Inter-Departmental Correspondence

Department of Public Works



September 30, 2009


October 20, 2009







Honorable Board of Supervisors


James C. Porter, Director of Public Works


Executive Summary: Operations Agreement with South Bay Recycling, LLC for Operation of the Shoreway Recycling and Disposal Center in San Carlos



Adopt a Resolution Approving the Operations Agreement with South Bay Recycling, LLC for operation of the Shoreway Recycling and Disposal Center in San Carlos.



The process to select a new operator of the South Bayside Waste Management Authority (SBWMA) Shoreway Recycling and Disposal Center (Shoreway Center) began in 2005. The Shoreway Center houses the SBWMA transfer station and materials recovery facility. In 2007, your Board approved the release of the SBWMA’s Services Request for Proposal (RFP) and future contract terms. In March 2008, SBWMA received seven proposals from companies capable and qualified to provide the facility operations services described in the RFP.


Two of the seven companies (Hudson Baylor Corp. and South Bay Recycling, LLC) were short listed for final negotiations. On April 23, 2009, the SBWMA Board voted 10-2 to approve the selection of South Bay Recycling, LLC (SBR) and directed staff to negotiate a final Operations Agreement and bring back the Agreement for SBWMA Board approval with such SBWMA Board approval then subject to approval by at least two-thirds of the Member Agencies (8 out of 12 member agencies). The SBWMA Board approved the motion and stated that if staff could not successfully negotiate a contract with SBR then staff would begin negotiations with Hudson Baylor Corporation.


Your Board directed the County representative to the South Bayside Waste Management Authority Board to vote “No” at the SBWMA meeting on April 23, 2009 when the selection of SBR for the Shoreway Center Facility Operations Services was being considered. However, the selection of SBR passed with a 10-2 vote.


On July 23, 2009 the SBWMA Board approved the Operations Agreement with SBR. However, the Agreement does not become effective unless and until at least eight (8) of the twelve (12) Member Agencies approve the Agreement (per Section 7.1.1 of the SBWMA First Amended and Restated Joint Exercise of Powers Agreement) on or before November 30, 2009.


The Operations Agreement remains substantially unchanged from the Operations Agreement approved by your Board in September 2007.


The City of San Carlos is the lead agency for compliance with the requirements of the California Environmental Quality Act (CEQA) for the proposed action. County Counsel has reviewed and approved the Resolution and Agreement as to form.


Approval of the Operations Agreement will contribute to the Shared Vision 2025 outcome of an Environmentally Conscious Community by complying with the California Integrated Waste Management Act of 1989, creating new diversion opportunities for residents and businesses, and encouraging source reduction, recycling, or reuse of solid waste generated in the unincorporated areas of the County. It is anticipated that 63% of the waste generated in the unincorporated areas of the County will be diverted from the landfill partially through the efforts supported by the operations of the Shoreway Center. This performance target remains unchanged for the estimate for the current fiscal year and continues to surpass the AB939 targets of 50% diversion imposed by the California Integrated Waste Management Act of 1989.


Performance Measure(s):


FY 2009-10

FY 2010-11

AB 939 solid waste diversion rate for Unincorporated San Mateo County





The cost to provide the services covered in the Operations Agreement are included in the garbage collection rates approved by your Board for residential and commercial accounts. SBR’s actual projected 2011 costs are expected to be below the projected rates of the current contractor, Allied Waste Services, whose agreement expires on December 31, 2010. Therefore, this agreement should not adversely impact collection rates.


There is no direct impact to the General Fund.