COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Public Works

DATE:

February 10, 2009

BOARD MEETING DATE:

March 3, 2009

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

James C. Porter, Director of Public Works

SUBJECT:

SELECTION OF NORCAL WASTE SYSTEMS TO PROVIDE REFUSE COLLECTION SERVICES FOR COUNTY SERVICE AREA 8 (NORTH FAIR OAKS) AND OTHER CURRENTLY NON-FRANCHISED UNINCORPORATED AREAS WITHIN THE SOUTH BAYSIDE WASTE MANAGEMENT AUTHORITY SERVICE AREA

RECOMMENDATION:

Adopt a resolution:

1.

Approving the Selection of Norcal Waste Systems to provide refuse collection services for County Service Area 8 (CSA8) and other currently non-franchised unincorporated areas under one franchise with the County within the South Bayside Waste Management Authority (SBWMA) service area, and

2.

Directing the Director of Public Works to notify all known homeowners associations or advisory agencies in the affected unincorporated areas of the selection.

VISION ALIGNMENT:

Commitment: Responsive, effective and collaborative government.

Goal 22: County and local governments effectively communicate, collaborate and develop strategic approaches to issues affecting the entire County.

The selection of a single contractor by each member agency for franchised garbage collection in the SBWMA service area can provide the most cost effective service to the ratepayers while maximizing the amount of material that is diverted from landfills through recycling and other programs.

BACKGROUND:

In January 2007, the Board approved the criteria for providing garbage service pursuant to uniform garbage franchises that are proposed to be negotiated between member agencies of the SBWMA and private collector(s) beginning in January 2011.

DISCUSSION:

At its August 28, 2008 SBWMA Board meeting, the SBWMA Board recommended that member agencies select Norcal to be the collection services provider for the entire SBWMA service area.

Exhibit A provides the detailed report by the SBWMA Collection Services RFP Selection Committee on its recommendation. At the time that this report was written, seven member agencies had selected Norcal as their collection services provider.

We recommend that the Board approve the Selection of Norcal Waste Systems to provide refuse collection services for County Service Area 8 (CSA8) and other currently non-franchised unincorporated areas within the South Bayside Waste Management Authority (SBWMA) service area.

Currently the only part of the unincorporated area that is franchised with Allied Waste Services for refuse collection services is CSA8 (North Fair Oaks). Although there are several unincorporated areas in the SBWMA service area that are adjacent to cities, and that currently receive collection services by Allied, those areas are not covered by a franchise agreement. They include Burlingame Hills, San Mateo Highlands and Baywood Park (Crystal Springs area), Harbor Industrial, Devonshire Canyon, Palomar Park, Oak Knoll, Kensington Square, Emerald Lake Hills, and the Sequoia Tract. Selection of Norcal Waste and inclusion of all of these areas under one franchise appears to be the most cost-effective way of providing collection services to these areas.

As an alternative to the recommendation, the Board could decide (1) to not select a collection services contractor and let the franchise expire for CSA8, (2) to select a collection services contractor for CSA 8 only and to leave other unincorporated areas without franchise services, or (3) to select a different collection services contractor than the one recommended by SBWMA. However, any of these alternatives could result in fewer service options for residents, and could possibly be more costly for other unincorporated areas, as the service charges for non-franchised areas are generally higher than those in the neighboring franchised cities.

At the Finance & Operations Committee meeting on January 27, 2009, the Committee supported the recommendation.

FISCAL IMPACT:

The projected Allied collection services compensation for 2008 is $42,050,000 for the SBWMA service area on a cost plus basis. Norcal’s proposal is projected to increase the collection services rate by an average of 9.96% over Allied’s 2008 rate application cost for the entire SBWMA service areas on the first year. However, future year rate adjustments will be based on the prior year’s rate plus a “cost of living” adjustment. For the CSA8 customers with a base rate of $20.93 per month, the base rate will increase by $2.08 per month. The final service charge rates for CSA8 and other unincorporated areas could vary substantially depending on the final negotiations. A final franchise agreement will be returned for your Board’s approval when the negotiations are completed.

County Counsel has reviewed and approved the Resolution as to form.

Attachments:

Exhibit A