Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors, Acting as the Governing Board of County Service Area No. 8
From: Jasneet W. Sharma, Director, Sustainability Department
Subject: Setting a Public Hearing for 2027 Garbage and Recyclables Collection Proposed Rates in County Service Area No. 8 (North Fair Oaks Area)
RECOMMENDATION:
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Acting as the Governing Board of County Service Area No. 8, adopt a resolution:
A) Setting Tuesday, January 12, 2027, at 9:30 a.m. at the regularly scheduled Board meeting as the time and place for a public hearing on the garbage and recyclables collection proposed rates for County Service Area No. 8 (North Fair Oaks) for calendar year 2027; and
B) Direct the necessary notices for said hearing.
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BACKGROUND:
RethinkWaste (South Bayside Waste Management Authority) is a joint powers authority formed by eleven local government jurisdictions, including the County of San Mateo. RethinkWaste owns and manages the Shoreway Environmental Center and provides oversight of the contractors that collect, process, and dispose of garbage and recyclables collected from the member agencies’ residential and commercial garbage generators. Recology San Mateo County (Recology) is the franchise operator that provides solid waste collection services to County Service Area No. 8 (CSA-8) and the Franchised Area (CFA) within the RethinkWaste service area.
On October 20, 2009, the Board adopted Resolution No. 070423 approving a franchise agreement with Recology to provide collection of recyclables, organics, and garbage from January 1, 2011, through December 31, 2020. On June 4, 2019, the Board adopted Resolution No. 076641 approving the amended and restated Recology Franchise Agreement for an additional 15-year term expiring on December 31, 2035.
The Board approved annual rate increases ranging from 2% to 12.7% between years 2019 and 2025. There were no rate increases in 2021, 2022 and 2026.
On June 9, 2026, the Board adopted Resolution No. 081874, approving the fiscal year (FY) 2026-27 Garbage and Recyclables Collection Service Charges Report for CSA-8. These charges appear on the tax roll for FY 2026-27 and are calculated based on the effective rates adopted in January 2025.
The adoption of the annual garbage and recyclables collection rates follows a Proposition 218 rate setting process, which includes adopting a resolution of the proposed collection rates (Exhibit A and Exhibit B to this Resolution), sending notices of proposed rates and associated public hearings to property owners, and holding a public hearing and receiving testimony on the proposed rates. In addition, the Sustainability Department posts a notice in a newspaper of general circulation informing the public of the hearing on garbage and recyclables collection proposed rates for the service area (Exhibit C to this Resolution). The County will also share information directly with the North Fair Oaks Community Council at a public meeting prior to the Board of Supervisors’ public hearing, and through local community-based organizations and digital channels, to help inform residents in the North Fair Oaks area.
If there is a successful majority protest in writing from the property owners, the Board would be prevented from increasing the rates for the service area. Reducing or rejecting the proposed rate increase for CY 2027 could lead to larger rate increases in future years to address the revenue shortfall. Under the Amended Franchise Agreement, if net revenues billed are less than the revenue requirements, interest will also accrue on the difference and must be paid by the County in future years.
DISCUSSION:
The County sets the rates for solid waste collection to meet the projected annual costs for the service area for the upcoming calendar year. The proposed rates are developed using the cost data published by RethinkWaste in the “RethinkWaste Final Report Reviewing The 2027 Recology San Mateo County Compensation Application” (Rate Report) dated September 11, 2026, as necessary to meet the revenue cost requirements to provide garbage and recyclables collection services for CY 2027. This report was adopted by the RethinkWaste Board on September 17, 2026.
The garbage services costs include two components: (1) processing and disposal; and (2) the Recology collection services. The Rate Report indicates that, in CSA-8, a 4.7 percent rate increase is needed to cover the estimated $205,603 revenue shortfall for collection, disposal, and processing services in CY 2027.
The proposed rates for CY 2027 are listed in Exhibit A to the Resolution and represent a 4.7 percent rate increase for residential dwellings’ mandatory services (two 32-gallon or one 64-gallon cart) and for commercial cart and bin services from the rates previously set by the Board in CY 2025. The proposed rate for two 32-gallon garbage carts or one 64-gallon residential garbage cart will increase by $2.16 per month, representing an increase in monthly charges from $46.02 to $48.18 (referenced in Exhibit A). The recommended rates will continue to include a 5% franchise fee that will be paid to the County from Recology to administer garbage programs and contract oversight for North Fair Oaks.
The recommended proposed rate increase of 4.7 percent would take effect on January 1, 2027. The charges based on the rates will appear on the property owner’s tax bill for FY 2027-28 for all parcels with dwelling units, pursuant to County Ordinance Codes 4.04.200 and 4.04.220, and any additional elective services will be billed directly by Recology. Commercial parcels without dwelling units will continue to be billed by Recology directly for all services.
Additional Services terms are part of the Amended and Restated Franchise Agreement and include additional elective services that are specifically requested and paid for by the customer. Rates for Additional Services terms will take effect January 1, 2027. Recology will bill the customer directly for any Additional Services requested by the customer. Additional Services rates are not property-related and are therefore not subject to the Proposition 218 rate setting requirements. These fees are reflected in Exhibit B to the Resolution.
County Attorney has reviewed and approved the Resolution as to form.
COMMUNITY IMPACT:
Adoption of the proposed garbage and recyclables rates will provide sufficient revenue to meet the projected costs for providing garbage collection and processing for the service area and help minimize the need for larger rate increases in future years.
FISCAL IMPACT:
There is no direct impact to Net County Cost.