Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Effie Milionis Verducci, Assistant Director, Sustainability Department
Subject: Agreement with Republic Services for the Operation of the Pescadero Transfer Station
RECOMMENDATION:
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Adopt a resolution authorizing an agreement with BFI Waste Systems of North America, LLC, dba Republic Services of San Mateo County, a wholly owned subsidiary of Republic Services, Inc., for the operation of the Pescadero Transfer Station, for the term of June 1, 2025, through May 31, 2030, in an amount not to exceed $2,036,300.
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BACKGROUND:
The Pescadero Transfer Station (PTS) is owned by the County and provides solid waste disposal and recycling drop-off services to the South Coast area of San Mateo County. The County opened the PTS when Pescadero Landfill closed in 1986, and it has been operated through a contractual agreement since that time. The PTS is a permitted, limited volume processing facility that processes approximately 800 tons of material per year and serves approximately 400 customers per month.
On November 6, 2018, this Board adopted Resolution No. 076251, which authorized an agreement with BFI Waste Systems of North America, LLC, dba Republic Services of San Mateo County, a wholly owned subsidiary of Republic Services, Inc. (Republic Services) for the operation of the PTS with a not to exceed amount of $300,000 per fiscal year. The original agreement had a five-year term through August 2023, with the option to extend the contract for an additional 36 months. In subsequent years, this Board approved extensions to the agreement, with the final extension authorizing service through May 31, 2025.
DISCUSSION:
The PTS provides a location for solid waste disposal and recycling for the South Coast portion of the County. The facility accepts a variety of materials, including bottles, cans, scrap metal, yard waste, used oil, batteries, and tires. Due to the area’s remote location, curbside collection services are limited, meaning that self-hauling is an essential disposal method for residents. PTS services help reduce illegal dumping in the area, while also supporting the County’s compliance with State organics diversion and recycling mandates. The nearest alternative facility is the Ox Mountain Landfill in Half Moon Bay, which has comparable service costs to PTS, and is more than a 30-minute drive away for most Pescadero residents.
On September 25, 2024, the Sustainability Department issued a Request for Proposals (RFP) seeking a contractor to operate the PTS. The RFP was released on the County’s OpenGov procurement platform, and a consultant assisted with notifying 14 qualified firms and professional solid waste and recycling associations of the RFP. The County received one proposal, submitted by Republic Services. A formal evaluation process, including an interview, was conducted to assess the responsiveness of the proposal, and the qualifications of the prospective contractor.
Upon this evaluation, the Sustainability Department seeks approval from the Board to authorize a new agreement with Republic Services to operate the PTS from June 1, 2025, through May 31, 2030, in an amount not to exceed $2,036,300.
The County Attorney’s Office has reviewed and approved the resolution and agreement as to form.
PERFORMANCE MEASURE:
|
Measure |
FY 2025-30 Target |
|
Percentage of non-hazardous solid waste processed and transferred from PTS. |
100% |
|
Percentage of non-hazardous solid waste recycled and diverted away from the landfill. |
20% |
COMMUNITY IMPACT:
The PTS provides essential solid waste disposal and recycling services to the South Coast area of San Mateo County, a geographically remote region. This agreement helps maintain access to essential waste disposal and recycling services for residents in this rural community.
FISCAL IMPACT:
The term of the agreement is June 1, 2025, through May 31, 2030, for an amount not to exceed $2,036,300 for the five-year term. Fund balance and gate fees are the funding source for this agreement. Annual gate fee revenue from the facility is expected to offset approximately $200,000 of this cost per year. Funds are included in the FY2025-27 Recommended Level Budget. There is no new Net County Cost associated with this agreement.
Attachment:
RFP Matrix