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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
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Department of Public Works
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DATE:
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April 10, 2009
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BOARD MEETING DATE:
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April 28, 2008
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SPECIAL NOTICE/HEARING:
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None
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VOTE REQUIRED:
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Majority
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TO:
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Honorable Board of Supervisors
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FROM:
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James C. Porter, Director of Public Works
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SUBJECT:
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Proposed FY 2009/2010, FY 2010/2011 Garbage and Recyclables Collection Rate Increase for County Service Area No. 8 (North Fair Oaks)
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RECOMMENDATION:
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Adopt a resolution:
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1.
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Setting June 16, 2009, 9:15 a.m., at your regularly scheduled Board meeting, as the time and place for a public hearing on the proposed garbage and recyclables collection rates in County Service Area No. 8 (North Fair Oaks).
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2.
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Directing the Director of Public Works to send a notice of the proposed collection rate increase to each property owner in the County Service Areas No. 8.
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VISION ALIGNMENT:
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Commitment: Responsive, effective and collaborative government.
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Goal 21: County employees understand, support and integrate the County vision and goals into their delivery of services.
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Adoption of the resolution contributes to this commitment and goal by continuing the public process for setting the garbage and recycling collection rates.
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The Garbage and Recyclables Collection Rates setting is the result of a collaborative effort between County staff and the North Fair Oaks Community.
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BACKGROUND:
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PREVIOUS BOARD ACTION
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Adopted an ordinance that garbage and recyclables collection charges be collected together with the property taxes per County Ordinance Code 4.04.300, Collection.
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Adopted the current garbage and recyclables collection user charge for CSA-8 on August 12, 2008. The current minimum user charge is set at $20.93 per month, per pick-up unit, per dwelling.
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HISTORY
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County Service Area No. 8 (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 each affected parcel that meets the criteria for County Ordinance Code 4.04.180 a minimum rate fee based upon pick-up units. These fees are 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 the franchised hauler using the fee structure as recommended in Exhibit “A” and Exhibit “B”.
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The South Bayside Waste Management Authority (SBWMA) report “Review of Allied -San Mateo’s Refuse, Recyclable, and Plant Materials Collection Rate Application For 2009” identified a revenue shortfall for both the FY 2009/2010 and FY 2010/2011 year under the current rate structure. Staff recommends a 6.1% increase in fees for the FY 2009/2010 and a second rate increase of 5.9% for FY 2010/2011 to generate adequate revenue to meet projected expenses and cover the revenue shortfalls. These rate increases are needed to zero out the balancing account with Allied Waste before the end of the contract term.
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DISCUSSION:
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The South Bayside Waste Management Authority (SBWMA) retained a consultant to review and analyze Allied Waste’s annual rate application to ensure that rates reflect as closely as possible the cost of providing garbage and recyclables collection service in each of the twelve jurisdictions that are members of the SBWMA.
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For service charges to be collected on the tax roll per County Ordinance Code 4.04.300 Collection, it is necessary for the board to take the following actions by July 31, 2009:
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1.
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Adopt the resolution of the proposed collection rates (Exhibits “A” and “B”).
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2.
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Hold a public hearing and receive testimony on the proposed rates.
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Article XIIC and XIID of the State Constitution (Proposition 218), requires notices be sent to property owners alerting them of the public hearing to consider any new or increased property related fees, and a mechanism for rejecting the fees via a majority protest at the public hearing advising the property owners of the proposed rate increase and the right to protest.
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If there is a successful majority protest, the Board would be prevented from raising the rates.
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Staff’s public outreach plan to address Article X11C and X11D is summarized in the following steps: 1) Conduct two public presentations with the North Fair Oaks Community Council, and 2) send a mailing to each Assessor’s Parcel in CSA-8.
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A resolution has been approved as to form by County Counsel.
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FISCAL IMPACT:
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There is no fiscal impact associated with the recommended action of setting a public hearing.
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The most common residential service in CSA-8 is a minimum service, two 32-gallon cans serviced at the curb, or one can serviced in the backyard. The County Ordinance Code, 4.04.180, Rates defines the minimum subscription levels required per pick-up unit per type of dwelling. The December 29, 2008 SBWMA report is recommending a rate increase of 6.1%, from $20.93 to $22.21 per month, per pick-up unit for fiscal year 2009/2010 and a rate increase of 5.9% from $22.21 to $23.52 for the fiscal year 2010/2011. However, as shown in the table below CSA-8 will continue to have the lowest cost for two can service in the SBWMA service area.
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Expense factors that have contributed to this revenue shortfall include: 1) increased operational costs, 2) increased costs in health and pension fund benefits; 3) compliance expenses to retrofit the vehicles to meet the California Air Resource Boards requirements, 4) a decrease in projected disposal tonnage, and increase in tip fees 5) adjustments to the revenues for CSA-8 because the rates are being adjusted at mid-year rather than January 1, 2009. In addition, commercial customers who receive bin service will see their rates increase according to a progressive rate structure to encourage diversion.
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Proposed Residential Can Rate by four
SBWMA Jurisdictions
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Jurisdiction
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Current Rate Cost Per Month for One-32 gal can
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Current Rate Per Month for
Two 32-gallon can
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Proposed Increase for Two 32-gallon cans
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San Mateo
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33.42
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73.71
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81.74
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Menlo Park
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15.74
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36.53
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45.30
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San Carlos
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18.63
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36.66
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41.08
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Redwood City
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18.96
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32.46
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38.40
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CSA-8
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N/A
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20.93
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22.21
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The complete proposed rate schedule is attached as Exhibit “A” and Exhibit “B” to the proposed resolution; Allied Waste will continue to bill all parcels not specified in the County Ordinance Code, 4.04.180, Rates, as well as the residential customers that subscribe to additional services above the minimum can service that is levied on their tax bill.
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There is no impact to the General Fund.
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Attachments:
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Exhibit “A” and Exhibit “B”
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