COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Public Works

DATE:

November 18, 2010

BOARD MEETING DATE:

December 7, 2010

SPECIAL NOTICE/HEARING:

Complied Required Notification

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

James C. Porter, Director of Public Works

SUBJECT:

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

RECOMMENDATION:

Adopt a Resolution adopting the garbage and recyclables collection rates for the Unincorporated Franchised Areas within the South Bayside Waste Management Authority service area, exclusive of County Service Area No. 8 (North Fair Oaks) and West Bay Sanitary District.

BACKGROUND:

On October 20, 2009, your Board adopted Resolution No. 070423 which 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.

On October 19, 2010, your Board adopted Resolution No. 071108, which set 9:00 a.m. on December 7, 2010, in your Chambers as the time and place for a public hearing regarding the adoption of the proposed garbage and recyclables collection rates for the County franchised area.

DISCUSSION:

The County has not previously set rates in the 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 on January 1, 2011.

The SBWMA recommended a rate increase for the County franchised area of four and one half percent (4.5%). The Department has conducted a detailed independent review and analysis of the customer base, existing and anticipated service levels, and revenue requirements specifically for the County franchised area and is recommending a nine percent (9%) rate increase to meet the anticipated revenue requirements. 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 Franchise Agreement included fees for Unscheduled Services (Attachment Q of the Franchise Agreement) that are generally those additional services that are specifically requested and paid for by the ratepayer, in addition to the basic collection service and charges. The Unscheduled Service fees will apply to the County franchised area and CSA-8 once RSMC begins providing service.

The Department has complied with the public outreach and process outlined in the October 19, 2010 Board Report.

At the time this report was prepared, the Department had received five (5) valid written protests on the proposed garbage and recyclables collection rates. We will report to your Board on any written protests that are received up to and including the date and time of the public hearing.

These actions must be taken to adopt the Garbage and Recyclables Collection Rates:

1.

Hold a public hearing and receive testimony on the proposed rates.

2.

After considering all written and oral objections to the proposed rates, close the public hearing and determine if there is a majority protest to the proposed garbage and recyclables collection rates.

3.

If there is a majority protest, terminate the consideration of adopting rates for garbage and recyclables in the County franchised area.

4.

If there is not a majority protest, adopt the resolution and set the garbage and recyclables collection rates for the County franchised area effective January 1, 2011.

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.

FISCAL IMPACT:

There is no direct impact to the General Fund. The proposed rates reflect a nine percent (9%) increase over the current rates. The SBWMA has recommended an average rate increase of 16% to their member agencies.