Special Notice / Hearing: None__
Vote Required: 4/5ths
To: Honorable Board of Supervisors
From: Carolyn Bloede, Director, Office of Sustainability
Subject: Use reserves to offset increases in garbage and recycling rates in County Service Area No. 8 (North Fair Oaks) for Calendar Year 2021
RECOMMENDATION:
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Acting as the Governing Board of County Service Area No. 8, approve an Appropriations Transfer Request appropriating $40,773 from Non-General Fund General Reserves to Services and Supplies to offset 2021 increases in garbage and recycling rates in County Service Area No. 8.
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BACKGROUND:
On October 20, 2009, this Board adopted Resolution No. 070423 approving a franchise agreement with Recology San Mateo County (Recology) to provide services for the collection of recyclable materials, organic materials, and garbage from January 1, 2011 through December 31, 2020. On June 4, 2019, this Board adopted Resolution No. 076641 approving the amended and restated Recology Franchise Agreement for an additional 15-year term expiring on December 31, 2035.
On February 11, 2020, this Board adopted Resolution No. 077212, setting Calendar Year (CY) 2020 garbage rates (Exhibit A).
DISCUSSION:
The Recology franchise agreement allows for specific adjustments in compensation. The process includes submission of a compensation application by the contractor, Recology; review of the Recology submission by the South Bayside Waste Management Authority (SBWMA); and final review by the County. The annual application is based on the costs to provide services in the previous year and the projected revenue and costs to provide services in the current year. For CY 2021, Recology is projected to have an increase in compensation from 2020 due to Consumer Price Index (CPI) and Service Level Adjustments as set forth in the amended and restated Recology Franchise Agreement.
Based on SBWMA and Office of Sustainability analysis of the compensation application from Recology, and r...
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