage/recycling collection,

Ø

“On Call” bulky waste collection for residents, two times per calendar year,

Ø

Green Waste and Christmas tree recycling collection,

Ø

Food Waste recycling for commercial customers,

Ø

Electronic Waste collection,

Ø

Garbage collection from public cans on Middlefield Road, 5^th Avenue and two local parks,

Ø

Landfill fees and all County programs connected with solid waste management and regulatory compliance for the area.

Your Board, after the close of the public hearing, may adopt the individual charges as presented, or revise, change, reduce or modify any charge in the report. The individual garbage/recycling collection service charges were calculated in accordance with the rate structure as stated in County Ordinance Code
Section 4.04.180.

Occasionally, data, data entry, computation, or other errors occur during the annual updating and preparation of this report. The proposed resolution authorizes the Director of Public Works to refund any overcharges resulting from any such errors in the “2007/08 Garbage and Recyclables Collection Charges Report”.

A resolution has been approved as to form by County Counsel and a copy of this staff report has been sent to the North Fair Oaks Community Council.

Fiscal Impact

Upon the conclusion of this public hearing during which the Board has considered all protests and objections to this action and, the Board has determined that a majority protest does not exist, the Board will approve the resolution to increase garbage collection rates in CSA-8 per the attached exhibits “A”, “B”, “C” and “D”. Effective July 1, 2007, the user charge base rate will be $19.69 per month per pick-up unit. On January 1, 2008 the rates will increase to $20.93 per pick-up unit. There is no impact to the General Fund.

Enclosures:

Exhibit “A” and “Exhibit “B”

Exhibit “C” and Exhibit “D”