Inter-Departmental Correspondence

Department of Public Works



October 1, 2010


October 19, 2010







Honorable Board of Supervisors


James C. Porter, Director of Public Works


Executive Summary: Garbage and Recyclables Collection Rates in the Unincorporated Franchised Areas within the South Bayside Waste Management Authority



Adopt a Resolution:



Setting December 7, 2010 at 9:00 a.m. at your regularly scheduled Board meeting, as the time and place for a public hearing on the garbage and recyclables collection rates for the Unincorporated Franchised Area within the South Bayside Waste Management Authority service area, exclusive of County Service Area No. 8 (North Fair Oaks) and West Bay Sanitary District; and



Directing the Director of Public Works to send a notice of the proposed collection rate to each affected property owner.



On October 20, 2009, your Board approved a new franchise agreement with Recology San Mateo County (RSMC) to provide services for the collection of recyclable materials, organic materials, and solid waste. These services will be provided to CSA-8 and the Unincorporated Franchised Area within the South Bayside Waste Management Authority (SBWMA) service area, exclusive of CSA-8 and West Bay Sanitary District (County franchised area) from January 1, 2011 through December 31, 2020.



Under the new agreement with RSMC, the County franchised area will receive significant service improvements that will include “automated” collection services, single stream recycling, and food scrap collection. It is anticipated that these services will increase program effectiveness, be more convenient for 4,900 residential and 190 commercial customers, and will increase diversion of solid waste from the landfill.


The County has not previously set rates in this new County franchised area as these areas were not previously covered by a franchise agreement. Rates for this area must be established before RSMC begins providing collection service and the recommendations begin the rate setting process.


The proposed rates represent a nine percent (9%) rate increase from the existing rates set by Allied Waste. The rate increase is predominately due to new collective bargaining agreements, new collection service trucks, and customers migrating to lesser garbage collection service levels. The Department will evaluate the rates at six and twelve-month intervals after RSMC begins providing the service to ensure that the rates are adequate to generate the revenue required to pay for all costs associated with the collection and disposal service.


    The Franchise Agreement allows for specific adjustments in RSMC’s compensation during the first three years to reflect the change in service collection methods and provision of service to a new area. Subsequent annual adjustments will be based on the consumer price index and are anticipated to be modest.


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


Approval of this action will contribute to the Shared Vision 2025 outcome of a Collaborative Community by continuing to promote regional solutions as a SBWMA member agency while informing and engaging residents in the process to adopt garbage and recyclables collection rates for the County franchised area.



The proposed rates reflect a nine percent (9%) increase over the current rates. The SBWMA will complete their rate review in November 2010; however, the projected average rate increase for the SBWMA member agencies is approximately 16%.


We estimate that it will cost approximately $5,000 ($1 per rate payer) to prepare, print and mail individual notices to each property owner. This cost will initially be paid for by the Solid Waste Fund, which will be reimbursed from the franchise fees later this fiscal year.