BOARD OF DIRECTORS MEETING - RethinkWaste

MEMBER AGENCIES ATHERTON * BELMONT * BURLINGAME * EAST PALO ALTO * FOSTER CITY * HILLSBOROUGH * MENLO PARK * REDWOOD CITY

* SAN CARLOS * SAN MATEO * COUNTY OF SAN MATEO * WEST BAY SANITARY DISTRICT

1. Roll Call

2. Adjourn to Closed Session - pursuant to Government Code Section Govt. Code Sec. 54956.9 Conference with

Labor Negotiator: Unrepresented employees- (All employees); pursuant to Government Code Section 54954.5: Public Employee Performance Evaluation: Executive Director

3. Report from Closed Session

THE REGULAR PORTION OF THE MEETING IS ANTICIPATED TO START AT 2:00 PM 4. Public Comment

Persons wishing to address the Board on matters NOT on the posted agenda may do so.

Each speaker is limited to two minutes. If there are more than five individuals wishing to speak during public comment, the Chairman will draw five speaker cards from those submitted to speak during this time. The balance of the Public Comment speakers will be called upon at the end of the Board Meeting.

If the item you are speaking on is not listed on the agenda, please be advised that the Board may briefly respond to statements made or questions posed as allowed under The Brown Act (Government Code Section 54954.2). The Board's general policy is to refer items to staff for attention, or have a matter placed on a future Board agenda for a more comprehensive action or report and formal public discussion and input at that time.

5. Approval of Consent Calendar:

Consent Calendar item(s) are considered to be routine and will be enacted by one motion. There will be no separate discussion on these items unless members of the Board, staff or public request specific items be removed for separate action. Items removed from the Consent Calendar will be moved to the end of the agenda for separate discussion.

A. Adopt the May 24, 2012 BOD Meeting Minutes B. Resolution Approving a Contract with Aaronson, Dickerson, Cohn & Lanzone for Legal Counsel Services

for FY 2013 C. Resolution Approving Contract with the City of San Carlos for Accounting and Financial Services for

FY 2013 D. Resolution Approving Contract Extension with Zanker Road for Processing of Construction and Demolition Debris E. Resolution Approving Property Insurance Policy Renewal Approval F. Receipt of Recology and SBR Monthly Reports

6. New Business:

A. Resolution Adopting FY 2013 Budget B. Review of Unrestricted Cash Reserve Policy C. Resolution Approving Contract for Quarterly Contamination Monitoring for FY 2013 D. Resolution Approving Findings from Review of Collection Services and Facility Operations Reports,

Tonnage Data and Customer Service Systems E. Findings from Review of Collection Services and Financial and Accounting Systems

7. Old Business:

A. RSMC Franchise Agreement Operational and Contract Administration Update B. SBR Shoreway Operational and Contract Administration Update

BOARD OF DIRECTORS MEETING THURSDAY, JUNE 28, 2012 at 1:00 p.m.

Shoreway Environmental Center, Community Room 225 Shoreway Road, San Carlos, CA 94070

MEMBER AGENCIES ATHERTON * BELMONT * BURLINGAME * EAST PALO ALTO * FOSTER CITY * HILLSBOROUGH * MENLO PARK * REDWOOD CITY

* SAN CARLOS * SAN MATEO * COUNTY OF SAN MATEO * WEST BAY SANITARY DISTRICT

8. Staff Updates a) Update on Recology Commercial Recycling Outreach Efforts b) Recycling and Outreach Programs Update c) Shoreway Construction Update d) Update on 2012/2013 Franchise Rate Setting Process e) Preview of Upcoming Board meetings

9. Board Member Comments

10. Adjourn

Agenda Item 5

SBWMA BOD PACKET 06/28/2012 AGENDA ITEM: 5A – p1

DRAFT MINUTES SOUTH BAYSIDE WASTE MANAGEMENT AUTHORITY

MEETING OF THE BOARD OF DIRECTORS May 24, 2012 – 2:00 p.m.

Shoreway Environmental Center, Community Room

1. Roll Call: CTO 1:41 p.m.

Roll Call Attendance:

2. Adjourn to Closed Session - pursuant to Government Code Section 54954.5: Public Employee Performance Evaluation: Executive Director.

The Regular portion of the meeting was called to order at 2:02 PM.

3. Report from Closed Session None

4. Public Comment

Persons wishing to address the Board on matters NOT on the posted agenda may do so.

Each speaker is limited to two minutes. If there are more than five individuals wishing to speak during public comment, the Chairman will draw five speaker cards from those submitted to speak during this time. The balance of the Public Comment speakers will be called upon at the end of the Board Meeting.

If the item you are speaking on is not listed on the agenda, please be advised that the Board may briefly respond to statements made or questions posed as allowed under The Brown Act (Government Code Section 54954.2). The Board's general policy is to refer items to staff for attention, or have a matter placed on a future Board agenda for a more comprehensive action or report and formal public discussion and input at that time. None

5. Approval of Consent Calendar:

Consent Calendar item(s) are considered to be routine and will be enacted by one motion. There will be no separate discussion on these items unless members of the Board, staff or public request specific items be removed for separate action. Items removed from the Consent Calendar will be moved to the end of the agenda for separate discussion.

A. Adopt the April 26, 2012 BOD Meeting Minutes B. Approval of Quarterly Investment Report as of 3/31/12 C. Receipt of Recology and SBR Monthly Reports D. Resolution Approving Release of Bid Documents for Maintenance Building Roof Replacement and Authorizing Executive

Director to Accept Bids and Enter into a Contract

Motion/Second: Moura/Gibbons

Agency Present Absent Agency Present Absent

Atherton X Menlo Park X Belmont X Redwood City X Burlingame X San Carlos X East Palo Alto X (during 6A) San Mateo X (after closed

session)

Foster City X (after closed session)

County of San Mateo X

Hillsborough X West Bay Sanitary District X (after closed session)


Vote: All in Favor; Atherton and Belmont abstained from the minutes portion of the consent calendar.

6. New Business:

A. Results of Residential Customer Satisfaction Survey

Brian Godbe of Godbe Research gave a Power Point presentation on the results of the Customer Satisfaction phone survey. He noted that overall it’s very good news. Member Oskoui questioned why the sample size for the Household Hazardous Waste questions was smaller than the whole sample. Brian Godbe answered that not all agencies offer the HHW program, so the smaller sample size reflected that. Member Oskoui commented that he would like to see the subsets be more obvious when it is presented to elected officials, noting that at first glance it can look like a very large number. He also asked how this information would be made available to all of the Councils. Staff Devincenzi noted that Board Members could coordinate with her about the dates of their Council meetings and she would work on scheduling with Godbe staff for all of the Council meetings.

B. Review of Draft FY 2013 Budget

Executive Director McCarthy gave a Power Point presentation on budget review. Member Gibbons submitted a letter to the Chair from the utilities committee of the Redwood City City Council, outlining questions and comments that they have regarding the SBWMA budget process. Chair Porter asked if Member Gibbons wanted to go through the letter at the meeting, or if the questions would be addressed when the Board voted on the budget in June. Member Gibbons answered that they would be addressed at the June meeting when the budget was on the agenda for approval. Member Fotu noted that she has brought up the newsletter for two budget approval processes. She noticed that the newsletter would be reduced in the proposed budget from quarterly to 3 times per year, and proposed that the Board consider going further down to two times per year. She also noted that looking at the customer satisfaction survey results, there are other programs that could benefit from increased promotion, specifically mentioning the HHW curbside pick-up program, adding that she felt strongly that the newsletter funds should be spent targeting certain behaviors. She commented that any change in the newsletter frequency would cause an amendment to the franchise agreement, and she thought if the Board was going to reduce by one newsletter per year, then they should consider two. Member Oskoui asked what happens to any excess revenue.

Executive Director McCarthy explained that any net income goes back into fulfilling our reserve requirements. The reserve policies are Board designated, and have been the same for 5 years. He stated that there are bond covenant requirements that the SBWMA has to meet. He explained further, that there is also a bond covenant requirement on a $3M loan from the City of Burlingame, and there is a balloon payment on that due in 2014. He noted that when the agency did the bond proforma much higher cash reserves were expected, but two fundamental things occurred. One is that much higher franchise tipping fees were assumed, particularly for garbage. Secondly, there are about 8 to 9,000 tons less at the MRF than expected. He noted that those two factors have taken any excess revenue off the top. He further noted that the SBWMA is producing net income to meet requirements, but not to build any extra revenue. When the Board looks at the cash reserve requirements and what is being produced, and looks at future obligations such as closing out the underground storage tanks, there will be competing demands on limited funds. He concluded that staff would be coming back to the Board in June to look at the cash reserve policy. Staff Moran added that so far we have not paid any bond principal payments, only interest. So the operating budget doesn’t include bond principal payments. Those will start in September, and will be about $3M per year. He noted that there are a lot of other factors and all of the detail will be included in June.


Member Oskoui asked for clarification as to why those bond payments are not in the proposed budget. Staff Moran stated that the principal payment is not an income or expense, adding that what is being presented at this Board meeting is strictly operating income and expenses, the principal payment affects the balance sheet only. Chair Porter added that in June the Board will have the full budget. Member Oskoui asked to revisit, what competition our facility has, and how our tipping fees compare to that competition related to dropping volume at our facility. Executive Director McCarthy answered that the public solid waste yards equal 3% of tipping fees. He added that we don’t know why public self-haul volumes are so low, but increasing volume won’t end up swinging the revenue that much, adding that we need to focus on opportunities to bring in more 3rd party tons. Member Masbad questioned the total budget for outreach year over year, noting a 100% increase from FY10-11 to FY 11-12. She asked for clarification as to how the SBWMA compares with other service areas in regards to outreach efforts. Executive Director McCarthy answered in that in that two to three year period there was a spike in outreach spending just to promote the roll out of the new programs on the residential side. He noted that residentially the trend on spending is down, and next year the expense increase will be on the commercial side to deal with AB341 as the agency is obligated to try and get more tons in that area. Member Masbad asked about the net profit margin, and at what point we think we will see accumulating net income. Executive Director McCarthy answered that there is no exact answer, but there is the one-time Burlingame obligation that will free up $700,000 to $800,000 per year after 2014. He added that this would be a conversation to have at the June Board meeting, when the Board has the full budget picture. He noted that the Board will be able to see where the money is going now, and where it might go in the future. He also added that the only other obligation of concern is the removal of the underground storage tanks, because he believes it is a long term risk for the Agency to keep them. He stated that programmatically there are a lot of good things pointing towards there being some more cash available particularly after the Burlingame obligation is paid off. Member Masbad asked how much the franchise fee is, and what is it used for. Executive Director McCarthy clarified that Member Masbad was questioning the Franchise Fee to the City of San Carlos, then answered that it is 5% based on revenue excluding commodity revenue. Member Masbad asked for clarification on how the Agency was able to reduce truck trips. Executive Director McCarthy stated that the overall trips are a little lower from less tons, but most of the reduction comes from a much more efficient operator. Member Moura commented that based on the results of the customer satisfaction survey it seems like we need to do more outreach for the HHW program and for the once a year events. He suggested looking at the mix of where the outreach money was going, and focusing more on those areas, or perhaps increasing that line item to increase outreach for those programs. Executive Director McCarthy stated that in prior years the HHW outreach line item was a mix of promoting new Cities that joined the program as well as existing programs. He stated that the money in the budget for next year is a small increase over last year and is just to promote existing HHW programs. Member Moura commented that the Customer Satisfaction Survey results over all are very good, and where they are lower, it seems very doable to fix things by focusing outreach. Executive Director McCarthy agreed that the Customer Service Satisfaction survey, gives staff a good idea of where to focus.

Member Fotu requested some more itemized information as to what programs staff would be working on next year.


Executive Director McCarthy stated staff builds the programs with Board or Committee input, after a certain dollar amount is allotted to the program. So at this stage of the budget the information won’t be that specific. He reminded Board members to divide the program costs by 12, and asked if they weren’t part of the JPA could their agency run the program for that amount. Member Moura suggested that once the Board is on the other side of the budget, adding this item to a future Board meeting agenda, and staff can give more program detail. Member Hardy asked staff to project the budget out 3 to 5 years to get the Agency past the Burlingame pay off, and to see where we are going, and see the total picture.

Executive Director McCarthy answered that will be presented at the Elected Official Briefing session for the total SBWMA system. He added that embedded in that are assumptions about the SBWMA program budget. Member Oskoui added that a 5 year financial forecast would help in the decision process. Member Scott asked to see it in June. Chair Porter asked staff to provide that information in June. Member Murray asked how the duties of the eliminated Recycling Coordinator position would be distributed. Executive Director McCarthy stated that Monica Devincenzi would be your main contact and Cyndi Urman would support seasonal events.

C. AB 341 Mandatory Commercial Recycling Update

Staff Feldman gave an update on AB 341, going into effect on July 1st. He noted that Recology and Cal Recycle had a meeting, that some of our Agencies attended. At that time, Cal Recycle stated that each Agency was required to produce a plan that the state would approve. Staff Feldman noted that after further review, Cal Recycle misspoke at that meeting and after further discussion, they will proceed doing site visits and interviews. AB 341 is being reviewed at a staff level, so Cal Recycle will be preparing the plans, not each agency or the SBWMA. Staff Devincenzi discussed the education and outreach plan for AB 341. She specifically noted a bill insert going out to all the businesses and multifamily complexes. There will also be a form letter to go out to those businesses or multifamily units that are not complying. There will also be information updated on our RethinkWaste website. Member Scott stated that Recology has been doing a great job helping West Bay make sure all the commercial customers recycle. He noted that in the report West Bay doesn’t have to do an Electronic Annual Report, and he wanted clarification on that. Staff Feldman answered that all of West Bay’s accounts fall into a neighboring city or the County, because WBSD is a sanitary district; as far as the state is concerned it doesn’t exist for these purposes. The Cities are responsible for the reporting. Member Moura asked if Board members could get PDF versions of the outreach going out so that Agencies can put them on their websites as well. Staff Devincenzi answered yes.

Staff Feldman asked to bring to the Board Member’s attention that this new law opens the door to charge for commercial recycling. He noted that this is something we can analyze further down the road. Member Fotu asked for clarification, noting that it sounds like to comply, any businesses that aren’t subscribed to recycling need to subscribe to recycling, and they have to be educated that they need to comply with this law. Staff Feldman clarified that businesses don’t have to comply. The Agencies have to tell the businesses the law exists. Unless an agency adopts a mandatory commercial recycling ordinance like San Carlos did, Agencies can’t impose a fine for not recycling.


Member Fotu added that she would like to see SBWMA staff be a part of the legislative process in reviewing statements Cal Recycle makes to help ensure that Agencies don’t end up with an unfunded state mandate and that the laws make sense and are cost effective. Staff Feldman answered that it’s never been the direction of the Board for staff to promote certain legislation, but if the Board would like Staff to do that we can. The way the law is written, there is little financial burden on the Agencies.

7. Old Business:

A. RSMC Franchise Agreement Operational and Contract Administration Update No Report.

B. SBR Shoreway Operational and Contract Administration Update

No Report.

Member Murray asked if there was an escalation in cardboard at the buyback center. Dwight Herring answered yes, they had 3 loads of cardboard last month that were actual paid loads. Member Moura asked if there were people coming to pick up free compost. Dwight Herring of SBR answered yes.

8. Staff Updates a) Update on Recology Commercial Recycling Outreach Efforts b) Recycling and Outreach Programs Update c) Shoreway Construction Update d) Update on 2012/2013 Franchise Rate Setting Process

Executive Director McCarthy called the Board’s attention to page 3 of 8d. He reminded Board members that on July 1st, the Agencies will be receiving the contractor’s rate application, and asked Board Members to read them when they get them and for feedback in the month of July.

He added that we are planning on another workshop in September to go over the rate report for the Board and Elected Officials.

e) Preview of Upcoming Board meetings

Executive Director McCarthy reviewed upcoming Board Meeting agenda items: June: Closed session employee compensation and Executive Director review, and revisit the cash reserve policy. July: Updated cart census information, noting that most rates don’t cover costs. September: Rates.

9. Board Member Comments

Member Hardy asked Executive Director McCarthy how he would define success for the Elected Official meeting after the Board meeting. Executive Director McCarthy answered that he would like the Elected Officials to leave with more knowledge about what we do.

10. Adjourn 3:40 PM

Next Regular meeting scheduled for June 28 2012, Recology San Mateo County Administrative Offices

SBWMA BOD PACKET 06/28/12 AGENDA ITEM: 5B – 1

STAFF REPORT To: SBWMA Board Members From: Kevin McCarthy, Executive Director Date: June 28, 2012 Board of Director’s Meeting Subject: Resolution Approving a Contract with Aaronson, Dickerson, Cohn & Lanzone for Legal

Counsel Services for FY 2013 Recommendation It is recommended that the SBWMA Board of Directors approve Resolution No. 2012-08 attached hereto authorizing the following action:

The Executive Director execute a contract with Aaronson, Dickerson, Cohn & Lanzone (ADCL) to provide Legal Counsel services for FY 2013 with a not to exceed budget of $30,000.

Analysis This contract is an extension of the contract for legal services the SBWMA has had with the ADCL firm since the inception of the SBWMA. This contract is approval each year for a one-year period and no long term contracts have been issued to ADCL. Fiscal Impact A new contract will be executed with a not to exceed amount of $30,000. This is the same amount as the mid-year projection for FY 2012. The $30,000 is reflected in the proposed FY 2013 Budget.

Attachments: Resolution 2012-08

SBWMA BOD PACKET 06/28/12 AGENDA ITEM: 5B – 1

RESOLUTION NO. 2012-08 RESOLUTION OF THE SOUTH BAYSIDE WASTE

MANAGEMENT AUTHORITY BOARD OF DIRECTORS AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE A CONTRACT WITH

AARONSON, DICKERSON, COHN & LANZONE FOR LEGAL COUNSEL SERVICES FOR FY 2013

WHEREAS, the South Bayside Waste Management Authority (SBWMA) Board of Directors has considered entering into a contract with Aaronson, Dickerson, Cohn & Lanzone (ADCL) for the purpose of providing the following services:

Annual Legal Counsel Services for FY 2013 NOW, THEREFORE BE IT RESOLVED that the South Bayside Waste Management Authority hereby authorizes the Executive Director to execute a contract with ADCL. PASSED AND ADOPTED by the Board of Directors of the South Bayside Waste Management Authority, County of San Mateo, State of California on the 28th day of June, 2012, by the following vote:

I HEREBY CERTIFY that the foregoing Resolution No. 2012-08 was duly and regularly adopted at a regular meeting of the South Bayside Waste Management Authority on June 28, 2012. ATTEST: Jim Porter, Chairperson of SBWMA _________________________________ Cyndi Urman, Board Secretary

Agency Yes No Abstain Absent Agency Yes No Abstain Absent Atherton Menlo Park Belmont Redwood City Burlingame San Carlos East Palo Alto San Mateo Foster City County of San Mateo Hillsborough West Bay Sanitary Dist

SBWMA BOD PACKET 06/28/12 AGENDA ITEM: 5C – p1

STAFF REPORT To: SBWMA Board Members From: Kevin McCarthy, Executive Director Marshall Moran, Finance Manager Date: June 28, 2012 Board of Director’s Meeting Subject: Resolution Approving Contract with the City of San Carlos for Accounting and Financial

Services for FY 2013 Recommendation It is recommended that the SBWMA Board of Directors approve Resolution No. 2012-09 attached hereto authorizing the following actions:

1. Approve a Contract (Exhibit A) with the City of San Carlos to provide accounting and financial services for FY 2013 with a not to exceed budget of $125,036 for financial services.

2. Authorize the Executive Director to execute such contract. Analysis Use of the City of San Carlos for financial and accounting services continues a shared services model that leverages the use of the City’s accounting department while maintaining overall financial management and financial analysis responsibilities in-house. The description of services and cost is outlined in the table below: SBWMA FINANCIAL SERVICES City of San Carlos

Scope of Financial Services to include:

FY 2012 FY 2013

Daily Cash

$3,020 $2,717 Recommend & Review Policies & Procedures - NEW

$1,045

Recommend Investment Policies - NEW

$1,045 Bond accounting - NEW

$1,045

Respond to SBWMA Inquiries on Vendor Payments, etc. - NEW

$2,508

Administrative Services

$1,020 $1,045 Accounts Payable

$26,520 $29,417

Billing

$1,020 $1,045 Cash Receipts

$1,020 $2,195

GL (monthly reconciliations, journals)

$26,520 $27,588 Fiscal Year Monthly Financial Reporting

$13,260 $13,794

Quarterly Investment Report

$1,020 $1,045 Audit, CAFR, Fixed Assets and Year-end Activities

$28,560 $29,052

Subtotal

$101,960 $113,541

2.0% 11.4%

Calendar Year Financial Statement

$10,176 $11,495

TOTAL

$112,136 $125,036 % Increase 4.8% 11.5%


Background On March 1, 2000, the San Carlos Finance Department began providing full financial and accounting services for the SBWMA. The SBWMA agreed to fund one-half of the salary and benefits for a new City position of Investment and Revenue Manager for financial services and 250 Finance Director hours (salary and benefits) for Finance Director Services. The City has continued to provide these services and the SBWMA has paid for the services. At the request of a Board of the Directors, the SBWMA staff issued an RFP for Financial and Accounting Services with a five year term and annual CPI based adjustments. No proposals were received except for the proposal from our existing service provider, the City of San Carlos. Their proposed contract is attached. Fiscal Impact The SBWMA will pay the City of San Carlos $125,036 for financial services for FY2013, an increase of $14,076 from FY 2012. These expenses are covered in the proposed FY 2013 Budget.

Attachments Resolution 2012-09

Exhibit A -- Professional Services Agreement – Financial Services



MANAGEMENT AUTHORITY BOARD OF DIRECTORS APPROVING A CONTRACT WITH THE CITY OF SAN CARLOS FOR

ACCOUNTING AND FINANCIAL SERVICES FOR FY 2013 AND AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE SUCH CONTRACT

WHEREAS, the South Bayside Waste Management Authority (SBWMA) Board of Directors has considered entering into an agreement with the City of San Carlos for the purpose of providing the following services:

Financial Services for FY 2013 as described in the Agreement attached hereto as Exhibit A.

NOW, THEREFORE BE IT RESOLVED that the South Bayside Waste Management Authority hereby approves the recommendation to enter into contract with the City of San Carlos and authorizes the Executive Director to execute such contract. PASSED AND ADOPTED by the Board of Directors of the South Bayside Waste Management Authority, County of San Mateo, State of California on the 28th day of June, 2012, by the following vote:

I HEREBY CERTIFY that the foregoing Resolution No. 2012-09 was duly and regularly adopted at a regular meeting of the South Bayside Waste Management Authority on June 28th, 2012. ____________________________ ATTEST: Jim Porter, Chairperson of SBWMA _________________________________ Cyndi Urman, Acting Board Secretary


Agreement For Professional Services 1 Revised – 051011

AGREEMENT FOR PROFESSIONAL SERVICES This Agreement is made and entered into as of the _____ day of ____________, 2012 by and between the City of San Carlos hereinafter called "CITY" and South Bayside Waste Management Authority hereinafter called "SBWMA". RECITALS This Agreement is entered into with reference to the following facts and circumstances: A. The SBWMA is a joint powers authority established under Government Code 6500

et seq.

B. That SBWMA desires to engage CITY to render certain financial services to the SBWMA related to carrying on the day to day financial operations of the SBWMA;

C. That CITY is qualified to provide such services to the SBWMA and; THEREFORE, the SBWMA has elected to engage the services of CITY upon the terms and conditions as hereinafter set forth.

1. Services. The services to be performed by CITY under this Agreement shall include those services set forth in Exhibit A, which is, by this reference, incorporated herein and made a part hereof as though it were fully set forth herein.

Performance of the work specified in said Exhibit is hereby made an obligation of CITY under this Agreement, subject to any changes that may be made subsequently hereto upon the mutual written agreement of the said parties.

Where in conflict, the terms of this Agreement supersede and prevail over any terms set forth in Exhibit A.

2. Term; Termination. (a) The term of this Agreement shall commence upon

the date hereinabove written and shall expire upon completion of performance of services hereunder by CITY. (b) Notwithstanding the provisions of (a) above, either party may terminate this Agreement without cause by giving written notice not less than thirty (30) days prior to the effective date of termination, which date shall be included in said notice. In the event of such termination, SBMWA shall compensate CITY for services rendered, and reimburse CITY for costs and expenses incurred, to the date of termination, calculated in accordance with the provisions of paragraph 3. In ascertaining the services actually rendered to the date of termination, consideration shall be given both to completed work and work in process of completion. Nothing herein contained shall be deemed a

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AGENDA ITEM: 5C - EXHIBIT A - p1


limitation upon the right of SBWMA to terminate this Agreement for cause, or otherwise to exercise such rights or pursue such remedies as may accrue to SBWMA hereunder.

3. Compensation; Expenses; Payment. SBWMA shall compensate CITY for

all services performed by CITY hereunder in an amount based upon terms set forth in Exhibit A and Exhibit B.

Compensation and reimbursement of costs and expenses hereunder shall be payable upon quarterly billing therefore by CITY to SBWMA.

4. Additional Services. In the event SBWMA desires the performance of

additional services not otherwise included within the services described in Exhibit A, such services shall be authorized in advance of the performance thereof by SBWMA’s Executive Director (for contracts less than $50,000 or authorized by SBWMA Board action for contracts $50,000 or more by motion duly made and carried). Such amendment to this Agreement shall include a description of the services to be performed thereunder, the maximum compensation and reimbursement of costs and expenses payable therefor, the time of performance thereof, and such other matters as the parties deem appropriate for the accomplishment of such services. Any additional services causing the total contract price to exceed $50,000, shall require approval by the SBWMA Board. Except to the extent modified by written amendment, all other terms and conditions of this Agreement shall be deemed incorporated in each such amendment.

5. Records. CITY shall keep and maintain accurate records of all time

expended and costs and expenses incurred relating to services to be performed by CITY hereunder. Said records shall be available to SBWMA for review and copying during regular business hours at CITY’s place of business or as otherwise agreed upon by the parties.

6. Authorization. This Agreement becomes effective when endorsed by both

parties in the space provided below.

7. Reliance on Professional Skill of CITY. CITY represents that it has the necessary professional skills to perform the services required and the SBWMA shall rely on such skills of the CITY to do and perform the work. In performing services hereunder CITY shall adhere to the standards generally prevailing for the performance of expert consulting services similar to those to be performed by CITY hereunder. CITY acknowledges the importance to SBWMA of the skill, competency, ability to appropriately work with SBWMA staff and expertise of individual staff assigned to the project, and accordingly the individuals assigned to the Project must be acceptable to SBWMA.

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8. Documents. All documents, plans, drawings, renderings, and other papers, or copies thereof, as finally rendered, prepared by CITY pursuant to the terms of this Agreement, shall, upon preparation and delivery to SBWMA, become the property of SBWMA.

9. Relationship of Parties. It is understood that the relationship of CITY to

the SBWMA is that of an independent contractor and all persons working for or under the direction of CITY are its agents or employees and not agents or employees of the SBWMA.

10. Schedule. CITY shall adhere to the schedule set forth in Exhibit A;

provided, that SBWMA shall grant reasonable extensions of time for the performance of such services occasioned by governmental reviews of CITY’s work product or other unavoidable delays; provided, further, that such unavoidable delay shall not include strikes, lockouts, work stoppages, or other labor disturbances conducted by, or on behalf of, CITY’s officers or employees.

CITY acknowledges the importance to SBWMA of SBWMA’s Project schedule and agrees to put forth its best professional efforts to perform its services under this Agreement in a manner consistent with that schedule.

11. Indemnity. CITY hereby agrees to defend, indemnify, and save harmless

SBWMA, its boards, commissions, officers, attorneys, employees and agents, from and against any and all claims, suits, actions liability, loss, damage, expense, cost (including, without limitation, costs of litigation and attorneys fees) of every nature, kind or description, which may be brought against, or suffered or sustained by, SBWMA, its boards, commissions, officers, attorneys, employees or agents arising or resulting directly or indirectly from any act or omission of CITY, its officers, employees or agents in the performance of any services or work pursuant to this Agreement.

The duty of CITY to indemnify and save harmless, as set forth herein, shall include the duty to defend as set forth in Section 2778 of the California Civil Code; provided, however, that nothing herein contained shall be construed to require CITY to indemnify SBWMA, its boards, commissions, officers, employees and agents against any responsibility or liability in contravention of Section 2782 of the California Civil Code.

12. Insurance. CITY shall acquire and maintain Workers’ Compensation,

employer’s liability, commercial general liability, owned and non-owned and hired automobile liability, and professional liability insurance covering risks relating to CITY’s services to be performed hereunder in form subject to the approval of the Authority’s Attorney and/or Authority’s Risk

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Manager. The minimum amounts of coverage corresponding to the aforesaid categories of insurance per insurable event, shall be as follows:

Insurance Category Minimum Limits

Workers’ Compensation statutory minimum

Employer’s Liability $1,000,000 per accident for bodily injury

or disease

Commercial General Liability $1,000,000 per occurrence and $2,000,000 aggregate for bodily injury, personal injury and property damage

Automobile Liability $1,000,000 per accident for bodily injury

and property damage (coverage required to the extent applicable to CITY’s vehicle usage in performing services hereunder)

1Professional Liability $1,000,000 per claim and $2,000,000

aggregate

Concurrently with the execution of this Agreement, CITY shall, on the Insurance Coverage form provided in Exhibit C, furnish SBWMA with certificates and copies of information or declaration pages of the insurance required hereunder and, with respect to evidence of commercial general liability and automobile liability insurance coverage, original endorsements:

(a) Precluding cancellation or reduction in per occurrence limits

before the expiration of thirty (30) days (10 days for nonpayment) after SBWMA shall have received written notification of cancellation in coverage or reduction in per occurrence limits by first class mail;

(b) Naming the South Bayside Waste Management Authority its

officers, boards, commissions, attorneys, employees, and agents, as additional insureds; and

1 Note: Professional liability insurance coverage is not required if the contractor/vendor/consultant is not providing a service regulated by the state. (Examples of service providers regulated by the state are insurance agents, professional engineers, doctors, certified public accountants, lawyers, etc.) Please check and initial the following if professional liability is NOT required for this agreement. Recommended ______ [Project Manager] Approved _______[Risk Manager]

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(c) Providing that CITY’s insurance coverage shall be primary insurance with respect to SBWMA, its officers, boards, commissions, attorneys, employees, and agents, and any insurance or self-insurance maintained by SBWMA for itself, its officers, boards, commissions, employees, or agents shall be in excess of CITY’s insurance and not contributory with it.

Claims Made Policies If any of the required policies provide claims-made coverage: 1. The Retroactive Date must be shown, and must be before the date of the contract or the beginning of contract work. 2. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work. 3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date, the City must purchase “extended reporting” coverage for a minimum of five (5) years after completion of contract work. Verification of Coverage CITY shall furnish the SBWMA with original certificates and amendatory endorsements effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the SBWMA before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the CITY’s obligation to provide them. The SBWMA reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.

Waiver of Subrogation CITY hereby grants to SBWMA a waiver of any right to subrogation which any insurer of said Consultant may acquire against the SBWMA by virtue of the payment of any loss under such insurance. This provision applies regardless of whether or not the SBWMA has requested or received a waiver of subrogation endorsement from the insurer. Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the SBWMA. Special Risks or Circumstances SBWMA reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

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13. WORKERS' COMPENSATION. CITY certifies that he is aware of the provisions of the Labor Code of the State of California which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that Code, and CITY certifies that he will comply with such provisions before commencing the performance of the work of this agreement.

14. NON-DISCRIMINATION. The CITY will not discriminate against any

employee or applicant for employment because of race, color, religion, sex or national origin. The CITY will take affirmative action to insure that applicants are employed and the employees are treated during employment without regard to their race, color, religion, sex or national origin. Such action shall include, but not be limited to the following: employment, advancement, demotion, transfer, recruitment, or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The CITY shall at all times be in compliance with the requirements of the Federal Americans With Disabilities Act (Public Law 101-336) which prohibits discrimination on the basis of disability by public entities. The CITY agrees to post in conspicuous places available to employees and applicants for employment any notices provided by the SBWMA setting forth the provisions of this non-discrimination clause.

15. Notice. All notices required by this Agreement shall be given to the

SBWMA and CITY in writing, by first class mail, postage prepaid, addressed as follows:

SBWMA: South Bayside Waste Management Authority

610 Elm Street #202 San Carlos, CA 94070 Attention: Kevin McCarthy

CITY: City of San Carlos 600 Elm Street San Carlos, CA 94070 Attention: Rebecca Mendenhall

16. Non-Assignment. This Agreement is not assignable either in whole or in

part.

17. Amendments. This Agreement may be amended or modified only by written agreement signed by both parties.

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18. Validity. The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of any other provision of this Agreement.

19. Governing Law. This Agreement shall be governed by the laws of the

State of California and any suit or action initiated by either party shall be brought in the County of San Mateo, California. In the event of litigation between the parties hereto to enforce any provision of the Agreement, the unsuccessful party will pay the reasonable attorney’s fees and expenses of litigation of the successful party.

20. Mediation. Should any dispute arise out of this Agreement, the parties

shall meet in mediation and attempt to reach a resolution with the assistance of a mutually acceptable mediator. Neither party shall be permitted to file legal action without first meeting in mediation and making a good faith attempt to reach a mediated resolution. The costs of the mediator, if any, shall be paid equally by the parties. If a mediated settlement is reached neither party shall be deemed the prevailing party for purposes of the settlement and each party shall bear its own legal costs. If a party refuses or fails to participate in mediation in good faith prior to filing a lawsuit, then that party shall be barred from recovery of attorneys fees and costs of suit.

21. Conflict of Interest. CITY may serve other clients, but none who are active

within the South Bayside Waste Management Authority or who conduct business that would place CITY in a "conflict of interest" as that term is defined in State law. The Parties hereto acknowledge that Aaronson, Dickerson, Cohn and Lanzone represents both entities under this agreement and knowingly waive the potential conflict of interest.

22. Entire Agreement. This Agreement, including Exhibits A and B comprise

the entire Agreement between the SBWMA and CITY.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on the date first above written by their respective officers duly authorized in that behalf.

CITY OF SAN CARLOS Dated: _________________________________

Jeff Maltbie, City Manager

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SBWMA Dated:

Kevin McCarthy, Executive Director

APPROVED AS TO FORM

Dated:

Gregory J. Rubens, City Attorney APPROVED AS TO FORM

Dated:

Robert J. Lanzone, Legal Counsel

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EXHIBIT A

SCOPE OF WORK AND SCHEDULE AND FEES

A. SCOPE OF SERVICES

1. The City will perform Financial Services for the SBWMA, including the following specific items:

a. Establish and maintain bank and investment accounts. Currently, SBWMA uses Wells Fargo, San Mateo Investment Pool and LAIF, for cash and investment activity.

b. Accounting, general ledger and financial system set up. Since the City is the financial services provider for SBWMA now, SBWMA has been set up on the City’s MUNIS financial system. MUNIS is an integrated ERP system that includes reporting, accounts payable, accounts receivable, cashiering, general ledger and budgeting. This system has been in use since 2005.

c. Process vendor invoices for payment; sign vendor disbursements. The City will process bi-weekly disbursements of accounts payable checks once the payment requests have been properly authorized for payment by the appropriate SBWMA representative. All invoices will be paid either by electronic payment or check.

d. Deposit receipts and manage receivables. All receipts and deposits (cash, check or wire) will be made into the Wells Fargo account. Receivables will be reviewed on a quarterly basis with the SBWMA Finance Manager and any delinquent accounts will be contacted. All reports related to receivables will be available to SBWMA management.

e. Input budget into accounting system. Once the SBWMA Board has adopted the budget, the budget will be uploaded into the City’s MUNIS system. MUNIS provides multi-year reporting and on-demand YTD actual to budget variance reporting.

f. Establish and implement internal financial controls. The City maintains a robust internal control system. Part of the annual audit process includes a review of these systems, in conjunction with the preparation of the City’s Comprehensive Annual Financial Report (CAFR). The City is consistently praised by its auditors as having good controls in place and as such, there have been no significant findings or any internal control issues.

g. Recommend and review financial policies and procedures. Part of the City’s continuing operation includes review of financial policies and procedures.

h. General ledger account reconciliation and review. Every balance sheet account is reviewed and reconciled on a monthly basis. In addition, the financial system automatically reviews every transaction for completeness and will not post an unbalanced entry. By the 15th of

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the following month the prior period is closed and reviewed. Any significant variances are reviewed and corrections applied as needed.

i. Fixed asset sub ledger system. The City uses a separate robust fixed asset module to track fixed assets and capitalization of projects as mandated by GASB 34.

j. Manage the bond accounts, bond bank accounts, and make bond payments (semi-annually). Bond payments are made in accordance with the debt schedules via wire transfers. Bond accounts are managed as part of the investment policies and procedures.

k. Recommend investment policies for Board approval. On a quarterly basis, the City prepares and provides a quarterly investment report to the SBWMA Finance Manager for his review. On an annual basis, the City provides the Annual Investment Policy to the SBWMA Finance Manager for his review prior to submission to the Board.

l. Manage the investment of surplus cash and reserve funds. Surplus cash is reviewed on a weekly basis and all surplus funds are invested with the primary objective of safety of principal, while meeting the cash flow needs of the Authority, through prudent investment of unexpended cash. The portfolio will at all times contain enough liquidity to meet the next six months of expected expenditures by the Authority, as well as by other third parties.

m. Provide detailed information as requested from SBWMA staff on vendor payment issues, general ledger accounts, etc.

Specific financial statement and auditing services include: a. Work with auditors to report fiscal year audited financial results. The City

understands that the fiscal year may change to a calendar year if the JPA agreement is amended. The cost for such change will need to be discussed in more detail as it may involve the purchase of additional financial software and the conversion of existing financial records.

b. Manage the fiscal year-end audit process and prepare all work schedules as

needed by auditor (currently on a fiscal year but may change to a calendar year). The City will work closely with the auditors to prepare all financial schedules required for the audit.

c. Select and provide the audit firm to perform audit functions. The City has

hired the auditing firm of Lance, Soll & Lunghard, LLP (LSL). All costs associated with the audit would be directly billed to SBWMA and the estimate is included in the cost section to follow.

d. Prepare unaudited calendar year financial statements issued by the audit

firm, including review of bond covenants. The City will assist the Authority in the preparation of the calendar year financial reports as required by the bond covenant.

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2. In performing the Services under this Agreement, the City employees assigned to provide SBWMA services shall comply with the SBWMA’s Bylaws and other rules, principles, and laws applicable specifically to the SBWMA, including without limitation, the SBWMA’s Financial Policy and Procedures, as may be amended from time to time. All financial transactions (payments, deposits and transfers) performed by City Employees will have been pre-approved by the SBWMA Executive Director or SBWMA Finance Manager. 3. Nothing herein shall prohibit or otherwise limit the SBWMA’s right to enter into further agency agreements and/or work order arrangements with other public agencies for the provision of these or other services. B. COMPENSATION 1. The SBWMA agrees to pay to City the full cost of providing financial services as shown in this Exhibit A, as the same may be amended from time to time by agreement between the Parties. 2. SBWMA and City acknowledge and agree that compensation paid by SBWMA to City under this Agreement is based upon City’s cost of providing the services required hereunder, including salaries and benefits of employees. 3. The SBWMA agrees to reimburse the City for Financial Services. Direct external costs are borne by the SBWMA. Financial services costs are those expenses necessary to administer this Agreement and are included in the fixed rate. City will provide these services for a fixed annual fee for FY 2013 (July 1, 2012 to June 30, 2013) of $125,036. This fixed rate will be adjusted on an annual basis. 4. Terms of Payment. The City shall submit invoices quarterly for the prior quarter’s services. Invoices shall be submitted 30 days prior to the end of the first quarter and shall be delinquent if not paid within 30 days of receipt. Each invoice will detail the quarterly cost of services and prior quarter’s direct external costs. Delinquent payments will be subject to a late payment carrying charge computed at a periodic rate of 1% per month, which is an annual percentage rate of 12%, which will be applied to any unpaid balance owed commencing seven (7) days after the payment due date. 5. Charges for other services and special projects requested of the City will be at a rate of $103/hour not including expenses. External vendor charges, such as independent auditor, postage, storage and legal fees, will be paid directly by the SBWMA or reimbursed by the SBWMA if paid by the City, and be without City overhead fees. The City will manage the outside audit process (and SBWMA’s costs for this management service are included in the annual Administrative Charge).

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EXHIBIT B

CITY’S FEE SCHEDULE

SBWMA FINANCIAL SERVICES ESTIMATE

Service Provided FY 2013 Cost Establish and maintain bank and investment accounts. 2,717.00 Accounting, general ledger and financial system set up 1,045.00 Process vendor invoices for payment; sign vendor disbursements 29,417.00 Deposit receipts and manage receivables 2,195.00 Input budget into accounting system 2,613.00 Establish and implement internal financial controls 1,045.00 Recommend and review financial policies and procedures 1,045.00 General ledger account reconciliation and review (including financial reporting) 41,382.00Fixed asset sub ledger system 6,270.00 Manage the bond accounts, bond bank accounts, and make bond payments (semi-annually) 1,045.00 Recommend investment policies for Board approval 1,045.00 Management of surplus cash and reserve funds 1,045.00 Provide detailed information as requested from SBWMA staff on vendor payment issues, general ledger accounts, etc. 2,508.00Work with auditors to report fiscal year audited financial results 20,169.00 Manage the fiscal year-end audit process and prepare all work schedules as needed by auditor

Included in line above

Select and provide the audit firm to perform audit functions n/aPrepare unaudited calendar year financial statements issued by the audit firm including review of bond covenants 11,495.00 Total Cost of Service for fiscal year ended June 30, 2013 $125,036.00

Charges for other services and other special projects requested of the City will be at a rate of $103/hour per NBS Cost Schedule

Other Charges to be billed separately Lance, Soll & Lunghard Audit Fees per Engagement Letter Storage costs pass-thru Postage costs pass-thru

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EXHIBIT C

INSURANCE FORMS

CONSULTANT shall provide, in addition to the Certificates of Insurance, original Endorsement affecting the coverages specified in Section 11 - INSURANCE of the Agreement on the attached form. No substitute form will be accepted. ATTACHED 1. Insurance Coverage Form

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This INSURANCE COVERAGE FORM modifies or documents insurance provided under the following:

Named Insured: Effective Work Date(s):

Description of Work/Locations/Vehicles: ADDITIONAL INSURED: City of San Carlos 600 Elm Street, San Carlos, CA 94070 Attention: _________________________________ Contract Administrator Endorsement and Certificates of Insurance Required The Additional Insured, its elected or appointed officers, officials, employees and volunteers are included as insureds with regard to damages and defense of claims arising from: (Check all that apply)

Insurer Policy No.

General Liability: (a) activities performed by or on behalf of the Named Insured, (b) products and completed operations of the Named Insured, (c) premises owned, leased occupied or used by the Named Insured, and/or (d) permits issued for operations performed by the Named Insured. {Note: MEETS OR EXCEEDS ISO Form # CG 20 10 11 85}

Auto Liability: the ownership, operation, maintenance, use, loading or

unloading of any auto owned, leased, hired or borrowed by the Named Insured, regardless of whether liability is attributable to the Named Insured or a combination of the Named Insured and the Additional Insured, its elected or appointed officers, officials, employees or volunteers.

Other:

Certificates of Insurance Required (no endorsement needed) (Check all that apply)

Insurer Policy No.

Workers Compensation: Professional Liability:

PRIMARY/NON-CONTRIBUTORY: This insurance is primary and is not additional to or contributing with any other insurance carried by or for the benefit of Additional Insureds. SEVERABILITY OF INTEREST: The insurance afforded by this policy applies separately to each insured who is seeking coverage or against whom a claim is made or a suit is brought, except with respect to the insurer’s limit of liability.

PROVISIONS REGARDING THE INSURED'S DUTIES AFTER ACCIDENT OR LOSS: Any failure to comply with reporting provisions of the policy shall not affect coverage provided to the Additional Insured, its elected or appointed officers, officials, employees, or volunteers. CANCELLATION NOTICE. The insurance afforded by this policy shall not be suspended, voided, canceled, reduced in coverage or in limits except after thirty (30) days' prior written notice (ten (10) days if canceled due to non-payment) by regular mail has been given to the Additional Insured. Such notice shall be addressed as shown above.

WAIVER OF SUBROGATION: The insurer(s) named above agree to waive all rights of subrogation against the CITY/District, its elected or appointed officers, officials, agents, volunteers and employees for losses paid under the terms of this policy which arise from work performed by the Named Insured for the CITY/District. Nothing herein contained shall vary, alter or extend any provision or condition of the Policy other than as above stated. SIGNATURE OF INSURER OR AUTHORIZED REPRESENTATIVE OF THE INSURER I, _______________________________________________________________(print/type name), warrant that I have authority to bind the above-named insurance company and by my signature hereon do so bind this company.

SIGNATURE OF AUTHORIZED REPRESENTATIVE (original signature required)

ORGANIZATION: TITLE:

ADDRESS:

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TELEPHONE: ( ) DATE ISSUED:

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SBWMA BOD PACKET 06/28/2012 AGENDA ITEM: 5D – p1

STAFF REPORT To: SBWMA Board Members From: Kevin McCarthy, Executive Director Date: June 28, 2012 Board of Director’s Meeting Subject: Resolution Approving Contract Extension with Zanker Road for Processing Construction

and Demolition (C&D) Debris Recommendation It is recommended that the SBWMA Board of Directors approve Resolution No. 2012-10 attached hereto authorizing the following action:

1. Approve the attached resolution extending the existing C&D processing contract with Zanker Road for three years until January 31, 2017. All other terms and conditions of the current contract remain unchanged.

2. Authorize the Executive Director to execute a contract with Zanker Road reflective of the revised terms and conditions.

Analysis Zanker Road has been successfully processing C&D debris for the SBWMA since 2006 achieving diversion rates over 80% while providing a smooth operational interface with the Shoreway facility operator. On a good faith basis, Zanker waived any tip fee adjustment for 2011 and 2012 as they are allowed to adjust the rate by 90% of CPI. They have offered to continue to hold the $45 per ton rate through the balance of the current contract period (thru January 31, 2014) in exchange for a three year contract extension. Staff believes this is a financially and operationally beneficial offer for the SBWMA to accept. A redline version of the amended contract is attached as Exhibit A. Background On January 28, 2010 the Board approved an extension of a contract with Zanker Road for four years from February 1, 2010 until January 31, 2014 with a tipping fee of $45 per ton for the first year of the contract and the rate subject to an annual adjustment thereafter of 90% of CPI (All Urban Consumers Index (CPI-U), All Items, for the San Francisco-Oakland-San Jose, CA, Base Period 1982 – 1984 = 100.). The contract has a provision for up to three annual extensions if the parties mutually agree in writing. Fiscal Impact Approval of this contract extension with Zanker Road is projected to save $130,000 over the 2011-2014 time-periods in C&D processing costs which are reflected in Shoreway “pass through expenses” included in Member Agency collection costs.

Attachments: Resolution 2012-10 Exhibit A - Zanker Road Processing Agreement



MANAGEMENT AUTHORITY BOARD OF DIRECTORS APPROVING CONTRACT EXTENSION WITH ZANKER ROAD FOR PROCESSING CONSTRUCTION AND DEMOLITION (C&D) DEBRIS

WHEREAS, the South Bayside Waste Management Authority (SBWMA) has had a contract with Zanker Road for the processing of construction and demolition materials (C&D), and WHEREAS, staff has negotiated a three (3) year contract extension (Exhibit A attached), effective July 1, 2012 for Zanker Road to continue to process C&D materials, and WHEREAS, the SBWMA Board of Directors reviewed the new contract and finds the terms and conditions acceptable and the contract extension to be in the best interests of the SBWMA. NOW, THEREFORE, BE IT RESOLVED by the SBWMA Board of Directors hereby approves the contract, Exhibit A, with Zanker Road and authorizes the Executive Director to execute the contract. PASSED AND ADOPTED by the Board of Directors of the South Bayside Waste Management Authority, County of San Mateo, State of California on the 28th day of June, 2012, by the following vote:

I HEREBY CERTIFY that the foregoing Resolution No. 2012-10 was duly and regularly adopted at a regular meeting of the South Bayside Waste Management Authority on June 28, 2012. ATTEST: James Porter, Chairperson of SBWMA _________________________________ Cyndi Urman, Board Secretary


SBWMA BOD PACKET 06/28/2012 AGENDA ITEM: 5D EXHIBIT A – p1

AGREEMENT FOR CONSTRUCTION AND DEMOLITION DEBRIS PROCESSING 1 FOR RECYCLING AND BENEFICIAL USE 2

BETWEEN THE SOUTH BAYSIDE WASTE MANAGEMENT AUTHORITY 3 AND ZANKER ROAD RESOURCE MANAGEMENT, LTD. 4

5 This Agreement is entered into by and between the South Bayside Waste 6 Management Authority (SBWMA), a California joint powers authority, and Zanker 7 Road Resource Management, Ltd. (Contractor) a California limited partnership, 8 on February 1, 2010 and sets forth the terms and conditions under which 9 Contractor will accept and process for recycling and beneficial use mixed 10 construction and demolition debris from the Shoreway Environmental Center 11 owned by the South Bayside Waste Management Authority (SBWMA) and 12 located at 225 Shoreway Road, San Carlos, California 94070. 13

14 1. Definitions 15 16

A. Construction and Demolition Debris (C&D) 17 “Construction and Demolition Debris (C&D)” means a mixture of all non-18 hazardous waste material resulting from construction, remodeling, repair, or 19 demolition activities. Construction and Demolition Debris includes, but is not 20 limited to: soil, brush, logs, concrete, asphalt, brick, ceramics, stucco, plaster, 21 wood, drywall, metals, wall coverings, roofing materials, wires and conduit, 22 carpet, carpet pad, ceiling tiles, windows, doors, fixtures, insulation, fencing, 23 cardboard, and plastic. Individual pieces of Construction and Demolition Debris 24 delivered to Contractor shall not exceed 150 pounds or 8 feet in any two 25 directions. There is no minimum size restriction for individual pieces of 26 Construction and Demolition Debris; however materials cannot be ground or 27 shredded prior to arriving at Contractor’s processing facility. 28

29 B. Non-Construction and Demolition Debris 30 “Non-Construction and Demolition Debris” means putrescible waste, food waste, 31 grass clippings, leaves, residential or commercial waste collected in compacting 32 vehicles, waste enclosed in plastic bags, furniture, mattresses, tires, appliances, 33 and individual pieces of Construction and Demolition Debris exceeding 150 34 pounds or 8 feet in any two directions. 35

36 C. Recyclable Construction and Demolition Debris 37 “Recyclable Construction and Demolition Debris” means 1) wood such as 38 dimensional lumber, pallets, shake shingles, particle board, plywood, Oriented 39 Strand Board, Medium Density Fiberboard and other manufactured wood 40 products, that are free of lead paint, stain, melamine coating, creosote, arsenic or 41 other chemical treatments; 2) brush and logs; 3) concrete, asphalt, brick, rock, 42 ceramics; 4) soil; 5) metal; 6) drywall; and, 7) cardboard. 43 44 D. Recycled 45 “Recycled” means those materials, which would otherwise be Disposed, that 46 have been processed, separated, treated, and/or reconstituted and returned to 47 the economy in the form of raw materials for new, reused, or reconstituted 48 products. For purposes of this Agreement, “Recycled” shall also mean that the 49


material is not reported to the California Integrated Waste Management Board as 50 being either “Disposed” or utilized as “Alternative Daily Cover (ADC.)” Materials 51 Recycled under this Agreement shall not be reported as disposed or ADC at the 52 Contractor’s facility or at any other solid waste facility to which the contractor 53 delivers the material after processing. Acceptable end-uses for Recycled 54 materials include, but are not limited to: biomass fuel, manufactured wood 55 products, mulch, compost, engineered soil, agricultural gypsum, gravel, road 56 base, and Beneficial Use at a Landfill. 57

58 E. Beneficial Use at a Landfill: 59 “Beneficial Use at a Landfill” means use at a solid waste landfill of materials 60 recovered from Construction and Demolition Debris for: final cover foundation 61 layer, liner operations layer, leachate and landfill gas collection system 62 construction fill, road base, wet weather operations pads and access roads, soil 63 amendments for erosion control and landscaping, or any other legitimate use that 64 is not reported to the California Integrated Waste Management Board as either 65 Alternative Daily Cover (ADC) or Disposal. 66

67 F. Alternative Daily Cover (ADC) 68 “Alternative Daily Cover” means cover material other than soils/earthen materials 69 that are placed on the surface of the active face of a solid waste landfill at the 70 end of each operating day to control vectors, fires, odors blowing litter, and 71 scavenging. For purposes of this Agreement, materials recovered from 72 Construction and Demolition Debris shall be considered ADC if their use meets 73 this definition and/or if they are reported to the California Integrated Waste 74 Management Board as ADC, either at the Contractor’s facility or at any other 75 solid waste facility to which the Contractor delivers the materials after processing. 76

77 G. Disposed (Disposal) 78 "Disposal" means the ultimate disposition of Construction and Demolition Debris 79 at a landfill. Disposal does not include the use of Construction and Demolition 80 Debris as Alternative Daily Cover (ADC) or Beneficial Use at a Landfill, so long 81 as State regulations consider such uses to be diversion for purposes of 82 complying with State diversion requirements. For purposes of this Agreement, 83 C&D shall be considered Disposed if it is reported to the California Integrated 84 Waste Management Board as Disposed, either at the Contractor’s facility or at 85 any other solid waste facility to which the Contractor delivers the materials. 86

87 H. Shoreway Environmental Center Operator 88 “Shoreway Environmental Center Operator” means the private entity employed 89 by the SBWMA to operate the Shoreway Environmental Center r and deliver 90 Construction and Demolition Materials to Contractor. The current Shoreway 91 Environmental Center Operator is South Bay Recycling. 92

93 I. Hazardous Waste 94 "Hazardous Waste" means all substances defined as Hazardous Waste, acutely 95 Hazardous Waste, or extremely Hazardous Waste by the State of California in 96 Health and Safety Code §25110.02, §25115, and §25117 or in the future 97 amendments to or recodifications of such statutes or identified and listed as 98


Hazardous Waste by the U.S. Environmental Protection Agency (EPA), pursuant 99 to the Federal Resource Conservation and Recovery Act (42 USC §6901 et 100 seq.), all future amendments thereto, and all rules and regulations promulgated 101 thereunder. 102

103 J. Universal Waste 104 “Universal Waste” means all wastes as regulated and defined by Title 22 Article 1 105 Subsections 66273.1 through 66273.9 of the California Code of Regulations. 106 These include, but are not limited to, batteries, fluorescent light bulbs, mercury 107 switches, creosote treated lumber, and E-Waste. 108

109 K. Accepted Load 110 “Accepted Load” means a load of SBWMA Construction and demolition debris 111 delivered to Contractor’s facility, which meets the requirements of Section 5 and 112 will be processed by Contractor. 113

114 L. Held Load 115 “Held Load” means a load of SBWMA Construction and Demolition Debris 116 delivered to Contractor’s facility, which Contractor believes does not conform to 117 the requirements of Section 5 of this Agreement, and is being kept separate and 118 undisturbed so that it can be inspected by an authorized representative of the 119 SBWMA. Contractor must provide the SBWMA until 5:00 p.m. the day following 120 notification to inspect a Held Load. 121

122 M. Rejected Load 123 “Rejected Load” means a Held Load that the SBWMA has either a) inspected in 124 person or by utilizing photographs provided by Contractor, and agreed that it 125 does not meet the requirements of Section 5 of this Agreement; or b) waived its 126 right to inspect by not performing such an inspection by 5:00 p.m. of the day 127 following notification that the load is being Held. 128

129 2. Contractor’s Representations and Warranties 130 131

A. Legal Status 132 Contractor represents and warrants that it is a limited partnership duly organized, 133 validly existing, and in good standing under the laws of the State of California 134 and authorized to do business in the State of California. It has the power to own 135 its properties and to carry on its business as now owned and operated and as 136 required by this Agreement. 137 138 B. Limited Partnership Authorization 139 Contractor represents and warrants that it has the authority to enter into and 140 perform its obligations under this Agreement. The General Partner of Contractor 141 (or the shareholders, if necessary) have taken all actions required by law, its 142 partnership agreement, or otherwise, to authorize the execution of this 143 Agreement. The person signing this Agreement on behalf of Contractor has 144 authority to do so. 145 146


C. Agreement Will Not Cause Breach 147 To the best of Contractor's and SBWMA's knowledge, after reasonable 148 investigation, neither the execution or delivery of this Agreement, nor the 149 performance of this Agreement: (i) conflicts with, violates, or results in a breach 150 of any applicable law; or (ii) conflicts with, violates, or results in a breach of any 151 term or condition of any judgment, order or decree of any court, administrative 152 agency, or other governmental authority, or any agreement or instrument to 153 which Contractor or SBWMA is a party or by which Contractor or SBWMA or any 154 of its properties or assets are bound, or constitutes a default thereunder. 155 156 D. No Litigation 157 To the best of Contractor's knowledge, after reasonable investigation, there is no 158 action, suit, proceeding, or investigation, at law or in equity, before or by any 159 court or governmental authority, commission, board, agency, or instrumentality 160 decided, pending, or threatened against Contractor wherein an unfavorable 161 decision, ruling or finding, in any single case or in the aggregate, would materially 162 adversely affect the performance by Contractor of its obligations hereunder or 163 which, in any way, would adversely affect the validity or enforceability of this 164 Agreement or which would have a material adverse effect on the financial 165 condition of Contractor or any surety guaranteeing Contractor's performance 166 under this Agreement, which has not been waived by the SBWMA in writing. 167 168 E. Ability to Perform 169 Contractor possesses the business, professional and technical expertise to 170 manage, handle, treat, store, process, and recycle Construction and Demolition 171 Debris, and possesses the equipment, plant, and employee resources required 172 to perform this Agreement. 173

174 3. Term 175 176

The term of this Agreement shall be for the period commencing February 1, 2010 177 to January 31, 2017. The parties, if they mutually agree in writing, may extend 178 the tem of this agreement on an annual basis for up to three annual extensions. 179

180 4. Exclusive Services 181 182

Except as provided below, during the term of this Agreement, the SBWMA shall 183 direct the Shoreway Environmental Center Operator to transport all loads of 184 Construction and Demolition Debris generated from the Shoreway Environmental 185 Center to be hauled exclusively to Contractor’s facilities at 675 and 705 Los 186 Esteros Road in San Jose, California, for processing, recycling, finished product 187 marketing, and disposal of residuals. Contractor shall make available to the 188 SBWMA at least 70 tons per day of Construction and Demolition Debris 189 processing capacity. The SBWMA shall guarantee delivery of at least 35 tons 190 per day (as calculated on a 30 day average) to the Contractor’s processing 191 facility, on the terms and conditions specified in this Agreement. 192

193 194


5. Scope of Construction and Demolition Processing Services 195 196

Contractor agrees to accept, process for recycling, and dispose of residual 197 amounts, all Construction and Demolition Debris received from the SBWMA. 198 Contractor shall process, recycle, market finished products, and dispose of 199 residuals. Contractor shall ensure that, at a minimum, Recyclable Construction 200 and Demolition Debris from the SBWMA are Recycled. Contractor shall ensure 201 that at least 75% by weight of the Construction and Demolition Debris accepted 202 from the SBWMA is Recycled. Contractor shall ensure that at least 50% by 203 weight of the Construction and Demolition Debris accepted from the SBWMA is 204 Recycled to uses other than Beneficial Use at a Landfill. Contractor may dispose 205 of or utilize as ADC any residuals from the SBWMA Construction and Demolition 206 Debris that cannot be Recycled. Such residuals shall not exceed 25% of the 207 inbound weight of accepted SBWMA Construction and Demolition Debris. 208 Contractor may reject SBWMA loads containing more than 5% by weight of Non-209 Construction and Demolition Debris as defined in this Agreement. Contractor 210 may also reject SBWMA loads containing less than 75% by weight of Recyclable 211 Construction and Demolition Debris as defined in this Agreement. In order to 212 reject an SBWMA load, Contractor must follow the procedures for rejection of 213 loads set forth in Section 7. 214

215 6. Hours of Operation 216 217

Contractor’s facility shall be open to accept Construction and Demolition Debris 218 from 6:00 a.m. to 5:45 p.m., Monday through Friday, and from 8:00 a.m. to 3:45 219 p.m., Saturday and Sunday. Said facility will be closed Thanksgiving Day, 220 Christmas Day, New Year’s Day, and Easter Sunday. In the event the 221 Contractor applies to its regulating agencies for, and is granted, additional 222 permitted receiving hours, Contractor shall make those additional hours available 223 to the SBWMA for delivery of Construction and Demolition Debris. 224

225 7. Rejection of Loads 226 227

An SBWMA Construction and Demolition Debris load may be held by Contractor 228 if Contractor believes that it does not conform to the guidelines set forth in 229 Section 5. Contractor may not declare a load to be held until that load has been 230 unloaded from the transfer vehicle so that the entire load may be viewed. If 231 Contractor declares a load to be held, Contractor shall photograph the Held 232 Load, and shall keep the entire Held Load separate from other materials, and 233 undisturbed, until it can be visually inspected by an authorized representative of 234 the SBWMA. Contractor shall inform the SBWMA of the Held Load via e-mail 235 ([email protected]) and telephone (number to be designated by 236 the SBWMA.) The e-mail shall include digital photos of the Held Load. The 237 load’s arrival time and date and truck number shall be included in these 238 communications. If the SBWMA does not inspect the load at Contractor’s site by 239 5:00 p.m. of the day following notification, Contractor may move the load or 240 combine it with other materials. 241

242


By 5:00 p.m. of the day following notification, the SBWMA will inform Contractor 243 as to whether or not it is in agreement that the Held Load should be Rejected. If 244 the SBWMA finds that the Held Load does conform to the requirements of 245 Section 5, Contractor shall accept the load at the rate for Accepted Loads set 246 forth in Section 10A. If the SBWMA agrees that the load does not conform to the 247 requirements of Section 5, the SBWMA will either 1) authorize Contractor to 248 dispose of the load, and direct the Shoreway Environmental Center Operator to 249 pay Contractor the rate for disposing of Rejected Loads as specified in Section 250 10B or 2) direct the Shoreway Environmental Center Operator to remove the 251 Rejected Load from Contractor’s facility. Contractor will load the Rejected Load 252 into the Shoreway Environmental Center Operator’s vehicle and weigh that 253 vehicle as it leaves Contractor’s facility. In the event of a dispute as to whether 254 or not a Held Load should be Rejected, Contractor may be required to remove 255 and separately weigh materials from the Held Load to demonstrate that it does 256 not conform to the requirements of Section 5. In addition to the other costs 257 provided for herein, if the load is deemed rejected, the SBWMA shall pay for all 258 costs associated with the sorting and re-weighing of the Rejected Load. 259

260 It is the intent of both the SBWMA and Contractor to have no Held Loads or 261 Rejected Loads. Should Held Loads exceed two in a six month period, the 262 SBWMA and Contractor will meet and confer to resolve the issue. 263

264 8. Hazardous or Universal Waste Materials 265 266

In the event any SBWMA Construction and Demolition Debris contains any 267 Universal Waste or Hazardous Waste, the SBWMA shall direct Shoreway 268 Environmental Center Operator to pay to Contractor any actual, reasonable, and 269 necessary costs incurred by Contractor in handling and disposing of said 270 materials. In disposing of said Hazardous and/or Universal Waste materials, the 271 SBWMA shall be designated as the owner or generator of said Hazardous Waste 272 or Universal Waste. In the event that Shoreway Environmental Center Operator 273 does not pay said costs to Contractor within thirty (30) days, the SBWMA shall 274 pay the undisputed portion of said costs directly to Contractor. 275

276 9. Reporting 277 278

Contractor shall report monthly the amount of SBWMA Construction and 279 Demolition Debris accepted, Recycled, used as ADC, and Disposed. Contractor 280 shall report monthly the end-uses (e.g. biomass fuel, road base, Beneficial Use 281 at a Landfill, etc.) for each material type Recycled from SBWMA Construction 282 and Demolition Debris at Contractor’s facility. For reporting purposes, inbound 283 weights from SBWMA loads may be applied to overall diversion and end-use 284 percentages for mixed Construction and Demolition Debris processing operations 285 at the Contractor’s facility. However, if the overall diversion and end-use 286 percentages do not demonstrate compliance with the processing services listed 287 in Section 5, Contractor shall be required to demonstrate compliance in regards 288 to the SBWMA materials by processing the SBWMA’s Construction and 289 Demolition Debris separately. 290

291


10. Rates 292 293

For the period February 1, 2010 through January 31, 2014, the SBWMA shall 294 direct Shoreway Recycling and Disposal Center Operator to pay to Contractor 295

296 A. The sum of $45.00 per ton for all SBWMA Construction and Demolition 297

Debris accepted by Contractor for processing. 298 299

B. The sum of $57.50 per ton for any rejected SBWMA loads that the 300 SBWMA authorizes Contractor to dispose of. 301

302 Commencing February 1, 2014 and thereafter on each February 1, this 303 Agreement is in effect, including any extension years, both rates stated above 304 shall be increased by 90% of the change in the value of the All Urban Consumers 305 Index (CPI-U), All Items, for the San Francisco-Oakland-San Jose, CA, Base 306 Period 1982 – 1984 = 100, not seasonally adjusted, compiled and published by 307 the U. S. Department of Labor, Bureau of Labor Statistics (or its successor) for 308 the previous December and its value twelve months before. 309

310 In the event that any government agency imposes upon Contractor any 311 additional regulations or fees which result in additional expenses, charges, fees, 312 or taxes to Contractor and which relate specifically to the construction and 313 demolition services provided hereunder, either 1) such expenses, charges, fees 314 or taxes shall be added to the prices on a pro-rata basis, based upon the 315 percentage that the total tonnage of construction and demolition waste being 316 delivered to Contractor pursuant to this Agreement bear to the total tonnage of 317 construction and demolition waste delivered to Contractor’s facility from all 318 sources; or, 2) the SBWMA may terminate this Agreement. 319

320 11. Payment 321 322

On or before the 10th of each month, Contractor shall send an invoice (showing 323 by date, time, and vehicle identification number the tonnage received and the 324 rate charged) to Shoreway Environmental Center Operator for the preceding 325 month. Shoreway Environmental Center Operator shall reconcile such invoice to 326 its daily records and pay the undisputed portion of said invoice within thirty (30) 327 days of receipt. Within fifteen (15) days of receipt, Shoreway Environmental 328 Center Operator shall inform Contractor and the SBWMA of any disputed 329 amounts and Shoreway Environmental Center Operator and Contractor shall act 330 promptly to resolve such disputes. Payment shall be made only by cashier’s 331 check, certified check, or by Shoreway Environmental Center Operator or 332 SBWMA check. In the event that Shoreway Environmental Center Operator 333 does not pay any undisputed invoice within thirty (30) days, the SBWMA shall 334 pay the amounts it reasonably determines are due Contractor directly to 335 Contractor. The above payment provisions will be modified effective January 1, 336 2011 such that the Contractor shall bill the SBWMA. 337

338 12. Default and Remedies 339 340


All provisions of this Agreement to be performed by Contractor are considered 341 material. Each of the following shall constitute an event of default. 342 A. Fraud or deceit. 343 B. Failure to maintain insurance coverage described herein. 344 C. Contractor violation of orders or filings of a regulatory body having a 345

material impact on Contractor’s ability to perform its obligations as 346 required by this Agreement. 347

D. Failure to perform services as required by this Agreement for two (2) 348 consecutive days or more or for any seven (7) days in a period of 30 days. 349

E. Failure of Contractor to provide reports and/or records as provided for in 350 this Agreement. 351

F. Any act or omission by Contractor which violates the terms of this 352 Agreement. 353

G. Any false or misleading representation of Contractor. 354 H. Filing of a voluntary petition for debt relief. 355 I. Bankruptcy of Contractor. 356 J. Contractor’s failure to provide assurance of performance. 357

358 Contractor shall be given 30 days from notification by the SBWMA to cure any 359 default arising under this Agreement. 360

361 In the event of Contractor’s failure to cure said default, the SBWMA may, at its 362 option, terminate this Agreement. This right of termination is in addition to any 363 other rights of the SBWMA and the SBWMA’s termination of this Agreement shall 364 not constitute an election of remedies. Instead, it shall be in addition to any and 365 all other legal and equitable rights and remedies the SBWMA may have. 366

367 13. Termination for Cause 368 369

The SBWMA selected Contractor based on its high landfill diversion levels. 370 These factors are essential to the services the SBWMA shall obtain from 371 Contractor. Therefore, notwithstanding the terms and conditions of Section 12, in 372 any month, should the Recycled fraction of accepted Construction and 373 Demolition Debris fall below 75% or should the fraction of these accepted 374 Construction and Demolition Debris Recycled to end-uses other than Beneficial 375 Use at a Landfill fall below 50%, then Contractor will be found in breach of this 376 Agreement and the SBWMA may terminate the Agreement for cause. In such 377 case, the SBWMA shall notify Contractor in writing of its intent to do so sixty (60) 378 days prior to the intended date of termination. Contractor shall be given thirty 379 (30) days to correct the breach and, if it does, then the termination shall be 380 suspended. A second breach within a twelve-month period may reactivate the 381 termination of the Agreement and such termination shall occur within sixty (60) 382 days of the second breach, without any right by Contractor to correct the breach. 383

384 The SBWMA shall meet and confer with Contractor if Contractor is unable to 385 meet the diversion requirements set forth in Section 5, due to changes in markets 386 for Recycled materials. 387

388 14. Insurance 389


390 Insurance policies are to be obtained by Contractor and remain in full force and 391 effect at all times to provide protection against liability for damages which may be 392 imposed for the negligence of Contractor or its employees, agents, or 393 subcontractors including, but not limited to, general liability and automobile 394 liability insurance. Contractor shall also provide liability coverage under 395 California Workers' Compensation laws. The amounts of insurance required are 396 to be established herein. Said amounts shall not be construed to limit 397 Contractor's liability. 398

399 The insurance requirements provided herein may be reduced or waived in writing 400 by the SBWMA Board of Directors, provided the Board of Directors determines 401 that such waiver or reduction does not unreasonably increase the risk of 402 exposure to the SBWMA. 403

404 A. Workers' Compensation Insurance. Contractor shall obtain and maintain in 405 full force and effect throughout the entire term of this Agreement full Workers' 406 Compensation Insurance in accord with the provisions and requirements of the 407 Labor Code of the State of California. Endorsements that implement the required 408 coverage shall be filed and maintained with the SBWMA throughout the term of 409 this Agreement. 410

411 B. Comprehensive General Liability. Contractor shall obtain and maintain 412 in full force and effect throughout the entire term of this Agreement a Broad Form 413 Comprehensive General Liability (occurrence) policy with a minimum limit of 414 TWO MILLION DOLLARS ($2,000,000.00) aggregate and ONE MILLION 415 DOLLARS ($1,000,000.00) per occurrence for bodily injury and property 416 damage, with any self-insured retention not exceeding TWO HUNDRED 417 THOUSAND ($200,000.00) per occurrence. Said insurance shall protect 418 Contractor and the SBWMA from any claim for damages for bodily injury, 419 including accidental death, as well as from any claim for property damage which 420 may arise from operations performed pursuant to this Agreement, whether such 421 operations are by Contractor itself, or by its agents, employees and/or sub-422 contractors. Copies of the policies or endorsements evidencing the above-423 required insurance coverage shall be filed with the SBWMA. Endorsements are 424 required to be made a part of all of the following insurance policies required by 425 this Section: 426

427 (1) "The SBWMA, its employees, agents, and officers, are hereby 428

added as insured as respects liability arising out of activities 429 performed by or on behalf of Contractor." 430

431 (2) "This policy shall be considered primary insurance as respects 432

any other valid collectible insurance the SBWMA may possess 433 including any self-insured retention the SBWMA may have, 434 and any other insurance the SBWMA does possess shall be 435 considered excess insurance and shall not contribute with it." 436

437


(3) "This policy shall act for each insured, as though a separate 438 policy had been written for each. This, however, will not act to 439 increase the limit of liability of the insuring company." 440

441 (4) "Thirty (30) days prior written notice by certified mail, return 442

receipt requested, shall be given to the SBWMA in the event 443 of suspension, cancellation, reduction in coverage or in limits 444 or non-renewal of this policy for whatever reason. Such notice 445 shall be sent to the SBWMA.” 446

447 C. Vehicle Liability. Contractor shall obtain and maintain in full force and 448 effect throughout the entire term of this Agreement a vehicle liability policy with a 449 minimum limit of TWO MILLION DOLLARS ($2, 000,000.00) per occurrence for 450 bodily injury and ONE HUNDRED THOUSAND DOLLARS ($100,000.00) per 451 occurrence for property damage. Said insurance shall protect Contractor and the 452 SBWMA from any claim for damages for bodily injury, including accidental death, 453 as well as from any claim for property damage which may arise from operation of 454 owned and non-owned vehicles. Copies of the policies or endorsements 455 evidencing the above-required insurance coverage shall be filed with the 456 SBWMA. 457

458 The limits of such insurance coverage, and companies, shall be subject to review 459 and approval by the SBWMA every year and may be increased, subject to 460 Contractor’s consent, at that time and match the coverage provided by the 461 SBWMA's own liability insurance policy. The SBWMA shall be included as a 462 named insured on each of the policies, or policy endorsements. 463

464 15. Indemnification 465

466 A. Indemnification of the SBWMA. Contractor shall defend the SBWMA 467 with counsel reasonably acceptable to the SBWMA and indemnify the SBWMA 468 from and against any and all liabilities, costs, claims, and damages which are 469 caused by Contractor's negligence, intentional wrongful acts, or failure to comply 470 with applicable laws and regulations, including but not limited to, liabilities, costs, 471 claims, and damages. 472

473 B. Indemnification of Contractor. The SBWMA shall defend Contractor 474 with counsel reasonably acceptable to Contractor and indemnify Contractor from 475 and against any and all liabilities, costs, claims and damages which are caused 476 by the SBWMA’s negligence, intentional wrongful acts, or failure to comply with 477 applicable laws and regulations, including but not limited to, liabilities, costs, 478 claims, and damages. The SBWMA shall not offer such indemnification to 479 Contractor for Shoreway Environmental Center Operator’s negligence or failure 480 to comply with applicable laws and regulations. 481

482 483

16. General Provisions 484 485


A. Entire Agreement. This Agreement represents the full and entire 486 Agreement between the SBWMA and Contractor with respect to the matters 487 covered herein. 488 489 B. Force Majeure. Neither party shall be in default under this Agreement in 490 the event, and for so long as, it is impossible or extremely impracticable for it to 491 perform its obligations due to any of the following reasons: riots, wars, sabotage, 492 civil disturbances, insurrection, explosion, natural disasters such as floods, 493 earthquakes, landslides, fires, and volcanic eruptions, strikes, lockouts and other 494 labor disturbances or other catastrophic events which are beyond the reasonable 495 control of Contractor. Labor unrest, including but not limited to strike, work 496 stoppage or slowdown, sick-out, picketing, or other concerted job action 497 conducted by Contractor's employees or directed at Contractor is not an excuse 498 from performance; provided, however, that labor unrest or job action directed at a 499 third party over whom Contractor has no control, shall excuse performance. 500

501 A party claiming excuse under this Section must (i) have taken reasonable 502 precautions to avoid being affected by the cause, and (ii) notify the other party in 503 writing within 5 days after the occurrence of the event specifying the nature of the 504 event, the expected length of time that the party expects to be prevented from 505 performing, and the steps which the party intends to take to restore its ability to 506 perform. 507

508 C. Notice Procedures. All notices, demands, requests, proposals, 509 approvals, consents, and other communications which this Agreement requires, 510 authorizes, or contemplates shall be in writing and shall either be personally 511 delivered to a representative of the Parties at the address below, e-mailed to the 512 e-mail address below, or faxed to the fax number below, or sent via certified mail 513 or Federal Express, or deposited in the United States mail, first class postage 514 prepaid, addressed as follows: 515

516 1.) If to the SBWMA: 517 518 Kevin McCarthy 519 Executive Director 520 South Bayside Waste Management Authority 521 610 Elm Street, Suite 202 522 San Carlos, California 94070 523 E-Mail: [email protected] 524 Fax: 650-802-3501 525 526 2.) If to Contractor: 527 528 Richard Cristina 529 President 530 Zanker Road Resource Management, Ltd. 531 675 Los Esteros Road 532 San Jose, CA 95134 533 E-Mail: [email protected] 534 Fax: (408) 263-2393 535


536 The address to which communications may be delivered may be changed 537 from time to time by a notice given in accordance with this Section. 538 539 Notice shall be deemed given on the day it is personally delivered, e-mailed, 540 or faxed, or, if mailed, three calendar days from the date it is deposited in the 541 mail. 542

543 D. Independent Contractor. Contractor is an independent contractor and 544 not an officer, agent, servant or employee of the SBWMA. Contractor is solely 545 responsible for the acts and omissions of its officers, agents, employees, 546 Contractor’s and sub-contractor, if any. Nothing in this Agreement shall be 547 construed as creating a partnership or joint venture between the SBWMA and 548 Contractor. Neither Contractor nor its officers, employees, agents or 549 subcontractor shall obtain any rights to retirement or other benefits which accrue 550 to SBWMA employees. 551 552 E. Severability. If any section, subsection, subdivision, paragraph, 553 sentence, clause, or phrase of this Agreement or any part thereof is, for any 554 reason, held to be illegal, such decision shall not affect the validity of the 555 remaining portions of this Agreement or any part thereof. 556 557 F. Waiver or Modification. No waiver, alteration, or modification of any of 558 the provisions of this Agreement shall be binding unless in writing and signed by 559 a duly authorized representative of both parties to this Agreement. 560 561 G. Forum Selection. Contractor and the SBWMA stipulate and agree that 562 any litigation relating to the enforcement or interpretation of this Agreement, 563 arising out of Contractor's performance, or relating in any way to the work, shall 564 be brought in California State Courts in San Mateo County. 565 566 H. Court Costs and Attorney Fees. In the event legal action is instituted by 567 either party to enforce this Agreement, the prevailing party shall be entitled to 568 reasonable attorney fees and actual costs in connection with such action. 569 570 I. Counterparts and Facsimile Signatures. This Agreement may be 571 executed in counterparts, each of which shall constitute an original and all of 572 which together shall be deemed a single document. For purposes of this 573 Agreement, each of the signatories hereto agrees that a facsimile copy of the 574 signature page of the person executing this Agreement shall be effective as an 575 original signature and legally binding and effective as an execution counterpart 576 thereof. 577

578


IN WITNESS WHEREOF, the parties hereto, by their duly authorized representatives, 579 have affixed their hands on the day and year this Agreement first above written. 580 581 South Bayside Waste Management Authority 582 583 By: 584 585 586 Name: ________ 587

Kevin McCarthy 588 Title: Executive Director 589 590 591 Date: ___________________________________ 592 593 594 Contractor 595 Zanker Road Resource Management, LTD, a California limited partnership 596 597 By: 598 599 600 Name: ________ 601 Richard Cristina 602 Title: Zanker Road Resource Recovery, Inc. General Partner 603 604 605 Date: ___________________________________ 606 607 608 609 Approved as to form: 610 611 612 BY: 613 Robert Lanzone 614 Legal Counsel of the Board of Directors 615 616 617 Date: ___________________________________ 618 619 620 621 BY: 622 Cyndi Urman 623 Secretary of the Board of Directors 624 625 626 Date: ___________________________________ 627

SBWMA BOD PACKET 06/28/12 AGENDA ITEM: 5E – p1

STAFF REPORT To: SBWMA Board Members From: Marshall Moran, Finance Manager Date: June 28, 2012 Board of Director’s Meeting Subject: Property Insurance Policy Renewal Approval Recommendation It is recommended that the SBWMA Board of Directors approve Resolution No. 2012-11 attached hereto authorizing the following action: Approve and accept the Property Insurance Policy renewal with Hanover at $164,814 annual premium. Analysis The property insurance policy was put out for competitive bid by our insurance broker, Cohn-Reid-O’Neil (in Burlingame) and the proposed policy with Hanover is recommended to be approved. Responses were received from Hanover ($164,814) and Travelers ($233,901) and two carriers (Chubb and Affiliated FM) were unresponsive. The Hanover premium is the same as last year’s premium. Below is a summary of all of our business insurance policies and premiums compared to last year’s premiums. Because the policies renew at different dates with different carriers, only the property policy renewal is currently up for approval:

SBWMAGeneral Business Insurance Policy Summary

FY2012 FY2013Renewal RenewalPremium Premium

Property 164,814 164,814 ( 7/01 - 7/01)Boiler & Machinery 3,040 FY13 - included in Property Policy

General Liability 16,058 13,773 ( 3/01 - 3/01)

Excess Liability 21,043 17,799 ( 3/01 - 3/01)SUBTOTAL 204,955$ 196,386$ General Insurance Budget

Direstors & Officers 22,798 22,580 Board budget (9/28 - 9/28)TOTAL ALL POLICIES 227,753$ 218,966$ Total

Please note that these premiums shown above will not match the budgeted expense as the budget is based on the next renewal for the GL and EL (3/1/13) and D&O (9/1/12) policies at slightly higher estimated premiums.


Background With the substantial completion of the Shoreway Master Plan capital improvements, the property insurance policy reflects the current value of our property. The value of insured property has gone from $8.569 million in 2009 / 2010 to $57.3 million as of July 1, 2012. The Property Policy annual renewal date was changed last year from March 1 to July 1 to coincide with our fiscal year and put out to bid at a very competitive renewal premium. The carrier changed from Travelers to the current carrier, Hanover. Fiscal Impact The total cost of the property insurance renewal for FY2013 is $164,814. We do not have earthquake insurance which would cost approximately $425,000, have a 10% deductable, and a maximum limit of $15,000,000. Fewer than 5% of policy holders have this insurance. This is coverage that the Board may want to consider but it is very expensive with a very high deductable and limited coverage.

Attachments: Resolution 2012- 11



MANAGEMENT AUTHORITY BOARD OF DIRECTORS

WHEREAS, the South Bayside Waste Management Authority Board of Directors has considered the valuation of property in Exhibit 1 and the renewal of business insurance policies as displayed in Exhibit 2. NOW, THEREFORE BE IT RESOLVED that the South Bayside Waste Management Authority hereby approves the renewal of the property insurance policy with Hanover at $164,814. PASSED AND ADOPTED by the Board of Directors of the South Bayside Waste Management Authority, County of San Mateo, State of California on the 28th day of June, 2012, by the following vote:

I HEREBY CERTIFY that the foregoing Resolution No. 2012-11 was duly and regularly adopted at a regular meeting of the South Bayside Waste Management Authority on June 28, 2012. ATTEST: Jim Porter, Chairperson of SBWMA _________________________________ Cyndi Urman, Board Secretary


SBWMA BOD PACKET 06/28/12 AGENDA ITEM: 5F – p1

STAFF REPORT To: SBWMA Board Members From: Cliff Feldman, Recycling Programs Manager Hilary Gans, Facility Operations Contracts Manager Date: June 28, 2012 Board of Directors Meeting Subject: Receipt of Recology and SBR Monthly Reports Recommendation This is an informational report and no action is necessary. Analysis Recology San Mateo County (Recology) and South Bay Recycling (SBR) are required to submit monthly reports. Both companies submitted their Monthly Reports on time. These Monthly Reports are due 15 days after the end of each month. Recology’s and SBR’s reports for the month of May 2012 are attached. It’s important to note that the tonnage information presented in Recology’s Monthly Report is derived from data compiled by SBR as the Shoreway Environmental Center facility operator. Therefore, regarding the reporting of tonnage, the Recology and SBR reports are redundant. In addition, the SBR report provides details on the transfer station and buy-back center activities and therefore includes more facility tonnage data than the Recology Monthly Report. Recology’s report includes collection data, monthly updates on various operations, and call center complaint/inquiry related metrics. Background Article 9, section 9.05 of the Member Agencies Franchise Agreement(s) with RSMC require the company to prepare and submit a monthly report. Similarly, Article 8, section 8.07 of the Operations Agreement between the SBWMA and SBR requires the company to submit a monthly report. The guidelines and reporting requirements for each company are specified in their respective Agreements. Attachments: Attachment A - Recology May 2012 Monthly Report Attachment B - SBR May 2012 Monthly Report

Submitted June 15, 2012

MONTHLY REPORT TO THE SBWMA FOR MAY 2012

______________________________________________________________________________ SBWMA BOD PACKET 06/28/12

_______________________________________________________________________ AGENDA ITEM: 5F ATTACHMENT A p - 1

______________________________________________________________________________ SBWMA BOD PACKET 06/28/12


RECOLOGY SAN MATEO COUNTY

MONTHLY REPORTTO THE SBWMA

ForMAY 2012

SubmittedJUNE 15, 2012

______________________________________________________________________________ SBWMA BOD PACKET 06/28/12


i

MAY 2012 MONTHLY REPORT

TABLE OF CONTENTS

Page

A. Definitions ii - iii

B. Summary iv

C. Tonnage Summary 1 - 14

D. Inquiry, Service Request and Complaint Data 15

E. Call Center Data and Quality Assurance Calls Made 16

F. On-Site Customer Assessments, Visual Audits, 17and Recycling Tote-Bag Delivery Information

______________________________________________________________________________ SBWMA BOD PACKET 06/28/12


ii


DEFINITIONS OF WASTE TYPES INCLUDED ON THE TONNAGE SUMMARY REPORT

Commercial Solid Waste – Franchised solid waste collected from businesses, agency facilities, venues and events and multi-family dwellings not coded as apartmentsdelivered to the Shoreway Recycling and Disposal Center. Source data is inbound tonnage data provided to Recology by the operator of the Shoreway Recycling and Disposal Center.

Commercial Recycling – Franchised recyclable materials collected from businesses, agency facilities, venues and events and multi-family dwellings not coded as apartments delivered to the Shoreway Recycling and Disposal Center. Source data is inbound tonnage data provided to Recology by the operator of the Shoreway Recycling and Disposal Center.

Commercial Organics – Franchised organic materials collected from businesses, agency facilities, venues and events and multi-family dwellings not coded as apartmentsdelivered to the Shoreway Recycling and Disposal Center. Source data is inbound tonnage data provided to Recology by the operator of the Shoreway Recycling and Disposal Center.

MFD Solid Waste – Franchised solid waste collected from multi-family dwellings coded as apartments delivered to the Shoreway Recycling and Disposal Center. Source data is inbound tonnage data provided to Recology by the operator of the Shoreway Recycling and Disposal Center.

MFD Recycling – Franchised recyclable materials collected from multi-family dwellingscoded as apartments delivered to the Shoreway Recycling and Disposal Center. Source data is inbound tonnage data provided to Recology by the operator of the Shoreway Recycling and Disposal Center.

MFD Organics – Franchised organic materials collected from multi-family dwellingscoded as apartments delivered to the Shoreway Recycling and Disposal Center. Source data is inbound tonnage data provided to Recology by the operator of the Shoreway Recycling and Disposal Center.

______________________________________________________________________________ SBWMA BOD PACKET 06/28/12


iii

Roll-Off Solid Waste – Franchised solid waste collected in drop boxes or compactors, serviced by drop box collection vehicles, delivered to the Shoreway Recycling and Disposal Center. Source data is inbound tonnage data provided to Recology by the operator of the Shoreway Recycling and Disposal Center.

Roll-Off Recycling – Franchised recyclable materials collected in drop boxes or compactors, serviced by drop box collection vehicles, delivered to the Shoreway Recycling and Disposal Center. Source data is inbound tonnage data provided to Recology by the operator of the Shoreway Recycling and Disposal Center.

Roll-Off Organics – Franchised organic materials collected in drop boxes or compactors, serviced by drop box collection vehicles, delivered to the Shoreway Recycling and Disposal Center. Source data is inbound tonnage data provided to Recology by the operator of the Shoreway Recycling and Disposal Center.

Residential Solid Waste – Franchised solid waste collected from single-family dwellings delivered to the Shoreway Recycling and Disposal Center. Source data is inbound tonnage data provided to Recology by the operator of the Shoreway Recycling and Disposal Center.

Residential Recycling – Franchised recyclable materials collected from single-family dwellings delivered to the Shoreway Recycling and Disposal Center. Source data is inbound tonnage data provided to Recology by the operator of the Shoreway Recycling and Disposal Center.

Residential Organics – Franchised organic materials collected from single-family dwellings delivered to the Shoreway Recycling and Disposal Center. Source data is inbound tonnage data provided to Recology by the operator of the Shoreway Recycling and Disposal Center.

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iv


SUMMARY

Total commercial solid waste tonnage collected: 10,698.64

Total commercial recyclables tonnage collected: 2,302.44

Total commercial organics tonnage collected: 1,700.09

Total residential solid waste tonnage collected: 5,229.09

Total residential recyclables tonnage collected: 3,536.44

Total residential organics tonnage collected: 7,659.11

Overall Calculated Diversion rate: 48.83%

Commercial Diversion rate: 27.23%

Residential Diversion rate: 68.16%

Number of inquiries, service requests and complaints received: 4,542

Number of Customer Service calls received: 13,868

Average Hold Time for Customer Service calls: 14.51seconds

On-site customer assessments and visual audits conducted: 115

Quality Assurance Program contact calls initiated: 198

______________________________________________________________________________ SBWMA BOD PACKET 06/28/12


C. Tonnage Summary 1 6/15/2012

Recology San Mateo CountyMonthly Tonnage ReportRate Year 2012Summary

Data Tons Tons TonsMember Agency/Type Source Collected Collected Collected

ATHERTONCommercialCommercial Solid Waste RSMC 46.46 44.90 0.00Commercial Recycling RSMC 10.91 12.23 0.00Commercial Organics RSMC 30.91 19.82 0.00 Subtotal - Disposed 46.46 44.90 0.00 Subtotal - Diverted 41.82 32.05 0.00MFDMFD Solid Waste RSMC 0.00 0.00 0.00MFD Recycling RSMC 0.00 0.00 0.00MFD Organics RSMC 0.00 0.00 0.00 Subtotal - Disposed 0.00 0.00 0.00 Subtotal - Diverted 0.00 0.00 0.00Roll-OffRoll-Off Solid Waste RSMC 0.00 0.00 0.00Roll-Off Recycling RSMC 0.00 0.00 0.00Roll-Off Organics RSMC 0.00 0.00 0.00 Subtotal - Disposed 0.00 0.00 0.00 Subtotal - Diverted 0.00 0.00 0.00ResidentialResidential Solid Waste RSMC 139.98 153.98 0.00Residential Curbside Recycling RSMC 100.96 116.34 0.00Residential Curbside Organics RSMC 707.10 730.99 0.00 Subtotal - Disposed 139.98 153.98 0.00 Subtotal - Diverted 808.06 847.33 0.00Member Agency VehiclesMember Agency Solid Waste SBRMember Agency Recycling SBRMember Agency Organics SBRMember Agency Inert / C&D SBR Subtotal - Disposed 0.00 0.00 0.00 Subtotal - Diverted 0.00 0.00 0.00Transfer Station / Third Party/ Other Transfer Station DiversionSelf-Haul Solid Waste SBRMRF ResidueBuyback Recycling SBRSelf-Haul Green Waste SBRSelf-Haul Inert / C&D SBROther Transfer Station Diversion SBR Subtotal - Disposed 0.00 0.00 0.00 Subtotal - Diverted 0.00 0.00 0.00

Commercial Recycling Rate 47.37% 41.65% 0.00%MFD Recycling Rate 0.00% 0.00% 0.00%Roll-Off Recycling Rate 0.00% 0.00% 0.00%Residential Organics & Recycling Rate 85.23% 84.62% 0.00%Member Agency Recycling Rate 0.00% 0.00% 0.00%Transfer Station Diversion Rate 0.00% 0.00% 0.00%

Total Disposed 186.44 198.88 0.00Total Diverted 849.88 879.38 0.00Total Diversion Rate 82.01% 81.56% 0.00%

RSMC CollectionSingle-Family Diversion Percentage 85.23% 84.62% 0.00%Commercial Diversion Percentage 47.37% 41.65% 0.00%Overall Diversion Percentage 82.01% 81.56% 0.00%

May JuneApril

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May JuneApril

BELMONTCommercialCommercial Solid Waste RSMC 210.96 219.29 0.00Commercial Recycling RSMC 47.91 50.18 0.00Commercial Organics RSMC 36.65 34.25 0.00 Subtotal - Disposed 210.96 219.29 0.00 Subtotal - Diverted 84.56 84.43 0.00MFDMFD Solid Waste RSMC 189.47 190.77 0.00MFD Recycling RSMC 40.58 43.50 0.00MFD Organics RSMC 2.10 2.41 0.00 Subtotal - Disposed 189.47 190.77 0.00 Subtotal - Diverted 42.68 45.91 0.00Roll-OffRoll-Off Solid Waste RSMC 32.44 51.32 0.00Roll-Off Recycling RSMC 0.00 0.00 0.00Roll-Off Organics RSMC 0.00 0.00 0.00 Subtotal - Disposed 32.44 51.32 0.00 Subtotal - Diverted 0.00 0.00 0.00ResidentialResidential Solid Waste RSMC 259.83 297.32 0.00Residential Curbside Recycling RSMC 222.53 252.40 0.00Residential Curbside Organics RSMC 353.97 418.68 0.00 Subtotal - Disposed 259.83 297.32 0.00 Subtotal - Diverted 576.50 671.08 0.00Member Agency VehiclesMember Agency Solid Waste SBRMember Agency Recycling SBRMember Agency Organics SBRMember Agency Inert / C&D SBR Subtotal - Disposed 0.00 0.00 0.00 Subtotal - Diverted 0.00 0.00 0.00Transfer Station / Third Party/ Other Transfer Station DiversionSelf-Haul Solid Waste SBRMRF ResidueBuyback Recycling SBRSelf-Haul Green Waste SBRSelf-Haul Inert / C&D SBROther Transfer Station Diversion SBR Subtotal - Disposed 0.00 0.00 0.00 Subtotal - Diverted 0.00 0.00 0.00




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May JuneApril

BURLINGAMECommercialCommercial Solid Waste RSMC 709.29 721.33 0.00Commercial Recycling RSMC 237.17 278.98 0.00Commercial Organics RSMC 185.87 200.62 0.00 Subtotal - Disposed 709.29 721.33 0.00 Subtotal - Diverted 423.04 479.60 0.00MFDMFD Solid Waste RSMC 265.74 278.22 0.00MFD Recycling RSMC 61.85 69.30 0.00MFD Organics RSMC 5.53 6.06 0.00 Subtotal - Disposed 265.74 278.22 0.00 Subtotal - Diverted 67.38 75.36 0.00Roll-OffRoll-Off Solid Waste RSMC 672.69 786.09 0.00Roll-Off Recycling RSMC 8.12 10.42 0.00Roll-Off Organics RSMC 45.82 9.96 0.00 Subtotal - Disposed 672.69 786.09 0.00 Subtotal - Diverted 53.94 20.38 0.00ResidentialResidential Solid Waste RSMC 296.84 329.73 0.00Residential Curbside Recycling RSMC 232.86 261.25 0.00Residential Curbside Organics RSMC 465.48 528.04 0.00 Subtotal - Disposed 296.84 329.73 0.00 Subtotal - Diverted 698.34 789.29 0.00Member Agency VehiclesMember Agency Solid Waste SBRMember Agency Recycling SBRMember Agency Organics SBRMember Agency Inert / C&D SBR Subtotal - Disposed 0.00 0.00 0.00 Subtotal - Diverted 0.00 0.00 0.00Transfer Station / Third Party/ Other Transfer Station DiversionSelf-Haul Solid Waste SBRMRF ResidueBuyback Recycling SBRSelf-Haul Green Waste SBRSelf-Haul Inert / C&D SBROther Transfer Station Diversion SBR Subtotal - Disposed 0.00 0.00 0.00 Subtotal - Diverted 0.00 0.00 0.00


Total Disposed 1,944.56 2,115.37 0.00Total Diverted 1,242.70 1,364.63 0.00Total Diversion Rate 38.99% 39.21% 0.00%


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May JuneApril

EAST PALO ALTOCommercialCommercial Solid Waste RSMC 111.86 118.70 0.00Commercial Recycling RSMC 212.17 28.25 0.00Commercial Organics RSMC 22.20 26.80 0.00 Subtotal - Disposed 111.86 118.70 0.00 Subtotal - Diverted 234.37 55.05 0.00MFDMFD Solid Waste RSMC 223.94 219.94 0.00MFD Recycling RSMC 18.39 18.59 0.00MFD Organics RSMC 9.04 7.55 0.00 Subtotal - Disposed 223.94 219.94 0.00 Subtotal - Diverted 27.43 26.14 0.00Roll-OffRoll-Off Solid Waste RSMC 87.44 125.07 0.00Roll-Off Recycling RSMC 0.00 0.00 0.00Roll-Off Organics RSMC 0.00 0.00 0.00 Subtotal - Disposed 87.44 125.07 0.00 Subtotal - Diverted 0.00 0.00 0.00ResidentialResidential Solid Waste RSMC 524.97 564.34 0.00Residential Curbside Recycling RSMC 104.22 108.54 0.00Residential Curbside Organics RSMC 335.79 344.11 0.00 Subtotal - Disposed 524.97 564.34 0.00 Subtotal - Diverted 440.01 452.65 0.00Member Agency VehiclesMember Agency Solid Waste SBRMember Agency Recycling SBRMember Agency Organics SBRMember Agency Inert / C&D SBR Subtotal - Disposed 0.00 0.00 0.00 Subtotal - Diverted 0.00 0.00 0.00Transfer Station / Third Party/ Other Transfer Station DiversionSelf-Haul Solid Waste SBRMRF ResidueBuyback Recycling SBRSelf-Haul Green Waste SBRSelf-Haul Inert / C&D SBROther Transfer Station Diversion SBR Subtotal - Disposed 0.00 0.00 0.00 Subtotal - Diverted 0.00 0.00 0.00


Total Disposed 948.21 1,028.05 0.00Total Diverted 701.81 533.84 0.00Total Diversion Rate 42.53% 34.18% 0.00%


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May JuneApril

FOSTER CITYCommercialCommercial Solid Waste RSMC 245.32 264.05 0.00Commercial Recycling RSMC 70.18 74.27 0.00Commercial Organics RSMC 123.46 136.00 0.00 Subtotal - Disposed 245.32 264.05 0.00 Subtotal - Diverted 193.64 210.27 0.00MFDMFD Solid Waste RSMC 296.34 284.51 0.00MFD Recycling RSMC 59.56 61.14 0.00MFD Organics RSMC 2.92 3.53 0.00 Subtotal - Disposed 296.34 284.51 0.00 Subtotal - Diverted 62.48 64.67 0.00Roll-OffRoll-Off Solid Waste RSMC 101.87 128.27 0.00Roll-Off Recycling RSMC 0.55 4.58 0.00Roll-Off Organics RSMC 40.42 56.68 0.00 Subtotal - Disposed 101.87 128.27 0.00 Subtotal - Diverted 40.97 61.26 0.00ResidentialResidential Solid Waste RSMC 255.00 293.15 0.00Residential Curbside Recycling RSMC 179.24 207.46 0.00Residential Curbside Organics RSMC 237.11 313.04 0.00 Subtotal - Disposed 255.00 293.15 0.00 Subtotal - Diverted 416.35 520.50 0.00Member Agency VehiclesMember Agency Solid Waste SBRMember Agency Recycling SBRMember Agency Organics SBRMember Agency Inert / C&D SBR Subtotal - Disposed 0.00 0.00 0.00 Subtotal - Diverted 0.00 0.00 0.00Transfer Station / Third Party/ Other Transfer Station DiversionSelf-Haul Solid Waste SBRMRF ResidueBuyback Recycling SBRSelf-Haul Green Waste SBRSelf-Haul Inert / C&D SBROther Transfer Station Diversion SBR Subtotal - Disposed 0.00 0.00 0.00 Subtotal - Diverted 0.00 0.00 0.00




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May JuneApril

HILLSBOROUGHCommercialCommercial Solid Waste RSMC 47.12 42.05 0.00Commercial Recycling RSMC 17.66 25.49 0.00Commercial Organics RSMC 17.04 22.76 0.00 Subtotal - Disposed 47.12 42.05 0.00 Subtotal - Diverted 34.70 48.25 0.00MFDMFD Solid Waste RSMC 0.00 0.00 0.00MFD Recycling RSMC 0.00 0.00 0.00MFD Organics RSMC 0.00 0.00 0.00 Subtotal - Disposed 0.00 0.00 0.00 Subtotal - Diverted 0.00 0.00 0.00Roll-OffRoll-Off Solid Waste RSMC 0.00 0.00 0.00Roll-Off Recycling RSMC 0.00 0.00 0.00Roll-Off Organics RSMC 0.00 0.00 0.00 Subtotal - Disposed 0.00 0.00 0.00 Subtotal - Diverted 0.00 0.00 0.00ResidentialResidential Solid Waste RSMC 185.99 209.84 0.00Residential Curbside Recycling RSMC 150.69 168.31 0.00Residential Curbside Organics RSMC 381.70 416.82 0.00 Subtotal - Disposed 185.99 209.84 0.00 Subtotal - Diverted 532.39 585.13 0.00Member Agency VehiclesMember Agency Solid Waste SBRMember Agency Recycling SBRMember Agency Organics SBRMember Agency Inert / C&D SBR Subtotal - Disposed 0.00 0.00 0.00 Subtotal - Diverted 0.00 0.00 0.00Transfer Station / Third Party/ Other Transfer Station DiversionSelf-Haul Solid Waste SBRMRF ResidueBuyback Recycling SBRSelf-Haul Green Waste SBRSelf-Haul Inert / C&D SBROther Transfer Station Diversion SBR Subtotal - Disposed 0.00 0.00 0.00 Subtotal - Diverted 0.00 0.00 0.00




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May JuneApril

MENLO PARKCommercialCommercial Solid Waste RSMC 812.06 849.55 0.00Commercial Recycling RSMC 197.66 247.29 0.00Commercial Organics RSMC 343.72 326.22 0.00 Subtotal - Disposed 812.06 849.55 0.00 Subtotal - Diverted 541.38 573.51 0.00MFDMFD Solid Waste RSMC 202.78 208.61 0.00MFD Recycling RSMC 57.80 61.42 0.00MFD Organics RSMC 10.88 11.72 0.00 Subtotal - Disposed 202.78 208.61 0.00 Subtotal - Diverted 68.68 73.14 0.00Roll-OffRoll-Off Solid Waste RSMC 43.55 41.11 0.00Roll-Off Recycling RSMC 19.52 20.94 0.00Roll-Off Organics RSMC 21.15 18.73 0.00 Subtotal - Disposed 43.55 41.11 0.00 Subtotal - Diverted 40.67 39.67 0.00ResidentialResidential Solid Waste RSMC 340.46 393.46 0.00Residential Curbside Recycling RSMC 284.84 315.72 0.00Residential Curbside Organics RSMC 701.54 732.68 0.00 Subtotal - Disposed 340.46 393.46 0.00 Subtotal - Diverted 986.38 1,048.40 0.00Member Agency VehiclesMember Agency Solid Waste SBRMember Agency Recycling SBRMember Agency Organics SBRMember Agency Inert / C&D SBR Subtotal - Disposed 0.00 0.00 0.00 Subtotal - Diverted 0.00 0.00 0.00Transfer Station / Third Party/ Other Transfer Station DiversionSelf-Haul Solid Waste SBRMRF ResidueBuyback Recycling SBRSelf-Haul Green Waste SBRSelf-Haul Inert / C&D SBROther Transfer Station Diversion SBR Subtotal - Disposed 0.00 0.00 0.00 Subtotal - Diverted 0.00 0.00 0.00




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May JuneApril

NORTH FAIR OAKSCommercialCommercial Solid Waste RSMC 162.29 173.86 0.00Commercial Recycling RSMC 39.91 42.74 0.00Commercial Organics RSMC 31.14 32.04 0.00 Subtotal - Disposed 162.29 173.86 0.00 Subtotal - Diverted 71.05 74.78 0.00MFDMFD Solid Waste RSMC 72.59 76.46 0.00MFD Recycling RSMC 10.22 10.42 0.00MFD Organics RSMC 0.22 0.29 0.00 Subtotal - Disposed 72.59 76.46 0.00 Subtotal - Diverted 10.44 10.71 0.00Roll-OffRoll-Off Solid Waste RSMC 0.00 0.00 0.00Roll-Off Recycling RSMC 0.00 0.00 0.00Roll-Off Organics RSMC 0.00 0.00 0.00 Subtotal - Disposed 0.00 0.00 0.00 Subtotal - Diverted 0.00 0.00 0.00ResidentialResidential Solid Waste RSMC 236.23 231.28 0.00Residential Curbside Recycling RSMC 97.30 92.54 0.00Residential Curbside Organics RSMC 197.16 199.61 0.00 Subtotal - Disposed 236.23 231.28 0.00 Subtotal - Diverted 294.46 292.15 0.00Member Agency VehiclesMember Agency Solid Waste SBRMember Agency Recycling SBRMember Agency Organics SBRMember Agency Inert / C&D SBR Subtotal - Disposed 0.00 0.00 0.00 Subtotal - Diverted 0.00 0.00 0.00Transfer Station / Third Party/ Other Transfer Station DiversionSelf-Haul Solid Waste SBRMRF ResidueBuyback Recycling SBRSelf-Haul Green Waste SBRSelf-Haul Inert / C&D SBROther Transfer Station Diversion SBR Subtotal - Disposed 0.00 0.00 0.00 Subtotal - Diverted 0.00 0.00 0.00




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May JuneApril

REDWOOD CITYCommercialCommercial Solid Waste RSMC 1,248.23 1,302.26 0.00Commercial Recycling RSMC 268.11 269.88 0.00Commercial Organics RSMC 246.58 282.84 0.00 Subtotal - Disposed 1,248.23 1,302.26 0.00 Subtotal - Diverted 514.69 552.72 0.00MFDMFD Solid Waste RSMC 710.41 717.92 0.00MFD Recycling RSMC 109.27 113.03 0.00MFD Organics RSMC 12.29 13.00 0.00 Subtotal - Disposed 710.41 717.92 0.00 Subtotal - Diverted 121.56 126.03 0.00Roll-OffRoll-Off Solid Waste RSMC 323.30 361.01 0.00Roll-Off Recycling RSMC 7.94 6.05 0.00Roll-Off Organics RSMC 63.23 58.00 0.00 Subtotal - Disposed 323.30 361.01 0.00 Subtotal - Diverted 71.17 64.05 0.00ResidentialResidential Solid Waste RSMC 823.87 923.81 0.00Residential Curbside Recycling RSMC 582.23 644.36 0.00Residential Curbside Organics RSMC 1,121.33 1,265.07 0.00 Subtotal - Disposed 823.87 923.81 0.00 Subtotal - Diverted 1,703.56 1,909.43 0.00Member Agency VehiclesMember Agency Solid Waste SBRMember Agency Recycling SBRMember Agency Organics SBRMember Agency Inert / C&D SBR Subtotal - Disposed 0.00 0.00 0.00 Subtotal - Diverted 0.00 0.00 0.00Transfer Station / Third Party/ Other Transfer Station DiversionSelf-Haul Solid Waste SBRMRF ResidueBuyback Recycling SBRSelf-Haul Green Waste SBRSelf-Haul Inert / C&D SBROther Transfer Station Diversion SBR Subtotal - Disposed 0.00 0.00 0.00 Subtotal - Diverted 0.00 0.00 0.00




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May JuneApril

SAN CARLOSCommercialCommercial Solid Waste RSMC 507.88 511.76 0.00Commercial Recycling RSMC 133.22 136.12 0.00Commercial Organics RSMC 64.78 76.58 0.00 Subtotal - Disposed 507.88 511.76 0.00 Subtotal - Diverted 198.00 212.70 0.00MFDMFD Solid Waste RSMC 143.49 144.34 0.00MFD Recycling RSMC 33.77 35.80 0.00MFD Organics RSMC 8.50 9.12 0.00 Subtotal - Disposed 143.49 144.34 0.00 Subtotal - Diverted 42.27 44.92 0.00Roll-OffRoll-Off Solid Waste RSMC 85.50 95.56 0.00Roll-Off Recycling RSMC 9.64 21.61 0.00Roll-Off Organics RSMC 0.00 0.00 0.00 Subtotal - Disposed 85.50 95.56 0.00 Subtotal - Diverted 9.64 21.61 0.00ResidentialResidential Solid Waste RSMC 346.47 384.05 0.00Residential Curbside Recycling RSMC 295.88 324.93 0.00Residential Curbside Organics RSMC 544.84 628.90 0.00 Subtotal - Disposed 346.47 384.05 0.00 Subtotal - Diverted 840.72 953.83 0.00Member Agency VehiclesMember Agency Solid Waste SBRMember Agency Recycling SBRMember Agency Organics SBRMember Agency Inert / C&D SBR Subtotal - Disposed 0.00 0.00 0.00 Subtotal - Diverted 0.00 0.00 0.00Transfer Station / Third Party/ Other Transfer Station DiversionSelf-Haul Solid Waste SBRMRF ResidueBuyback Recycling SBRSelf-Haul Green Waste SBRSelf-Haul Inert / C&D SBROther Transfer Station Diversion SBR Subtotal - Disposed 0.00 0.00 0.00 Subtotal - Diverted 0.00 0.00 0.00




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May JuneApril

SAN MATEOCommercialCommercial Solid Waste RSMC 1,124.36 1,172.45 0.00Commercial Recycling RSMC 311.52 370.26 0.00Commercial Organics RSMC 235.51 277.75 0.00 Subtotal - Disposed 1,124.36 1,172.45 0.00 Subtotal - Diverted 547.03 648.01 0.00MFDMFD Solid Waste RSMC 986.55 1,001.92 0.00MFD Recycling RSMC 200.07 212.15 0.00MFD Organics RSMC 33.83 36.82 0.00 Subtotal - Disposed 986.55 1,001.92 0.00 Subtotal - Diverted 233.90 248.97 0.00Roll-OffRoll-Off Solid Waste RSMC 369.91 394.61 0.00Roll-Off Recycling RSMC 30.17 41.40 0.00Roll-Off Organics RSMC 0.00 0.00 0.00 Subtotal - Disposed 369.91 394.61 0.00 Subtotal - Diverted 30.17 41.40 0.00ResidentialResidential Solid Waste RSMC 998.26 1,101.59 0.00Residential Curbside Recycling RSMC 650.99 731.72 0.00Residential Curbside Organics RSMC 1,295.13 1,438.92 0.00 Subtotal - Disposed 998.26 1,101.59 0.00 Subtotal - Diverted 1,946.12 2,170.64 0.00Member Agency VehiclesMember Agency Solid Waste SBRMember Agency Recycling SBRMember Agency Organics SBRMember Agency Inert / C&D SBR Subtotal - Disposed 0.00 0.00 0.00 Subtotal - Diverted 0.00 0.00 0.00Transfer Station / Third Party/ Other Transfer Station DiversionSelf-Haul Solid Waste SBRMRF Residue SBRBuyback Recycling SBRSelf-Haul Green Waste SBRSelf-Haul Inert / C&D SBROther Transfer Station Diversion SBR Subtotal - Disposed 0.00 0.00 0.00 Subtotal - Diverted 0.00 0.00 0.00




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May JuneApril

SAN MATEO COUNTYCommercialCommercial Solid Waste RSMC 92.34 96.08 0.00Commercial Recycling RSMC 17.56 18.56 0.00Commercial Organics RSMC 18.04 19.16 0.00 Subtotal - Disposed 92.34 96.08 0.00 Subtotal - Diverted 35.60 37.72 0.00MFDMFD Solid Waste RSMC 40.00 40.00 0.00MFD Recycling RSMC 5.26 5.28 0.00MFD Organics RSMC 0.61 0.65 0.00 Subtotal - Disposed 40.00 40.00 0.00 Subtotal - Diverted 5.87 5.93 0.00Roll-OffRoll-Off Solid Waste RSMC 0.00 0.00 0.00Roll-Off Recycling RSMC 0.00 0.00 0.00Roll-Off Organics RSMC 0.00 0.00 0.00 Subtotal - Disposed 0.00 0.00 0.00 Subtotal - Diverted 0.00 0.00 0.00ResidentialResidential Solid Waste RSMC 208.98 232.43 0.00Residential Curbside Recycling RSMC 187.33 206.33 0.00Residential Curbside Organics RSMC 369.46 402.15 0.00 Subtotal - Disposed 208.98 232.43 0.00 Subtotal - Diverted 556.79 608.48 0.00Member Agency VehiclesMember Agency Solid Waste SBRMember Agency Recycling SBRMember Agency Organics SBRMember Agency Inert / C&D SBR Subtotal - Disposed 0.00 0.00 0.00 Subtotal - Diverted 0.00 0.00 0.00Transfer Station / Third Party/ Other Transfer Station DiversionSelf-Haul Solid Waste SBRMRF ResidueBuyback Recycling SBRSelf-Haul Green Waste SBRSelf-Haul Inert / C&D SBROther Transfer Station Diversion SBR Subtotal - Disposed 0.00 0.00 0.00 Subtotal - Diverted 0.00 0.00 0.00




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May JuneApril

WEST BAYCommercialCommercial Solid Waste RSMC 29.15 30.65 0.00Commercial Recycling RSMC 9.70 10.72 0.00Commercial Organics RSMC 10.51 10.73 0.00 Subtotal - Disposed 29.15 30.65 0.00 Subtotal - Diverted 20.21 21.45 0.00MFDMFD Solid Waste RSMC 5.22 5.98 0.00MFD Recycling RSMC 1.65 1.84 0.00MFD Organics RSMC 0.00 0.00 0.00 Subtotal - Disposed 5.22 5.98 0.00 Subtotal - Diverted 1.65 1.84 0.00Roll-OffRoll-Off Solid Waste RSMC 0.00 0.00 0.00Roll-Off Recycling RSMC 0.00 0.00 0.00Roll-Off Organics RSMC 0.00 0.00 0.00 Subtotal - Disposed 0.00 0.00 0.00 Subtotal - Diverted 0.00 0.00 0.00ResidentialResidential Solid Waste RSMC 87.61 114.11 0.00Residential Curbside Recycling RSMC 85.60 106.54 0.00Residential Curbside Organics RSMC 198.67 240.10 0.00 Subtotal - Disposed 87.61 114.11 0.00 Subtotal - Diverted 284.27 346.64 0.00Member Agency VehiclesMember Agency Solid Waste SBRMember Agency Recycling SBRMember Agency Organics SBRMember Agency Inert / C&D SBR Subtotal - Disposed 0.00 0.00 0.00 Subtotal - Diverted 0.00 0.00 0.00Transfer Station / Third Party/ Other Transfer Station DiversionSelf-Haul Solid Waste SBRMRF ResidueBuyback Recycling SBRSelf-Haul Green Waste SBRSelf-Haul Inert / C&D SBROther Transfer Station Diversion SBR Subtotal - Disposed 0.00 0.00 0.00 Subtotal - Diverted 0.00 0.00 0.00




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May JuneApril

TOTAL SBWMACommercialCommercial Solid Waste RSMC 5,347.32 5,546.93 0.00Commercial Recycling RSMC 1,573.68 1,564.97 0.00Commercial Organics RSMC 1,366.41 1,465.57 0.00 Subtotal - Disposed 5,347.32 5,546.93 0.00 Subtotal - Diverted 2,940.09 3,030.54 0.00MFDMFD Solid Waste RSMC 3,136.53 3,168.67 0.00MFD Recycling RSMC 598.42 632.47 0.00MFD Organics RSMC 85.92 91.15 0.00 Subtotal - Disposed 3,136.53 3,168.67 0.00 Subtotal - Diverted 684.34 723.62 0.00Roll-OffRoll-Off Solid Waste RSMC 1,716.70 1,983.04 0.00Roll-Off Recycling RSMC 75.94 105.00 0.00Roll-Off Organics RSMC 170.62 143.37 0.00 Subtotal - Disposed 1,716.70 1,983.04 0.00 Subtotal - Diverted 246.56 248.37 0.00ResidentialResidential Solid Waste RSMC 4,704.49 5,229.09 0.00Residential Curbside Recycling RSMC 3,174.67 3,536.44 0.00Residential Curbside Organics RSMC 6,909.28 7,659.11 0.00 Subtotal - Disposed 4,704.49 5,229.09 0.00 Subtotal - Diverted 10,083.95 11,195.55 0.00Member Agency VehiclesMember Agency Solid Waste SBR 0.00 0.00 0.00Member Agency Recycling SBR 0.00 0.00 0.00Member Agency Organics SBR 0.00 0.00 0.00Member Agency Inert / C&D SBR 0.00 0.00 0.00 Subtotal - Disposed 0.00 0.00 0.00 Subtotal - Diverted 0.00 0.00 0.00Transfer Station / Third Party/ Other Transfer Station DiversionSelf-Haul Solid Waste SBRMRF ResidueBuyback Recycling SBRSelf-Haul Green Waste SBRSelf-Haul Inert / C&D SBROther Transfer Station Diversion SBR Subtotal - Disposed 0.00 0.00 0.00 Subtotal - Diverted 0.00 0.00 0.00




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D. Inquiry, Service Request and Complaint Data 15 6/15/2012

Recology San Mateo CountyInquiry, Service Request and Complaint SummaryRate Year 2012

Apr May Jun Qrt 2 Apr May Jun Qrt 2 Apr May Jun Qrt 2 Apr May Jun Qrt 2 Apr May Jun Qrt 2 Apr May Jun Qrt 2Atherton 3 6 0 9 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 1Belmont 2 2 0 4 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 2 1 0 0 1Burlingame 5 6 0 11 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0East Palo Alto 1 1 0 2 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0Foster City 5 2 0 7 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 2Hillsborough 2 7 0 9 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Menlo Park 6 2 0 8 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0North Fair Oaks 0 2 0 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Redwood City 15 6 0 21 0 0 0 0 0 0 0 0 0 0 0 0 2 0 0 2 2 1 0 3San Carlos 8 9 0 17 0 0 0 0 1 0 0 1 0 0 0 0 2 0 0 2 1 1 0 2San Mateo 7 14 0 21 0 0 0 0 0 0 0 0 0 0 0 0 3 0 0 3 0 2 0 2San Mateo County 2 4 0 6 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0West Bay 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Totals 57 61 0 118 0 0 0 0 1 0 0 1 0 0 0 0 8 3 0 11 6 5 0 11

Apr May Jun Qrt 2 Apr May Jun Qrt 2 Apr May Jun Qrt 2 Apr May Jun Qrt 2 Apr May Jun Qrt 2Atherton 31 33 0 64 13 16 0 29 0 0 0 0 30 54 0 84 5 47 0 52Belmont 122 174 0 296 13 14 0 27 0 0 0 0 66 78 0 144 39 41 0 80Burlingame 142 180 0 322 20 8 0 28 0 0 0 0 104 111 0 215 47 99 0 146East Palo Alto 88 82 0 170 11 11 0 22 0 0 0 0 32 59 0 91 4 3 0 7Foster City 95 120 0 215 13 11 0 24 0 0 0 0 48 60 0 108 41 58 0 99Hillsborough 57 82 0 139 13 7 0 20 0 0 0 0 41 37 0 78 34 31 0 65Menlo Park 114 134 0 248 28 27 0 55 0 0 0 0 130 106 0 236 94 55 0 149North Fair Oaks 45 40 0 85 11 3 0 14 0 0 0 0 21 36 0 57 7 3 0 10Redwood City 321 362 0 683 29 42 0 71 0 0 0 0 198 238 0 436 16 22 0 38San Carlos 161 200 0 361 34 39 0 73 0 0 0 0 274 398 0 672 56 156 0 212San Mateo 435 492 0 927 47 42 0 89 0 0 0 0 275 266 0 541 200 126 0 326San Mateo County 72 102 0 174 5 6 0 11 0 0 0 0 50 47 0 97 28 34 0 62West Bay 39 55 0 94 4 3 0 7 0 0 0 0 22 18 0 40 21 5 0 26 Totals 1,722 2,056 0 3,778 241 229 0 470 0 0 0 0 1,291 1,508 0 2,799 592 680 0 1,272

Single-Family Missed Pick-Up Initial Complaints 8.02.B.2

Single-Family Missed Pick-Up Collection Events 8.02.B.2 Excessive Noise 8.02.J Discourteous Behavior 8.06.J Property Damage 8.02.H Spills 8.02.I

On-call Bulky Item Collection 5.05 Extra/Overage Requests 8.02.G

Recycling Tote-Bag Request 5.03.B.2 Information requests 7.02.A Billing Concerns

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E. Call Center Data and Quality Assurance Calls Made 16 6/15/2012

Recology San Mateo CountyCall Center Data and Quality Assurance CallsRate Year 2012

SBWMA Service Area

Number of Calls

Received

Number of Calls

Answered

Number of Calls

Dropped

Percentage of Calls Dropped

Average Hold Time in seconds

Percentage of Calls

Answered in Thirty

Seconds

Number of Quality

Assurance Calls Made

April 12,878 12,661 217 1.69% 12.66 95.73% 212May 13,868 13,583 285 2.06% 14.51 92.78% 198June 0 0 0 0.00% 0.00 0.00% 0

______________________________________________________________________________ SBWMA BOD PACKET 06/28/12


F. On-Site Customer Assessments, Visual Audits and Recycling Tote-Bag Delivery Information 17 6/15/2012

Recology San Mateo CountyOn-Site Customer Assessments, Visual Audits and Recycling Tote-Bags DeliveredRate Year 2012

Apr May Jun Qrt 2 Apr May Jun Qrt 2 Apr May Jun Qrt 2Atherton 1 0 0 1 0 0 0 0 0 0 0 0Belmont 4 14 0 18 0 0 0 0 0 71 0 71Burlingame 21 17 0 38 0 0 0 0 12 17 0 29East Palo Alto 13 10 0 23 0 0 0 0 0 24 0 24Foster City 1 11 0 12 0 0 0 0 370 20 0 390Hillsborough 1 1 0 2 0 0 0 0 0 0 0 0Menlo Park 11 20 0 31 0 0 0 0 300 97 0 397North Fair Oaks 2 8 0 10 0 0 0 0 0 0 0 0Redwood City 1 4 0 5 0 0 0 0 10 35 0 45San Carlos 10 6 0 16 0 0 0 0 11 10 0 21San Mateo 18 14 0 32 0 0 0 0 40 506 0 546San Mateo County 0 2 0 2 0 0 0 0 0 0 0 0West Bay 1 8 0 9 0 0 0 0 0 0 0 0 Totals 84 115 0 199 0 0 0 0 743 780 0 1,523

Number of On-site Assessments 7.04.E Number of Visual Audits 7.06 Recycling Tote-Bags Delivered

______________________________________________________________________________ SBWMA BOD PACKET 06/28/12


Pages

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5 8 - 20

6 21

7 22

8 23

9 24

10 25 - 28

11 29

12 30

SEC Monthly Inbound Tons

Shoreway Environmental Center

May 2012SEC Operations Monthly Reporting

Certificate of Accuracy

Operational Summary

Liquidated Damages

General Facility Reporting

Attachment Description

Definitions

SEC Outbound Tons

Monthly SBR Member Agency Tonnage Report

Self-Haul Monthly Yards/Ton Ratio

MRF Commodity Market Summary

Truck Efficiency

SEC Operations Monthly Reporting - South Bay Recycling, LLCCover Page6/15/2012 Page 1

______________________________________________________________________________ SBWMA BOD PACKET 06/28/12

_______________________________________________________________________ AGENDA ITEM: 5F ATTACHMENT B p - 1

Attachment 1Certificate of Accuracy

May 15, 2012

Kevin McCarthyExecutive DirectorSouth Bayside Waste Management Authority610 Elm Street, Suite 202San Carlos, CA 94070

RE: CERTIFICATE OF ACCURACY FOR SOUTH BAY RECYCLING MONTHLY REPORTING

In accordance with the reporting requirements of Article 8.07 and Article 9 of the Agreement for Operations of theShoreway Environmental Center, the undersigned hereby certifies under penalty of perjury that the report submitted herewithis true and correct to the best of my knowledge.

By: ___________________________________ Date: 5/15/12

SOUTH BAY RECYCLING, LLC

333 Shoreway Road | San Carlos, California 94070-2708Tel 650.802.8355 | Fax 650.412.2495 | SBRecycling.net

Dwight HerringGeneral Manager

SEC Operations Monthly Reporting - South Bay Recycling, LLCAttachment 1 - Certificate of Accuracy

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2 Operational Summary

Attachment 2Operational Summary

Material Recover Facility (MRF)

May 2012

Transfer Station Operation and Outbound Shipments

Public Recycling Center

SBR continues to divert materials from the MSW stream and look for opportunities to expand its diversion. One of SBRs aluminum Walking Floor Trailers is being coverted to a steel walking floor to transport Inert/C&D material in a safer manner. Prior, SBR was using an end dump trailer to transport this material and for various reasons, this trailer would tip over while emptying the load. Currently SBR is moving 3 to 4 loads of inert material on Saturdays, when we can screen the material so we do not damage the equipment.

The Public Recycling Center (PRC) is operating in a safe and efficient manner. SBR employees are focused on providing excellent customer service that meets or exceeds its patrons expectations.

SBR continues to monitor the production to ensure productivity standards are met without compromising material quality.

SEC Operations Monthly Reporting - South Bay Recycling, LLCAttachment 2 - SBR Operational Summary



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1011121314151617181920212223242526272829303132333435363738394041424344454647484950515253545556575859

A B C D E F G H I J K L M N O P Q R S T

Attachment 3SEC Inbound Monthly Tons

Page 1 of 3FRANCHISED INBOUND TONS (RECOLOGY)

Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 YTD 2012 Q1 Q2 Q3 Q4Solid Waste (MSW) 15,332.33 13,999.71 15,107.64 14,908.16 15,927.14 - - - - - - - 75,274.98 44,439.68 30,835.30 - - Recycling to MRF 5,532.88 4,789.77 5,285.79 5,075.13 5,549.89 - - - - - - - 26,233.46 15,608.44 10,625.02 - - Bulky Recyclables 7.02 19.27 13.48 12.70 16.42 - - - - - - - 68.89 39.77 29.12 - - Other Franchise TS Diversion 3.77 - 5.64 1.19 2.61 - - - - - - - 13.21 9.41 3.80 - - Household Batteries 1.14 2.74 2.21 2.55 1.84 - - - - - - - 10.47 6.09 4.39 - - Organics 8,053.99 6,582.81 6,954.61 8,532.21 9,358.87 - - - - - - - 39,482.49 21,591.41 17,891.08 - - Inert / C&D 147.01 295.73 479.65 327.52 264.11 - - - - - - - 1,514.02 922.39 591.63 - - Subtotal - Disposed 15,332.33 13,999.71 15,107.64 14,908.16 15,927.14 - - - - - - - 75,274.98 44,439.68 30,835.30 - - Subtotal - Diverted 13,742.04 11,690.32 12,735.74 13,950.11 15,191.13 - - - - - - - 67,309.33 38,168.10 29,141.24 - - Subtotal - Diversion Percentage 47% 46% 46% 48% 49% 0% 0% 0% 0% 0% 0% 0% 47% 46% 49% 0% 0%OVERALL TOTAL 29,074.37 25,690.03 27,843.38 28,858.27 31,118.27 - - - - - - - 142,584.31 82,607.78 59,976.54 - -

MEMBER AGENCY VEHICLES INBOUND TONSJan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 YTD 2012 Q1 Q2 Q3 Q4

Solid Waste (MSW) 71.43 53.31 65.70 67.47 63.30 - - - - - - - 321.21 190.44 130.77 - - Recycling - - - - - - - - - - - - - - - - - Organics 33.18 32.23 23.78 17.41 27.55 - - - - - - - 134.15 89.19 44.96 - - Inert / C&D 68.61 61.83 52.53 53.59 270.38 - - - - - - - 506.94 182.97 323.97 - - Subtotal - Disposed 71.43 53.31 65.70 67.47 63.30 - - - - - - - 321.21 190.44 130.77 - - Subtotal - Diverted 101.79 94.06 76.31 71.00 297.93 - - - - - - - 641.09 272.16 368.93 - - Subtotal - Diversion Percentage 59% 64% 54% 51% 82% 0% 0% 0% 0% 0% 0% 0% 67% 59% 74% 0% 0%OVERALL TOTAL 173.22 147.37 142.01 138.47 361.23 - - - - - - - 962.30 462.60 499.70 - -

RECOLOGY MAINTENANCE BOX TONSJan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 YTD 2012 Q1 Q2 Q3 Q4

Solid Waste (MSW) 29.27 32.29 43.52 35.27 34.27 - - - - - - - 174.62 105.08 69.54 - - Recycling 1.39 4.40 4.73 6.66 6.01 - - - - - - - 23.19 10.52 12.67 - - Organics 6.31 1.41 0.68 - 2.72 - - - - - - - 11.12 8.40 2.72 - - Inert / C&D - - - - - - - - - - - - - - - - - Subtotal - Disposed 29.27 32.29 43.52 35.27 34.27 - - - - - - - 174.62 105.08 69.54 - - Subtotal - Diverted 7.70 5.81 5.41 6.66 8.73 - - - - - - - 34.31 18.92 15.39 - - Subtotal - Diversion Percentage 21% 15% 11% 16% 20% 0% 0% 0% 0% 0% 0% 0% 16% 15% 18% 0% 0%OVERALL TOTAL 36.97 38.10 48.93 41.93 43.00 - - - - - - - 208.93 124.00 84.93 - -

SUBTOTAL: RECOLOGY FRANCHISE & MAINTENANCE BOXES / MEMBER AGENCY SUMMARY TONSJan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 YTD 2012 Q1 Q2 Q3 Q4

Solid Waste (MSW) 15,433.03 14,085.31 15,216.86 15,010.90 16,024.71 - - - - - - - 75,770.81 44,735.20 31,035.61 - - Recycling 5,541.29 4,813.44 5,304.00 5,094.49 5,572.32 - - - - - - - 26,325.54 15,658.73 10,666.81 - - Organics 8,093.48 6,616.45 6,979.07 8,549.62 9,389.14 - - - - - - - 39,627.76 21,689.00 17,938.76 - - Inert / C&D 215.62 357.56 532.18 381.11 534.49 - - - - - - - 2,020.96 1,105.36 915.60 - - Subtotal - Disposed 15,433.03 14,085.31 15,216.86 15,010.90 16,024.71 - - - - - - - 75,770.81 44,735.20 31,035.61 - - Subtotal - Diverted 13,850.39 11,787.45 12,815.25 14,025.22 15,495.95 - - - - - - - 67,974.26 38,453.09 29,521.17 - - Subtotal - Diversion Percentage 47% 46% 46% 48% 49% 0% 0% 0% 0% 0% 0% 0% 47% 46% 49% 0% 0%OVERALL TOTAL 29,283.42 25,872.76 28,032.11 29,036.12 31,520.66 - - - - - - - 143,745.07 83,188.29 60,556.78 - -

Page 2 of 3SELF HAUL TONS

Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 YTD 2012 Q1 Q2 Q3 Q4Solid Waste (MSW) - Calculated 651.07 594.67 424.00 550.76 1,164.60 - - - - - - - 3,385.10 1,669.74 1,715.36 - - Recycling to MRF (OCC & MRP) 5.69 5.24 11.28 14.52 9.85 - - - - - - - 46.58 22.21 24.37 - - Recycling (TS Diversion) 97.71 63.69 80.46 73.99 70.01 - - - - - - - 385.86 241.86 144.00 - - Organics - Calculated (17.39) 1,161.33 (67.83) 34.20 1,027.38 - - - - - - - 2,137.69 1,076.11 1,061.58 - - C&D - Calculated 2,087.82 2,667.96 1,863.86 3,086.14 3,586.97 - - - - - - - 13,292.75 6,619.64 6,673.11 - -

May 2012

SEC Operations Monthly Reporting - South Bay Recycling, LLCAttachment 3 - SEC Inbound Monthly Tons

6/15/2012 Page 4

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Attachment 3SEC Inbound Monthly TonsMay 2012

60616263646566676869707172737475767778798081828384858687888990919293949596979899100101102103104105106107108109110111112113114

Inerts (actual tons) 138.83 123.84 136.72 245.75 265.71 - - - - - - - 910.85 399.39 511.46 - - Subtotal - Disposed 651.07 594.67 424.00 550.76 1,164.60 - - - - - - - 3,385.10 1,669.74 1,715.36 - - Subtotal - Diverted 2,324.36 2,855.49 2,081.04 3,405.88 3,922.69 - - - - - - - 16,727.15 8,337.00 8,390.15 - - Subtotal - Diversion Percentage 78% 83% 83% 86% 77% 0% 0% 0% 0% 0% 0% 0% 83% 83% 83% 0% 0%OVERALL TOTAL 2,975.43 3,450.16 2,505.04 3,956.64 5,087.29 - - - - - - - 20,112.25 10,006.74 10,105.51 - -

BUYBACK & DROP-OFF TONSJan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 YTD 2012 Q1 Q2 Q3 Q4

Buyback Recyclable Materials 63.53 58.58 61.19 62.91 67.88 - - - - - - - 314.09 183.31 130.78 - - Drop-Off Materials 58.83 43.88 61.36 63.83 60.43 - - - - - - - 288.33 164.07 124.26 - - OVERALL TOTAL 122.36 102.46 122.55 126.74 128.30 - - - - - - - 602.42 347.38 255.04 - -

SOUTH BAY INTERNAL TONSJan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 YTD 2012 Q1 Q2 Q3 Q4

MSW- Facility / Street Cleanup 1.79 2.40 1.37 1.07 1.58 - - - - - - - 8.21 5.56 2.65 - - MSW - MRF Residual 570.55 515.23 574.80 554.93 599.73 - - - - - - - 2,815.24 1,660.58 1,154.66 - - Recycling - - - - 0.15 - - - - - - - 0.15 - 0.15 - - Organics 0.08 - - - - - - - - - - - 0.08 0.08 - - - Inert / C&D - - - - - - - - - - - - - - - - - Subtotal - Disposed 572.34 517.63 576.17 556.00 601.31 - - - - - - - 2,823.45 1,666.14 1,157.31 - - Subtotal - Diverted 0.08 - - - 0.15 - - - - - - - 0.23 0.08 0.15 - - Subtotal - Diversion Percentage 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%OVERALL TOTAL 572.42 517.63 576.17 556.00 601.46 - - - - - - - 2,823.68 1,666.22 1,157.46 - -

SUBTOTAL: SELF HAUL / BUYBACK / DROP-OFF / SOUTH BAY INTERNAL TONSJan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 YTD 2012 Q1 Q2 Q3 Q4

Solid Waste (MSW) 1,223.41 1,112.30 1,000.17 1,106.76 1,765.91 - - - - - - - 6,208.55 3,335.88 2,872.67 - - Recycling 220.07 166.15 203.01 200.73 198.46 - - - - - - - 988.43 589.24 399.19 - - Organics (17.31) 1,161.33 (67.83) 34.20 1,027.38 - - - - - - - 2,137.77 1,076.19 1,061.58 - - Inert / C&D 2,226.65 2,791.80 2,000.58 3,331.89 3,852.68 - - - - - - - 14,203.60 7,019.03 7,184.57 - - Subtotal - Disposed 1,223.41 1,112.30 1,000.17 1,106.76 1,765.91 - - - - - - - 6,208.55 3,335.88 2,872.67 - - Subtotal - Diverted 2,446.72 2,957.95 2,203.59 3,532.62 4,051.14 - - - - - - - 17,329.80 8,684.46 8,645.34 - - Subtotal - Diversion Percentage 67% 73% 69% 76% 70% 0% 0% 0% 0% 0% 0% 0% 74% 72% 75% 0% 0%OVERALL TOTAL 3,670.13 4,070.25 3,203.76 4,639.38 5,817.05 - - - - - - - 23,538.35 12,020.34 11,518.01 - -

Page 3 of 3NON-FRANCHISED TONS

Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 YTD 2012 Q1 Q2 Q3 Q4Solid Waste (MSW) - - - - - - - - - - - - - - - - - Third Party Recycling (Rdwd Debris Bx) 4.55 7.34 6.54 6.34 11.27 - - - - - - - 36.04 18.43 17.61 - - Contracted Single Stream Recycling 1,229.41 1,038.24 1,170.21 1,109.17 1,252.13 - - - - - - - 5,799.16 3,437.86 2,361.30 - - Organics 80.37 79.22 106.01 114.15 103.59 - - - - - - - 483.34 265.60 217.74 - - Inert / C&D - - - - - - - - - - - - - - - - - Subtotal - Disposed - - - - - - - - - - - - - - - - - Subtotal - Diverted 1,314.33 1,124.80 1,282.76 1,229.66 1,366.99 - - - - - - - 6,318.54 3,721.89 2,596.65 - - Subtotal - Diversion Percentage 100% 100% 100% 100% 100% 0% 0% 0% 0% 0% 0% 0% 100% 100% 100% 0% 0%OVERALL TOTAL 1,314.33 1,124.80 1,282.76 1,229.66 1,366.99 - - - - - - - 6,318.54 3,721.89 2,596.65 - -

OVERALL TOTAL FACILITY TONSJan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 YTD 2012 Q1 Q2 Q3 Q4

Solid Waste (MSW) 16,656.44 15,197.61 16,217.03 16,117.66 17,790.62 - - - - - - - 81,979.36 48,071.08 33,908.28 - - Recycling MRF/PRC 6,896.28 5,947.45 6,601.10 6,338.56 6,957.60 - - - - - - - 32,741.00 19,444.84 13,296.16 - - Recycling TS (Bulky, Franchise, TS Diversion) 108.50 82.96 99.58 87.88 89.04 - - - - - - - 467.96 291.04 176.92 - - Organics 8,076.17 7,777.78 6,911.24 8,583.82 10,416.52 - - - - - - - 41,765.53 22,765.19 19,000.34 - - Inert / C&D 2,442.27 3,149.36 2,532.76 3,713.00 4,387.17 - - - - - - - 16,224.56 8,124.39 8,100.17 - - Subtotal - Disposed 16,656.44 15,197.61 16,217.03 16,117.66 17,790.62 - - - - - - - 81,979.36 48,071.08 33,908.28 - -


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Attachment 3SEC Inbound Monthly TonsMay 2012

115116117118119120121122123124125126127128129130131132133134

Subtotal - Diverted 17,523.22 16,957.55 16,144.68 18,723.26 21,850.33 - - - - - - - 91,199.05 50,625.46 40,573.59 - - Subtotal - Diversion Percentage 51% 53% 50% 54% 55% 0% 0% 0% 0% 0% 0% 0% 53% 51% 54% 0% 0%OVERALL TOTAL 34,179.66 32,155.16 32,361.71 34,840.92 39,640.95 - - - - - - - 173,178.41 98,696.54 74,481.87 - -

TRANSFER STATION & MRF VOLUME SUMMARYJan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 YTD 2012 Q1 Q2 Q3 Q4

Total Transfer Station Volume 27,283.38 26,207.71 25,760.61 28,502.36 32,683.35 - - - - - - - 140,437.41 79,251.70 61,185.71 - - Total MRF Volume 6,896.28 5,947.45 6,601.10 6,338.56 6,957.60 - - - - - - - 32,741.00 19,444.84 13,296.16 - - OVERALL TOTAL 34,179.66 32,155.16 32,361.71 34,840.92 39,640.95 - - - - - - - 173,178.41 98,696.54 74,481.87 - -

27,294.17 26,226.98 25,779.73 28,516.25 32,702.38 0.00 0.00 0.00 0.00 0.00 0.00 140,519.51Notes

MSW without Calculated volume 16,005.37 14,602.94 15,793.03 15,566.90 16,626.02 - - - - - - - 78,594.26 ORG without Calculated Volume 8,093.56 6,616.45 6,979.07 8,549.62 9,389.14 - - - - - - - 39,627.84 Inerts without Calculated volumes 354.45 481.40 668.90 626.86 800.20 - - - - - - - 2,931.81


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Attachment 5SEC Outbound Tons

MUNICIPAL SOLID WASTE (MSW) - OUTBOUND TONSJan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Total 2012

Ox Mountain MSW Tons 16,656.44 15,197.61 16,217.03 16,117.66 17,790.62 - - - - - - - 81,979.36 TOTAL MSW 16,656.44 15,197.61 16,217.03 16,117.66 17,790.62 - - - - - - - 81,979.36

INERT MATERIALS (C&D / INERTS) - OUTBOUND TONSJan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Total 2012

Zanker Road C&D Tons 2,225.14 2,357.02 2,332.81 3,014.86 3,484.30 - - - - - - - 13,414.13 Ox Mountain Dirt/Inert Tons 217.13 792.34 199.95 698.14 902.87 - - - - - - - 2,810.43 Other Facility Dirt/Inert Tons - TOTAL C&D / INTERTS 2,442.27 3,149.36 2,532.76 3,713.00 4,387.17 - - - - - - - 16,224.56

ORANICS / GREEN WASTE / FOOD WASTE - OUTBOUND TONSJan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Total 2012

Recology Grover - Green/Organics Tons 1,106.42 2,530.81 3,078.31 892.40 297.81 - - - - - - - 7,905.75 Recology Grover - Food Waste Tons 649.11 674.46 982.76 402.86 - - - - - - - - 2,709.19 Republic Newby Island - Green/Organics 5,097.96 3,653.87 2,680.93 5,126.96 3,973.59 - - - - - - - 20,533.31 Republic Newby Island - Food Waste Tons 449.36 674.36 175.23 976.67 1,375.86 - - - - - - - 3,651.48 Biofuel Systems - Clean Green Waste Tons 632.16 323.50 100.02 149.47 49.94 - - - - - - - 1,255.09 Zanker Road - Green Waste 221.53 - - 1,149.61 4,822.91 - - - - - - - 6,194.05 TOTAL ORGANICS / GREEN / FOOD WASTE 8,156.54 7,857.00 7,017.25 8,697.97 10,520.11 - - - - - - - 42,248.87

OTHER DIVERSION - OUTBOUND TONS (includes scrap metal, refrigerators, electronics, and tires, mixed rigid plastics, & cardboard)Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Total 2012

Scrap Metal 52.08 34.98 48.37 41.19 40.99 - - - - - - - 217.61 Refrigerators 3.73 3.26 3.75 1.58 4.51 - - - - - - - 16.83 Electronic Materials 34.04 26.14 22.56 23.53 24.00 - - - - - - - 130.27 Mattresses 3.94 8.20 4.98 3.10 8.65 - - - - - - - 28.87 Tires 0.91 0.95 4.19 1.55 1.04 - - - - - - - 8.64 Cardboard (outbound from Transfer to MRF) 2.78 2.27 4.27 5.79 4.44 - - - - - - - 19.55 Mixed Plastic (outbound from Transfer to MRF) 2.91 2.97 7.01 8.73 5.41 - - - - - - - 27.03 Carpet - - - - - - - - - - - - - Foam PaddingReuse / Furniture / Clothes / Household Goods 8.11 4.19 4.45 2.41 - - - - - - - - 19.16 Other Material Tons - TOTAL OTHER DIVERSION 108.50 82.96 99.58 87.88 89.04 - - - - - - - 467.96

MATERIAL RECOVERY FACILITY/PUBLIC RECYCLING CENTER - OUTBOUND TONSJan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Total 2012

Recyclable Fibers 4,474.00 4,115.46 4,190.81 4,243.47 4,623.41 - - - - - - - 21,647.15 Recyclable Containers 1,645.08 687.78 2,322.18 1,145.35 1,698.14 - - - - - - - 7,498.53 Residual Outbound from MRF (Franchise) 387.89 336.94 371.28 356.61 390.06 - - - - - - - 1,842.79 Residual Outbound from MRF (Republic) 182.66 178.29 203.52 198.32 209.67 - - - - - - - 972.45 Residual Outbound from MRF (Other) - Public Recycling Center/Drop Off 16.63 7.76 21.13 20.72 16.66 - - - - - - - 82.90

- TOTAL PUBLIC RECYCLING CENTER 6,706.26 5,326.23 7,108.92 5,964.47 6,937.94 - - - - - - - 32,043.82

OVERALL SEC SUMMARYJan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Total 2012

MSW 16,656.44 15,197.61 16,217.03 16,117.66 17,790.62 - - - - - - - 81,979.36 Recyclables MRF/PRC 6,706.26 5,326.23 7,108.92 5,964.47 6,937.94 - - - - - - - 32,043.82 MRF/PRC Inventory (+/-) 190.02 621.22 (507.82) 374.09 19.67 - - - - - - - 697.18 Recyclables TS 108.50 82.96 99.58 87.88 89.04 - - - - - - - 467.96 Organics 8,156.54 7,857.00 7,017.25 8,697.97 10,520.11 - - - - - - - 42,248.87 C&D / Inerts 2,442.27 3,149.36 2,532.76 3,713.00 4,387.17 - - - - - - - 16,224.56 OVERALL TOTAL 34,260.03 32,234.38 32,467.72 34,955.07 39,744.54 - - - - - - - 173,661.75 OVERALL FACILITY DIVERSION 50.83% 50.93% 51.62% 52.82% 55.19% #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 52.12%

Total Transfer Station Volume 27,363.75 26,286.93 25,866.62 28,616.51 32,786.94 - - - - - - - 140,920.75 Total MRF Volume 6,896.28 5,947.45 6,601.10 6,338.56 6,957.60 - - - - - - - 32,741.00 OVERALL TOTAL 34,260.03 32,234.38 32,467.72 34,955.07 39,744.54 - - - - - - - 173,661.75

May 2012

SEC Operations Monthly Reporting - South Bay Recycling, LLCAttachment 5 - SEC Outbound Tons

6/15/2012 Page 7

______________________________________________________________________________ SBWMA BOD PACKET 06/28/12


Rate Year 2012

Jan Feb Mar Apr May Annual AnnualData Net Tons Net Tons Net Tons Net Tons Net Tons Total Total

Member Agency/Type Source Collected Collected Collected Collected Collected by Qtr by Mo

ATHERTONMember Agency VehiclesMember Agency Solid Waste SBR - - Member Agency Recycling SBR - - Member Agency Organics SBR - - Member Agency Inert / C&D SBR - - Subtotal - Disposed 0.00 - Subtotal - Diverted - - Overall Subtotal 0.00 - Transfer Station & Third Party - - Self-Haul Solid Waste SBR 8.51 7.53 6.13 4.46 16.29 42.93 42.93 MRF Residue SBR 12.48 11.11 11.56 11.45 - 46.60 46.60 Transfer Station & Other Recycling SBR 0.04 0.25 - - 0.06 0.36 0.36 Self-Haul Green Waste SBR (0.23) 32.38 (0.83) 0.78 16.58 48.68 48.68 Self-Haul Inert / C&D SBR 42.84 49.59 24.26 55.17 58.06 229.93 229.93 Subtotal - Disposed 20.99 18.64 17.69 15.91 16.29 89.53 89.53 Subtotal - Diverted 42.66 82.23 23.43 55.96 74.70 278.97 278.97 Overall Subtotal 63.64 100.87 41.12 71.87 90.99 368.50 368.50

SBWMA Backup Detail for SEC Monthly Reporting - South Bay Recycling, LLC

Attachment 6 - South Bay Member Agency Tonnage Report (Member Agency Vehicles Transfer Station Self-Haul)6/15/2012 Page 8

______________________________________________________________________________ SBWMA BOD PACKET 06/28/12


Rate Year 2012


Member Agency/Type Source Collected Collected Collected Collected Collected by Qtr by Mo- -

BELMONT - - Member Agency Vehicles - - Member Agency Solid Waste SBR 59.48 45.74 54.53 55.88 46.74 262.37 262.37 Member Agency Recycling SBR - - - - - - - Member Agency Organics SBR 4.54 15.12 6.24 5.72 5.23 36.85 36.85 Member Agency Inert / C&D SBR 40.88 26.83 21.94 25.87 110.74 226.26 226.26 Subtotal - Disposed 59.48 45.74 54.53 55.88 46.74 262.37 262.37 Subtotal - Diverted 45.42 41.95 28.18 31.59 115.97 263.11 263.11 Overall Subtotal 104.90 87.69 82.71 87.47 162.71 525.48 525.48 Transfer Station & Third Party - - Self-Haul Solid Waste SBR 49.05 46.97 28.57 38.84 76.72 240.15 240.15 MRF Residue SBR 34.48 30.55 31.88 31.83 - 128.74 128.74 Transfer Station & Other Recycling SBR 10.73 3.13 4.20 4.51 3.44 26.02 26.02 Self-Haul Green Waste SBR (0.58) 47.07 (3.85) 1.12 49.62 93.37 93.37 Self-Haul Inert / C&D SBR 140.15 169.44 103.71 195.63 210.80 819.75 819.75 Subtotal - Disposed 83.53 77.52 60.45 70.67 76.72 368.89 368.89 Subtotal - Diverted 150.31 219.64 104.06 201.26 263.86 939.13 939.13 Overall Subtotal 233.84 297.17 164.51 271.93 340.58 1,308.02 1,308.02

BURLINGAMEMember Agency VehiclesMember Agency Solid Waste SBR - - - - - - - Member Agency Recycling SBR - - - - - - - Member Agency Organics SBR - - - - - - - Member Agency Inert / C&D SBR - - - - - - - Subtotal - Disposed - - - - - - - Subtotal - Diverted - - - - - - - Overall Subtotal - - - - - - - Transfer Station & Third Party - - Self-Haul Solid Waste SBR 20.20 14.77 16.03 14.29 29.49 94.77 94.77 MRF Residue SBR 62.32 54.47 53.58 55.26 - 225.63 225.63 Transfer Station & Other Recycling SBR 1.91 0.08 2.80 0.59 2.43 7.81 7.81 Self-Haul Green Waste SBR (0.30) 19.77 (1.70) 0.64 14.90 33.31 33.31 Self-Haul Inert / C&D SBR 76.82 82.59 53.18 128.30 138.07 478.96 478.96 Subtotal - Disposed 82.51 69.24 69.61 69.55 29.49 320.41 320.41 Subtotal - Diverted 78.43 102.44 54.27 129.53 155.40 520.08 520.08 Overall Subtotal 160.94 171.69 123.88 199.08 184.89 840.48 840.48



______________________________________________________________________________ SBWMA BOD PACKET 06/28/12


Rate Year 2012



EAST PALO ALTO - - Member Agency Vehicles - - Member Agency Solid Waste SBR - - Member Agency Recycling SBR - - Member Agency Organics SBR - - Member Agency Inert / C&D SBR - - Subtotal - Disposed 0.00 - Subtotal - Diverted - - Overall Subtotal 0.00 - Transfer Station & Third Party - - Self-Haul Solid Waste SBR 7.79 10.34 5.56 11.83 20.62 56.15 56.15 MRF Residue SBR 16.56 27.05 48.05 34.26 - 125.91 125.91 Transfer Station & Other Recycling SBR 0.85 0.63 0.18 0.14 0.09 1.89 1.89 Self-Haul Green Waste SBR (0.10) 7.72 (0.35) 0.30 11.98 19.56 19.56 Self-Haul Inert / C&D SBR 22.03 24.03 9.78 25.50 30.29 111.62 111.62 Subtotal - Disposed 24.35 37.38 53.62 46.09 20.62 182.06 182.06 Subtotal - Diverted 22.78 32.38 9.61 25.95 42.36 133.08 133.08 Overall Subtotal 47.13 69.76 63.22 72.04 62.99 315.14 315.14



______________________________________________________________________________ SBWMA BOD PACKET 06/28/12


Rate Year 2012



FOSTER CITYMember Agency Vehicles - - Member Agency Solid Waste SBR 1.54 - 2.47 0.37 0.39 4.77 4.77 Member Agency Recycling SBR - - - - - - - Member Agency Organics SBR 13.72 8.35 9.21 5.81 15.74 52.83 52.83 Member Agency Inert / C&D SBR 27.73 35.00 30.59 17.81 126.18 237.31 237.31 Subtotal - Disposed 1.54 - 2.47 0.37 0.39 4.77 4.77 Subtotal - Diverted 41.45 43.35 39.80 23.62 141.92 290.14 290.14 Overall Subtotal 42.99 43.35 42.27 23.99 142.31 294.91 294.91 Transfer Station & Third Party - - Self-Haul Solid Waste SBR 19.04 12.56 11.79 11.16 28.25 82.80 82.80 MRF Residue SBR 34.78 29.93 33.48 31.68 - 129.86 129.86 Transfer Station & Other Recycling SBR 1.38 1.71 1.22 1.07 1.23 6.61 6.61 Self-Haul Green Waste SBR (0.16) 7.91 (0.89) 0.55 13.55 20.97 20.97 Self-Haul Inert / C&D SBR 89.20 97.06 69.34 106.15 164.26 526.02 526.02 Subtotal - Disposed 53.82 42.48 45.27 42.84 28.25 212.66 212.66 Subtotal - Diverted 90.42 106.68 69.68 107.77 179.04 553.60 553.60 Overall Subtotal 144.25 149.16 114.95 150.61 207.30 766.26 766.26



______________________________________________________________________________ SBWMA BOD PACKET 06/28/12


Rate Year 2012



HILLSBOROUGHMember Agency Vehicles - - Member Agency Solid Waste SBR - - Member Agency Recycling SBR - - Member Agency Organics SBR - - Member Agency Inert / C&D SBR - - Subtotal - Disposed 0.00 - Subtotal - Diverted - - Overall Subtotal 0.00 - Transfer Station & Third Party - - Self-Haul Solid Waste SBR 4.76 6.20 3.58 3.68 16.29 34.52 34.52 MRF Residue 18.04 15.18 16.59 17.23 - 67.04 67.04 Transfer Station & Other Recycling SBR 0.68 1.06 0.03 0.58 0.08 2.43 2.43 Self-Haul Green Waste SBR (0.12) 10.36 (0.83) 0.42 10.75 20.57 20.57 Self-Haul Inert / C&D SBR 29.29 56.99 28.44 40.34 104.42 259.47 259.47 Subtotal - Disposed 22.81 21.38 20.17 20.91 16.29 101.56 101.56 Subtotal - Diverted 29.85 68.41 27.63 41.34 115.25 282.47 282.47 Overall Subtotal 52.65 89.79 47.80 62.25 131.54 384.04 384.04



______________________________________________________________________________ SBWMA BOD PACKET 06/28/12


Rate Year 2012



MENLO PARKMember Agency VehiclesMember Agency Solid Waste SBR - - Member Agency Recycling SBR - - Member Agency Organics SBR - - Member Agency Inert / C&D SBR - - Subtotal - Disposed 0.00 - Subtotal - Diverted - - Overall Subtotal 0.00 - Transfer Station & Third Party - - Self-Haul Solid Waste SBR 33.90 40.03 21.50 25.89 60.01 181.33 181.33 MRF Residue 57.42 52.16 60.56 57.29 - 227.44 227.44 Transfer Station & Other Recycling SBR 4.50 2.00 1.52 1.21 4.82 14.05 14.05 Self-Haul Green Waste SBR (0.63) 43.87 (2.28) 0.99 32.59 74.54 74.54 Self-Haul Inert / C&D SBR 110.76 115.81 75.38 238.19 238.38 778.53 778.53 Subtotal - Disposed 91.32 92.19 82.06 83.18 60.01 408.77 408.77 Subtotal - Diverted 114.63 161.67 74.62 240.39 275.80 867.12 867.12 Overall Subtotal 205.95 253.87 156.68 323.58 335.81 1,275.89 1,275.89



______________________________________________________________________________ SBWMA BOD PACKET 06/28/12


Rate Year 2012



NORTH FAIR OAKS - - Member Agency Vehicles - - Member Agency Solid Waste SBR - - Member Agency Recycling SBR - - Member Agency Organics SBR - - Member Agency Inert / C&D SBR - - Subtotal - Disposed 0.00 - Subtotal - Diverted - - Overall Subtotal 0.00 - Transfer Station & Third Party - - Self-Haul Solid Waste SBR - - - - - - - MRF Residue SBR - - - - - - - Transfer Station & Other Recycling SBR - - - - - - - Self-Haul Green Waste SBR - - - - - - - Self-Haul Inert / C&D SBR - - - - - - - Subtotal - Disposed - - - - - - - Subtotal - Diverted - - - - - - - Overall Subtotal - - - - - - -



______________________________________________________________________________ SBWMA BOD PACKET 06/28/12


Rate Year 2012



REDWOOD CITY - - Member Agency Vehicles - - Member Agency Solid Waste SBR 1.55 - 0.13 - 1.20 2.88 2.88 Member Agency Recycling SBR - - - - - - - Member Agency Organics SBR 8.86 7.73 5.25 4.59 6.58 33.01 33.01 Member Agency Inert / C&D SBR - - - 1.47 - 1.47 1.47 Subtotal - Disposed 1.55 - 0.13 - 1.20 2.88 2.88 Subtotal - Diverted 8.86 7.73 5.25 6.06 6.58 34.48 34.48 Overall Subtotal 10.41 7.73 5.38 6.06 7.78 37.36 37.36 Transfer Station & Third Party - - Self-Haul Solid Waste SBR 193.32 181.38 121.82 173.21 365.45 1,035.17 1,035.17 MRF Residue SBR 102.49 90.77 97.96 99.01 - 390.24 390.24 Transfer Station & Other Recycling SBR 22.59 13.75 14.14 11.95 12.10 74.53 74.53 Self-Haul Green Waste SBR (5.84) 369.22 (21.50) 9.71 302.63 654.22 654.22 Self-Haul Inert / C&D SBR 650.48 761.47 547.60 839.91 991.55 3,791.01 3,791.01 Subtotal - Disposed 295.81 272.16 219.78 272.22 365.45 1,425.41 1,425.41 Subtotal - Diverted 667.23 1,144.45 540.24 861.57 1,306.28 4,519.77 4,519.77 Overall Subtotal 963.03 1,416.60 760.02 1,133.79 1,671.72 5,945.17 5,945.17



______________________________________________________________________________ SBWMA BOD PACKET 06/28/12


Rate Year 2012



SAN CARLOS - - Member Agency Vehicles - - Member Agency Solid Waste SBR 1.95 0.87 0.23 - - 3.05 3.05 Member Agency Recycling SBR - - - - - - - Member Agency Organics SBR 6.06 1.03 3.08 1.29 - 11.46 11.46 Member Agency Inert / C&D SBR - - - 8.44 33.46 41.90 41.90 Subtotal - Disposed 1.95 0.87 0.23 - - 3.05 3.05 Subtotal - Diverted 6.06 1.03 3.08 9.73 33.46 53.36 53.36 Overall Subtotal 8.01 1.90 3.31 9.73 33.46 56.41 56.41 Transfer Station & Third Party - - Self-Haul Solid Waste SBR 108.20 101.18 74.39 95.20 194.48 573.44 573.44 MRF Residue SBR 50.95 45.19 51.90 48.35 - 196.40 196.40 Transfer Station & Other Recycling SBR 6.54 9.02 8.43 12.20 9.77 45.96 45.96 Self-Haul Green Waste SBR (3.16) 215.02 (11.02) 7.15 206.53 414.52 414.52 Self-Haul Inert / C&D SBR 293.90 452.67 372.41 614.50 638.32 2,371.80 2,371.80 Subtotal - Disposed 159.15 146.37 126.29 143.55 194.48 769.84 769.84 Subtotal - Diverted 297.28 676.71 369.82 633.85 854.62 2,832.28 2,832.28 Overall Subtotal 456.43 823.08 496.12 777.40 1,049.10 3,602.13 3,602.13



______________________________________________________________________________ SBWMA BOD PACKET 06/28/12


Rate Year 2012



SAN MATEOMember Agency VehiclesMember Agency Solid Waste SBR 6.91 6.70 8.34 11.22 14.97 48.14 48.14 Member Agency Recycling SBR - - - - - - - Member Agency Organics SBR - - - - - - - Member Agency Inert / C&D SBR - - - - - - - Subtotal - Disposed 6.91 6.70 8.34 11.22 14.97 48.14 48.14 Subtotal - Diverted - - - - - - - Overall Subtotal 6.91 6.70 8.34 11.22 14.97 48.14 48.14 Transfer Station & Third Party - - Self-Haul Solid Waste SBR 163.74 123.78 97.49 128.12 274.91 788.04 788.04 MRF Residue SBR 131.19 115.98 124.05 122.06 - 493.27 493.27 Transfer Station & Other Recycling SBR 10.63 5.43 11.59 8.76 6.98 43.38 43.38 Self-Haul Green Waste SBR (4.93) 303.70 (17.16) 10.04 300.16 591.81 591.81 Self-Haul Inert / C&D SBR 426.89 464.08 326.04 594.76 710.42 2,522.19 2,522.19 Subtotal - Disposed 294.93 239.76 221.54 250.18 274.91 1,281.31 1,281.31 Subtotal - Diverted 432.59 773.21 320.46 613.56 1,017.56 3,157.38 3,157.38 Overall Subtotal 727.52 1,012.96 542.00 863.74 1,292.47 4,438.69 4,438.69



______________________________________________________________________________ SBWMA BOD PACKET 06/28/12


Rate Year 2012



SAN MATEO COUNTY - - Member Agency Vehicles - - Member Agency Solid Waste SBR - - - - - - - Member Agency Recycling SBR - - - - - - - Member Agency Organics SBR - - - - - - - Member Agency Inert / C&D SBR - - - - - - - Subtotal - Disposed 0.00 - Subtotal - Diverted - - Overall Subtotal 0.00 - Transfer Station & Third Party - - Self-Haul Solid Waste SBR 0.72 0.59 1.70 0.45 1.65 5.11 5.11 MRF Residue SBR 38.54 32.99 34.41 36.59 - 142.53 142.53 Transfer Station & Other Recycling SBR - 0.02 - 1.80 1.14 2.96 2.96 Self-Haul Green Waste SBR - 0.38 (0.02) 0.01 0.45 0.81 0.81 Self-Haul Inert / C&D SBR 2.42 2.16 0.38 0.56 1.19 6.71 6.71 Subtotal - Disposed 39.26 33.58 36.11 37.04 1.65 147.64 147.64 Subtotal - Diverted 2.42 2.55 0.36 2.37 2.78 10.48 10.48 Overall Subtotal 41.68 36.13 36.47 39.41 4.43 158.12 158.12



______________________________________________________________________________ SBWMA BOD PACKET 06/28/12


Rate Year 2012



WEST BAY - - Member Agency Vehicles - - Member Agency Solid Waste SBR - - - - - - - Member Agency Recycling SBR - - - - - - - Member Agency Organics SBR - - - - - - - Member Agency Inert / C&D SBR - - - - - - - Subtotal - Disposed 0.00 - Subtotal - Diverted - - Overall Subtotal 0.00 - Transfer Station & Third Party - - Self-Haul Solid Waste SBR - - - - - - - MRF Residue - - - 9.92 - 9.92 9.92 Transfer Station & Other Recycling SBR - - - - - - - Self-Haul Green Waste SBR - - - - - - - Self-Haul Inert / C&D SBR - - - - - - - Subtotal - Disposed - - - 9.92 - 9.92 9.92 Subtotal - Diverted - - - - - - - Overall Subtotal - - - 9.92 - 9.92 9.92



______________________________________________________________________________ SBWMA BOD PACKET 06/28/12


Rate Year 2012



TOTAL SBWMAMember Agency VehiclesMember Agency Solid Waste SBR 71.43 53.31 65.70 67.47 63.30 321.21 321.21 Member Agency Recycling SBR - - - - - - - Member Agency Organics SBR 33.18 32.23 23.78 17.41 27.55 134.15 134.15 Member Agency Inert / C&D SBR 68.61 61.83 52.53 53.59 270.38 506.94 506.94 Subtotal - Disposed 71.43 53.31 65.70 67.47 63.30 321.21 321.21 Subtotal - Diverted 101.79 94.06 76.31 71.00 297.93 641.09 641.09 Overall Subtotal 173.22 147.37 142.01 138.47 361.23 962.30 962.30

Transfer Station & Third Party - - Self-Haul Solid Waste SBR 609.23 545.34 388.55 507.12 1,084.17 3,134.41 3,134.41 MRF Residue 559.24 505.38 564.04 554.93 - 2,183.59 2,183.59 Transfer Station & Other Recycling SBR 59.86 37.09 44.10 42.80 42.14 226.00 226.00 Self-Haul Green Waste SBR (16.05) 1,057.40 (60.43) 31.73 959.73 1,972.37 1,972.37 Self-Haul Inert / C&D SBR 1,884.77 2,275.89 1,610.52 2,839.03 3,285.77 11,895.99 11,895.99 Subtotal - Disposed 1,168.47 1,050.72 952.58 1,062.05 1,084.17 5,318.00 5,318.00 Subtotal - Diverted 1,928.59 3,370.38 1,594.19 2,913.56 4,287.65 14,094.36 14,094.36 Overall Subtotal 3,097.06 4,421.09 2,546.77 3,975.62 5,371.82 19,412.36 19,412.36

NON-SBWMA JURISIDICITIONSTransfer Station & Third PartySelf-Haul Solid Waste SBR 41.84 49.33 35.45 43.64 80.43 250.69 250.69 MRF Residue SBR - - - - - - - Transfer Station & Other Recycling SBR 6.47 3.70 6.89 0.42 1.33 18.80 18.80 Self-Haul Green Waste SBR (1.34) 103.93 (7.40) 2.47 67.65 165.32 165.32 Self-Haul Inert / C&D SBR 341.88 515.91 390.06 492.86 566.91 2,307.61 2,307.61 Subtotal - Disposed 41.84 49.33 35.45 43.64 80.43 250.69 250.69 Subtotal - Diverted 347.00 623.54 389.55 495.75 635.88 2,491.73 2,491.73 Overall Subtotal 388.84 672.88 425.00 539.39 716.31 2,742.42 2,742.42

Transfer Station Diversion Rate 89% 93% 92% 92% 89% 182% 454%- - - - - -

SEC SUMMARY - - Transfer Station & Third Party - - Self-Haul Solid Waste SBR 651.07 594.67 424.00 550.76 1,164.60 3,385.10 3,385.10 MRF Residue SBR 559.24 505.38 564.04 554.93 - 2,183.59 2,183.59 Transfer Station & Other Recycling SBR 66.33 40.79 50.99 43.22 43.47 244.80 244.80 Self-Haul Green Waste SBR (17.39) 1,161.33 (67.83) 34.20 1,027.38 2,137.69 2,137.69 Self-Haul Inert / C&D SBR 2,226.65 2,791.80 2,000.58 3,331.89 3,852.68 14,203.60 14,203.60 Subtotal - Disposed 1,210.31 1,100.05 988.04 1,105.69 1,164.60 5,568.69 5,568.69 Subtotal - Diverted 2,275.59 3,993.92 1,983.74 3,409.31 4,923.53 16,586.09 16,586.09 Overall Subtotal 3,485.90 5,093.97 2,971.78 4,515.00 6,088.13 22,154.78 22,154.78

Transfer Station Diversion Rate 65% 78% 67% 76% 81% 150% 367%OVERAL SEC SUMMARY 3,485.90 5,093.97 2,971.78 4,515.00 6,088.13 22,154.78 22,154.78



______________________________________________________________________________ SBWMA BOD PACKET 06/28/12


Attachment 7Self-Haul Monthly Yards/Ton RatioRate Year 2012

Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 2012 TotalOutbound Tons shipped from Transfer 27,363.75 26,286.93 25,866.62 28,616.51 32,786.94 - - - - - - - 140,920.75 Inbound Tons to the Transfer Station 24,544.70 21,799.28 23,566.13 24,871.42 26,937.98 - - - - - - - 121,719.51 Mass Balance weight of Inbound Self-Haul material to TS 2,819.05 4,487.65 2,300.49 3,745.09 5,848.96 - - - - - - - 19,201.24

Total Inbound Cubic Yards for Self-Haul Loads 9,746.50 9,427.50 10,269.00 11,724.00 13,449.50 - - - - - - - 54,616.50

Self-Haul Conversion Ratio - yards/ton (Goal ≥ 2.76) 3.46 2.10 4.46 3.13 2.30 - - - - - - - 2.84 DIFFERENCE OF Self-Haul Conversion Ratio from 2.76 0.70 (0.66) 1.70 0.37 (0.46) 0.08

SEC Operations Monthly Reporting - South Bay Recycling, LLCAttachment 7 - Self-Haul Monthly Yards/Ton Ratio

6/15/2012 Page 21

______________________________________________________________________________ SBWMA BOD PACKET 06/28/12


7 MRF COM MARKET SUMMARY

Attachment 8MRF Commodity Marketing Report - Outbound Loads

Material Type Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 TOTALCONTAINERS

337,159$ 216,131$ 383,831.09$ 257,729.64$ 319,322.56$ -$ -$ -$ -$ -$ -$ -$ $1,514,173FIBERSTotal Revenue - FIBERS 551,727$ 491,465$ 509,462$ 506,475$ 537,451$ -$ -$ -$ -$ -$ -$ -$ $2,596,581OVERALL REVENUE $888,886 $707,596 $893,293 $764,205 $856,774 $0 $0 $0 $0 $0 $0 $0 $4,110,754

Material Type Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 TOTALCONTAINERSTotal Tons - CONTAINERS 1,475.20 569.44 1,939.14 955.04 1,411.99 0.00 0.00 0.00 0.00 0.00 0.00 0.00 6,350.82FIBERSTotal Tons - FIBERS 4,009.50 3,455.61 3,506.56 3,560.71 3,852.91 0.00 0.00 0.00 0.00 0.00 0.00 0.00 18,385.29OVERALL TONS 5,484.71 4,025.05 5,445.70 4,515.75 5,264.90 0.00 0.00 0.00 0.00 0.00 0.00 0.00 24,736.11

Material Type Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 AVECONTAINERSAve Rate/Ton - CONTAINERS $228.55 $379.55 $197.94 $269.86 $226.15 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $238.42FIBERSAve Rate/Ton - FIBERS $137.60 $142.22 $145.29 $142.24 $139.49 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $141.23OVERALL Rate ($)/ton $162.07 $175.80 $164.04 $169.23 $162.73 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $166.18

Total Revenue by Commodity ($)

Total Tons by Commodity (Tons)

Average Rate Per Commodity ($ per Ton)

May 2012

SEC Operations Monthly Reporting - South Bay Recycling, LLCAttachment 8 MRF Commodity Market Summary

6/15/2012 Page 22

______________________________________________________________________________ SBWMA BOD PACKET 06/28/12


8 Truck Efficiency

Attachment 9Outbound Trucking Efficiency Report

MUNICIPAL SOLID WASTE (MSW)Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Total 2012 Q1 Q2 Q3 Q4

Ox Mountain MSWTons 16,656.44 15,197.61 16,217.03 16,117.66 17,790.62 - - - - - - - 81,979.36 48,071.08 33,908.28 - - Loads 640.00 584.00 623.00 618.00 683.00 - - - - - - - 3,148.00 1,847.00 1,301.00 - - Average Tons/Load 26.03 26.02 26.03 26.08 26.05 - - - - - - - 26.04 26.03 26.06 - - Loads Saved / Month (est. 22 T/Ld.) 117.11 106.80 114.14 114.62 125.66 - - - - - - - 338.05 240.29 - -

INERT MATERIALS (C&D / INERTS)Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Total 2012 Q1 Q2 Q3 Q4

Zanker Road Material ProcessingTons 2,225.14 2,357.02 2,332.81 3,014.86 3,484.30 - - - - - - - 13,414.13 6,914.97 6,499.16 - - Loads 89.00 94.00 93.00 120.00 139.00 - - - - - - - 535.00 276.00 259.00 - - Average Tons/Load 25.00 25.07 25.08 25.12 25.07 - - - - - - - 25.07 25.05 25.09 - -

Dirt/InertsTons 217.13 792.34 199.95 698.14 902.87 - - - - - - - 2,810.43 1,209.42 1,601.01 - - Loads 10.00 36.00 13.00 41.00 36.00 - - - - - - - 136.00 59.00 77.00 - - Average Tons/Load 21.71 22.01 15.38 17.03 25.08 - - - - - - - 20.66 20.50 20.79 - -

TOTAL C&D AND INERTSTONS 2,442.27 3,149.36 2,532.76 3,713.00 4,387.17 - - - - - - - 16,224.56 8,124.39 8,100.17 - - LOADS 99.00 130.00 106.00 161.00 175.00 - - - - - - - 671.00 335.00 336.00 - - AVERAGE TONS/LOAD 24.67 24.23 23.89 23.06 25.07 - - - - - - - 24.18 24.25 24.11 - - Loads Saved / Month (est. 19 tons/Ld.) 29.54 35.76 27.30 34.42 55.90 - - - - - - - 27.75 92.60 90.32 - -

ORGANICS / GREEN WASTE / FOOD WASTEJan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Total 2012 Q1 Q2 Q3 Q4

Recology Grover - Green/OrganicsTons 1,106.42 2,530.81 3,078.31 892.40 297.81 - - - - - - - 7,905.75 6,715.54 1,190.21 - - Loads 46.00 102.00 124.00 36.00 12.00 - - - - - - - 320.00 272.00 48.00 - - Average Tons/Load 24.05 24.81 24.83 24.79 24.82 - - - - - - - 24.71 24.69 24.80 - -

Republic Newby Island - Green/OrganicsTons 5,097.96 3,653.87 2,680.93 5,126.96 3,973.59 - - - - - - - 20,533.31 11,432.76 9,100.55 - - Loads 210.00 146.00 107.00 205.00 159.00 - - - - - - - 827.00 463.00 364.00 - - Average Tons/Load 24.28 25.03 25.06 25.01 24.99 - - - - - - - 24.83 24.69 25.00 - -

Recology Grover - Food WasteTons 649.11 674.46 982.76 402.86 - - - - - - - - 2,709.19 2,306.33 402.86 - - Loads 25.00 26.00 38.00 16.00 - - - - - - - - 105.00 89.00 16.00 - - Average Tons/Load 25.96 25.94 25.86 25.18 - - - - - - - - 25.80 25.91 25.18 - -

Republic Newby Island - Food WasteTons 449.36 674.36 175.23 976.67 1,375.86 - - - - - - - 3,651.48 1,298.95 2,352.53 - - Loads 19.00 27.00 7.00 39.00 55.00 - - - - - - - 147.00 53.00 94.00 - - Average Tons/Load 23.65 24.98 25.03 25.04 25.02 - - - - - - - 24.84 24.51 25.03 - -

Organics/Green WasteTons 7,302.85 7,533.50 6,917.23 7,398.89 5,647.26 - - - - - - - 34,799.73 21,753.58 13,046.15 - - Loads 300.00 301.00 276.00 296.00 226.00 - - - - - - - 1,399.00 877.00 522.00 - - Average Tons/Load 24.34 25.03 25.06 25.00 24.99 - - - - - - - 24.87 24.80 24.99 - -

BIOFUELS SYSTEMS - CLEAN GREEN WASTETons 632.16 323.50 100.02 149.47 49.94 - - - - - - - 1,255.09 1,055.68 199.41 - - Loads 26.00 13.00 4.00 6.00 2.00 - - - - - - - 51.00 43.00 8.00 - - Average Tons/Load 24.31 24.88 25.01 24.91 24.97 - - - - - - - 24.61 24.55 24.93 - -

TOTAL GREEN/ORGANICS/FOOD (TONS)TONS 7,935.01 7,857.00 7,017.25 7,548.36 5,697.20 - - - - - - - 36,054.82 22,809.26 13,245.56 - - LOADS 326.00 314.00 280.00 302.00 228.00 - - - - - - - 1,450.00 920.00 530.00 - - AVERAGE TONS/LOAD 24.34 25.02 25.06 24.99 24.99 - - - - - - - 124.41 24.79 24.99 - - Loads Saved / Month (est. 20 T/Ld.) 70.75 78.85 70.86 75.42 56.86 - - - - - - - 352.74 220.46 132.28 - -

OVERALL TRUCK TRIP SAVINGS/MONTH COMPARED TO 2010 ESTIMATES217.40 221.41 212.30 224.46 238.43 - - - - - - - 1,114.00 651.11 462.89 - -

Miles Saved 4,343.85 4,064.43 4,178.91 4,234.40 5,370.66 - - - - - - - 21,911.61 12,393.15 9,518.46 - - Gallons of Fuels Saved 1,085.96 1,016.11 1,044.73 1,058.60 1,342.67 - - - - - - - 5,477.90 3,098.29 2,379.62 - -

Pounds of CO2 savings (22.2 lbs./gal of fuel) 24,108.37 22,557.56 23,192.96 23,500.91 29,807.17 - - - - - - - 121,609.45 68,781.98 52,827.46 - - Pounds of Carbon savings (6.12 lbs./gal of fuel) 6,646.09 6,218.57 6,393.74 6,478.63 8,217.11 - - - - - - - 33,524.77 18,961.52 14,563.25 - -

OVERAL TRUCK TRIP SAV/MTH COMPARED TO EST 2010

May 2012

Note: Truck Savings was based on a comparison of the existing SBR's truck trips compared with the estimated 2010 truck volumes of: 22 tons/load for MSW, 19 tons/load for C&D, and 20 tons/load for Organics/Green Waste.

SEC Operations Monthly Reporting - South Bay Recycling, LLCAttachment 9 - Truck Efficiency

6/15/2012 Page 23

______________________________________________________________________________ SBWMA BOD PACKET 06/28/12


9 Liquidated Damages

Attachment 10Liquidated Damages

TotalJan Feb Mar Total Q1 Apr May Jun Total Q2 Jul Aug Sept Total Q3 Oct Nov Dec Total Q4 To Date

1 Turnaround Guarantee DamagesA Collection Vehicles & Member Agency Vehicles $100 per vehicle 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

proceed through scale house in no more than five (5) minutes per vehicle $ Damages: $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0B Self-Haul Customer $100 per vehicle 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

customers shall not wait more than 15 minutes to be processed by scale $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $02 Contractor Open Shoreway Center to Users during Operating Hours $1,000 per hour 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

failure to receive vehicles during operating hours $ Damages: $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $03 Litter Complaints $100 per hour 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

failure to remedy a litter compliance within 5 hours of notification $ Damages: $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $04 Failure of Contractor to Provided Excellent Customer Service $100 per compliant 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

$ Damages: $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $05 Timeliness of Submissions of Reports to the SBWMA $500 per day 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

$ Damages: $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $06 Failure to make Records Available upon Request $500 per day 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

$ Damages: $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $07 Failure of the Contractor to Notify the SBWMA of intent to $1,000 per incident 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

use a subcontractor(s). $ Damages: $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Overall Total Liquidated Damages during Reporting Period $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Q1 Comments

Q2 Comments

Q3 Comments

Q4 Comments

May 2012

0

0

0

0

SEC Operations Monthly Reporting - South Bay Recycling, LLCAttachment 10 - Liquidated Damages

6/15/2012 Page 24

______________________________________________________________________________ SBWMA BOD PACKET 06/28/12


10 General Facility Reporting

Attachment 11General Facility Reporting

A. Incident or Accidents Involving Either Employees or Patrons of the Facilities;

Jan-12 No accidents or incidents to reportFeb-12 End dump tipped over when dumping inert material at OX Mtn LFMar-12 SBR Vehicle hit a Recology Front Loader while backing. Apr-12 No accidents or incidents to reportMay-12 No accidents or incidents to reportJun-12Jul-12Aug-12Sep-12Oct-12Nov-12Dec-12

B. Documentation of Hazardous Spills and Removals

Jan-12 No hazardous spills or removalsFeb-12 No hazardous spills or removalsMar-12 No hazardous spills or removalsApr-12 No hazardous spills or removalsMay-12 No hazardous spills or removalsJun-12Jul-12Aug-12Sep-12Oct-12Nov-12Dec-12

C. LEA Inspections

Date Description01/31/12 No LEA visit in January02/29/12 No LEA visit in February

03/29/12

LEA noted the following Areas of Concern: Maintenance: Roll up doors not operational at franchise entry and exit in TS; Vector, Bird and Animal Control: bird control measures not adequate, wants SBR to employ the use of bird bombs and whistler gun; Record Keeping Requirements: the special occurrence and complaint log were not found. The logs had been moved to the reception area.

04/30/12 No LEA visit in April5/31/2012 No LEA visit in May

May 2012

SEC Operations Monthly Reporting - South Bay Recycling, LLCAttachment 11 - General Facility Summary




Attachment 11General Facility ReportingMay 2012

D. Staffing Levels / Changes

Jan-12 2 drivers retire, 3 drivers laid off and 1 sorter resigned.Feb-12 Jim Duffley, Site Manager resigned from SBRMar-12 None to reportApr-12 Saul San Filippo Hired as Interm Site MangerMay-12 None to reportJun-12Jul-12Aug-12Sep-12Oct-12Nov-12Dec-12

E. Equipment Levels / Changes

Jan-12 None to reportFeb-12 None to reportMar-12 None to reportApr-12 None to reportMay-12 None to reportJun-12Jul-12Aug-12Sep-12Oct-12Nov-12Dec-12

F. Facility Updates / Repairs

Jan-12 Increased bird control measuresFeb-12 None to Report

Mar-12Installation of the MRF residue conveyor in the self-haul side of the Transfer station was completed.

Apr-12 Increased bird control measures

May-12

Increased bird control measures, moved the cashier window in the PRC for easier access to customers, added various equipment to the MRF to enhance the tour experience.

Jun-12Jul-12Aug-12Sep-12Oct-12Nov-12Dec-12






G. Transfer Outbound Material Overview

Jan-12 No issuesFeb-12 No issuesMar-12 No issuesApr-12 No issuesMay-12 No issuesJun-12Jul-12Aug-12Sep-12Oct-12Nov-12Dec-12

H. Diversion Activity at Transfer Station

Jan-12

Continued to work with St Vincent De Paul to identify and recover materials, continued to recover wood, plastics, OCC, carpet, and other recyclable materials from the inbound waste streams

Feb-12

Discontinued recovering carpet from the self-haul side of the TS. Carpet Recyclers informed SBR that they are closing their Oakland Facility and are no longer accepting carpet.

Mar-12

Continued to work with St Vincent De Paul to identify and recover materials, continued to recover wood, plastics, OCC and other recyclable materials from the inbound waste streams

Apr-12


May-12


Jun-12Jul-12Aug-12Sep-12Oct-12Nov-12Dec-12






I. MRF Recovery Effectiveness

Jan-12

Republic Services single stream material began arriving at SEC. 3rd quarter Preventative Maintenance Inspection (PMI) occurred with no significant issues to report. Recovery rates were good with a 93% recovery rate.

Feb-12 Recovery rate remains at 93%Mar-12 Recovery rate was remains 93% Apr-12 Recovery rate was remains 93% May-12 Recovery rate was remains 93% Jun-12Jul-12Aug-12Sep-12Oct-12Nov-12Dec-12




Attachment 12SEC Operations Monthly Reporting Attachment Descriptions

Attachment 3 – SEC Inbound Monthly Tons 2012 – provides all inbound tons by customer group that enters the facility.Attachment 4 – SEC Inbound Quarterly Summary – provides a quarterly comparison of the inbound tons shown in Attachment 3.Attachment 5 – SEC Outbound Tons – provides all the outbound tonnage by material group, shipped out by SBR or other contractors based on material type.

Attachment 6 – Monthly South Bay Recycling Member Agency Tonnage Summary – provides a summary by Member Agency including disposal, organics, and recycling tons and diversion percentage for Member Agency Vehicles and Self-Haul customers. Residual Tonnage for each Member Agency is allocation based on inbound Recology Recycling Material tonnage and is provided in the Transfer Station Totals. Attachment 7 – Self-Haul Monthly Yards/ton Ratio – is a ratio used to calculate the average yards/ton estimated at the scale house to ensure the proper revenues are generated for the self-haul yardage customers.Attachment 8 – MRF Commodity Marking Report – provides detailed information regarding the outbound recyclable material commodities sold after processing at SEC. The table starting in April will show the monthly total revenue generated by commodity type, the total tons by commodity type sold during the given month, the average rate per commodity ($/ton).Attachment 9 – shows the average tons per load by facility and highlights the number of truck trips saved compared to the estimated 2010 truck trips.

SEC Operations Monthly Reporting - South Bay Recycling, LLCAttachment 12 - Attachment Descriptions

6/15/2012 Page 29

______________________________________________________________________________ SBWMA BOD PACKET 06/28/12


12 Definitions

Attachment 12DEFINITIONS FOR MONTHLY OPERATING REPORTING

DEFINITIONS RELATED TO SEC OPERATIONS MONTHLY REPORT

Municipal Solid Waste (MSW) – MSW delivered to the Shoreway Environmental Center (SEC) is delivered by the following sources: Recology SBWMA collection contractor for the Member Agencies, Member Agency Vehicles that deliver material directly to the SEC, Self-Haul Material delivered by the public, maintenance facility materials from Recology and South Bay Recycling, as well as contracted non-franchised haulers that may use the SEC. Source data is inbound tonnage at the SEC scale.

Residential Clean Up (Bulky Items) - Material collected by Recology during on call clean ups and hauled to the SEC for recycling and disposal. Source data is captured as inbound tonnage at the SEC scale.

Self-Haul (Public) - Material hauled by individuals and businesses to the SEC for disposal. Source data is inbound MSW tonnage from Ox Mountain scale less all weighed inbound MSW tonnage at the SEC scale. These tons are then allocated by jurisdiction based on the yards at the SEC scale.

Member Agency City Vehicles - Materials hauled by a Member Agency vehicles to the SEC for disposal. Source data is inbound tonnage at the SEC scale.

Contracted Non-Franchised Haulers – Materials hauled by contracted non-franchised haulers using the SEC, but material is not part of the SBWMA member agencies. Source data is inbound tonnage at the SEC scale.

Recycling – Cardboard, Mixed Paper, and Bottles & Cans collected by Recology from residential, commercial businesses, and multi-family complexes for processing at the SEC. Source data is inbound tonnage at the SEC scale.

Green/Organics – Compostable materials such as food scraps and food-soiled paper fiber, wood and other plant materials delivered to the SEC for processing. Source data is inbound tonnage at the SEC scale.

Other Diversion – Materials including but not limited to C&D, inerts, metals, appliances, and various items available for drop-off at the Buyback/Drop-Off Center (oil, fluorescent tubes, latex paint, sharps, electronics) delivered to the SEC. Source data includes inbound and outbound tonnage at the SEC scale.

Transfer Station Diversion – Material diverted in the transfer station sorter, aggregate recycling and electronic waste recycling programs at the SEC. Includes diverted material received from Member Agency vehicles and is directly allocated. All other tonnage is allocated based on the monthly self-haul tonnage received from each jurisdiction.

Unincorporated/West Bay Sanitary District Self Haul Tracking and Allocations- Within the unincorporated area, North Fair Oaks and West Bay Sanitary District self haul identification is handled by identification of city of origin for materials brought by to the Transfer Station by self haul. Occasionally, materials are allocated to adjacent jurisdictions based on customers’ identification of origin.

SEC Operations Monthly Reporting - South Bay Recycling, LLCAttachment 12 - Definitions



SBWMA BOD PACKET 06/28/2012 AGENDA ITEM: 5G – p1

STAFF REPORT To: SBWMA Board Members From: Robert J. Lanzone, SBWMA Legal Counsel Date: June 28, 2012 Board of Director’s Meeting Subject: Resolution Approving Third Amendment to the Executive Director’s Employment

Agreement Recommendation It is recommended that the SBWMA Board of Directors approve Resolution No. 2012-15 attached hereto authorizing the following action:

Approval of Third Amendment to the Executive Director’s Employment Agreement (the Agreement). Analysis Attached hereto is a Third Amendment to the Agreement which reflects the Board’s direction from its June 21, 2012 closed session. The following changes are to be made and are reflected in the Resolution attached to this report:

1. Section 1, “Salary” is modified changing the Executive Director’s salary to $188,181 effective July 1, 2012.

Background On August 10, 2006 the SBWMA entered into an agreement with Regional Government Services (RGS), a joint powers authority, for the services of Kevin McCarthy as Executive Director. That agreement was amended once in May 2007 to increase Mr. McCarthy’s salary from $158,000 per year to $174,000 per year. As of October 1, 2008, as a result of converting employees from RGS/ LGS contract employees to being directly employed by SBWMA, the Executive Director had an employment agreement approved by the Board, with his salary remaining at the same level. The Agreement was amended for a first time in 2009, increasing the Executive Director’s salary five percent (5%) to $182,700 effective July 1, 2009. Attached as Exhibit A is a copy of the Executive Director Agreement dated October 1, 2008 (the Agreement), the July 2009 First Amendment to that Agreement, and the September 22, 2011 Second Amendment. Fiscal Impact The increase in the Executive Director’s salary of 3% has not been fully incorporated into the Administrative Staff line item in the proposed FY 2013 budget. The Administrative Staff and AB 939 staff line items assumed a 2.5% increase. The difference between the 3% increase vs. 2.5% assumed increase is $913.

Attachments: Resolution 2012-15 Exhibit A – Third Amendment to Employment Agreement

SBWMA BOD PACKET 06/28/2012 AGENDA ITEM: 5G – p2

RESOLUTION NO. 2012-15

RESOLUTION OF THE BOARD OF DIRECTORS OF THE SOUTH BAYSIDE WASTE MANAGEMENT AUTHORITY

APPROVING THE THIRD AMENDMENT TO THE EMPLOYMENT AGREEMENT FOR THE EXECUTIVE DIRECTOR

WHEREAS, the South Bayside Waste Management Authority (Authority) has determined to amend the Employment Agreement of the Executive Director (the Agreement); NOW, THEREFORE, BE IT RESOLVED that the Employment Agreement, Exhibit A hereto, is modified as follows:

1. Section 1 “Salary” is amended to change the salary for the Executive Director to $188,181 commencing July 1, 2012.

PASSED AND ADOPTED by the Board of Directors of the South Bayside Waste Management Authority, County of San Mateo, State of California on this 28th day of June, 2012, by the following vote:

I HEREBY CERTIFY that the foregoing Resolution No. 2012-15 was duly and regularly adopted at a regular meeting of the South Bayside Waste Management Authority on June 28, 2012. ________________________________ ATTEST: Jim Porter, Chairperson of SBWMA _________________________________ Cyndi Urman, Board Secretary


____________________________________________________________________________________________________ SBWMA BOD PACKET 06/28/12 AGENDA ITEM 5G EXHIBIT A - p1

THIRD AMENDMENT TO THE EMPLOYMENT AGREEMENT- EXECUTIVE DIRECTOR

This is the Third Amendment to the Executive Director Employment Agreement (the Agreement) by and between the South Bayside Waste Management Authority (SBWMA) and Kevin McCarthy (Executive Director), a joint powers authority, collectively the Parties.

RECITALS

A. The Agreement was entered by the Parties on or about October 1, 2008, and provides for

the services of Kevin McCarthy as the Executive Director of the SBWMA. The Agreement has been amended on July 1, 2009 and on September 22, 2011.

B. The SBWMA Board has met and reviewed the performance of the Executive Director. C. The Parties desire to make certain changes to the Agreement effective July 1, 2012.

TERMS AND CONDITIONS

1. Section 1, of Exhibit A to the Agreement Salary as contained in the Agreement is amended to provide that the salary of the Executive Director shall be increased by three percent (3%) from $182,700 per annum to $188,181 effective July 1, 2012.

2. All other terms and conditions of the Agreement shall remain the same. Dated: _______________, 2012 SOUTH BAYSIDE WASTE MANAGEMENT By: _____________________________ Chair of the Board of Directors

Dated: ________________, 2012 EMPLOYEE By: _____________________________

Kevin McCarthy APPROVED AS TO FORM: _____________________________ Robert Lanzone, SBWMA Counsel Dated: __________________, 2012

Agenda Item 6


STAFF REPORT To: SBWMA Board Members From: Kevin McCarthy, Executive Director Marshall Moran, Finance Manager Date: June 28, 2012 Board of Director’s Meeting Subject: Resolution Adopting FY 2013 Budget Recommendation It is recommended that the SBWMA Board of Directors approve Resolution No. 2012-12 attached hereto authorizing the following action:

Adoption of the Fiscal Year (FY) 2013 Budget. If the Board decides to not approve the budget a budget continuation resolution is also attached. Analysis Attached you will find a Budget Message providing an overview of the proposed FY 2013 budget (including cash reserve balances, capital budget, revenues, expenditures, staffing, and program priorities). The actual proposed FY 2013 budget is Attachment A to the Budget Message. The proposed budget figures reflect significant changes in specific line items since the draft budget was discussed on May 24, 2012 as captured in Table 1 on the next page, but the net operating income changed very little. The budget changes included:

• Updating tonnage projections based on actual Shoreway tonnage data through May 2012; the previous tonnage figures used were through March 2012. The revised tonnage projections had the effect of increasing tipping fee revenue by $1,384,500 or 4.8% primarily due to higher franchised solid waste tons and organics tons and higher public volumes. Table 2 provides a comparison of inbound franchised tonnage by annualizing the January – May 2012 tons and comparing these figures to prior years. The higher tons have the effect of increasing SBR’s compensation, which is based on per ton fees, by $511,500 and increasing disposal and processing costs by $537,300 for a total Shoreway operating expense increase of $1,048,800. The higher revenue and higher Shoreway operating expenses results in a net improvement of $335,700 ($1,384,500-$1,048,800 = $335,700).

• Changes in the SBWMA program budget which had the net effect of an $118,470 reduction in expenses. The revised SBWMA program budget figure of $2,811,480 is 7.1% lower than the adopted FY 2012 budget.

• Revised MRF tonnage and commodity revenue projections which resulted in a $478,700 reduction in commodity sales. This reduction is partially offset by a reduction in revenue sharing with SBR of $114,800.

Staff also met several times recently with Recology to discuss potential administrative cost savings they could deliver in their 2013 rate application. Recology has committed to cut their administrative costs by $200,000 to $250,000 per year starting in calendar year 2013, including the elimination of the Public Education Manager position. Recology and staff believes there is significant duplication of effort with the Recology Public Education Manager position and the SBWMA’s Recycling Outreach and Sustainability Manager position and both parties believe the oversight of the public education efforts can be done solely by the SBWMA. Recology would continue to pay for the design and production costs of public outreach pieces they send out so there would be no impact to the SBWMA budget. Our revised budget figures do include


funds under “Diversion Program Support” to provide consultant support for outreach efforts as needed; this budget line was increased to $35,000 which is $15,000 higher than the FY 2012 adopted budget.

5/24/2012 6/28/2012 Variance480007 $29,103,100 $30,487,600 $1,384,500 Higher solid waste and organics tons than projected. Updated figures thru May 12' vs. March 12'.480023 $12,135,100 $11,656,400 ($478,700) Lower residential MRF tons and lower commodity prices.

COMMODITY REVENUE SHARE - NEW ($1,589,600) ($1,474,800) $114,800 Reduced revenue share due to lower commodity revenues.PERFORMANCE INCENTIVE / DISINCENTIVE $40,000 $25,000 ($15,000) Reduced quarterly contamination payments.

$39,688,600 $40,694,200 $1,005,6005/24/2012 6/28/2012 Variance

520305 $507,100 $507,100 $0520306 $672,600 $667,630 ($4,970)520105 $5,000 $4,000 ($1,000) One fewer salaried person520503 CONFERENCE & MEETINGS $12,000 $9,000 ($3,000) One fewer salaried person520511 SPONSORSHIPS & DONATIONS $8,500 $7,000 ($1,500) Cost savings52037 $60,000 $55,000 ($5,000) Cost savings520308 FACILITY IMPROVEMENT OVERSIGHT $30,000 $25,000 ($5,000) Cost savings520309 CONTRACT MANAGEMENT SUPPORT $80,000 $60,000 ($20,000) Includes $40k for financial systems audit520309 COLLECTION SERVICES FRANCHISE $140,000 $120,000 ($20,000) Includes $30k for audit follow-up520336 QUARTERLY CONTAM. MONITORING $99,000 $77,000 ($22,000) Eliminates two quarterly samplings520311 CIWMB ANNUAL REPORTS $35,000 $25,000 ($10,000) Reconfirmed requirements and budget520309 DIVERSION PROGRAM SUPPORT $30,000 $35,000 $5,000 Consultant staff support on outreach520604 $5,000 $3,000 ($2,000) Cost savings520331 LARGE EVENT/VENUE CONSULTING $15,000 $10,000 ($5,000) Cost savings520604 COMMERCIAL RECYCLING TECH. ASST $250,000 $200,000 ($50,000) Fewer $ for commercial accounts audit, purchase of internal containers and AB 341 support520604 MULTI-FAMILY OUTREACH $65,000 $90,000 $25,000 Enhanced outreach given low diversion520604 RESIDENTIAL OUTREACH PROGRAMS $170,000 $150,000 ($20,000) Cost savings520604 HHW DOOR TO DOOR COLLECTION $60,000 $80,000 $20,000 Enhanced outreach given survey results520335 CURBSIDE HOUSEHOLD BATTERY $3,000 $5,000 $2,000 Enhanced outreach given survey results520604 ELECTRONIC COLLECTION EVENTS $2,000 $1,000 ($1,000) Cost savings

$2,249,200 $2,130,730 ($118,470)5/24/2012 6/28/2012 Variance

522712 OPERATOR COMPENSATION - SBR $14,887,600 $15,399,100 $511,500 Higher compensation due to higher tons.522713 DISPOSAL & PROCESSING COSTS $13,040,100 $13,577,400 $537,300 Higher disposal expense due to higher tons.520710 $306,500 $197,300 ($109,200) Revised per final insurance quote.522702 $1,385,900 $1,451,800 $65,900 Higher fees to San Carlos due to higher gate (tipping) fees.

$29,620,100 $30,625,600 $1,005,500

$2,929,950 $2,811,480 ($118,470) Lower due to budget adjustments detailed above.$3,372,350 $3,253,880 ($118,470)

$33,937,300 $34,942,800 $1,005,500 Higher operating expenses due to higher tons. Higher tip fee revenues covers higher ops expenses.$37,309,650 $38,196,680 $887,030

Previous SBWMA Program BudgetsActual FY0809 $2,713,795Actual FY0910 $2,823,176Actual FY1011 $2,995,999Adopted FY1112 $3,025,450Mid-Year FY1112 $2,834,510Proposed FY1213 $2,811,480 7.1% below adopted FY1112 budget

TOTAL OPERATING EXPENSES:

Total SBWMA Program Budget (w HHW pass thru)

INSURANCE SHOREWAYFRANCHISE FEE

Total Shoreway Budget:

CommentsTable 1 -- Line Item Adjustments to 5/24/12 Draft FY 2013 Budget

SBWMA Program Budget:

Shoreway Expenses:

TIPPING FEESCOMMODITY SALES

Revenue Summary:

subtotal:SBWMA Program Expenses:

CELL PHONES

RATE REVIEW

ADMINISTRATIVE STAFFAB 939 PROGRAM STAFF

EVENT GIVEAWAYS

subtotal:

subtotal:


Table 2 – Franchise Tonnage History

Franchise Tons 2008 2009 2010 2011 2012*

Tonnage Variance 12 vs. 11 12 vs. 11% 11 vs. 10% 10 vs. 09% 09 vs. 08%

CommercialGarbage 146,220 134,464 133,545 122,884 50,986 (518) -0.420% -7.98% -0.70% -8.70%Recycle 26,159 25,689 23,332 24,208 10,617 1,273 5.30% 3.75%Organics 12,585 13,023 14,375 16,497 6,783 (218) -1.32% 14.76%Other** 4,669 4,418 4,570 2,287 1,768 1,956 85.50% -49.96%Total 189,633 177,595 175,822 165,876 70,154 2,494 1.50% -5.66% -1% -6.70%

ResidentialGarbage 78,367 76,152 75,222 59,306 24,318 (943) -1.60% -21.16%Recycle 34,704 30,124 32,517 40,661 16,593 (838) -2.10% 25.05%Organics 50,656 53,665 58,306 75,372 31,584 430 0.57% 29.27%Total 163,726 159,941 166,045 175,339 72,495 (1,351) -0.77% 5.60%*January - May 2012. % comparisons and tonnage variance calculated by annualized Jan.- May. 12' tons and comparing vs. actual 2011 tons.** Includes rolloff recycling and rolloff organics. Rolloff organics is 1,118 tons thru May or 2,683 tons annualized. The net effect of the budget changes made since the May 24, 2012 Board meeting is that net income increased slightly from $3,140,950 to $3,259,520. The proposed budget does not include any recommended changes to budget policy, or a net change in headcount, though there are proposed changes in staffing. We are proposing to eliminate one full-time salaried position, the Recycling Coordinator, but augment our environmental education staff; the net effect is no change to total FTE headcount of 7.8. It is assumed these staffing changes would occur effective September 1, 2012. This budget document addresses key agency priorities and reflects our vision as detailed in our new Strategic Plan 2013-2020 (see Attachment B) approved on March 22, 2012. Attachment C to the Budget Message provides a breakout on current staffing and budget assumptions related to salary and benefits. Salary expenses for staff, except the Executive Director, will be discussed in closed session at the June 28th Board meeting. The Executive Director’s performance review will be conducted in a closed session on June 21st. Capital The Shoreway Master Plan capital project is expected to be 100% complete in the fall 2012. Our current projection is that we will complete the project $931,000 under budget with $515,000 from the bid deduct alternate for the transfer station and $416,000 unspent from other contingency funds. These savings have been incorporated into our cash reserve projections. Non-Master Plan capital projects for FY 2013 total $380,000 and includes: $40,000 for MRF repairs, $25,000 for repairs to the landfill tipper, $35,000 for truck wash system replacement, $30,000 for a connection to the recycled water supply system, and repair projects related to other facility infrastructure as listed in the budget detail document found in Attachment A.


Reserves Balances The reserve balance year end projections are shown below in Table 3 for FY 2012 and FY 2013.

Table 3 - Reserve Balances (Year End Balance)

Reserve Category Projected

FY 2012 Budget Proposed

FY 2013 Budget Operating (10% of Ops. Expense) $3,748,221 $3,819,668 Rate Stabilization (10% of Ops. Expense) $3,748,221 $3,819,668 Equipment Replacement (12 year amortization)* $543,403 $1,799,028 Undesignated $932,000 $358,714

Total Unrestricted General Reserves $8,971,845 $9,797,078 Master Plan Internal Spending $661,136 $0 Bond Principal Payment Fund $912,500 $958,333 Burlingame Bond Repayment Fund** $972,973 $1,945,946

Total General Reserves $11,518,454 $12,701,357 * Assumed in bond proforma to be funded starting in calendar 2012. ** Not a dedicated reserve fund per our cash reserve policy.

We are pleased to report that the Operating Reserve, Rate Stabilization Reserve and Equipment Replacement Reserve will be fully funded. In addition, no revenue transfer is expected to be needed to meet the bond covenants for FY 2013. The Board adopted a revised Unrestricted Cash Reserve Policy on October 22, 2009 as follows:

• Operating Reserve funded up to a maximum of 10% of operating expenses (budget) • Rate Stabilization Reserve funded up to a maximum of 10% of operating expenses (budget) • Equipment Replacement Reserve funded per a 12-year replacement schedule for the new MRF processing

equipment. After meeting all debt service obligations, these reserves are to be funded in the order shown above. For example, once the Operating Reserve is funded up to the maximum level, then net operating cash flows would flow into the Rate Stabilization Reserve fund, and then into the Equipment Replacement reserve. Once maximum fund levels are reached for each of the three reserve accounts, then surplus cash would be available as undesignated (unallocated) cash reserves. This cash flow is shown in the diagram on the next page.


Background A draft budget for FY 2013 was reviewed and discussed at the May 24, 2012 Board meeting resulting in changes as captured in the final proposed FY 2013 budget as attached. Notably, Table 1 captures changes to specific line items with the SBWMA program budget further reduced by $118,470. Fiscal Impact The FY 2013 proposed operating budget includes revenues of $41,456,200 and operating expenses of $38,196,680 resulting in net operating income of $3,259,520. This compares to a projected net operating income in FY 2012 of $3,044,790. As a reminder, non-operating obligations (i.e., bond principal payment and capital expenditures) are not included in the operating income but would be paid out of operating income. These obligations include: bond principal payment ($1,095,000) and capital expenditures ($380,000). In addition, the final Master Plan spending of ($661,100) is paid out of the general reserves. For additional financial overview information, please refer to the attached Budget Message and/or the various summary sections in the attached proposed budget document. Attachments: Resolution 2012-12 Budget Message (includes attachments for the Proposed FY 2013 Budget, Strategic Plan, Personnel Summary, Outreach and Program Details, and Organization Chart).

Gross Revenues

Revenue Fund

Maintenance & Operation Costs

Rate Stabilization Reserve

Debt Service Payments

Net Operating Revenue

Subordinate Obligations (e.g., San Carlos franchise fees)

Operating Reserve

Equip. Replace. Reserve



RESOLUTION OF THE SOUTH BAYSIDE WASTE MANAGEMENT AUTHORITY BOARD OF DIRECTORS

ADOPTING THE FY 2013 BUDGET

WHEREAS, the South Bayside Waste Management Authority (SBWMA) proposed budget as presented is balanced and provided sufficient funds for normal operations. NOW THEREFORE, BE IT RESOLVED, by the Board of Directors of the South Bayside Waste Management Authority that the Board adopts the FY 2013 budget. PASSED AND ADOPTED by the Board of Directors of the South Bayside Waste Management Authority, County of San Mateo, State of California on the 28th day of June, 2012, by the following vote:

I HEREBY CERTIFY that the foregoing Resolution No. 2012-12 was duly and regularly adopted at a regular meeting of the South Bayside Waste Management Authority on June 28th, 2012. ATTEST: ____________________________

Jim Porter, Chairperson of SBWMA _________________________________ Cyndi Urman, Board Secretary

Agency Yes No Abstain Absent Agency Yes No Abstain Absent Atherton Menlo Park Belmont Redwood City Burlingame San Carlos East Palo Alto San Mateo Foster City County of San Mateo Hillsborough West Bay Sanitary District


RESOLUTION NO. 2012-16 RESOLUTION OF THE SOUTH BAYSIDE WASTE MANAGEMENT AUTHORITY BOARD OF

DIRECTORS GRANTING AUTHORITY FOR CONTINUED APPROPRIATIONS AND EXPENDITURES FOR SIXTY (60) DAYS

WHEREAS, the South Bayside Waste Management Authority (SBWMA) is on a fiscal year July 1 - June 30th; and WHEREAS a budget for FY 2013 will not be ready for review and approval by the Board of Directors until after the start of the 2013 fiscal year; and WHEREAS, there is a continued need to conduct business by the SBWMA after the start of the 2013 fiscal year. THEREFORE, BE IT RESOLVED, that the Board grants the Executive Director continued authority for appropriations and expenditures at the current level for the first sixty (60) days of the 2013 fiscal year of the SBWMA. PASSED AND ADOPTED by the Board of Directors of the South Bayside Waste Management Authority, County of San Mateo, State of California on the 28th day of June, 2012, by the following vote:





June 28, 2012 SBWMA Board of Directors South Bayside Waste Management Authority Dear Chair and Members of the Board: I am pleased to present for your consideration the proposed fiscal year (FY) 2013 Operating Budget (see Attachment A) for the South Bayside Waste Management Authority (SBWMA). The operating budget includes cash reserve balances, capital spending, revenues and expenditures, including the SBWMA program budget and the Shoreway operating budget. This budget document addresses key agency priorities and reflects our vision as detailed in our new Strategic Plan 2013-2020 (see Attachment B) approved on March 22, 2012. This budget reflects the strong foundation now in place with the second year of new franchised collection services and Shoreway operations, and completion of all major Shoreway master planned capital improvements. As in the past five budgets developed during my tenure, all budget line items have been built from the bottom up; we zero out each line item and rebuild the detail. This approach allows for a more thorough analysis of budget priorities and helps avoid any unnecessary cost inflationary pressures year over year. We also are able to modulate up or down the consultant support we need each year for major projects such as the rollout of new collection services, long range planning, etc. Attachment C provides a breakout on current staffing, and budget assumptions related to salary and benefits. Key Priorities The proposed budget funds the following key priorities:

• Continued oversight and contract administration support for the twelve collection services franchise agreements with Recology San Mateo County (RSMC), including follow-up work on audit findings and financial auditing.

• Continued oversight of the South Bay Recycling (SBR) Shoreway operations. • Closeout of the Shoreway masterplan construction activities with key milestones including completion of the

landscaping and signage, and public demonstration areas in front of the Transfer Station. • Management of the annual rate recommendation process, including review of the 2013 RSMC and SBR rate

applications, and completion of final rate reports (RSMC, SBR and consolidated report) for 2013. • Support of existing recycling programs, notably ongoing residential public outreach; AB 341 commercial recycling

outreach; expanded outreach to support multi-family recycling; research and develop permitting or non-exclusive franchise system for commercial recyclers; and oversight and expanded outreach for the HHW door to door collection services for nine Member Agencies.

• Management of the Shoreway Education Center tour program, including the school tours and public tours. • Continuing the long range planning process including analyzing existing collection and processing systems,

evaluating new processing technologies, analysis of existing and new rate structures, and investigating policy and outreach tools to support higher diversion levels in a cost effective manner.

• Management of all ongoing capital repairs at Shoreway. • Oversight of Shoreway remediation activities.


FY 2013 BUDGET HIGHLIGHTS (Revenues and Expenditures) The table below summarizes key FY 2013 Budget highlights. A discussion on revenues and expenditures is provided later in this document.

Attachment D provides further detail on outreach and program assumptions by budget line item. FY 2012 FINANCIAL PERFORMANCE Based on the Board approved mid-year financial projections we expect our financial performance in FY 2012 to be as follows: Revenues: $40,527,000 Expenditures: $37,482,210 Operating Surplus/ (Deficit) $3,044,790

FY 2013 OPERATING BUDGET HIGHLIGHTS Overall Revenues Totaling $41.46 million

$30.49 million from Shoreway tipping fees assumes tipping fee increases on Jan. 1st per the schedule shown on p. 8. $10.19 million from Shoreway net commodity revenues ($11.66 in gross revenue minus $1.47 million in commodity

revenue share with SBR). $0.61 million in miscellaneous revenue sources (i.e., HHW program fees, e-recycling revenue, MRF host fees, etc.). $0.18 million in investment income.

Shoreway Expenditures Totaling $34.9 million (91.5% of total expenditures) Shoreway Operating Budget consisting of $15.4 million for SBR compensation, $13.6 million for disposal and

processing costs, $3.15 million for debt service bond interest, $1.45 million for franchise fees to San Carlos, $0.56 million for payments to buyback customers (previously included in Allied Waste pass through costs), $0.32 million for Allied Waste balancing account payments, $0.28 million for other operating expenses, and $0.2 million for insurance

SBWMA Expenditures (program budget) Totaling $3.25 million (8.5% of total expenditures) • Administrative Expenses ($1.6 million, 49% of SBWMA program budget)

No change in net headcount. Eliminating one position and adding the equivalent of one new position. $11,530 or 0.7% increase in expenses compared to FY 2012 adopted budget.

• Contract Compliance and Consultant Support ($0.36 million, 11% of SBWMA program budget) $120,000 for supporting Member Agencies with contract compliance and enforcement of franchise, and follow-up

work and limited auditing for customer service systems, billing, and reports. $60,000 for ongoing financial auditing and follow-up work from 2012 auditing. $77,000 for performing two quarterly load contamination monitoring per the franchise agreements and for ongoing

quality glass incentive program audits. • Recycling (diversion) Programs and Long Range Planning ($0.86 million, 26% of SBWMA program budget)

$200,000 for commercial recycling technical assistance. $160,000 for quarterly newsletter design, set-up and distribution; assumes three newsletters as opposed to four. $150,000 for residential outreach programs. $90,000 for multi-family outreach. $80,000 for outreach to support current HHW door to door collection programs. $50,000 for long range plan alternative analysis.

• Collection Operations ($0.44 million, 14% of SBWMA program budget) $442,400 for HHW door to door collection services fees for existing programs (see offsetting revenue account).


FISCAL YEAR 2013 BUDGET OVERVIEW The FY 2013 operating budget includes revenues of $41.46 million and operating expenses of $38.2 million leaving a $3.26 million in net operating income for FY 2013. REVENUES Revenues for FY 2013 are expected to be $1,230,500 higher than our mid-year FY 2012 budget projections. Higher tipping fee revenue is a result of higher than expected franchise disposed tons and organic tons, and higher public volumes. This higher revenue is partially offset by lower net commodity revenues due to a full year of commodity revenue sharing with SBR. Our assumed solid waste tipping fee increases do not assume any change in the County’s AB 939 fee (disposal surcharge) at Ox Mountain Landfill. Proposed tipping fee adjustments effective January 1, 2013 are shown in the table below.

PROPOSED TIPPING FEES PER TON OR CUBIC YARD

Transfer Station Tip Fee Increases Current Rates Proposed Rates

(1/1/13) Percent Increase SBWMA Solid Waste, Franchise $88.00 per ton $91.00 per ton 3.4%

SBWMA Residential Organics, Franchise $89.00 per ton $92.00 per ton 3.4% SBWMA Commercial Food Waste, Franchise $101.00 per ton $104.00 per ton 3.0% Non-SBWMA Weighed Tons non-Franchise $88.00 per ton $91.00 per ton 3.4%

Public Solid Waste Yards, non-Franchise $33.00 per yard No change 0 Public Green Waste Yards, non-Franchise $22.00 per yard No change 0

Construction and Demolition, non-Franchise $29.00 per yard $30.00 per yard 3.4% Tip fee revenue is budgeted to increase $1.2 million or 4.2% over FY 2012 levels. Actual price increases will generate $0.7 million in revenue whereas volumes increases will generate $0.5 million. Gross (before commodity revenue sharing) commodity revenues are projected to increase by $71,200 from FY 2012 levels but will be substantially offset by $377,900 increase in commodity revenue share with SBR. The higher revenue is based on higher volume (2,853 tons) while the assumed commodity prices will be $8.41 lower per ton. There has been a weakness in prices since the 4th quarter 2011. The higher revenue share is due to Smurfit processing in Q1 2011 which reduced the revenue share to SBR in FY2012 (paid in Oct. – Dec. 2011). The revenue share in FY2013 will be based on the full twelve months of SBR processing in calendar year 2012.

SBWMA FY 2013 GENERAL OPERATING BUDGET (in millions of dollars) FY2012

Adopted FY2012 Mid Year

FY2013 Proposed Budget

Revenues 40.13 40.53 41.46 Expenditures 36.49 37.48 38.2 Shoreway Operations* 33.0 34.16 34.94 Administration 1.58 1.57 1.6 Contract Compliance 0.38 0.37 0.36 Recycling Programs 1.07 0.89 0.86 Collection Operations 0.47 0.49 0.44 Operating Income/(Loss) 3.64 3.04 3.26 * Debt service expense is included in Shoreway Operations expenditures.


Tip Fees A major source of revenue for the SBWMA is the revenue collected from franchised solid waste and organics delivered to the Shoreway facility which are consolidated and then transferred to disposal or processing sites. For the FY 2013 budget, tip fee revenue is projected to be approximately $30.49 million. The table below summarizes the projected source and contribution percentage of the tip fee revenue at the Shoreway facility for the FY2013.

Revenue Source Amount (in millions) % of Total SBWMA – Solid Waste $16.40 54% SBWMA – Organics $7.80 24% SBWMA – Food $1.50 6% Miscellaneous Weighed Tons $0.70 2% Public Solid Waste Yards $1.00 3% Public Green Waste Yards $1.10 4% Public – C&D, Other $2.00 7% Total $30.50 100.00%

We are seeing higher franchise solid waste and organics tons, and higher public green waste and C&D tons. It’s important to note that public volumes for solid waste have continued a precipitous decline despite two tip fee decreases in the past 18 months, though we have seen a modest increase in the last two months. Public green waste has increased the past two quarters year over year so the historic decline in these volumes seems to have abated. C&D volumes continue to grow significantly the past 18 months. The table below shows the annual yardage for 2007-2011 and the first and second quarter 2012 volumes.

Calendar Year Total 2007 Total 2008 Total 2009 Total 2010 Total 2011 1Q 2012 2Q 2012 Total Public Yardage Solid Waste 152,580 121,833 91,928 67,053 33,787 6,520 8,001 Green Waste 98,115 82,152 62,254 49,395 39,431 9,397 12,482 C&D 55,695 51,249 43,651 40,126 58,414 13,527 17,282

These trends are also captured in the chart below for the 2008 thru 2nd quarter 2012 period.


Commodity Revenues Commodity revenue is projected to be approximately $11.66 million. Commodity prices have rebounded significantly since the collapse in financial markets in fall 2008 with current average revenue for the 2nd quarter 2012 per ton of approximately $189.96/ton compared to $99/ton in November 2008. Average revenue per ton peaked at $278 in August 2008. An ongoing concern is the commercial recycling tonnage shortfall as compared to our bond proforma assumptions. This shortfall is being partially covered temporarily through third party MRF volumes from Allied Waste Daly City and Half Moon Bay. EXPENDITURES Shoreway operating expenses comprise 91.5% of our total budget with the balance from the SBWMA program budget. Significant year over year differences in our expenses include:

• Higher Shoreway operating expenses due to higher than expected franchised tons partially offset by smaller Allied Waste balancing account payment and lower Shoreway insurance expense.

• Lower SBWMA program expenses compared to the FY 2012 adopted budget and slightly lower as compared to the 2012 mid-year projections. This is due to no changes in headcount and proposed program savings as detailed in Table 1 of the staff report. Our proposed program budget is 7.1% lower than our adopted FY 2012 budget.

STAFFING Effective October 1, 2008 the SBWMA became the employer of record for all employees currently under contract with RGS. One employee, Cliff Feldman, remains on the LGS payroll to maintain his Calpers benefits. We will continue to contract out for HR/payroll administration. Attachment C provides a breakout on current staffing and budget assumptions related to salary and benefits. Please also see Attachment E for a current organization chart and the proposed organization chart effective September 2012. The SBWMA continues to have a very sustainable and cost effective business model for how the Agency manages its employee costs with key points as follows:

• The SBWMA is a non-PERs agency. Our six current full-time employees are offered a self-directed 401(a) and 457(b) plans, very similar to private sector 401(k) plans. We have no employee pensions and thus no long term pension obligations. There are no post-retirement benefits.

• All employees are non-represented; we have no collective bargaining agreements with our employees. • There are no automatic salary adjustments for employees such as a COLA adjustment. Employee

performance is evaluated each year and merit increases are granted on a calendar year basis. SBWMA JURISDICTION COMPLIANCE WITH AB 939 AND WASTE DIVERSION STATUS All of our twelve Member Agencies are in compliance with the state mandated AB 939 diversion requirements. CONCLUSION In summary, the SBWMA has successfully moved through the rollout of new franchised collection services, change-over in Shoreway facility operators, and substantial completion of Shoreway master planned capital improvements under budget. Our financial results demonstrate a continued ability to generate projected positive cash flows resulting from lower Shoreway operating expenses compared to the old contract under Allied Waste, higher commodity revenues, and a reduced SBWMA program budget. We have also managed to retain all of our senior staff during these past four years of exceptional workload and stress on the organization. We do face some short and long-term challenges including substantially reduced self-haul solid waste business and lower commercial recycling tonnages. We also need to continue to offer competitive salary and benefits for our salaried staff if we want to retain them long-term. Finally, we will likely face conflicting demands for potential use of any undesignated cash reserves given our City of Burlingame bond repayment of $3 million comes due September 1, 2014.


The Board, elected officials, staff and our customers should be pleased with our significant achievements and a bright future ahead. Respectfully Submitted, Kevin McCarthy, Executive Director Attachments

A. Proposed FY 2013 Budget B. Strategic Plan 2013-2020 C. Personnel Summary D. Outreach and Program Detail

E. Organization Charts

SOUTH BAYSIDE WASTE MANAGEMENT AUTHORITYREVENUE SUMMARY

FY 2013 PROPOSED BUDGET

REVENUE SUMMARY

ADMINISTRATIVE REVENUES409100 INVESTMENT INCOME 137,052 114,200 238,200 181,600 (56,600) 409101 INVESTMENT (GASB 31) MARKET VALUE ADJ409200 INTEREST INCOMETOTAL ADMINISTRATIVE 137,052 114,200 238,200 181,600 (56,600)

OPERATIONS480007 TIPPING FEES 28,660,638 28,972,200 29,257,100 30,487,600 1,230,500 480023 COMMODITY SALES 10,719,422 11,796,200 11,585,200 11,656,400 71,200

COMMODITY REVENUE SHARE - NEW (1,228,600) (1,096,900) (1,474,800) (377,900) 480024 OX MOUNTAIN - 480025 E-RECYCLING REVENUE 146,077 70,000 70,000 73,000 3,000 480033 MRF Host Fee - NEW 65,000 65,000 480031 HHW DOOR TO DOOR COLLECTION SERVICE 358,594 408,600 428,400 442,400 14,000 480032 PERFORMANCE INCENTIVE / DISINCENTIVE - NEW 71,707 - 45,000 25,000 (20,000)

480008 MISCELLANEOUS REVENUE 56,983 - TOTAL OPERATIONS 40,013,421 40,018,400 40,288,800 41,274,600 985,800

TOTAL OPERATING REVENUES 40,150,473 40,132,600 40,527,000 41,456,200 929,200 MISCELLANEOUS - EQPT AUCTION

TOTAL REVENUE 40,150,473 40,132,600 40,527,000 41,456,200 929,200

NET OPERATING INCOME / <LOSS> 3,772,169 3,641,950 3,044,790 3,259,520 214,730 % OF REVENUE 0.54%

ACTUAL FY 2010-2011

APPROVED BUDGET

FY 2011-2012

MID-YEAR PROJECTION FY 2011-2012

Variance to Mid-Year

PROPOSED BUDGET

FY 2012-2013

SBWMA BOD 06/28/12 REVENUESFY2013

REVENUES______________________________________________________________________________ SBWMA BOD PACKET 06/28/12

_______________________________________________________________________ AGENDA ITEM: 6A ATTACHMENT A p - 1

SOUTH BAYSIDE WASTE MANAGEMENT AUTHORITYEXPENSE DETAIL BY PROGRAM


GENERAL OPERATING EXPENSES BY MAJOR CATEGORY

EXPENDITURE SUMMARY

ADMINISTRATIVE EXPENSES520305 ADMINISTRATIVE STAFF 551,386 491,600 501,600 507,100 5,500 520306 AB 939 PROGRAM STAFF 584,949 684,100 667,800 667,630 (170) Reflects adjustments denoted in staffing plan.520328 EMPLOYEE RECRUITMENT/HR SUPPORT 1,438 5,000 5,000 5,000 - 520337 PEO COST (HR & PR FEES) 20,733 21,600 21,600 16,500 (5,100) 520312 BOARD COUNSEL 26,114 40,000 30,000 30,000 - 520300 BOARD MEETINGS & RECORDINGS 15,514 5,000 6,000 6,000 - 520310 ACCOUNTING SERVICES (City of San Carlos) 107,004 105,000 102,000 125,000 23,000 New price from city per RFP process.520334 INFORMATION SYSTEMS 40,641 29,500 32,000 32,000 - 520338 WEBSITE 12,637 10,100 10,100 10,100 - 520301 ANNUAL FINANCIAL AUDIT 9,013 8,500 8,500 9,100 600 FY & Calendar year audit520701 D&O INSURANCE 19,237 35,000 23,000 31,500 8,500 520202 BANK FEES 7,879 5,000 7,800 6,800 (1,000) BNY Fees not included

520203 RENT 47,444 48,000 48,476 50,100 1,624 $4068.28/mo. for Jan-June CPI 2.5%520204 PRINTING AND POSTAGE 207 200 150 150 - 520107 UTILITIES & PHONE 15,260 17,000 13,000 15,000 2,000 Phone $520/mo. & janitorial is approx. $2000/quarter520905 OFFICE/TENANT IMPROVEMENTS 2,876 3,000 2,250 2,250 - 520201 OFFICE SUPPLIES 18,681 17,000 17,000 17,000 - 520215 OFFICE EQUIPMENT COSTS 18,743 18,500 25,000 25,500 500 Copier $17360/yr., postage machine $1527/year, phone is $4950/yr., and Shoretel is $1500/yr.

520504 PUBLICATIONS & PUBLIC NOTICES 2,088 2,000 1,000 1,000 - 520501 PROFESSIONAL DUES & MEMBERSHIPS 1,006 2,000 1,500 1,500 - 520801 VEHICLE MILEAGE & TOLLS 158 350 100 250 150 520105 CELL PHONES 6,091 5,500 5,000 4,000 520503 CONFERENCE & MEETINGS 8,685 10,000 10,000 9,000 (1,000) 520502 TRAINING 3,362 4,000 4,000 8,000 4,000 520511 SPONSORSHIPS & DONATIONS 9,240 9,500 8,500 7,000 (1,500) CRRA, Acterra, SSMC, CAW522706 COMPUTER PURCHASE 3,000 6,500 16,600 8,000 (8,600) Critical hardware upgrades

TOTAL ADMINISTRATIVE 1,533,384$ 1,583,950$ 1,567,976$ 1,595,480$ 28,504$ CONTRACT COMPLIANCE AND SUPPORT RATES

520307 RATE REVIEW 194,100 30,000 60,000 55,000 (5,000) Acctg. temp, rate supportTOTAL RATE REVIEW 194,100 30,000 60,000 55,000 (5,000) CONTRACTOR520308 FACILITY IMPROVEMENT OVERSIGHT 21,325 30,000 25,000 25,000 - Project support at Shoreway520309 BUSINESS CONSULTANT/HF&H - - - - 520309 HCM01 CONTRACT MANAGEMENT SUPPORT 3,000 - 1,200 60,000 58,800 Includes $30k for financial systems review for RSMC & SBR

520309 HCN01 CONTRACT NEGOTIATIONS/LEGAL REVIEW - 30,000 10,000 20,000 10,000 Outside legal support for franchise agreement520309 HCS02 COLLECTION SERVICES FRANCHISE ADMIN. 99,512 165,000 165,000 120,000 (45,000) 520309 HCS03 PUBLIC EDUCATION FOR COLLECTION SVCS ROLLOUT 590,302 - 2,032 (2,032) 520309 HCS1B FACILITY RFP & IMPLEMENTATION 21,624 - - - 520309 HSHOR SHOREWAY REMEDIATION LEGAL & TECHNICAL 48,997 - - - 520329 ANNUAL RSMC PERFORMANCE HEARING - - - 520336 QUARTERLY LOAD CONTAMINATION MONITORING 37,849 120,000 110,000 77,000 (33,000) Two quarters vs. four quarters plus QGIP auditsTOTAL CONTRACTOR 822,610 345,000 313,232 302,000 (11,232)

TOTAL CONTRACT COMPLIANCE & SUPPORT 1,016,710$ 375,000$ 373,232$ 357,000$ (16,232)$

APPROVED BUDGET

FY 2011-2012


ACTUAL FY 2010-2011 Notes

Variance to Mid Year

PROPOSED BUDGET

FY 2012-2013

Remediation cost charged to Remediation Reserve account

6_A Budget Message _Attach A_FY2013SBWMABudget62012.xls EXPENDITURES 6/21/2012

______________________________________________________________________________ SBWMA BOD PACKET 06/28/12





EXPENDITURE SUMMARY

APPROVED BUDGET

FY 2011-2012




PROPOSED BUDGET

FY 2012-2013

RECYCLING - AB939 COMPLIANCERECYCLING ADMINISTRATION520311 CIWMB ANNUAL REPORTS 34,750 25,000 25,000 25,000 - 520341 SBWMA ANNUAL REPORT 3,288 5,000 5,000 5,000 - 520309 HDV01 DIVERSION PROGRAM SUPPORT - 20,000 10,000 35,000 25,000 Consultant staff support on outreach projects520604 EVENT GIVEAWAYS 14,500 7,500 5,000 3,000 (2,000) TOTAL RECYCLING ADMINISTRATION 52,538 57,500 45,000 68,000 23,000 LONG RANGE PLAN/DIVERSION PROGRAMS520340 LONG RANGE PLAN ALTERNATIVES 5,545 50,000 45,000 50,000 5,000 Technology analysis, disposal and program cost forecasting

520340 OPRFP ORGANICS PROCESSING RFP 1,746 - - - 520340 MPOTR MASTER PLAN OUTREACH 23,397 20,000 28,802 (28,802) 520344 SOLAR SYSTEM ENGINEERING AND EVALUATION 5,682 - 7,500 (7,500) TOTAL LONG RANGE PLAN/DIVERSION PROGRAMS 36,369 70,000 81,302 50,000 (31,302) COMMERCIAL PROGRAMS520331 LARGE EVENT/VENUE CONSULTING 1,594 0 10,000 10,000 Repurposing of one trailer, update brochure, program tracking

520342 LARGE EVENT/VENUE RECYCLING SERVICES 11,522 25,000 15,000 (15,000) No events participated520608 CLIMATE CHANGE REPORTING & POLICY OPTIONS 4,803 15,000 5,000 15,000 10,000 Added expense of facility operations and reporting

520604 COE01 COMMERCIAL RECYCLING TECHNICAL ASSIST 44,289 300,000 225,000 200,000 (25,000) See separate listing of budget item detail520604 CDRCY C&D RECYCLING PROGRAM - 35,000 28,000 25,000 (3,000) Develop criteria, process and audit C&D recycling facilities

520604 GREEN GREEN BUSINESS PROGRAM 4,035 5,000 0 0 - 520604 MF001 MULTI-FAMILY OUTREACH 12,741 40,000 65,000 90,000 25,000 See separate listing of budget item detailTOTAL COMMERCIAL PROGRAMS 78,984 420,000 338,000 340,000 2,000 RESIDENTIAL PROGRAMS520604 QLN01 QUARTERLY NEWLESTTER DESIGN/SETUP 12,561 20,000 10,000 10,000 - 520604 QNLPM QUARTERLY NEWLETTER PRINTING/MAILING 183,783 230,000 200,000 150,000 (50,000) Assumes three newsletters per year vs. four per year520604 RES01 RESIDENTIAL OUTREACH PROGRAMS 3,211 166,000 140,000 150,000 10,000 See separate listing of budget item detail520604 COMPS COMPOST GIVEAWAY 1,023 6,000 4,000 5,000 1,000 See separate listing of budget item detail520604 HHWUW HHW DOOR TO DOOR COLLECTION OUTREACH 87,011 85,000 70,000 80,000 10,000 Ongoing outreach to increase participation in existing nine programs

520335 CURBSIDE HOUSEHOLD BATTERY OUTREACH (10,287) 8,000 3,000 5,000 2,000 520604 ECE01 ELECTRONIC COLLECTIONS EVENTS 711 4,000 2,000 1,000 (1,000) TOTAL RESIDENTIAL PROGRAMS 278,014 519,000 429,000 401,000 (28,000)

TOTAL RECYCLING - AB939 COMPLIANCE 445,905$ 1,066,500$ 893,302$ 859,000$ (34,302)$

2,995,999$ 3,025,450$ 2,834,510$ 2,811,480$ (22,030)$

COLLECTION OPERATIONS522710 HHW DOOR TO DOOR COLLECTION SERVICES 358,504 408,600 428,400 442,400 14,000 incl: SC, Hills, Bel, CSM, MP, EPA, WB, FC, Cnty, 522711 CURBSIDE HOUSEHOLD BATTERY RECYCLING SERVICES 15,285 60,000 60,000 (60,000) Included in disposal and processing line itemTOTAL COLLECTION OPERATIONS 373,789 468,600 488,400 442,400 (46,000)

3,369,788$ 3,494,050$ 3,322,910$ 3,253,880$ (68,030)$

SUBTOTAL SBWMA PROGRAM BUDGET

TOTAL SBWMA PROGRAM BUDGET


______________________________________________________________________________ SBWMA BOD PACKET 06/28/12





EXPENDITURE SUMMARY

APPROVED BUDGET

FY 2011-2012




PROPOSED BUDGET

FY 2012-2013

SHOREWAY OPERATIONS522701 OPERATING CONTRACT - ALLIED 13,901,342 1,109,500 1,330,800 320,500 (1,010,300) One more balancing account payment522712 OPERATOR COMPENSATION - SBR 6,709,339 13,569,200 14,428,500 15,399,100 970,600 Payments to SBR for TS, MRF, and Transportation522713 DISPOSAL & PROCESSING COSTS 6,538,836 12,083,300 12,802,000 13,577,400 775,400 Tip fees paid by SBWMA to third parties522717 BUYBACK PAYMENTS - 1,099,100 597,000 563,500 (33,500) Payments to public for CRV materials522718 EDUCATION CENTER OPERATIONS -- NEW 7/1/11 - 80,000 70,000 60,000 (10,000) 522716 MAINTENANCE - OX MTN TIPPER 10,413 40,000 65,000 25,000 (40,000) 522708 INTERIM OFFSITE MRF OPERATIONS 4,278,696 - - - 520710 INSURANCE SHOREWAY 121,848 281,500 248,500 197,300 (51,200) 522714 SHOREWAY FACILITY COST 1,028 90,000 - 170,000 170,000 Facility maintenance expenses for truck shop, TS, MRF, admin, building and site.

520901 SHOREWAY MRF EQUIPMENT MAINTENANCE > $10k - 40,000 20,000 (20,000) 521104 DEBT SERVICE BOND INTEREST - 3,177,900 3,177,900 3,150,500 (27,400) 521116 2009 DEBT SERVICE BOND INTEREST - 521117 AMORTIZATION OF BOND ISSUANCE 22,222 - 521118 Revenue Bond Arbitrage - - 520320 BOND REFINANCING - - 520324 TAXES (SEWER) 38,893 46,400 26,400 27,700 1,300 522702 FRANCHISE FEE 1,385,900 1,379,700 1,393,200 1,451,800 58,600 5% of gate fees paid to San Carlos

520327 ARBITRAGE FEES - - 520602 PUBLIC NOTICE - 520901 EQUIPMENT MAINTENANCE - 520901 SF014 EQUIPMENT MAINTENANCE -

TOTAL SHOREWAY OPERATIONS 33,008,516$ 32,996,600$ 34,159,300$ 34,942,800$ 783,500$

TOTAL OPERATING EXPENSES 36,378,304$ 36,490,650$ 37,482,210$ 38,196,680$ 715,470$

Supplies and materials, $30k for busing, outreach, etc.


______________________________________________________________________________ SBWMA BOD PACKET 06/28/12


SOUTH BAYSIDE WASTE MANAGEMENT AUTHORITYCAPITAL BUDGET


CAPITAL PROJECTS

ACTUAL ACTUAL APPROVED ACTUAL BUDGET YTD SPENT PROJECTED PROPOSEDPROJECT DESCRIPTION FY 2007-2009 2009-2010 2010-2011 2010-2011 2011-2012 FY 2011-2012 2011-2012 2012-2013570300 MISCELLANEOUS 7,150 570300 SF005 TS FLOOR REPAIR - 147,000 150,000 147,000 570300 SF023 TUNNEL DRIVEWAY PAVING AND SCALE - 25,000 25,000 4,700 4,700 - 570300 SF026 TRUCK SHOP-REPLACE 2 AIR COMPRESSORS - 80,000 25,000 - 25,000 - 570300 SF028 TRUCK WASH BUILDING--ROOF REPAIR - 75,000 75,000 - 75,000 - 570300 SF031 FRONTAGE LANDSCAPING - - 20,000 17,750 20,000 NEW SF032 ADMIN BLDG IMPROVE/REPAIRS 50,000 17,000 11,172 17,000 NEW SF034 PAVING PAINTING/STRIPING 20,000 - NEW SF036 TRAFFIC CONTROL LIGHT FOR TRANSFER STATION 10,000 - NEW SF037 HARRIS BALER REFURB. AND REPAIR 55,000 - NEW SF039 MAINTENANCE BUILDING RELAMPING 10,000 10,000 - NEW SF040 PUBLIC RECYCLING CENTER HHW STORAGE UNITS 10,000 - NEW SF041 SBR MAINTENANCE BAY 15,000 15,000 - 7,000 NEW Ox Mtn Landfill Tipper assessment 4,000 New SF042 MRF Equipment repair budget - 75,000 - 40,000 New SF043 Solar engineering, install - 50,000 7,625 16,000 - New SF044 Tipping floor resurfacing 150,000 - 150,000 New SF045 Site paving repairs and restriping 75,000 6,394 75,000 New SF046 Outside lighting construction 75,000 19,494 29,500 New SF047 Site Signage 20,000 14,550 20,000 New SF048 New K-Rail at TS 25,000 22,191 25,000 New SF049 Truck shop building maintenance 40,000 9,710 40,000 30,000 New SF050 TS building maintenance 30,000 46,260 30,000 30,000 New SF051 MRF building maintenance 30,000 15,836 9,400 30,000 New SF052 Admin building maintenance 30,000 25,971 30,000 30,000 New SF053 Site maintenance 25,000 17,916 25,000 40,000 New SF054 Onsite parking development 25,000 1,855 17,000 New SF055 Fire suppression 50,000 22,104 22,000 New SF056 Repairs to landfill tipper 40,000 28,356 32,000 25,000 New Recycled Water Supply Connection 30,000 New Truck Wash System Replacement 35,000 New Facility Capital Repair Projects 90,000

520711 BUILDERS RISK INSURANCE -DURING CONSTRUCTION ONLY - 76,636 60,000 - -

- 223,636 564,000 154,150 927,000 271,882 669,600 380,000 SUBTOTAL CAPITAL PROJECTS

SBWMA BOD 06/28/12 CAPITAL6_A Budget Message _Attach A_FY2013SBWMABudget62012.xls

CAPITAL

______________________________________________________________________________ SBWMA BOD PACKET 06/28/12


SOUTH BAYSIDE WASTE MANAGEMENT AUTHORITYCAPITAL BUDGET


CAPITAL PROJECTS

ACTUAL ACTUAL APPROVED ACTUAL BUDGET YTD SPENT PROJECTED PROPOSEDPROJECT DESCRIPTION FY 2007-2009 2009-2010 2010-2011 2010-2011 2011-2012 FY 2011-2012 2011-2012 2012-2013

MASTER PLAN PROJECT TOTAL BOND Total

520339 MPPRE PRE CONSTRUCTION 175,569 - - - 175,569 175,569 520339 MP1DE PHASE 1 SCALE D&E 58,024 - - - 58,024 58,024 520339 MP1CN PHASE 1 SCALE CONSTRUCT 1,939,954 500,398 - - 2,440,352 2,494,062 520339 MP2DE A&E SERVICES 1,726,398 42,467 - (6,686) (6,686) - 1,762,179 1,928,528 520339 MP3DE PHASE 2 MRF REBUILD D&E 15,891 - - - - 15,891 15,891 520339 MPCEN CONSTRUCTION MGT & ENG SUPPORT 560,513 1,722,504 515,331 860,315 60,547 60,547 3,203,879 2,798,348 520339 MPSNP MASTER PLAN STUDY AND PLANNING 221,878 - 221,878 221,878 520339 MP3EQ PHASE 3 MRF EQUIPMENT INSTALLATION - - - 520339 MPMRF MRF CONSTRUCTION 6,416,508 3,655,492 4,173,326 209,048 209,048 10,798,882 10,072,000 520339 MP_TS TS CONSTRUCTION 571,540 4,886,460 3,234,499 2,428,460 3,806,039 5,458,000 520339 MPMOB Mobilization 350,000 - - 350,000 350,000 520339 MPGEN Sitework/General Construction 120,033 936,967 1,134,046 211,967 1,254,079 1,057,000 520339 MPOCC Other Construction Costs (landscape,sign,roof,security) - 786,700 172,190 666,700 288,860 326,360 498,550 786,700 520339 MPEQP Equipment Purchase 7,749,707 6,523,493 6,955,036 (1,550,203) (1,550,203) 13,154,540 14,273,200 520339 MPEQI Equipment Installation - 2,507,400 239,522 2,301,386 2,301,386 2,540,908 2,507,400

- -

520320 BONDR Non-Contingent Bond Issuance Cost 90,500 - 90,500 90,500 520339 CNTGC Contingency - 10% - 1,051,933 3,632,867 3,186,349 634,032 621,505 769,176 661,136 5,668,594 4,684,800

4,788,727$ 18,525,089$ 23,444,710$ 19,955,283$ 3,941,159$ 1,924,457$ 2,109,628$ 661,136$ 46,039,863$ 46,971,900$ Cost Below Original Budget 931,137$

4,788,727$ 18,748,725$ 24,008,710$ 20,109,433$ 4,868,159$ 2,196,339$ 2,779,228$ 1,041,136$ TOTAL CAPITAL PROJECTS

SUBTOTAL MASTERPLAN

SBWMA BOD 06/28/12 CAPITAL6_A Budget Message _Attach A_FY2013SBWMABudget62012.xls

CAPITAL

______________________________________________________________________________ SBWMA BOD PACKET 06/28/12


SOUTH BAYSIDE WASTE MANAGEMENT AUTHORITYRESERVE SUMMARY

FY2013 PROPOSED BUDGET

FINAL FINAL BUDGET PROJECTED BUDGETFY 2009-2010 FY 2010-2011 FY 2011-2012 FY 2011-2012 PROPOSED FY2013

UNRESTRICTED:OPERATING RESERVE (10% of total expense) 4,090,915$ 3,637,830$ 3,649,065$ 3,748,221$ 3,819,668$ RATE STABILIZATON (10% of expense) 3,649,065$ 3,649,065$ 3,748,221$ 3,819,668$ EQUIPMENT REPLACEMENT (ANNUAL) 612,500$ 543,403$ 1,799,028$ 2012 - 2024UNDESIGNATED 515,693$ 322,752$ -$ 932,000$ 358,714$ TOTAL UNRESTRICTED GENERAL RESERVES 4,606,608$ 7,609,648$ 7,910,630$ 8,971,845$ 9,797,078$

COMMITTED:MASTER PLAN INTERNAL CAPITAL SPENDING 1,593,136$ 1,593,136$ -$ 661,136$ BOND PRINCIPAL PAYMENT FUND 912,500$ 912,500$ 958,333$ 1st Pmt 9/1/2012 - $1,095kBURLINGAME BOND REPAYMENT FUND 218,801$ 972,973$ 1,945,946$ $3M due 9/1/2014 (37 mo.)

Jul. 1, 2011 - Aug 31, 2014 (37months)

CAPITAL RESERVE Used for MP projectTOTAL GENERAL RESERVES 6,199,744$ 9,202,784$ 9,041,931$ 11,518,454$ 12,701,357$ proof 6,199,744$ 9,202,784$ 11,518,454$ 12,701,357$

Other LT Projects (Fully Funded)SHOREWAY REMEDIATION PROJECT - NEW 1,495,500$ 1,468,159$ 1,368,159$ 1,458,159$ 1,408,159$ 10 year spending project

CASH FLOW TO UNRESTRICTED RESERVE BALANCEBeginning Balance 7/1 14,323,572$ 6,199,744$ 7,920,117$ 9,202,784$ 11,518,454$

add - Operating Cash Flow (1,615,492)$ 342,402$ 3,641,950$ 3,044,790$ 3,259,520$ add - capitalized interest 1,505,521$ 1,513,931$ add - WC Transfer from bond sale 2,800,000$ add - MP spending reimbursement from bond proce 3,970,000$ add, redemption fees, interest exp from bond proceedsadd - TBT Payment from Recology (59,519)$ 59,519$ paid to Republic nov/11Revenue Transfers Adjustments

less - non-MP capital exp (223,636)$ (64,253)$ (927,000)$ (669,600)$ (380,000)$ less - internal spend on MP capital (1,593,136)$ -$ (661,136)$ per BNY draw down schedule, estless - debt principal pmt -$ (1,095,000)$ 1st Pmt 9/1/2012 - $1,095kless - 2000 bond redemption on 9/1/2009 (11,737,105)$ less beginning Balance adjust to finalless - Allied prior year underpayment included in op expplug (2,823,116)$ 1,210,960$

Ending Balance 6/30 6,199,744$ 9,202,784$ 9,041,931$ 11,518,454$ 12,701,357$ 6,199,744$ 9,202,784$

6_A Budget Message _Attach A_FY2013SBWMABudget62012.xls Reserves Cash Flow6/21/2012

6:12 PM______________________________________________________________________________ SBWMA BOD PACKET 06/28/12


FY 2011-2012 FY 2012-2013OPERATING REVENUES

Tip Fee Revenue 28,972,200 30,487,600 Sales of Recyclable , net 10,567,600 10,181,600 Other 478,600 605,400

Total Operating Revenues 40,018,400 41,274,600

OPERATING EXPENSESOperation & Administration 31,886,650 33,566,680Franchise Fee-Transfer Station 1,379,700 1,451,800Taxes 46,400 27,700

Total operating expenses 33,312,750 35,046,180OPERATING INCOME 6,705,650 6,228,420

NONOPERATING REVENUESGain (loss) in sale of capital assetsMiscInvestment Inc Adjustment Investment Income 114,200 181,600

Total Nonoperating Revenues 114,200 181,600

NET INCOME 6,819,850 6,410,020

NON-OPERATING EXPENSESInterest-2000 Bond (3,177,900) (3,150,500)Capitalized Interest 0 0

Total Non-Operating Expenses (3,177,900) (3,150,500)

MODIFIED CHANGE IN NET ASSET (2) 3,641,950 3,259,520

Table 5Total Revenues (from Table 4) $40,018,400 $41,274,600Non-Op Revenue $114,200 $181,600

0 0

Total Revenues and Additional Revenues 40,132,600 41,456,200

ExpensesO&M Cost 31,933,050 33,594,380Debt Service Interest Expense 3,169,035 3,150,500Debt Service, Principal PaymentSubordinate Charges 1,379,700 1,451,800

Total Expenses 36,481,785 38,196,680

Coverage (Total Revenues/Total Expenses) (1) 1.10 1.09

Operating & Non-operating Revenues 40,132,600 41,456,2000 0

Total Revenues 40,132,600 41,456,200

less O&M Expenses 31,933,050 33,594,380equals Net Revenues 8,199,550 7,861,820

Debt Service 4,081,535 4,245,500

Coverage (Net Revenues/Debt Service)(2) 2.01 1.85

Ending Unreserved Fund Balance

1 Required to be 1.0 or greater 2 Required to be 1.4 or greater

Additional Revenue transfers from reserves or other funds

plus Additional Revenue transfers from reserves or other funds

6_A Budget Message _Attach A_FY2013SBWMABudget62012.xls Bond Covenant Test 6/21/2012

______________________________________________________________________________ SBWMA BOD PACKET 06/28/12


SBWMA BOD PACKET 06/28/2012 AGENDA ITEM: 6A ATTACHMENT B – p1

Strategic Plan 2013-2020 RethinkWaste is a joint powers authority of twelve public agencies (Atherton, Belmont, Burlingame, East Palo Alto, Foster City, Hillsborough, Menlo Park, Redwood City, San Carlos, San Mateo, the County of San Mateo and the West Bay Sanitary District) in San Mateo County, California and is a leader in the delivery of innovative waste reduction and recycling programs. RethinkWaste owns and manages the Shoreway Environmental Center which receives all of the recyclables, organics, and garbage collected in its service area. RethinkWaste also provides strategic oversight, support and management of service providers that collect, process, recycle and dispose of materials for the 12 Member Agencies. RethinkWaste, also known as the South Bayside Waste Management Authority (SBWMA) was formed in 1982. Our Mission To cost effectively design, implement and manage innovative waste reduction and recycling programs and facility infrastructure that fulfills our fiduciary responsibilities to our Member Agencies while achieving community environmental and economic goals. Our Vision Rethink Waste is recognized for its innovative waste reduction and recycling programs and facility infrastructure which are dedicated to the preservation and enhancement of the quality of life and the environment for our member agency communities. Core Values

• Implementing waste reduction, recycling and environmental education programs is paramount to achieving a greater resource conservation ethic and sustainable communities.

• Delivering high quality, and cost-effective resources and services for our customers, and contractors (i.e., vendors and service providers).

• Providing sound environmental policies and practices for our member agency communities.

• Conducting long-term planning for waste reduction and recycling programs and facility infrastructure is fundamental to achieving our mission.

• Facilitating excellent communication, collaboration and cooperation among all our stakeholders produces the best long-term results.

SBWMA BOD PACKET 06/28/2012 AGENDA ITEM: 6A ATTACHMENT B – p2

Our Strategic Priorities

• Provide day-to-day oversight, support, and management of service providers that collect, process, recycle and dispose of materials for the Member Agencies.

• Ensure contractors’ and RethinkWaste programs are cost effective for the ratepayers. • Provide day-to-day oversight of the Shoreway Environmental Center to meet financial,

operational, and environmental goals. • Meet or exceed environmental policies and regulations governing the collection and

processing of recyclables and organics. • Anticipate trends and implement innovative long-term solutions for waste reduction and

recycling programs, facility infrastructure and disposal capacity. • Monitor and assess contractor performance to ensure customer satisfaction and service

delivery that meets or exceeds contractual requirements. • Support RethinkWaste programs and policies through focused community outreach,

education and promotion of rate payer value received. • Manage the annual contractor compensation process to set contractor compensation

and recommend Member Agency solid waste rate adjustments. • Develop, implement and manage enhanced waste reduction and recycling services for

Member Agencies (i.e., curbside HHW/universal waste/e-scrap collection services; seasonal community events such as e-scrap collection and shred events, compost giveaways, etc.; state grants; and other programs approved by the Board of Directors).

SBWMA BOD PACKET 06/28/12 AGENDA ITEM: 6A ATTACHMENT C- p1

PERSONNEL AND BENEFIT ASSUMPTIONS FOR FY 2013 Proposed changes in staffing as follows: Proposed FY 2012 FY 2013 Executive Director 1.0 1.0 Facility Operations Contract Manager 1.0 1.0 Finance Manager 1.0 1.0 Recycling Outreach & Sustainability Manager 1.0 1.0 Recycling Programs Manager* 1.0 1.0 Recycling Coordinator** 1.0 0.0 Board Secretary/Office Manager 1.0 1.0 Environmental Education Coordinator*** 0.8 1.0 Environmental Education Associate**** Seasonal (temp.) 0.8 7.8 7.8 * Contract employee employed by Local Government Services, a public joint powers agency, with PERs benefits. ** Propose to eliminate the position effective September 1, 2012. *** Propose to make the position full-time effective September 1, 2012. **** Propose to convert this seasonal, non-benefitted 25 hour/week position into a part-time, benefitted position at 32 hours/week effective September 1, 2012. FY 2012 Proposed Position Changes Eliminate Recycling Outreach Coordinator position effective September 1, 2012. Upgrade Environmental Education Coordinator position from part-time salaried (32 hours/week) to full-time salaried position. . Convert Environmental Education Associate hourly position from seasonal to part-time, benefitted position. These changes have no net impact on headcount which remains at 7.8 FTE. Budget Assumptions for Salary and Wages The average salary adjustment assumed for six of our seven non-represented employees (no contracts) and one contract employee is 2.5% on January 1, 2013. Salary Ranges Existing and proposed salary ranges are shown below. One new salary range is shown for the Environmental Education Associate; it was set at 80% of the range for the Environmental Education Coordinator.

% of Top %

Position Salary Range/Yr Max Salary/Mo Current Salary of Salary Range DifferenceFinance Manager $102,998 - $128,748 $10,729 99.9% 0.10%Facility Operations Contract Manager $102,998 - $128,748 $10,729 99.3% 0.70%Recycling Program Manager* $102,998 - $128,748 $10,729 99.0% 1.00%Recycling Outreach & Sustainability Manager $92,698 - $115,873 $9,656 92.9% 7.10%Recycling Coordinator $78,793 - $98,492 $8,208 88.1% 11.90%Env. Education Coordinator $59,916 - $74,892 $6,241 89.8% 11.90%Office Manager/Board Secretary $54,768 - $68,460 $5,705 85.4% 14.60%Env. Education Associate* 84.2% 15.80%* Proposed hourly, part-time position.

$24.25/hour$23.04 - $28.80

$86,724

$58,488$61,500

$128,640$127,789$127,501$107,592

SBWMA BOD PACKET 06/28/12 AGENDA ITEM: 6A ATTACHMENT C- p2

Staff is recommending adjustments to the salary ranges for the following positions based on the results of a compensation survey completed in May 2012: Finance Manager Facility Operations Contract Manager Recycling Program Manager All of the above positions are effectively at the upper limit of their salary range and thus would not be able to receive any merit increase unless the salary range is adjusted. Staff is recommending that the maximum salary/month of $10,729 be increased by 3% to $11,051. All other salary ranges remain unchanged. No proposed changes in the employee benefit plans.

RethinkWaste Outreach and Recycling Programs Proposed FY 2013 Budget Items

SBWMA BOD PACKET 06/28/2012 AGENDA ITEM: 6A ATTACHMENT D – p1

Budget Expense Category Description of Program FY 2012 Adopted

FY 2012 Mid‐Year

FY 2013 Proposed Variance

Collection Services Franchise Administration

Contract Compliance Monitoring

Annual Systems Audit

SBWMA Required Per Franchise: contamination monitoring; use of non‐collection notices; support MAs with protecting franchise

Reports and Systems audit; ensure compliance with 2011 recommendations; perform limited audit for 2012

$165,000 $165,000 $120,000

($45,000)

Quarterly Contamination Monitoring Placeholder for Q3‐2012, Q4‐2012, Q1‐2013 and Q2‐2013 Recology Contamination Sampling

Includes QGIP Auditing Alternative: Budget for 2 quarters of contamination sampling; will require amending the Franchise Agreements with Recology.

$120,000

‐‐‐‐‐‐‐‐‐‐‐‐

$120,000

$110,000

‐‐‐‐‐‐‐‐‐‐‐‐‐‐

$110,000

$126,000

‐‐‐‐‐‐‐‐‐‐‐‐‐

$77,000

$16,000

‐‐‐‐‐‐‐‐‐‐‐‐

($33,000)

CIWMB (CalRecycle) Annual Report Research, draft and submit Electronic Annual Reports for ten Agencies per requirements of AB 939.

$25,000 $25,000 $25,000 $0

SBWMA Annual Report Design and production of the SBWMA Annual Report for distribution to stakeholders.

$5,000 $5,000 $5,000 $0

Diversion Program Support Provide staff assistance with diversion programs. Consultant staff support on outreach.

$20,000 $10,000 $35,000 $25,000

Event Giveaways Production of educational and promotional items for distribution at community events.

$7,500 $5,000 $3,000 ($2,000)

Large Event/Venue Consulting Repurposing of one Venue and Events trailer; update Venue and Events brochure; program tracking.

$0 $15,000 $10,000 ($5,000)

Large Event/Venue Recycling Services

Use of trailers limited as compared to prior years – expense not anticipated.

$25,000 $15,000 $0 ($15,000)

Climate Change Reporting and Policy Options

Annual Climate Registry expense; research and reporting on GHG impacts of facility operations; assistance with SBR reporting framework development.

$15,000 $5,000 $15,000 $10,000

RethinkWaste Outreach and Recycling Programs Proposed FY 2013 Budget Items

SBWMA BOD PACKET 06/28/2012 AGENDA ITEM: 6A ATTACHMENT D – p2

Budget Expense Category Description of Program FY 2012 Adopted

FY 2012 Mid‐Year

FY 2013 Proposed Variance

Commercial Recycling Technical Assistance

Research and develop permitting or non‐exclusive franchise system for MAs; Recology contractual support – purchase of internal containers for distribution; Recology commercial accounts audit – develop baseline data; outreach and education including AB 341 compliance; support with CoC and MFD presentations/workshops; marketing Shoreway cardboard buy‐back; Business Pledge and Business Awards Program

$300,000 $225,000 $200,000 ($25,000)

C&D Recycling Program Develop criteria, process and audit C&D recycling facilities. $35,000 $28,000 $25,000 ($3,000) Green Business Program Assist Member Agencies with certifications ‐ program

discontinued. $5,000 $0 $0 $0

Multi‐Family Outreach Required per Franchise Agreement: outreach; toolkit; buddy bags; case studies; MFD Awards Program

$40,000 $65,000 $90,000 $25,000

Quarterly Newsletter Design/Set‐up Newsletter content and layout $20,000 $10,000 $10,000 $0 Quarterly Newsletter Printing/Mailing

Newsletter printing and mailing Alternative: Budget for 3 newsletters instead of 4; will require amending the Franchise Agreements with Recology.

$230,000 ‐‐‐‐‐‐‐‐‐‐‐‐ $230,000

$200,00 ‐‐‐‐‐‐‐‐‐‐‐‐ $200,000

$200,000 ‐‐‐‐‐‐‐‐‐‐‐‐ $150,000

$0 ‐‐‐‐‐‐‐‐‐‐‐‐ ($50,000)

Residential Outreach Programs Outreach development and production, website redesign, neighborhood campaign, cart design contest, Rethink@Home campaign

$166,000 $140,000 $150,000 $10,000

Compost Giveaway Assist Member Agencies with promotion of Compost Giveaway events, compost giveaway bags at Shoreway, SBR hauling costs

$6,000 $4,000 $5,000 $1,000

HHW Door‐to‐Door Collection Outreach

Commence “rolling” public education/marketing campaign to promote the services to participating Member Agencies.

$85,000 $70,000 $80,000 $10,000

Curbside Household Battery Outreach

Specific holiday related promotion to encourage recycling of household batteries in December.

$8,000 $3,000 $2,000 ($1,000)

Electronics Collection Events Assist Member Agencies with promotion of E‐scrap events. $4,000 $2,000 $1,000 ($1,000)

SBWMA Organization Chart (June 2012)

SBWMA Board of Directors

Kevin McCarthy/Executive Director (1.0 FTE)

RECYCLING PROGRAMS, OUTREACH& CONTRACT COMPLIANCE

Bob Lanzone/Legal Counsel(ADL)

RATE MANAGEMENT

Cathy Hidalgo/Recycling Coordinator

(1.0 FTE)

Hilary Gans/Facility Ops.Contract Manager

(1.0 FTE)

Marshall Moran/Finance Manager(1.0 FTE)

Cyndi Urman/Office Manager &Board Secretary

(1.0 FTE)

ACCOUNTING &AUDITING

City of San Carlos

SHOREWAY CONTRACTS AND MANAGEMENT

Faustina Mututa/Env. Education Coordinator

(0.8 FTE)

Cliff Feldman/Recycling ProgramsManager(1.0 FTE)

Monica Devincenzi/RecyclingOutreach & Sust. Manager

(1.0 FTE)

Env. EducationAssociate(seasonal)Green = SBWMA staff Red = Consultants/Shared Services

Blue = Contract employee

______________________________________________________________________________ SBWMA BOD PACKET 06/28/12

_______________________________________________________________________ AGENDA ITEM: 6A ATTACHMENT E p - 1

SBWMA Organization Chart (September 2012)

SBWMA Board of Directors

Kevin McCarthy/Executive Director (1.0 FTE)

RECYCLING PROGRAMS, OUTREACH& CONTRACT COMPLIANCE

Bob Lanzone/Legal Counsel(ADL)

RATE MANAGEMENT

Hilary Gans/Facility Ops.Contract Manager

(1.0 FTE)

Marshall Moran/Finance Manager(1.0 FTE)

Cyndi Urman/Office Manager &Board Secretary

(1.0 FTE)

ACCOUNTING &AUDITING

City of San Carlos

SHOREWAY CONTRACTS AND MANAGEMENT

Faustina Mututa/Env. Education Coordinator

(1.0 FTE)

Cliff Feldman/Recycling ProgramsManager(1.0 FTE)

Monica Devincenzi/RecyclingOutreach & Sust. Manager

(1.0 FTE)

Env. EducationAssociate(0.8 FTE)

Green = SBWMA staff Red = Consultants/Shared Services Blue = Contract employee

______________________________________________________________________________ SBWMA BOD PACKET 06/28/12

_______________________________________________________________________ AGENDA ITEM: 6A ATTACHMENT E p - 2

SBWMA BOD PACKET 06/28/2012 AGENDA ITEM: 6B – p1

STAFF REPORT To: SBWMA Board Members From: Kevin McCarthy, Executive Director Marshall Moran, Finance Manager Date: June 28, 2012 Board of Director’s Meeting Subject: Review of Unrestricted Cash Reserve Policy Recommendation This staff report is for discussion purposes only and no formal action is requested of the Board of Directors. Analysis In October 2009, the Board previously reviewed its unrestricted cash reserve policy in order to sync it with projected cash flows from the bond financing proforma while providing for long term prudent reserves to meet agency needs. It’s important to note that while current projected cash reserve balances are compliant with Board policy, the SBWMA is achieving lower cash reserve balances and lower bond debt covenant ratios than in the Bond Proforma projections due to a number of factors including 8,000 fewer tons at the MRF, lower than assumed solid waste tipping fees, and substantially reduced public solid waste and green waste yards. The lower MRF tons alone reduce our operating income by approximately $452,000 per year. The actual cash reserve balances as included in the proposed FY13 budget are as follows:

Reserve Balances (Year End Balance)

Reserve Category Projected

FY 2012 Budget Proposed

FY 2013 Budget Operating (10% of Ops. Expense) $3,748,221 $3,819,668 Rate Stabilization (10% of Ops. Expense) $3,748,221 $3,819,668 Equipment Replacement (12 year amortization)* $543,403 $1,799,028 Undesignated $932,000 $358,714

Total Unrestricted General Reserves $8,971,845 $9,797,078 Master Plan Internal Spending $661,136 $0 Bond Principal Payment Fund $912,500 $958,333 Burlingame Bond Repayment Fund** $972,973 $1,945,946

Total General Reserves $11,518,454 $12,701,357 * Assumed in bond proforma to be funded starting in calendar 2012. ** Not a dedicated reserve fund per our cash reserve policy.

There are other short term factors that are affecting cash flow including: an FY13 operating expense of $320,500 for final payoff of the Allied Waste balancing account for Shoreway; and cash accruals over a 37-month period totaling $3 million for a lump sum payment to Burlingame on September 1, 2014 for a Shoreway bond. On a positive note, the proposed FY13 SBWMA program budget is approximately $175,000 lower than what was assumed in the bond proforma. Operating cash flow should be significantly improved in FY15 based on estimated tonnage and tip fees. Staff believes some consideration should be given to reducing the 10% Operating Reserve fund to free up additional cash to fund future critical capital expenditures such as replacement of the underground fuel tanks and


construction of a new fuel island or to fund other Board designated priorities. Staff will hire an engineering firm sometime in the next six to eight months to prepare a capital cost estimate for this tank replacement/fuel island project. This project has the potential to cause significant operational disruptions at Shoreway that could impact collection and transfer fueling operations. Reducing the Operating Reserve by increments of 1% would have the following impact:

% Operating Reserve Projected Balance FY 2013 Variance 10% (current policy) $3,819,668

9% $3,437,701 ($381,967) 8% $3,055,734 ($763,934) 7% $2,673,768 ($1,145,900)

Staff is not recommending any change to the rate stabilization reserve level of 10% which under previous policy had been 5%. This reserve fund is primarily intended to provide a buffer against any unexpected drop of commodity revenues like the commodity revenue price drop in 2008 that resulted in a $3.5 million revenue shortfall in that fiscal year. Background On October 22, 2009 the Board adopted a revised reserve policy (see Attachment A) that created three reserve accounts at the listed funding levels as follows:

• Operating Reserve funded up to a maximum of 10% of operating expenses (budget) • Rate Stabilization Reserve funded up to a maximum of 10% of operating expenses (budget) • Equipment Replacement Reserve funded per a 12-year replacement schedule for the new MRF

processing equipment. After meeting all debt service obligations, these reserves are funded in the order of priority as shown in Attachment B. For example, once the Operating Reserve is funded up to the maximum level, then net operating cash flows would flow into the Rate Stabilization Reserve fund, and then into the Equipment Replacement reserve. Once maximum fund levels are reached for each of the three reserve accounts, then surplus cash would be available as unallocated cash reserves. Attachment C graphically depicts how debt service obligations are required to be met before funding reserve accounts. The recommended reserve accounts are similar to previous cash reserve policy, but do differ somewhat as follows:

• Rate Stabilization reserve account is funded second in priority after the Operating reserve as opposed to be funded last in priority under current policy. The series 2009A bond indenture explicitly allows for the use of these reserve account funds to meet the two debt coverage requirements related to 1X O&M costs and 1.4X debt service. The reserve is also recommended at 10% of the operating budget as opposed to currently at 5%.

• Continuation of the Equipment Replacement reserve account, but based on a depreciation schedule tied to the new MRF processing equipment.

• Elimination of the Facilities Improvement Reserve.


The Board of Directors previously approved a reserve policy on February 20, 2002, creating four reserve accounts: Operating Reserve, Facilities Improvement Reserve, Equipment Purchase/Replacement Reserve and a Reserve for Rate Stabilization. These reserves are summarized below. Operating Reserve: There is no stipulation in the current or new Official Statement as to an operating reserve requirement, other than a stipulation that the assets be managed prudently to generate revenue to guarantee repayment of the bond issuance. The current reserve is funded at 10% of the operating budget. Facilities Improvement Reserve: The original cost of the fixed assets (building and equipment) at the Transfer Station and Recycling Center was $16,140,000 and the assets were purchased by the JPA for the depreciated amount of $5,230,000 ($2,843,325 for the buildings and $2,386,675 for furniture & equipment). The Board approved a reserve for facilities improvement and maintenance of 25% of the total building depreciation. Equipment Purchase/Replacement Reserve: This annual reserve is the greater of $1.5 million or 5% of the operating budget. Rate Stabilization Reserve: At such time, as the above three reserves have reached the targeted amounts, contributions to a rate stabilization reserve are currently funded to the maximum of 5% of the operating budget to alleviate, or moderate, the need for Transfer Station rate changes or fee increases. Fiscal Impact There is no fiscal impact at this is an item for discussion only.

Attachments: A – Current Cash Reserve Policy

B -- Flow Chart on Gross Revenues C -- Flow Chart on Net Operating Cash Flow into Cash Reserves


ATTACHMENT A


ATTACHMENT B

Operating Reserve(10% of Ops. Expenses)

Rate Stabilization Fund(10% of Ops. Expenses)

Equipment Replacement Reserve(Funded per schedule for single stream processing equipment)

Unallocated Reserves

Balloon payment on Series 2009B bonds

in 2014.

Transfer of funds allowed to ensure

meet two coverage tests per indenture

requirements.*

*Rate Covenant – The SBWMA covenants that it will fix, prescribe, and collect rates, fees and charges, and collect such other revenues in connection with the

Enterprise which, when added to the Additional Revenues in each Calendar Year will be at least 100% of: All current Maintenance and Operation Costs. The interest on and principal of the Bonds and any Parity Obligations.

– The SBWMA covenants that it will fix, prescribe, and collect rates, fees and charges in connection with the Enterprise for each Calendar Year so as to yield Net Revenues at least equal to 140% of Debt Service on the Bonds and any Parity Obligations.




Net Operating Cash Flow

Fund miscellaneous non-masterplan

facility improvements


ATTACHMENT C

Gross Revenues

Revenue Fund






Operating Reserve



STAFF REPORT To: SBWMA Board Members From: Kevin McCarthy, Executive Director Marshall Moran, Finance Manager Date: October 22, 2009 Board Meeting Subject: Resolution Approving Revised Unrestricted Cash Reserve Policy Recommendation Staff recommends Board approval of the attached resolution (Attachment A) revising the unrestricted cash reserve policy previously adopted on February 20, 2002. Analysis As part of Board approval of the FY 09/10 capital budget on July 23rd it was noted by staff that our FY2010 projections reflect substantially reduced surplus cash flows compared to prior budget years primarily due to reduced commodity revenue. Reserve funds have also been used to redeem the 2000 revenue bonds balance of $13.7 million. This has resulted in an inability to meet current Board approved reserve policies in the next fiscal year.

This staff report details a revised unrestricted cash reserve policy to sync with projected cash flows from the bond financing proforma while providing for long term prudent reserves to meet agency needs. As graphically depicted in Exhibit A, staff is recommending creation of three reserve accounts at the listed funding levels:

• Operating Reserve funded up to a maximum of 10% of operating expenses (budget) • Rate Stabilization Reserve funded up to a maximum of 10% of operating expenses (budget) • Equipment Replacement Reserve funded per a 12-year replacement schedule for the new MRF

processing equipment.

After meeting all debt service obligations, these reserves would be funded in the order of priority as shown in Exhibit A. For example, once the Operating Reserve is funded up to the maximum level, then net operating cash flows would flow into the Rate Stabilization Reserve fund, and then into the Equipment Replacement reserve. Once maximum fund levels are reached for each of the three reserve accounts, then surplus cash would be available as unallocated cash reserves. Exhibit B graphically depicts how debt service obligations are required to be met before funding reserve accounts. Projected annual reserve balances are shown in Attachment B and discussed under Fiscal Impact.

The recommended reserve accounts are similar to current policy, but do differ somewhat as follows:

• Rate Stabilization reserve account is funded second in priority after the Operating reserve as opposed to be funded last in priority under current policy. The series 2009A bond indenture explicitly allows for the use of these reserve account funds to meet the two coverage requirements related to 1X O&M costs and 1.4X debt service. The reserve is also recommended at 10% of the operating budget as opposed to currently at 5%.

• Continuation of the Equipment Replacement reserve account, but based on a depreciation schedule tied to the new MRF processing equipment.

• Elimination of the Facilities Improvement Reserve.

______________________________________________________________________________ SBWMA BOD PACKET 06/28/12

_______________________________________________________________________ AGENDA ITEM: 6B ATTACHMENT A p - 1


Staff believes given the substantial site and building improvements to be completed under the Shorerway masterplan that it is not necessary to establish a separate reserve for facility improvements; with the exception of necessary patch paving and some upgrades required in the Administration building, we will have upgraded substantial portions of the facility infrastructure via the masterplan improvements. Significant unallocated cash reserves will be available to pay for ongoing improvements needed. As with current policy, use of any reserve funds would be subject to Board approval. Background The Board of Directors approved a reserve policy on February 20, 2002, creating four reserve accounts: Operating Reserve, Facilities Improvement Reserve, Equipment Purchase/Replacement Reserve and a Reserve for Rate Stabilization. These reserves are summarized below and the full text can be found in Attachment C.

Operating Reserve: There is no stipulation in the current or new Official Statement as to an operating reserve requirement, other than a stipulation that the assets be managed prudently to generate revenue to guarantee repayment of the bond issuance. The current reserve is funded at 10% of the operating budget.

Facilit ies Improvement Reserve: The original cost of the fixed assets (building and equipment) at the Transfer Station and Recycling Center was $16,140,000 and the assets were purchased by the JPA for the depreciated amount of $5,230,000 ($2,843,325 for the buildings and $2,386,675 for furniture & equipment). The Board approved a reserve for facilities improvement and maintenance of 25% of the total building depreciation.

Equipment Purchase/ Replacement Reserve: This annual reserve is the greater of $1.5 million or 5% of the operating budget. Rate Stabilization Reserve: At such time, as the above three reserves have reached the targeted amounts, contributions to a rate stabilization reserve are currently funded to the maximum of 5% of the operating budget to alleviate, or moderate, the need for Transfer Station rate changes or fee increases.

Fiscal Impact Projected reserve account balances are shown in Attachment B. These projections were included in the bond financing proforma and assumed the creation of the three reserve accounts recommended above. The figures shown reflect funding the Operating Reserve at 10% of the operating budget and a funding level of 8% for the Rate Stabilization reserve. Staff is recommending a higher reserve level of 10% for the Rate Stabilization reserve to provide additional buffer against any unexpected drop of commodity revenues. The commodity revenue drop in 2008 resulted in a $3.5 million revenue shortfall in our last fiscal year. It is assumed that the Equipment Replacement reserve will be funded starting in 2012, though unallocated cash reserves would be available in 2011 to fund the Equipment reserve.

The unallocated reserve balances will be used to fund ongoing non-masterplan capital improvements (e.g., patch paving, upgrades to the administration building, etc.). These funds will also be used to make the 5-year balloon payment of $3 million due to the City of Burlingame on September 1, 2014 to pay off the series 2009B bonds. Non-masterplan capital improvements are expected to be approximately $200,000 per year, though much higher one-time capital expenditures are planned in

______________________________________________________________________________ SBWMA BOD PACKET 06/28/12



2010 and 2011 for administration building and corp. yard improvements necessary for Recology, the new franchise collection company.

Attachments A -- SBWMA Resolution 2009-30 Exhibit A -- Flow Chart on Gross Revenues Exhibit B -- Flow Chart on Net Operating Cash Flow into Cash Reserves B -- Projected Annual Reserve Balances C – Current Reserve Policy

______________________________________________________________________________ SBWMA BOD PACKET 06/28/12



RESOLUTION NO. 2009-30 RESOLUTION OF THE SOUTH BAYSIDE WASTE MANAGEMENT AUTHORITY BOARD OF DIRECTORS APPROVING A REVISED

UNRESTRICTED CASH RESERVE POLICY

WHEREAS, the SBWMA Board of Directors (the Board) approved an Unrestricted Cash Reserve Policy on February 20, 2002 (the Policy); and

WHEREAS, preliminary projections for fiscal year 2010 reflect substantially reduced surplus cash flows compared to prior budget years and will result in SBWMA being unable to meet cash reserve requirements previously established in the Policy; and

WHEREAS, a revised Policy will be compatible with projected cash flows published in the bond financing pro forma, and will provide for long term prudent reserves to meet SBWMA future needs.

NOW, THEREFORE, BE IT RESOLVED by the SBWMA Board of Directors hereby approves a revised Unrestricted Cash Reserve Policy as follows:

After meeting all debt service obligations of the SBWMA the following reserve accounts shall be funded in the following order of priority: 1. Operation Reserve funded up to a maximum of ten (10%) percent of budgeted

operating expenses. 2. Rate Stabilization Reserve funded up to a maximum of ten (10%) percent of

budgeted operating expenses. 3. Equipment Replacement Reserve funded per a 12 year cost replacement schedule for

the new MRF single stream processing equipment. 4. Unallocated Cash Reserve may be funded only after the reserve maximums are met

in the above three reserve fund from any surplus cash. Attached as Exhibit A to this Resolution depicts how operating cash flow funds the reserve accounts, and Exhibit B hereto depicts how debt service obligations are required to be met before funding the reserve accounts.

(continued)

ATTACHMENT A

______________________________________________________________________________ SBWMA BOD PACKET 06/28/12



PASSED AND ADOPTED by the Board of Directors of the South Bayside Waste Management Authority, County of San Mateo, State of California on the this 22nd day of October, 2009, by the following vote:

I HEREBY CERTIFY that the foregoing Resolution No. 2009-30 was duly and regularly adopted at a regular meeting of the South Bayside Waste Management Authority on October 22nd, 2009.

_______________________________ ATTEST: Martha DeBry, Chairperson of SBWMA _________________________________ Cathy Hidalgo, Board Secretary


______________________________________________________________________________ SBWMA BOD PACKET 06/28/12



EXHIBIT A

Operating Reserve(10% of Ops. Expenses)

Rate Stabilization Fund(10% of Ops. Expenses)

Equipment Replacement Reserve(Funded per schedule for single stream processing equipment)

Unallocated Reserves

Balloon payment on Series 2009B bonds

in 2014.

Transfer of funds allowed to ensure

meet two coverage tests per indenture

requirements.*







Net Operating Cash Flow

Fund miscellaneous non-masterplan

facility improvements

______________________________________________________________________________ SBWMA BOD PACKET 06/28/12



EXHIBIT B

Gross Revenues

Revenue Fund






Operating Reserve


______________________________________________________________________________ SBWMA BOD PACKET 06/28/12



ATTACHMENT B

2009A 2009B

Date Principal Principal Total Principal

PaymentOutstanding

Balance

Unallocated Reserve Balance

(Dec. 31)

Unallocated Reserve vs.

Bond Balance

9/1/2010 - - 56,500,000 - (56,500,000) 9/1/2011 - - 56,500,000 4,822,680 (51,677,320) 9/1/2012 1,095,000 1,095,000 55,405,000 8,142,307 (47,262,693) 9/1/2013 1,150,000 1,150,000 54,255,000 11,312,895 (42,942,105) 9/1/2014 1,205,000 3,000,000 4,205,000 50,050,000 11,382,772 (38,667,228) 9/1/2015 1,270,000 1,270,000 48,780,000 14,621,222 (34,158,778) 9/1/2016 1,310,000 1,310,000 47,470,000 17,777,973 (29,692,027) 9/1/2017 1,365,000 1,365,000 46,105,000 20,832,259 (25,272,741) 9/1/2018 1,420,000 1,420,000 44,685,000 23,773,138 (20,911,862) 9/1/2019 1,495,000 1,495,000 43,190,000 26,589,436 (16,600,564) 9/1/2020 1,570,000 1,570,000 41,620,000 29,276,422 (12,343,578) 9/1/2021 1,650,000 1,650,000 39,970,000 31,864,570 (8,105,430) 9/1/2022 1,735,000 1,735,000 38,235,000 34,333,024 (3,901,976) 9/1/2023 1,830,000 1,830,000 36,405,000 36,682,141 277,141 9/1/2024 1,925,000 1,925,000 34,480,000 38,904,764 4,424,764 9/1/2025 2,025,000 2,025,000 32,455,000 41,582,567 9,127,567 9/1/2026 2,150,000 2,150,000 30,305,000 44,132,525 13,827,525 9/1/2027 2,285,000 2,285,000 28,020,000 46,567,915 18,547,915 9/1/2028 2,430,000 2,430,000 25,590,000 48,877,018 23,287,018 9/1/2029 2,580,000 2,580,000 23,010,000 51,052,257 28,042,257 9/1/2030 2,740,000 2,740,000 20,270,000 53,107,761 32,837,761 9/1/2031 2,905,000 2,905,000 17,365,000 55,010,217 37,645,217 9/1/2032 3,080,000 3,080,000 14,285,000 56,771,873 42,486,873 9/1/2033 3,265,000 3,265,000 11,020,000 58,383,314 47,363,314 9/1/2034 3,460,000 3,460,000 7,560,000 60,040,496 52,480,496 9/1/2035 3,670,000 3,670,000 3,890,000 61,744,716 57,854,716 9/1/2036 3,890,000 3,890,000 -

53,500,000 3,000,000 56,500,000

Note: excludes accrued interest between 9/1 & 12/31

South Bayside Waste Management Authority AuthoritySolid Waste Enterprise Revenue Bond

Series 2009A & B Bond Amortization vs. Cummulative Unallocated Reserve Balance

______________________________________________________________________________ SBWMA BOD PACKET 06/28/12



2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

$3,360,252 $3,695,250 $3,469,049 $3,513,750 $3,624,500 $3,719,200 $3,827,860 $3,937,130 $4,050,270 $4,166,820 $4,286,849 $4,410,210$2,075,759 $2,058,050 $2,775,240 $2,811,000 $2,899,600 $2,975,360 $3,062,288 $3,149,704 $3,240,216 $3,333,456 $3,429,479 $3,528,168

Equipment Replacement Reserve $0 $0 $0 $1,225,000 $2,525,000 $3,864,000 $5,243,000 $6,663,000 $8,126,000 $9,633,000 $11,185,000 $12,783,000$0 $0 $4,822,680 $8,142,307 $11,312,895 $11,382,772 $14,621,222 $17,777,973 $20,832,259 $23,773,138 $26,589,436 $29,276,422

$5,436,011 $5,753,300 $11,066,969 $15,692,057 $20,361,995 $21,941,332 $26,754,370 $31,527,807 $36,248,745 $40,906,414 $45,490,764 $49,997,800

2021 2022 2023 2024 2025 2026 2027 2028 2029

$4,539,023 $4,672,960 $4,811,868 $4,954,922 $5,102,177 $5,253,695 $5,409,635 $5,570,363 $5,735,742$3,631,218 $3,738,368 $3,849,495 $3,963,937 $4,081,742 $4,202,956 $4,327,708 $4,456,290 $4,588,593

Equipment Replacement Reserve $14,429,000 $16,125,000 $17,872,000 $19,671,000 $20,933,000 $22,233,000 $23,572,000 $24,951,000 $26,371,000$31,864,570 $34,333,024 $36,682,141 $38,904,764 $41,582,567 $44,132,525 $46,567,915 $48,877,018 $51,052,257$54,463,811 $58,869,352 $63,215,504 $67,494,624 $71,699,487 $75,822,176 $79,877,259 $83,854,670 $87,747,592


Unallocated ReserveTotal Unrestricted Reserve

Operating ReserveRate Stabilization Reserve

Unallocated ReserveTotal Unrestricted Reserve

Reserve Ending Balance:

Reserve Ending Balance:Operating Reserve

______________________________________________________________________________ SBWMA BOD PACKET 06/28/12



ATTACHMENT C

SOUTH BAYSIDE WASTE MANAGEMENT AUTHORITY Board of Directors Agenda Report

To: Michael P. Garvey, Chairman of the Board From: Richard H. Averett, Finance Director Date: February 20, 2002 Subject: Reserve Policy

Staff recommends that the SBWMA Board review and adopt the Reserve Policy

Background The SBWMA’s ownership of the transfer station and recyclery is approaching its second year of operations providing a limited historical view of normal cash flows (revenue and expenditures). This data can be used to develop a reasonable and prudent reserve plan for short and long-term financial operation of the businesses. The attached proposed Reserve Policy recommends creating four reserve accounts: Operating Reserve, Facilities Improvement Reserve, Equipment Purchase/Replacement Reserve and a Reserve for Rate Stabilization. Recommended Reserve Policy Operating Reserve: There is no stipulation in the Official Statement as to an operating reserve requirement, other than a stipulation that the assets be managed prudently to generate revenue to guarantee repayment of the bond issuance. It is generally accepted practice to plan for a 15-20% operating reserve. However, most (80%) of the $33 million budget is for the BFI contract, the amount of which is dependent on revenue earnings from operations. Therefore, cash flow risk exposure is minimized and a 10% reserve (currently $3.3 million) is recommended. Facilities Improvement Reserve: The original cost of the fixed assets (building and equipment) at the Transfer Station and Recyclery was $16,140,000 and the assets were purchased by the JPA for the depreciated amount of $5,230,000 ($2,843,325 for the buildings and $2,386,675 for furniture & equipment). Staff recommends a reserve for facilities improvement and maintenance of 25% of the total building depreciation (currently $8.7 million). A 25% reserve equals $2.175 million at the current depreciation amount. Equipment Purchase/Replacement Reserve: The SBWMA budget currently recognizes a reserve for equipment purchase/replacement in the amount of $1.5 million per year. Staff recommends that this annual reserve contribution be the greater of $1.5 million or 5% of the operating budget (currently $1.56 million). Within two years staff will develop an asset replacement reserve program that will identify a replacement cost method for contributing to the Facilities Improvement Reserve and the

______________________________________________________________________________ SBWMA BOD PACKET 06/28/12



Equipment Replacement Reserve. This asset funding program will be fully implemented (include all assets) within four years. Rate Stabilization Reserve: At such time as the above three reserves have reached the targeted amounts, contributions to a rate stabilization reserve will be funded to the maximum of 5% of the operating budget to alleviate, or moderate, the need for Transfer rate changes. It is projected that the rate stabilization reserve account could be substantially funded by the end of fiscal year 2002, assuming a sufficient unrestricted, unappropriated fund balance. Below is a summary of the impact, in dollars, of the recommended reserve policy (attached) and the projected fiscal year balances in each reserve account based on an estimated operating budget of $33 million.

Reserve Targeted Projected 9/30/02

Variance from

Amount Amount Balance Target Operating $3.3 MM $3.3 MM $0 Facilities Improvements

$2.175 MM $2.175 MM $0

Equipment (annual) $1.65 MM $2.4 MM $0 Rate Stabilization $1.65 MM

(max) $1,000,000 $.65MM

______________________________________________________________________________ SBWMA BOD PACKET 06/28/12



STAFF REPORT To: SBWMA Board Members From: Cliff Feldman, Recycling Programs Manager Date: June 28, 2012 Board of Director’s Meeting Subject: Resolution Approving a Contract with Sloan Vazquez, LLC to Conduct the Recology

Quarterly Contamination Monitoring for FY 2013 Recommendation It is recommended that the SBWMA Board of Directors approve Resolution No. 2012-13 attached hereto authorizing the following action:

Authorize the Executive Director to execute a contract with Sloan Vazquez, LLC to conduct the Recology San Mateo County Quarterly Contamination Monitoring for FY 2013 for a not-to-exceed amount of $55,000.

Analysis To summarize the scope of work, this project will entail implementing the quarterly contamination measurement prescribed in the Member Agencies Franchise Agreements in Attachment E-2 for a total of two quarters in FY 2013. This work has been done for the prior five consecutive quarters by Sloan Vazquez. Specifically, this work involves taking twelve randomly selected samples from five materials streams each quarter and measuring the level of contamination in each sample. The results are used to calculate the amount of contamination related disincentive payment that Recology is obligated to pay the SBWMA each quarter. Sloan Vazquez is prepared to provide this work for two ($55,000), three ($83,000) or all four ($110,000) quarters of FY 2013. These costs are provided for the Board’s consideration since Staff is recommending performing this work only twice per year commencing with FY 2013, despite the Member Agencies Franchise Agreements prescribing this work be done each quarter. Staff has been discussing with Recology various changes and improvements to the Franchise Agreements that will likely take the form of future contract amendments. Staff and Recology will make a presentation at the July 26th Board meeting regarding potential future contract amendments that will accomplish a shared goal of approving the efficiency of contract administration and providing cost savings where possible. Background In 2007, the Board approved staff’s recommendation to ensure that a comprehensive contamination management program would be included in both the future Franchise Agreement and Shoreway Environmental Center (Shoreway) Operations Agreement. The primary rationale for this recommendation was to control costs for the SBWMA as excessive contamination increases disposal and processing costs and can also result in reduced commodity revenue. Subsequently, the Collection Services and Facility Operations RFPs were issued with provisions mitigating the impact of contamination on both the SBWMA and Member Agencies. Thus, the Franchise Agreement(s) with Recology and the Shoreway Operations Agreement with SBR both include specific provisions and associated monetary penalties to reduce contamination as much as possible.


The Franchise Agreement(s) with Recology contain provisions in section 6.02 and Attachment I (Performance Incentives and Disincentives) that explains the maximum contamination levels and how monetary penalties associated with exceeding these levels would be calculated. In addition, Attachment E-2 (Contamination Measurement Methodology: Quarterly Protocol) prescribes in detail the sampling methodology and statistical rationale supporting implementation of this methodology that is used to measure contamination on a quarterly basis. Staff issued a Request for Proposals (RFP) for implementing the Collection Services Quarterly Contamination Sampling for FY 2012 on June 15, 2011 and received proposals from four consulting firms. After evaluating the proposals, conducting interviews and following up with pertinent references, staff recommended and the Board approved contracting with Sloan Vazquez to perform this work for FY 2012. Fiscal Impact The SBWMA proposed FY 2013 budget (see Quarterly Contamination Monitoring line item) includes $55,000 for the contractor contamination monitoring work. The contract with Sloan Vazquez for a not-to-exceed amount of $55,000 will be paid for with these funds.

Attachments: Resolution 2012-13



MANAGEMENT AUTHORITY BOARD OF DIRECTORS AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE A CONTRACT

WITH SLOAN VAZQUEZ LLC FOR FY 2013 RECOLOGY QUARTERLY CONTAMINATION MONITORING

WHEREAS, the South Bayside Waste Management Authority (SBWMA) Board of Directors has considered entering into a contract with Sloan Vazquez, LLC, to conduct the Recology San Mateo County Quarterly Contamination Monitoring for FY 2013; and

WHEREAS, on June 15, 2011 Staff issued a Request for Proposals (RFP) for Implementing the Collection Services Quarterly Contamination Sampling for FY 2012 and subsequently received proposals from four consulting firms by the deadline of July 15, 2011; and

WHEREAS, while all four firms submitting proposals in response to the RFP issued on June 15, 2011

were qualified to provide the work solicited, the consultant firm of Sloan Vazquez, LLC scored the highest and a contract was negotiated with this firm; and

WHEREAS, Sloan Vazquez, LLC has satisfactorily performed this work for the SBWMA commencing with

the second quarter of 2011; and WHEREAS, attached as Exhibit A is an Agreement for Professional Services the Board has reviewed.

NOW, THEREFORE, BE IT RESOLVED by the SBWMA Board of Directors hereby approves the Agreement with Sloan Vazquez, LLC, Exhibit A hereto.

PASSED AND ADOPTED by the Board of Directors of the South Bayside Waste Management Authority, County of San Mateo, State of California on the 28th day of June, 2012, by the following vote:





STAFF REPORT To: SBWMA Board Members From: Cliff Feldman, Recycling Programs Manager Date: June 28, 2012 Board of Director’s Meeting Subject: Resolution Approving the Findings from Review of Collection Services and Facility

Operations Reports, Tonnage Data and Customer Service Systems Auditing Project Performed by Hilton, Farnkopf and Hobson Consulting, LLC

Recommendation It is recommended that the SBWMA Board of Directors approve Resolution No. 2012-14 attached hereto authorizing the following action:

1. Approve the findings from Review of Collection Services and Facility Operations Reports, Tonnage Data and Customer Service Systems Auditing Project performed by Hilton, Farnkopf and Hobson Consulting, LLC (Exhibit A).

2. Approve including the restated Liquidated Damages and Performance Incentives and Disincentives in Recology’s 2013 Compensation Application due on July 1, 2012 per Table 2 of Exhibit B.

Analysis Recology The audit work performed by Hilton, Farnkopf and Hobson Consulting, LLC (HF&H) commenced in September 2011 and has been concluded recently with submittal of the project report attached as Exhibit A. HF&H identified contract compliant and non-compliant aspects of both Recology San Mateo County (Recology) and South Bay Recycling (SBR) operations and reporting. The results of this auditing work are summarized in the recommendations consolidated in Section 5 of the report. Recology fell short of operating its call center in accordance with the standards prescribed in the Franchise Agreement(s) and thus under-reported the impact of quantifying the types of calls received related to lapses of service. The HF&H audit identified that several metrics driven reporting categories (i.e., associated with Liquidated Damages and Performance Incentives/Disincentives) were under reported due to problems Recology had with distinguishing between the type of customer call for service and the service category reported. These discrepancies were primarily due to the company’s customer service representatives (CSR) inconsistently or erroneously coding service transactions. In an effort to address the myriad of potential call types, Recology established 5 pages (211 in all) different service codes, most of which are used by their CSR’s to code any one customer call. These service codes were then used by the company to determine and report on Liquidated Damages and Performance Incentives/Disincentives. Therefore, the extensive number of coding categories established by Recology contributed to the confusion for CSR’s who must categorize each call even though there may be several reasons for a call and because a call itself may or may not be clear or accurate. It is important to note that revising the service codes to simplify them and to tie many specifically to reportable events are recommendations contained in the HF&H report. In recent discussions with Recology, it has been acknowledged


that over the next reporting period, the company and Staff will work to further refine the service codes to improve both the streamlining and accuracy of reporting in the future. Due to the complexities presented by the large number of coding categories, resulting volume of service information, and errors made by CSRs (i.e., miscoding of customer call information) as identified per the HF&H audit, HF&H applied an extrapolation methodology to determine revised data for determining Liquidated Damages and Performance Incentives/Disincentives payments for 2011. This extrapolation approach is not specifically prescribed in the Franchise Agreements. The use of this approach should not be considered or construed in any way as precedent setting to determine future payments for Liquidated Damages and Performance Incentives/Disincentives. It should be noted that such an extrapolation approach had been used in the past for the Allied Waste franchise agreements in circumstances where no other methodology was suitable for capturing data required for contract compliance. The extrapolation methodology results were shared with Recology and the company was given the original source data from HF&H to determine if they agreed with the analysis. Recology did identify some errors or data interpretation issues which were then addressed in revised extrapolation results. Therefore, the final figures based on the extrapolation methodology used by HF&H to recalculate Liquidated Damages and Performance Incentive/Disincentive payments are now contained in the HF&H report (Exhibit A) Figures 3-9, 3-11, 3-12 and 3-13 (pages 30, 34, and 35). Exhibit B provides a table presenting these figures in total and for each Member Agency individually. In addition, Exhibit B compares the figures or results of HF&H’s audit with the figures included in the originally restated version of Recology’s 2011 Annual Report issued on March 14, 2012. Staff’s recommendation is to apply the figures contained in Table 2 of Exhibit B which reflect omitting statistics related to the month of January 2011. While the company officially requested relief from all Member Agencies for the entire First Quarter of 2011 in correspondence dated May 3, 2011, staff is in concurrence with providing relief for the month of January only. The rationale to omit these statistics is primarily due to the unforeseen volume of phone calls received in January and the magnitude of rolling out new services to the entire SBWMA service area. The scope of this effort should not be diminished as this new services roll-out impacted every household and business and this undertaking was unprecedented. It is Staff’s opinion that the company did an excellent job in rolling out the new services and responding to numerous requests in a timely and professional manner during the roll-out, thus providing relief for the month of January 2011 is warranted. In addition, Staff is recommending that the additional Liquidated Damages calculated and owed to the Member Agencies be used to offset the net balance of Performance Incentives owed to Recology for 2011. The mechanism to accomplish this is to provide relief to the company from issuing another round of checks directly to the Member Agencies as is prescribed in the Franchise Agreements, and instead use these Liquidated Damages payments to offset the Performance Incentive payment amounts that will be included in Recology’s 2013 Compensation Application due to be issued on July 1, 2012. Therefore, the result will be a reduction in the net balance of the Performance Incentive and Disincentive payments calculated for 2011, which primarily is a result of the Overall Diversion Incentive payment due. Numerous other operational, systems related and reporting findings and recommendations were also included in the HF&H audit report. Many of these recommendations have already been addressed by Recology such as restating the Multi-Family Dwelling tonnage. However, the SBWMA and Recology plan to meet and confer about the remaining recommendations. The company has agreed to address the remaining recommendations of the audit findings. Staff will return to the Board in 60 days with an update on the company’s progress on those recommendations. The SBWMA FY 2013 budget includes $120,000 for Collection Services Franchise Agreement


related activities including conducting additional auditing work primarily limited to confirming that the company is in compliance with the agreed upon implementation plan. SBR The discrepancies in reporting identified in Figure 4-1 and Figure 4-2 (page 39) of the HF&H report had no impact to revenues due to SBWMA from SBR. This was a reporting discrepancy only, and per the recommendations, SBR will resubmit its December 2011 report to include the annual results broken down by month. With regard to Figure 4-3 (page 40), SBR has conveyed that it obtains bids for its commodities from local reputable brokers (i.e., PET, Aluminum, HDPE-N, HDPE-C, Tin/Steel, etc.) and regional and national price variances for these commodities are typically 8% or less. These variances may be attributable to non-commodity price issues like transportation cost differences between Freight On Board origin and end user destination. Staff believes that the difference between the prices shown in this figure can be explained through a combination of pricing factors that are imbedded into the payment amounts to the SBWMA. Background The Member Agencies Collection Services Franchise Agreements with Recology prescribe numerous performance standards and also require the company to compile information and submit monthly, quarterly and annual reports. The information and data contained in these reports is substantially self-reported by the company. For example, all of the Performance Incentives and Disincentives (Attachment I) with the exception of disincentives related to contamination are self reported by Recology. In addition, the Liquidated Damages (Attachment J) events are also self-reported by the company. The Shoreway Facility Operations Agreement with SBR requires the company to accurately record and report on tonnage. Staff issued the Request for Proposals (RFP) for Collection Services and Facility Operations Contractor Data, Records, Systems and Reports Auditing on May 17, 2011 and received proposals from three consultant firms. After evaluating the proposals, conducting interviews and following up with pertinent references, staff recommended and on July 28, 2011 the Board approved contracting with HF&H to perform this work for FY 2012 for a cost not to exceed $70,000. To summarize the scope of work, the project entailed a thorough auditing of both Recology and SBR’s data compilation, management, storage and reporting. The audit included assessing Recology’s call center functions to ensure the accuracy of transcribing and reporting information, complaints and requests for service from customers. The scope of auditing SBR’s operations was limited to the scale house operations (i.e., tonnage reporting) and reporting of commodity revenues. The general rationale for this project was to conduct an audit to ensure the accuracy of tonnage reporting and since Recology’s compliance with numerous performance standards and metrics are self-reported. Thus, the auditing work was meant to reveal how well both Recology and SBR obtained, compiled and reported data to the Member Agencies per the requirements prescribed in the Franchise Agreement(s) and Shoreway Facility Operations Agreement, respectively. In addition to the contract with HF&H, the auditing work involved the limited scope services of another consultant, Ira Cohen Consulting, who provided needed information technology data forensics expertise. Fiscal Impact The fiscal impact results in revisions to the Liquidated Damages and Performance Incentive/Disincentive payments calculated by Recology and included in its 2011 Annual Report. The recommendations result in including both the Liquidated Damages and Performance Incentive/Disincentive restated figures in Recology’s 2013 Compensation Application. The audit findings result in the net Liquidated Damages and Performance


Incentive/Disincentive amounts owed to Recology for 2011 decreasing from $877,792 to $768,347 excluding January 2011, and from $877,792 to $617,184 including January 2011.

Attachments: Resolution 2012-14 Exhibit A - HF&H Collection Services and Facility Operations Auditing Project Report. Exhibit B – Table comparing the Liquidated Damages and Performance Incentive/Disincentive payments included in Recology’s originally restated 2011 Annual Report issued on March 14, 2012 with the findings provided in the HF&H Collection Services and Facility Operations Auditing Project Report.



RESOLUTION OF THE SOUTH BAYSIDE WASTE MANAGEMENT AUTHORITY BOARD OF DIRECTORS APPROVING THE FINDINGS FROM REVIEW OF COLLECTION SERVICES AND

FACILITY OPERATIONS REPORTS, TONNAGE DATA AND CUSTOMER SERVICE OPERATIONS AUDITING PROJECT REPORT PREPARED BY HF&H

WHEREAS, on July 28, 2011 the South Bayside Waste Management Authority (SBWMA) Board of Directors approved a contract with Hilton, Farnkopf and Hobson Consulting, LLC (HF&H), for the purpose of providing collection services and facility operations contractor data, records, systems and reports auditing project; and,

WHEREAS, attached as Exhibit A hereto is the Collection Services and Facility Operations Auditing Project report prepared by HF&H that the Board has reviewed; and,

WHEREAS, the HF&H report provides several findings and twenty-five (25) recommendations which

Recology has agreed to address; and, WHEREAS, the HF&H report calculated restated Liquidated Damages and Performance Incentives and

Disincentives payments due to the Member Agencies and/or Recology including and excluding the month of January 2011; and,

WHEREAS, attached as Exhibit B hereto are the restated Recology 2011 Liquidated Damages and

Performance Incentives and Disincentives that the Board has reviewed; and,

NOW, THEREFORE, BE IT RESOLVED by the SBWMA Board of Directors do hereby: 1. Approve the findings from Review of Collection Services and Facility Operations Reports, Tonnage Data and

Customer Service Systems Auditing Project performed by Hilton, Farnkopf and Hobson Consulting, LLC (Exhibit A).

2. Approve including the restated Liquidated Damages and Performance Incentives and Disincentives in Recology’s 2013 Compensation Application due on July 1, 2012 per Table 2 of Exhibit B.


PASSED AND ADOPTED by the Board of Directors of the South Bayside Waste Management Authority, County of San Mateo, State of California on the 28th day of June, 2012, by the following vote:



Agency Yes No Abstain Absent Agency Yes No Abstain Absent Atherton Menlo Park Belmont Redwood City Burlingame San Carlos East Palo Alto San Mateo Foster City County of San Mateo

Hillsborough West Bay Sanitary District

June 18, 2012

South Bayside Waste Management Authority

Collection Services and Facility Operations Auditing Project

HF&H Consultants, LLC

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_______________________________________________________________________ AGENDA ITEM: 6D EXHIBIT A p - 1

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Managing Tomorrow’s Resources Today

201 N. Civic Drive, Suite 230 Robert D. Hilton, CMC Walnut Creek, California 94596 John W. Farnkopf, PE Telephone: 925/977‐6950 Laith B. Ezzet, CMC Fax: 925/977‐6955 Richard J. Simonson, CMC www.hfh‐consultants.com Marva M. Sheehan, CPA

June 18, 2012 Mr. Cliff Feldman Recycling Programs Manager South Bayside Waste Management Authority City of San Carlos 610 Elm Street San Carlos, CA 94070 Subject: Review of Collection Services and Facility Operations Auditing Project

Reference Number: S2949

Dear Mr. Feldman:

This report documents HF&H Consultants, LLC’s (HF&H) and Cascadia Consulting Group’s (Cascadia) findings and recommendations to the South Bayside Waste Management Authority (SBWMA) from our review of the legitimacy and accuracy of the information contained in reports issued by both Recology of San Mateo (Recology) and South Bay Recycling (SBR), collectively “Contractors”.

* * * * HF&H appreciates the assistance provided by Recology and SBR management and staff during our review and the direction and assistance received from the SBWMA. Should you have any questions, please call me at 925/977‐6957. Very truly yours, HF&H CONSULTANTS, LLC Richard J. Simonson, CMC Vice President cc: HF&H Client Files

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SBWMA Table of Contents Collection Services and Facility Operations Auditing Project

June 18, 2012 Page i HF&H Consultants, LLC

TABLE OF CONTENTS

SECTION 1: INTRODUCTION ........................................................................................ 1 1.1 Background ......................................................................................................... 1 1.2 HF&H Scope of Work .......................................................................................... 2 1.3 Report Organization ............................................................................................ 3 1.4 Limitations ........................................................................................................... 3

SECTION 2. COMPLETENESS AND MATHEMATICAL ACCURACY ......................... 4 2.1 Completeness of Reports - Recology ................................................................. 4 2.2 Completeness of Reports - SBR ......................................................................... 8 2.3 Mathematical Accuracy and Logical Consistency of Reports – Recology ......... 10 2.4 Mathematical Accuracy and Logical Consistency of Reports - SBR ................. 12 2.5 Matrix Documenting Sources for Each Report Category .................................. 12

SECTION 3. EVALUATE ACCURACY OF RECOLOGY DATA ................................. 15 3.1 Accuracy of Tonnage Data Reported ................................................................ 15 3.2 Customer Service Review ................................................................................. 19

SECTION 4. EVALUATE ACCURACY OF SBR DATA .............................................. 37 4.1 Verify Accuracy of In-Bound Tonnage Data Reported ...................................... 37 4.2 Verify Accuracy of Out-Bound Tonnage Data Reported ................................... 37 4.3 Verify Accuracy of Commodity Revenue Data Reported .................................. 38 4.4 On-Site Monitoring of Scale House Transactions ............................................. 40 4.5 Verify Accuracy of Liquidated Damages ........................................................... 44

SECTION 5. RECOMMENDATIONS ........................................................................... 45 Recology .................................................................................................................. 45 SBR ......................................................................................................................... 48

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SBWMA Section 1: Introduction Collection Services and Facility Operations Auditing Project

June 18, 2012 Page 1 HF&H Consultants, LLC

SECTION 1: INTRODUCTION

1.1 Background

The South Bayside Waste Management Authority (SBWMA) developed a model franchise agreement that each of its member agencies used to develop their own franchise agreement with Recology San Mateo County (Recology) for recyclable materials, organic materials, and solid waste collection services. In addition, the SBWMA executed an operating agreement with South Bay Recycling (SBR) to operate the SBWMA‐owned Shoreway Environmental Center (SEC) in the City of San Carlos.

Article 9 of the Recology agreements establishes monthly, quarterly, and annual reporting requirements, which include but is not limited to:

Tonnage information for each member agency by material type (e.g., solid waste, recyclable materials, organic materials, etc.) and by service sector (e.g., residential, commercial, multi‐family dwelling, member agency facility, etc.).

Customer service calls received for each member agency by inquiry/request/complaint type (e.g., missed pick‐up, excessive noise, property damage, request for a bulky item collection, information request, etc.).

Call center phone statistics (e.g., number of calls received, average hold time, percentage of calls answered in 90 seconds, etc.).

Operating statistics (i.e., number of routes per day, number of accounts per route, etc.).

A liquidated damages report which summarizes the number of complaints in each complaint category and computes the amount (if any) of liquidated damages accrued (for each instance of non‐compliance with the standards established in Attachment J of the agreements).

The calculation of performance incentive and disincentive payments resulting from exceeding or falling short of the agreed‐upon performance standards in accordance with Attachment I of the agreements.

Article 9 of the SBR agreement establishes monthly, quarterly and annual reporting requirements, which include but is not limited to:

Weight and volume of all materials by material type (e.g., solid waste, recyclable materials, organic materials, etc.) and hauler type (e.g., Recology, public, commercial haulers, etc.) entering the SEC.

Weight and volume of all materials by material type (e.g., solid waste, recyclable materials, organic materials, etc.) leaving the SEC.

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Weight and volume of all materials moving between the buildings and operations at the SEC (e.g., between the material recover facility, transfer station building, and the buyback center).

The calculation of liquidated damages resulting from non‐compliance of the agreed‐upon performance standards listed in Attachment 10 of the agreement.

Complete inventory of equipment used to operate the SEC.

Complete list of SBR personnel used to operate the SEC.

Recology and SBR, collectively “Contractors”, are required to compile and maintain records related to its performance to develop various reports required per the collection agreements and operating agreement, as described above. The primary nature of the quantitative data presented in the Contractors’ reports is self‐reported. Therefore, the goal for this review is to confirm the legitimacy and accuracy of the information contained in reports issued by the Contractors.

1.2 HF&H Scope of Work

The SBWMA retained HF&H Consultants (HF&H) to review, test, and verify the legitimacy and accuracy of the information contained in the reports, as well as provide recommendations for improvement, if necessary. Our scope of work involved the following tasks:

Meeting with the SBWMA, Recology, and SBR staff to: (1) discuss the goals and objectives of the reporting audit; (2) reach agreement on the roles and responsibilities of HF&H, SBWMA, and Contractor staff; (3) discuss the structure and components to be included in the final project report; and, (4) reach agreement on a project timeline.

Assessing reports for compliance with the agreements;

Examining reports for mathematical accuracy and logical consistency;

Interviewing Contractor staff to understand policies and procedures for gathering and reporting various data contained in the reports;

Reviewing Contractors’ historical reports, data, and customer complaint logs;

Conducting on‐site assessment of Recology’s customer service operations;

Conducting on‐site assessment of SBR’s scale house operations;

Verifying the accuracy of Recology’s allocation of collected tonnage to the SBWMA’s twelve member agencies;

Verify the accuracy of SBR’s reported in‐bound and out‐bound tonnage at the SEC;

Verify the integrity of hardware and software systems;

Presenting our findings and providing recommendations for improvement.

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1.3 Report Organization

This report is organized in the following sections:

Section 1 provides a brief background on the SBWMA’s goals and objectives for the collection services and facility operations report auditing project and an overview of HF&H’s scope of services.

Section 2 describes the completeness and mathematical accuracy of the monthly, quarterly and annual reports provided by the Contractors. It also provides a matrix documenting the sources for each report category.

Section 3 summarizes the methodology and findings of our review of Recology’s monthly, quarterly, and annual reports. Specifically, the section focuses on our assessment of: 1) Recology’s customer service call center representatives, call documentation, and call center reporting; 2) Recology’s allocation of collected tonnage to the SBWMA’s twelve member agencies; and, 3) Recology’s calculation of liquidated damages, incentives, and disincentive payments, if any.

Section 4 summarizes the methodology and findings of our review of SBR’s monthly, quarterly, and annual reports. Specifically, the section focuses on our assessment of: 1) SBR’s reported in‐bound and out‐bound tonnage by material type; 2) SBR’s operation of the transfer station scale house; 3) SBR’s reported revenue from the sale of recyclable materials; and, 4) SBR’s calculation of liquidated damages, if any.

Section 5 provides a consolidated summary of all recommendations.

1.4 Limitations

The scope of our work does not constitute an audit of financial statements, or any part thereof. As with any project of this type, other matters might have come to our attention that would have been pertinent to report if we had performed additional procedures. Additionally, we did not perform testing procedures that would provide statistically‐valid results, except the testing we conducted in Section 3.2.1 (which did provide statistically valid results). The sample sizes used were intended to confirm that the Companies’ stated policies and procedures used to compile their monthly, quarterly, and annual reports to the SBWMA’s Member Agencies were implemented consistently and accurately.

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SBWMA Section 2. Completeness and Mathematical Accuracy Collection Services and Facility Operations Auditing Project


SECTION 2. COMPLETENESS AND MATHEMATICAL ACCURACY

This section documents our review that the reports submitted by the Contractors are complete for each of the reporting categories required in accordance with Article 9 of the Recology collection agreements and SBR operating agreement. Summarized below is HF&H’s analysis and findings from our review of the completeness of the reports submitted, and the mathematical accuracy and logical consistency (that the columns and rows add correctly and tie to supporting schedules within the report).

2.1 Completeness of Reports - Recology

HF&H obtained hard copy and electronic files of Recology’s monthly, quarterly, and annual reports and compared the contents of the reports to the required contents in accordance with Section 9.05, 9.06, and 9.07, respectively, in Recology’s collection agreements. The following Figures summarize the required contents of the monthly, quarterly, and annual reports and states whether Recology submitted the required information and includes comments when additional explanation is necessary. Note: these Figures only state whether the information was provided, in part or in whole, and does not attest to the accuracy of the information. The accuracy of the information was also tested during this project and our findings are summarized in Section 3 of this report.

Figure 2‐1

Report RequirementsIncluded in Reports? Comments

Tonnage Data. Provide tons collected by material type within each member agency.

YesMFD tonnage included in commercial tonnage, not reported separately

Diversion Level. Calculate percentage of tons diverted compared to total tons collected.

Yes

Complaint, Inquiry, Requests Data. Provide total number of customer calls by type (e.g., missed pick up complaint, noise complaint, bulky item collected request).

Yes

Call Center Data. Provide number of calls received, average hold times, percentage of calls answered within 90 seconds, etc.

Yes

Monthly Gross Revenue and Fees. Provide billed revenue and agency fees paid by member agency.

YesNot included in printed copy; provided in excel format to SBWMA

On‐Site Assesments and Visual Audits. Provide number of on‐site recycling assessments and visual audits conducted for multi‐family, commercial, and agency facility customers.

Yes

Quality Assurance Program. Provide summary of customers contacted and results of service satisfaction.

Yes

Recology Monthly Reports (Article 9.05)

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Figure 2‐2

Report RequirementsIncluded in Reports? Comments

Cumulative summary of information provided in Monthly Reports (for the previous three months).

Yes

PLUS:

Education Activities. Summary of public education materials distributed and events attended.


Determination and Payment of Liquidated Damages. Provide number of occurances and allowances (in accordance with Attachment J of the agreements) of incidences that trigger liquidated damages and calculate amount due, if any.

Yes

Account Summary. Provide number of customers subscribing to each rate category.


Summary Assessment. Highlight significant accomplishments and/or problems. Identify recommendations/plans to rectify problems.

Yes

Public Education Plan. 3rd Quarter report shall include the public education plan for the forthcoming year.

Yes

Hazardous Waste Records. Provide summary or copy of hazardous waste records.


Operational Data. Provide summary of collection route statistics (i.e., on‐route hours, off‐route hours, collections per route, etc.) and list of 100 largest generators.


Commercial Recycling Promotion Program. Provide commercial recycling program status report.

Yes

Determination and Payment of Incentives and Disincentives. Provide number of occurances and thresholds (in accordance with Attachment I of the agreements) of incidences that trigger incentive or disincentive pyaments and calculate amount due to or from Recology, if any.

Yes

Recology Quarterly Reports (Article 9.06)

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Figure 2‐3

Included in Reports? Comments

Cumulative summary of information provided in Quarterly Reports.

Yes

PLUS:

A. Operational Information1. Routes by Service Sector

a. Number of routes per Day Yesb. Types of vehicles Yes

c. Crew size per route IncompleteDid not include crew sizes for bulky routes or roll‐off routes

d. n/a; "d" skipped in draft agreements n/a n/a

e. Number of full‐time equivalent routes YesTotal # of routes provided; not expressed as full‐time equivalent routes (i.e., 1 route = 8 hrs)

f. Number of accounts per route IncompleteDid not include crew sizes for bulky routes or roll‐off routes

g. Total hours per Service Sector per Day and per year Yesh. Average cost per route Yes

i. Route sheets and maps YesSample included in hardcopy; all others provided to SBWMA electronically on a flash drive

2. Personnela. Organizational chart Yesb. Job classifications and number of full‐time equivalent positions for each

Incomplete Did not include non‐union employees

c. Annual wages by job classification including benefitsIncomplete Did not include non‐union employees

3. Productivity Statistics

a. Number of accounts per Service Sector IncompleteOnly included municipal solid waste accounts, did not include recyclable material or organics accounts

b. Number of set‐outs per Service Sector Yes

c. Tons per route per Day by Service Sector Yes

Tons per route were inconsistently calculated. Roll‐off was net of contamination, whereas all others did not exclude contamination

4. Operational Changesa. Number of routes per Day No There may not be changes to reportb. Staffing No There may not be changes to reportc. Supervision No There may not be changes to reportd. Collection services No There may not be changes to report

5. Equipment. An inventory of equipment in accordance with Section 8.04.D. Yes

6. Billing. Billing review report in accordance with Section 7.01.F. Yes

Recology Annual Reports (Article 9.07)

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Figure 2‐3 (cont.)

Included in Reports? Comments

B. Customer Account Information

Customer account (i.e., customer name, address, service level, etc.) information in tabular format and in electronic format Yes Provided in electronic format

C. Customer Service Operations ‐ Operations Plan1. Customer Service Call Centera. Provide CSR staff headcount and describe responsibilities Yesb. Describe training strategy Yesc. Describe approach to attract and retain high quality CSRs Yes

2. Websitea. Number of on‐line payments made Yesb. Number of On‐Call Collection Services scheduled Noc. Number of On‐Call Bulky Goods Collections scheduled Nod. Number of extra Solid Waste pick‐ups scheduled Noe. Number of service changes requested Nof. Number of Complaints documented and resolved No

3. Customer Information System

a. Status of any changes or upgrades made to system software No There may not be changes to report

b. Description of proposed changes to system software No There may not be changes to report

c. Explanation and schedule of training activities No There may not be changes to report

4. Staffing Yes Provided in organization chart5. Commercial Customer Service No

D. Related Party EntitiesDisclosure letter summaring financial transactions with related‐party entities

NoNot due until Recology submits their annual audit financial statements

E. Contractor's Review of BillingsSubmit a report on its review of customer billings. Yes

F. Determination and Payment of Liquidated DamagesSummarize number of complaints (by category) and compute amount (if any) of liquidated damages accrued (based on standards established in Attachment J of the agreements).

Yes

G. Determination and Payment of Performance Incentives and DisincentivesCalculate performance incentive and disincentive payments due to exceeding or falling short of the agreed‐upon standards in accordance with Attachment I of the agreements).

Yes

Recology Annual Reports (Article 9.07) ‐ continued

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Conclusions and Recommendations

As indicated in the preceding figures, Recology has not submitted complete monthly, quarterly, and/or annual reports. To be in compliance with the Franchise Agreements, Recology should provide the missing information and restate their annual report (which includes each month’s data) with the missing or incomplete information included. Where information was provided, yet incomplete, we have noted the missing items in the comment section. We also recommend when there are no changes to report, that Recology include a statement in the report stating “nothing to report”. This will allow Authority and Member Agency staff to know whether the information was mistakenly omitted or there is nothing to report.

Recommendation #1: Re‐submit their annual report with missing and/or incomplete information Recommendation #2: In future reports, state “nothing to report” when applicable instead of omitting the applicable section.

2.2 Completeness of Reports - SBR

HF&H obtained hard copy and electronic files of SBR’s quarterly and annual reports and compared the contents of the reports to the required contents in accordance with Section 9.05 and 9.06, respectively, in SBR’s operating agreement. The following Figure 2‐4 summarizes the required contents of the quarterly and annual reports and states whether SBR submitted the required information and includes comments when additional explanation is necessary. Note: these summaries only state whether the information was provided and does not attest to the accuracy of the information. The accuracy of the information was tested under separate review and our findings are summarized in Section 4 of this report.

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Figure 2‐4

Report RequirementsSubmitted in Reports?

Comments

In‐Bound Tonnage. Provide tons and/or yards accepted at the SEC by material type by customer type (e.g., Recology franchise, self‐haul, member agency vehicles, buyback center).

Yes

Out‐Bound Tonnage. Provide tons and/or yards (by material type) leaving the SEC.

Yes

On‐Site Tonnage. Provide tons and/or yards (by material type) moving between the opereations at the SEC (e.g., MRF bulding, Transfer Station, Buyback Center).

Yes

Diversion Level. Percentage of materials diverted by material type.

Yes

Delivery Location. Provide delivery location of all materials leaving the SEC (by material type).

Yes

Commodity Sales. Provide commodity sales value (by material type).

Yes

Changes to Facilities, Equipment, and Personnel. Provide list of any significant changes to facilities, equipment, personnel, operations, maintenance or repair.

Yes

Accident Report. Report indicences of accidents involving either employees or customers of the facilities.

Yes

Hazardous Spills Report. Document hazardous spills occuring at the SEC and report shipments of any hazardous materials received and shipped.

Yes

Determination and Payment of Liquidated Damages. Provide number of occurances and allowances (in accordance with Attachment J of the agreements) of incidences that trigger liquidated damages and calculate amount due, if any.

Yes

Program Summary. For each program, provide activity‐related and narrative reports on goals, milestones, and accomplishements.

Yes

Summary Assessment. Provide a summary assessment of the overall materials handling systems are operating in terms of efficiency, economy, and effectiveness.

Yes

SBR Quarterly Reports (Article 9.05)

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Figure 2‐5


As indicated in the preceding figures, SBR has submitted complete quarterly and annual reports. No recommendations necessary.

2.3 Mathematical Accuracy and Logical Consistency of Reports – Recology

2.3.1 Monthly and Quarterly Reports

To test the mathematical accuracy and logical consistency of Recology’s monthly and quarterly reports, HF&H selected Recology’s Quarterly Report to the SBWMA for 3rd Quarter 2011 (which includes three months of data and the total for the quarter) and verified each subtotal, total, and calculation was properly stated, including that the quarterly data correctly reflects the sum of data from the previous three months. No exceptions found.

2.3.1 Annual Report

After the submittal of Recology’s 2011 annual report in February 2012, HF&H reviewed the mathematical accuracy and logical consistency of that report which includes the previous twelve months data. We verified the prior month’s tonnage data tied to the previously reported months and quarters and the reported annual amounts add properly. No exceptions found.

However, upon review of non‐tonnage related data provided (i.e., complaint data, call center data, performance incentive data, etc.) we found the following mathematical/numerical errors:

Page iv, Annual 2011 Report Summary. Summary was not updated with annual results, information reflects Q4 data. An update was subsequently sent to the SBWMA on March 14, 2012.

Page 15, Inquiry, Service Request and Complaint Summary

Report RequirementsSubmitted in Reports? Comments

Cumulative summary of information provided in Quarterly Reports.

Yes

PLUS:

Equipment Inventory. Provide complete inventory of equipment used to provide all services.

Yes

Personnel List. Provide a list of SBR personnel used to operate the SEC.

Yes

SBR Annual Reports (Article 9.06)

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Single‐Family Missed Pick‐up Initial Complaints 8.02.B.2: The annual report in the “Qrt 4” column on the “Total” row reports 64 complaints, but the Quarterly Report submitted for Q4 (page 15) reported 50 complaints. The annual report reported 14 more complaints than the Q4 report.

Single‐Family Missed Pick‐up Collection Events 8.02.B.2: The annual report in the “Qrt 4” column on the “Total” row reports 3 events, but the Quarterly Report submitted for Q4 (page 15) reported 4 events. The annual report reported 1 more event than the Q4 report.

Page 24, Single‐Family Missed Pick‐Up Initial Complaints Incentive/Disincentive

Under “Number of Complaints” column, “Qtr 4” for Belmont, number of complaints shown on annual report is 17, but the Quarterly Report submitted for Q4 (page 24) reported only 3 complaints for Belmont. Variance of 14 complaints. The annual report reported 14 more complaints than the Q4 report.

Under “Incentive” column, “Qtr 4” for Belmont, number of events shown on annual report is 70, but the Quarterly Report submitted for Q4 (page 24) reported 84 incentives (28 each for October, November, and December) for Belmont. The annual report reported 14 more incentives than the Q4 report.

Page 28, Quarterly Contamination Disincentive Calculation

Commercial Targeted Recyclable Materials, Quarter 2: The annual report under “Tons Collected” column states 5,622.49 tons. The Second Quarter report (page 28) states 5,627.52. The annual report reported 5.03 less tons than the Q2 report.

Commercial Targeted Recyclable Materials, Quarter 3: The annual report under “Tons Collected” column states 5,375.80 tons. The Third Quarter report (page 28) states 5,379.68. The annual report reported 3.88 less tons than the Q3 report.

In addition to the above, it is important to note that Recology’s Annual Report was restated twice per the request of SBWMA staff. The restatements were requested due to errors in the calculation of diversion related incentives and disincentives. The original calculation of net diversion related performance incentives/disincentives totaled $1,762,240. The company was asked to restate the original annual report and the result was a reduction of $441,157 in the payment due to Recology. However, SBWMA staff again found errors in the company’s calculation, and thus the second restated diversion incentive payment calculation was further reduced by $408,023. Thus, the net 2011 diversion related performance incentive payment to Recology is $913,060.

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2.4 Mathematical Accuracy and Logical Consistency of Reports - SBR

2.4.1 Quarterly Report

To test the mathematical accuracy and logical consistency of SBR’s quarterly reports, HF&H selected the report SBR submitted to the SBWMA for the 3rd quarter of 2011 (which includes nine months of data and the totals by quarter) and verified each subtotal, total, and calculation was properly stated, including that the quarterly data correctly reflects the sum of data from the previous three months, we found significant numbers of mathematical errors within the document. Upon this discovery, we contacted SBR staff to review our findings and SBR staff also noticed these errors and subsequently made corrections to their reporting schedule. Therefore, SBR’s subsequent quarterly reports should reflect the corrections noted by HF&H and SBR staff. SBR did not provide restated Q1, Q2, or Q3 reports to the SBWMA. However, because SBR’s quarterly reports are cumulative (the reports include previous year‐to‐date activity), all subsequent reports reflect the corrections.

To verify SBR did in fact make the corrections, HF&H reviewed SBR’s Q4 report for 2011 (which includes all months in 2011), and noted all corrections were made.

2.4.1 Annual Report

After the submittal of SBR’s annual report in February 2012, HF&H reviewed the mathematical accuracy and logical consistency of that report which includes the previous twelve months data. Our review found many instances of totals and subtotals not adding correctly. However, we found the detail tons by category are consistent with the Q4 report, with a minor inconsistency between classifications of self‐haul recycling, organics, and C&D material. In total, the self‐haul tons tie to the previous quarterly reports.

Due to the number of mathematical errors, the totals and subtotals contained in SBR’s annual report are incorrect and cannot be relied on.

Recommendation #1: We recommend that SBR restates and resubmits their 2011 annual report to correct the mathematical errors.

2.5 Matrix Documenting Sources for Each Report Category

We met with the appropriate Recology and SBR staff to discuss the source documents used to populate each section of the quarterly reports. We traced at least one data point of each section to verify the documents stated to be the source did in fact tie to the data point. Based on the interviews with Recology and SBR staff, we summarized the flow of documents used to populate the monthly, quarterly, and annual reports. The summary matrix (Attachment 1) facilitated the review described in subsequent sections of this report. The matrix will also allow future record/reporting audits to be conducted in an efficient manner by Authority staff.

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RECOLOGY

Review of the physical plant at Recology indicated adequate cabling facilities were in place and being utilized within their functional design. The multi‐mode fiber tested within the industry standard for dB (i.e., decibel ‐ a unit of relative loudness, electric voltage, or current equal to ten times the common logarithm of the ratio of two readings) loss over the installed distances. CAT 5E cabling was provided in areas that were determined prior to the company occupying Shoreway in 2010. The craftsmanship related to all telecommunications activity was quite good. All copper facilities for Recology’s buildings at Shoreway functioned as anticipated. The intent to deliver voice and data to desired areas was accomplished.

There was no evaluation of any Intrusion Prevention or Detection appliances as part of this audit. In discussions with Recology’s main IT manager, Mr. Mike McLaughlin, he described the network as “locked down”. This indicates stringent controls related to network access.

SBR

All aspects of the physical plant designed and implemented at the SBR Shoreway facility proved to be of the highest industry standard. Since this was basically a new facility, the design element was well thought out. Excellent craftsmanship in all facets of the project was observed. Station locations including the Scale House were functional as designed. Connections between the MRF and Transfer Station were not completed prior to auditing; however it appears these were completed successfully. Mr. Jerry Prieto assisted with questions relative to facilities at this location.

We did not test functionality of the Ubiquitous Wireless Network implementation following occupancy nor did we delve into Intrusion Prevention or Detection appliances here.

ShoreTel Telephone Systems

The telecommunications systems used for Recology of San Mateo’s customer service (call center) and general business telephony is manufactured by ShoreTel. The call center platform, essentially an automatic call distribution (ACD) system enables inbound calls to flow into agent queues designed to provide call reception, fault isolation and resolution to occur in an expeditious and efficient manner. The system provides supervisorial reports enabling management to clearly view indices that can be designed to bring valuable information in areas relative to their business model.

The information we received validate the fact that Recology of San Mateo’s hardware and associated software platforms are kept up to date. The Unified Communications Platform from ShoreTel provides distributed voice architecture for the Contact Center (ACD) and the voice over IP (VoIP) segments. The Telephony equipment is current and the software build for the general business call platform is 10.2. The release notes indicate the release date of September 14, 2010. The ACD/ Contact Center software release 6.0 build 503.4.2806.0 is also current. This technology provides leading edge positioning for

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future enhancements. As stated we are satisfied that both systems and software are current and properly maintained.

We have reviewed ACD reports submitted by Recology of San Mateo. We received 12 reports, one for each month in 2011. The focus of the report was concentrated in four areas essential to responsive customer service practice. These areas are: 1) Average calls per day flowing into the call center 2) Actual talk time of each call 3) Average hold time and 4) Average of calls per day placed on hold.

Figure 2‐6: ACD Report Summary Month/Year Calls Per Day

Average Calls Per Day on Hold Average

Average Hold Time min/sec

Actual Talk Time Per Call

Jan. 2011 2,669 398 Feb. 2011 1,373 228 2:00 March 2011 1,002 117 1:32 April 2011 1,000 56 00:45 2:53May 2011 933 58 00:51 2:51June 2011 916 57 00:43 2:40July 2011 881 56 00:38 2:41August 2011 827 62 00:36 2:34Sept. 2011 863 63 00:37 2:34Oct. 2011 805 60 00:34 2:30Nov. 2011 796 54 00:32 2:19Dec. 2011 771 51 00:35 2:21 Please note that daily averages in October and November are skewed due to weekend days were reported as work days even though no data was captured or input. We do NOT feel this jeopardizes the essence of this report. Blank cells indicate insufficient data received.

Please note that daily averages in October and November are skewed due to weekend days were reported as work days even though no data was captured or input. We do NOT feel this jeopardizes the essence of this report. Blank cells indicate insufficient data received.

The above indices depict a continuing improvement. The number of calls per day on hold declined following the first quarter as well as the average hold time.

We feel the provided data was reported with integrity and was not edited. The data presented clearly indicates the collection mechanism and methodology has not been compromised. Errors depicted above, where insufficient data resulted in blank columns are a fact of the data collection process. With this in mind we present our approval of the indices used in the development of the above table.

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SBWMA Section 3. Evaluate Accuracy of Recology Data Collection Services and Facility Operations Auditing Project


SECTION 3. EVALUATE ACCURACY OF RECOLOGY DATA

3.1 Accuracy of Tonnage Data Reported

3.1.1 Comparison of Recology Tons to SBR Reported Tons.

Recology’s reports include tonnage collected by member agency by month and by service type (i.e., commercial, residential, multi‐family, roll‐off, etc.). To test accuracy of their reported tons, we first verified the total tons reported by Recology (by month) tied to the in‐bound tonnage reported provided by SBR. We began by comparing reported tonnages from SBR and Recology for every month of 2011. HF&H then selected the months of June and December to test in greater detail. We verified that the original source documents (weight tickets from SBRs PC Scale system) accurately tie to SBR’s monthly customer summary report for Recology. The monthly customer report was then used to test the accuracy of Recology’s reported tonnage. For December 2011, HF&H found that the reported tonnages for SBR and Recology were 5.20 tons apart. For June 2011, we found a 236.24 ton, or 0.82% difference. Similar differences were found throughout all months of 2011. We sought explanations for the variances from Recology staff and found Recology makes adjustments to SBR’s scale reports to adjust for the following items:

Adds cell phone, battery, oil, and oil filter tons by member agency.

Adds solid waste, recyclable material, organic materials collected at agency events.

Subtracts material generated on‐property by Recology operations.

Subtracts material collected from schools.

Once the tonnage variance analysis was revised to account for these adjustments, the variances became immaterial. However, we noted Recology had not made the adjustment to remove the tonnage collected from schools in January or February; therefore, overstating franchised tons in January and February 2011. Recology explained that they did not remove school tonnage in January and February because they were unable to identify the origin and amount of tons collected because they had not been separately tracked until March 2011. Also, beginning in July 2011, Recology stopped providing collection service to schools; therefore, no adjustments have been made subsequent to June 2011. Upon request, Recology provided their system‐generated stop service report to demonstrate services to schools have been discontinued. Also, the effect of Recology adding cell phone, battery, oil, and oil filter tons to SBR’s scale report results in an overstatement of tons collected (approximately 5.5 tons per month) because when such materials are collected on route they remain in the vehicle when the vehicle is being weighed.

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Recommendation #1: Recology should stop adding cell phone, battery, oil, and oil filter tons to the tons reported by SBR’s monthly scale report. Recommendation #2: Recology should restate their tonnage figures included in the annual report to accurately reflect the revised cell phone, battery, oil and oil filter tonnage.

3.1.2 Tonnage Allocation Review

Recology is responsible for reporting the allocation of the in‐bound tonnage (by member agency) monthly. Based on our understanding of the allocation methodology described during our interview of Recology staff responsible, we gathered the applicable supporting documents to test the calculation of and application of Recology’s tonnage allocation methodology.

Recology reports tons collected (by material type) and by member agency from a variety of sources, including:

Regularly scheduled cart and bin customers;

Regularly scheduled roll‐off/compactor customers;

Regularly scheduled collections from member agency facilities;

Bulky item/on‐call collections;

Abandoned waste/illegal dumping;

Regularly Scheduled Cart and Bin Customers. To allocate tons collected from regularly scheduled cart and bin customers, Recology has developed and applies a capacity‐based methodology. For each route (and each day the route operates), they identify the customers being serviced by member agency and they have assigned a unique origin code for each member agency (by commodity type; see example in Figure 3‐1 below). They then calculate the service capacity of each customer based upon their subscription levels (i.e., 20‐gallon cart, 2 cubic yard bin, etc.). From this information, they calculate a percentage share of the total capacity on the given route, for each member agency. For example, if 20% of subscription volumes are from single‐family solid waste customers within Atherton, 20% of the tons collected that day on that route are attributed to single‐family solid‐waste customers in Atherton. These allocation percentages are updated to reflect any changes in routing or major changes in customer subscription levels.

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Figure 3‐1

Regularly scheduled roll‐off/compactor customers. Each roll‐off/compactor load comes from a single location; therefore, 100% of the tons are attributed to the member agency in which the customer is located.

Regularly scheduled collections from member agency facilities. To allocate tons collected from regularly scheduled collections from member agency facilities, Recology has developed and applies a capacity‐based methodology similar to the cart and bin customer methodology described above. However, Recology created a code to capture all member agency facilities combined (separately for each material type), instead of assigning unique codes for each member agency. Therefore, on a monthly basis, Recology had to manually allocate total member agency tonnage to each individual member agency based on the capacity‐based methodology described above. Beginning in January 2012, Recology created unique origin codes for “Member Agency Facilities” (by material type), which will eliminate the need to manually allocate tons.

Bulky item/on‐call collections. To allocate tons collected from customers requesting bulky‐item or on‐call cleanups, Recology tracks the request for services by member agency and allocates actual tons collected on the two dedicated routes based on each member agencies percentage share of the total number of collections that day. For example, if bulky item route #701 collected 10 bulky items from 10 different member agencies that day, each member agency would be allocated 10% of the total tons collected on that route that day.

Abandoned waste/Illegal Dumping. Recology keeps a manual log of abandoned waste collected (including the origin). Recology stated the abandoned waste is collected one trip at a time using a flatbed truck of supervisor’s vehicle; therefore, 100% of the tons are attributed to the member agency in which the abandoned waste was located.

Testing the Accuracy of Tonnage Allocations

HF&H tested the capacity‐based methodology employed to allocate collected tons among the member agencies, which is derived from customer account and service level records, and determined the methodology to be in accordance with standard industry practices.

Member Agency Service Sector CodeAtherton Residential Waste 7301020Atherton Residential Recycling 7301130Atherton Residential Organics 7301110Atherton Commercial Waste 7301040Atherton Commercial Recycling 7301120Atherton Commercial Organics 7301150Atherton Apartment Waste 7301045Atherton Apartment Recycling 7301125Atherton Apartment Organics 7301155

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To test the accuracy of application of the methodology, HF&H developed a model using Recology’s system‐generated allocation percentages and a complete monthly ticket report from SBR to recreate capacity‐based allocation percentages by month. For the month of December 2011, HF&H used the model to recalculate the tonnage of four randomly selected jurisdictions, covering all service sectors (i.e., single‐family, multi‐family, commercial, etc.) and material types (i.e., solid waste, organics, etc.). The results of the test are summarized in Figure 3‐2 below. In three of the four jurisdictions tested, HF&H found initial discrepancies between the calculated allocated route tonnage, than what was shown in the monthly report. In each of those instances, however, HF&H was able to gather additional supporting documentation to reconcile the differences between the raw ticket data and the stated monthly reported tonnage. Each of the reconciling items involved tonnage that reasonably would not be included in normal route allocations. Examples of reconciling factors include, in the case of Burlingame (BUR) Residential Solid Waste, 17.26 tons from bulky item collection, and in Hillsborough (HIL) Commercial Organics, 8.53 tons from drop boxes and 0.22 tons from member agency facilities.

As discussed earlier, tonnage from member agency facilities will no longer be allocated manually. However, other non‐system allocated tons (which makes up less than 1% of all tons collected) will continue to be handled manually. Currently, at the end of each month, Chuck Collins, Recology’s Financial Analyst, is responsible for calculating and making the allocations using an Excel model which he developed. Each month’s allocations are documented in the Excel model and saved on the Company’s server for future reference or for review by others.

Figure 3‐2


Our testing found Recology has accurately reported the total tons collected within each member agency. However, from the customer data we reviewed, we noted Recology has mistakenly identified the majority of multi‐family customers as being commercial customers. As a result, the breakout of tons by service sector included in the monthly, quarterly, and annual reports understate the total tons attributed to multi‐family customers and overstates (by the same amount) the total tons attributed to commercial customers. Recology has subsequently created unique coding in their system to separately track multi‐family customers from commercial customers.

Recommendation #1: Because Recology manually tracks the abandoned waste/illegal dumping

collected from each member agency, we recommend Recology include a summary of tonnage

collected in their monthly report. The summary should include who called it in, when the call

Jurisdiction, Sector and Material Type

HFH Calculated Allocated

Route Tonnage

MonthlyReport

Variance(Tons)

Variance(%)

Reconciling Tonnage

Revised HFH Calculated Tonnage

MonthlyReport

Variance(Tons)

Variance(%)

BUR Residential Solid Waste 283.44 300.70 (17.26) -6.1% 17.26 300.70 300.70 0.00 0.0%NFO Multi-Family Recycling 4.06 4.07 (0.01) -0.3% 0 4.06 4.07 (0.01) -0.3%HIL Commercial Organics 9.69 18.42 (8.73) -90.0% 8.75 18.44 18.42 0.02 0.1%MPK Commercial Solid Waste 787.26 903.02 (115.76) -14.7% 115.76 903.02 903.02 (0.00) 0.0%

Original Test Results Revised Test Results

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was made, when it was collected, what type of material was collected, when the material was

collected, and the weight of the material collected. This will allow member agencies to track this

activity.

Recommendation #2: We recommend Recology be required to report to the Authority whenever

their tonnage allocation methodology changes, as such changes will impact future cost

allocations. The reporting should include the rationale for the update and variances between the

“old” and the “new” allocators.

Recommendation #3: Recology’s quarterly reports should provide a narrative describing their

methodology for manually allocating tons. The narrative should include any changes from the

previous methodology, the rationale for the change, and the variances between the results using

the “old” and the “new” methods.

3.2 Customer Service Review

3.2.1 Recording and Follow Up of Complaints/Requests

When a customer calls into the Recology customer service center, a Customer Service Representative (CSR) answers the phone and manages the call either answering questions or directing action by the tags that are generated. All calls should be documented in the account with an appropriate reason code attached (See Attachment 2 for a list of reason codes used by CSR’s). If the call is a complaint or requires further follow through, additional tags will be generated for the appropriate staff (supervisors, operations, customer service, etc.). The customer is contacted by the supervisor and the ticket is resolved in the system as necessary. This may mean a route sequence change, a disciplinary action against a driver, etc. The supervisor is responsible for directing further action if necessary and for resolving the complaint.

3.2.2 Training and Reference Materials

Recology provides training to its CSR’s when they first start and then periodic trainings throughout the year. Additionally they have reference materials and training documents electronically available on the AS400 database as well as the Recology network. Some of the materials available include lists of rate codes by franchise, links to each franchise agreement, reason codes, new procedures, and a CSR “cheat sheet” which is divided by franchise and includes basic information like extra pick up rules/charges, extra bulky charges, return trip and extra bag charges.

3.2.3 Call Monitoring

To ensure customer complaints/requests have been accurately recorded and the data entry is consistent and sufficiently detailed, we listened in on a total of 130 live calls. (This was accomplished with Recology’s cooperation by using a separate phone set up in a spare office for this purpose.) In addition, we made 40 “dummy” calls directly to Recology’s Customer Service Department to cover topics that

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were not covered with the live calls, but are required to be tracked and reported monthly. For example, none of the 130 live calls monitored were related to reports of excessive noise or property damage.

Of the 130 live calls monitored, 10 calls were received by each of the 13 (all) CSRs during November and December 2011. There was a phone available upstairs in the Recology offices with software that allowed for us to listen in to a CSR’s call and hear the conversation without either the CSR or customer knowing we were monitoring the call. While on the phone, items were documented onto a spreadsheet to keep track of all data. The information collected consisted of:

Time and date the call was received;

The name of the CSR who answered the call;

The customer’s name, account number, and address;

A brief description of the call; and,

The response by the CSR.

In addition, a few days after the call, we went back into Recology’s customer service system (AS400) to review the account, verify that the information input was correct, document the reason code used and any other important information to evaluate the proper usage of the reason code.

A total of 130 calls were monitored. The following Figure 3‐1 summarizes the origin of the customer calls monitored.

Figure 3‐1

Of the 130 calls monitored, as shown in the following Figure 3‐2, 82 or 63.1% of the calls were properly coded and 48 or 36.9% were improperly coded or not coded at all.

Atherton 1 0.8%Burlingame 4 3.1%East Palo Alto 2 1.5%Foster City 8 6.2%Hillsborough 5 3.8%Menlo Park 14 10.8%Portola Valley 2 1.5%Redwood City 28 21.5%San Carlos 14 10.8%San Mateo 31 23.8%Total 130 100.0%

Origin of Monitored Calls

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Figure 3‐2

As shown in Figure 3‐3 below, the highest quantity of calls or 33.3% of the 48 calls that were not coded were calls regarding missed pickups. This is significant considering the Franchise Agreements provides incentive/disincentive payments to Recology based on the number of missed pickup complaints received during the year.

Figure 3‐3

Recology’s reason code #32014 – Missed P/U Initial Complaints is intended to capture all initial missed pickup complaints which are subject to incentive/disincentive payments. In addition to finding missed pickup complaints note coded at all, we also found that initial missed pickup complaints are coded to many difference reason codes.

There were 31 different reason codes used during the monitoring period, as shown in Figure 3‐4. Though 130 calls were monitored, some calls touched on multiple topics; therefore, 163 reason codes were generated and logged. For example, when a customer makes one phone call to schedule a bulky item pickup and report a missed picked, two separate reason codes are entered. Of the 163 reason codes entered, 35 or 21.5% were not coded at all; therefore, these calls would not be captured in the monthly reporting, which is provided by summarizing reason codes at the end of each month.

Yes 82 63.1%No 48 36.9%

Yes 128 98.5%

No 2 1.5%

Results from Calls Monitored

130

Accurate Information Provided by CSR

Total Number of Calls Monitored

Proper Reason Code Used

Missed Pickup 16 33.3%Request/Cancel Additional Services 12 25.0%Billing/Rate Inquiries 9 18.8%General Inquiries 9 18.8%Call Transferred 2 4.2%Total 48 100.0%

Nature of Calls with Inaccurate or No Reason Codes

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Figure 3‐4

To cover topics that were not covered with the live calls, but are required to be tracked and reported monthly, we called Recology’s customer service line with 40 distinct complaints. During these calls, staff assumed the identities of actual Recology customers, based on a list of customers that Recology provided, and on accounts with unresolved issues that we learned of while monitoring customer service calls.

The “dummy” calls focused on a group of seven reason codes or complaint types, as shown in Figure 3‐5.

Qty % Code #35 21.5% Blank4 2.5% 311101 0.6% 311118 4.9% 310753 1.8% 313003 1.8% 3104816 9.8% 330011 0.6% 313023 1.8% 380001 0.6% 310531 0.6% 310571 0.6% 310022 1.2% 380062 1.2% 370018 4.9% 3400017 10.4% 310996 3.7% 340011 0.6% 330151 0.6% 330121 0.6% 320155 3.1% 370001 0.6% 320145 3.1% 360002 1.2% 310007 4.3% 310394 2.5% 310182 1.2% 3400216 9.8% 310822 1.2% 310402 1.2% 370022 1.2% 37003163 100.0%

TSV Vacation Start

Reason Code Results

Reason Code Description

Not OutOperations AttentionPhone PaymentPullReminder Service TodayService Inquiry

New Start

Cust Information ChangedDecrease ServiceDeliverDisputed Serv ‐1 Time Return

TSV Vacation Stop

1st Service Reminder2nd Service ReminderAlready on RS ScheduleAR Service Adjustment Request

Total

Missed P/U Initial Complaint

Compliment

Billing InquiryBulky Item CollectionCart Not Emptied CompletelyChange Phone NumberComplaint Re: Driver

ExchangeExtra 1 YardExtra BagsImmediate Response RequiredIncrease Service

Contaminated

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Figure 3‐5

Using randomly selected account information that Recology provided, we created a call‐tracking spreadsheet that linked 39 existing customers to 40 complaints, five of each of the eight complaint types listed above. We used personal cell phones to make the calls to avoid issues with caller ID, and always gave the phone number provided by Recology as the best contact number for the account. During the call, staff pretended to be someone associated with the account, rather than the person whose name was listed on the account, in case the CSR happened to be familiar with that person. We developed scripts for each complaint to help guide the “dummy calls” and to convey the correct type of information. Each caller slightly modified their calls for each account, but ensured that they included the complaint and details necessary for the CSR to clearly understand the request to respond and code it appropriately.

During each call, we tracked all of the call’s attributes, so it could be evaluated against Recology’s customer service standards and against the note type and content that each CSR entered. The call attributes tracked included: CSR name, any hold time, and the time the call began and ended. We also ranked the CSR’s quality of response to the complaint/request on a scale from one to five (where one was the worst and five was the best), and, to the extent possible, recoded the details of the conversation. After each call, we sent an e‐mail containing the account number, complaint type, CSR name, and other call details to the Customer Service Supervisors, advising them to find and cancel the note that the CSR left on the account for that call. Prior to the call, we advised these supervisors of a three‐hour window in which the calls would occur each day, so they would be ready to receive our e‐mails, and to find and cancel the CSR’s notes. These windows were between 9am and noon or between 1pm and 4pm, and alternated by day.

Out of the 40 dummy calls made, only 4 or 12.0% had the proper coding. Of the 32 calls that were coded incorrectly, 8 of the calls did not receive a note or reason code on the account that the call was

Reason Code DescriptionNumber of

Calls

TOTAL 40

32014 Missed Pick Up – Initial Complaint 6

34100 Missing Container/Re‐Deliver 5

31098 Customer Reports Mess Left After Service 5

31116 Customer Reports Vehicle Fluid Spill 6

31084 Excessive Noise 6

31086 Property Damage 5

31052 Complaint Re: Time of Pick Up 7

"Dummy" Call Topics

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ever received. Every phone call should receive a reason code and note on the account to document the conversation. The fact that this did not happen in 22% of the calls means that the CSRs are not always following protocol.


In general, we found the Recology Customer Service Representatives to be courteous and helpful when responding to customer complaints/requests.

Our main area of concern is with the accuracy of the coding (including the fact that not all calls are documented with a code or note in the system). Specifically, because we found that 88% of the “dummy” calls and 37% of the live calls were inaccurately coded the monthly reporting of customer service call data cannot be relied upon to determine whether Recology is entitled to (or owes) an incentive/disincentive payment or liquidated damages, in accordance with the Franchise Agreements.

Based on the results of the live call monitoring and “dummy” call testing, we recommend that Recology Customer Service Department perform the following to improve the accuracy of call documentation and reporting:

Recommendation #1: Review the spreadsheets that we compiled during the dummy and live

monitored calls to understand where the majority of the improper reason code usage is

occurring and speak to the CSRs involved to ensure they understand how they should code them

in the future. In addition, highlighting the CSR protocol activities that are not being followed in

the spreadsheet (improper reason code usage, not asking for addresses, not placing a note on

the account, etc.) and discuss them during staff meetings to further train all staff.

Recommendation #2: Review the different descriptions of each reason code to see if they

provide a clear description of applicable complaints that is understood by the CSRs.

Recommendation #3: Provide trainings to the CSRs to discuss the usage of reason codes and the

importance of documenting all calls. One approach could be to highlight a few reason codes

each week at staff meetings for review.

Recommendation #4: The Customer Service Manager should follow up after the trainings by

listening in to customer calls and reviewing accounts to ensure the proper reason codes are

being used. The Customer Service Manager should prepare, and submit to the Authority, a

summary of the training (i.e., what topics were covered, who received the training, duration of

the training, etc.) and the results of call monitoring.

Recommendation #5: Once it appears the CSRs understand the different uses of each reason

code and are consistently using them properly, we recommend conducting another round of

dummy calls be performed to ensure the trainings have been effective.

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Recommendation #6: The company should recalculate the incentive/disincentive payments and

liquidated damages. Based on the findings from our call monitoring activities that a significant

number of calls/complaints were improperly coded, we recalculated the number of instances of

complaints that are subject to incentive/disincentive payments or liquidated damages. The

recalculation of the number of instances of complaints has resulted in changes to Recology’s

incentive/disincentive and liquidated damage payments. Section 3.2.8 summarizes our

methodology for recalculating the payments and the amounts due.

3.2.4 Audit of Customer Service Reports

To further test the accuracy of Recology’s quarterly customer service reporting, we gathered customer call logs for multiple months during 2011 and compared the customer call logs to the number of inquiries, service requests, and complaints reported and included in Recology’s monthly reports. The monthly reports identify the inquiries, service requests, and complaints by member agency. We tied the number of instances attributed to each member agency to the supporting customer call logs. We found the monthly reporting tied to the calls logs in all months except January 2011. It should be noted that Recology restated the number of missed pickup complaints they received during January 2011. Recology’s original Q1 report for 2011 stated they received approximately 11,900 missed pickup calls during January 2011. Subsequently, Recology reviewed the calls coded to missed pickups and revised their number. January 2011 was the first month of operations for Recology. Due to the volume of calls and the dozens of Recology personnel assisting during start up, Recology used reason codes that were familiar to those employees that were helping out from other divisions. Therefore, the reason code for Initial Missed Pickups (32014) was not in place at start up. The 11,900 tickets were not broken up into missed pick up ticket categories but contained all ticket types and reason codes and therefore had to be reviewed one by one. Recology’s explanation of how this was accomplished includes:

Recology eliminated extra requests and messages and were left with missed pickup tickets.

From there the Ticket messages and resolutions were reviewed to eliminate any informational calls that were not actual misses. These included calls from customers confirming their collection day, and customers thinking they were missed because they were unaware that 3 separate trucks were servicing the 3 carts, (and should have been coded to SERVICE INQUIRES).

Calls for missed service from December 27th ‐ December 31st were also eliminated since Recology was not the service provider in December.

Same day calls were then removed as customers were calling at 8am prior to the driver arriving. All duplicate calls were eliminated, as customers were calling 2 and 3 times during the day.

There were also missed pickups entered when the service day had not occurred, these tickets were also eliminated.

The result of eliminating tickets for the above reasons was 597 initial missed pick up complaints. From these 597 tickets, a further review produced 169 missed pick up collection events.

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To test the accuracy of Recology’s restated January missed pickup complaints we requested the details of the original 11,900 complaints counted and the backup for how the list was narrowed down. As we reviewed the original 11,900 complaints it appeared that many complaints that should have been part of the restated complaints, were not. When this result was brought to the attention of the Recology, the company stated that the list of original 11,900 complaints would have to be re‐examined and they would provide us with the new re‐stated count. To date, we have not received the restated count. Therefore, as summarized in Section 3.3.7, we have had to estimate the actual January 2011 missed pickups initial complaints and missed pick up collection events based on extrapolating a statistically valid sample of customer complaints throughout the year. As discussed above, besides focusing on January’s restated missed pick up calls, we also tested the accuracy of the customer service statistics included in Recology’s monthly and quarterly reports for the remainder of the year to verify they tie to the call center reports. However, testing just one way (from the reports to the source documents) will only verify the accuracy of the number of reported incidences (i.e., missed pickups, noise complaints, container placement complaints, etc.), not if the complaints have been properly coded by the Customer Service Representative (CSR). We sampled a preliminary test group of over 400 customer calls. We found that of the total number of calls sampled, 86.6% were coded correctly and 13.3% were coded incorrectly. For example, Figure 3‐3 displays what HF&H classified as an “incorrectly coded” ticket.

The ticket shown in Figure 3‐6, which is from June 2011, was coded by the CSR as a “31040 – SERVICE INQUIRY.” However, the notes section of the customer service database indicates that it was a complaint regarding improper container placement. The reason code “31071‐ DRV LEFT CANS OUT/NOT RETURNED” exists to capture and report occurrences of improper container placement, yet it was not used.

Figure 3‐6

Another example is provided in Figure 3‐7. The ticket shown in Figure 3‐4 was coded as a “31042 – RECYCLE INQUIRY,” even though the notes indicate this was a complaint about a missed pickup.

Figure 3‐7

Based on the findings of our original sampling, we found that the CSRs routinely mis‐coded various complaints which are subject to incentive/disincentive payments or liquidated damage payments. For

Acct Type Stat Code Frn Tkt # Taken Date Earn Date Rte P/U Day House # Street Name Notes

C A 31040 SNC 3224865 6/17/2011 06/17/2011 903 1 769 LAUREL ST

PLEASE PUT CNT BACK WHERE SERVICED FROM.CUSTOMER AT 773 LAUREL IS COMPLAINING THAT YOUARE PUTTING THE CNT ON HER PROPERTY EVERY TIMEYOU SERVICE THEM. SHE WAS VERY UPSET.MUST RETURN AFTER SVC*

Code Frn Tkt # Taken Date Earn Date Rte House # Street Name Notes31042 FOC 3368934 7/16/2011 07/17/2011 635 837 VESPUCCI LN MISSED 1/32GL CART RYCPLS SVC SUNDAY

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example, we found complaints regarding missed pickups, property damage, noise complaints, and improper container placement coded to the following reason codes instead of the reason codes used to report complaints in Recology’s quarterly reports:

#31000 ‐ NOT OUT

#31039 ‐ OPERATIONS ATTENTION

#31040 ‐ SERVICE INQUIRY

#31041 ‐ GARBAGE INQUIRY

#31042 ‐ RECYCLE INQUIRY

#31043 ‐ ORGANICS INQUIRY

#31075 ‐ ALREADY ON RS SCHEDULE

#31082 ‐ REMINDER‐SERVICE TODAY

#31110 ‐ 1ST SERVICE REMINDER

#31111 ‐ 2ND SERVICE REMINDER

#31112 ‐ 3RD SERVICE REMINDER

#31113 ‐ 4TH SERVICE REMINDER

#31300 ‐ AR SERVICE ADJ REQUEST

#32016 – BIC MISS


To ensure proper coding of customer service calls handled, HF&H recommends Recology shorten the Customer Service Reason Codes list from the current five single‐space pages (included as Attachment 2) to effectively capture the most commonly reported complaints. Since liquidated damages are tracked by certain customer service reason codes, HF&H recommends that those relevant reason codes be worded in a way that ties them directly to the language in the liquidated damages section of the monthly and quarterly reports to reduce ambiguity and increase clarity. For example, it should be explicitly clear that “DRV LEFT CANS OUT/NOT RETURNED” refers to “Improper Container Placement,” which, currently, it is not. For this reason, HF&H recommends that, once the number of reason codes has been reduced, Recology identify a small number of “priority areas” for which CSRs will be periodically trained to recognize and accurately report an increased level of detail. For example, if Recology and SBWMA determine that it is not a priority to distinguish between “Recycle Inquiry” and “Organics Inquiry,” Recology should eliminate the superfluous codes and capture all service inquiries under the “Service Inquiry” code.

Recommendation #1: Analyze the currently used reason codes and provide the SBWMA the results. These results should include but not be limited to providing details on the number of times each reason code was used monthly, quarterly and annually in 2011; why the reason code should be omitted now and the implications of this change; and, what specific events the “new” reason codes will be used to capture. Recommendation #2: Tie language from Liquidated Damages to relevant reason codes to increase clarity. Recommendation #3: Reduce the overall number of reason codes and identify a few target areas for which to require additional detail. Recommendation #4: Train CSRs to use specific key words in the “Notes” section to provide

additional detail and enable quality control checks. When such training is conducted, we

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recommend Recology provide documentation to the Authority of the nature of the training, who

attended, and the materials distributed.








3.2.5 Review of Service Resolution Tracking System

HF&H also found that the Recology customer service reporting system is not the only source of tracking liquidated damages events. SBWMA and the member agencies have used a system to track complaints received by member agency staff for the past several years (i.e., Service Resolution Tracking System). We tested to verify that the reported incidences identified in the SBWMA’s Service Resolution Tracking System (SRTS) fed into the liquidated damages section of Recology’s reports. We found that for the selected period of time, 0% of the data points tested tied correctly to Recology’s reports. We determined that, while the SRTS may enable communication and effective information flow between member agencies and the Recology customer service team, the information is not included in Recology’s liquidated damages calculations. For example, a summary of SRTS Ticket # 2481 “Spills/Discarded Materials (Failure to pick‐up)” may be seen in Figure 3‐8 below:

Figure 3‐8

As seen in Figure 3‐8, a customer reported an incident of spilled materials, but also refers to another incident that was reported and tracked as SRTS Ticket #2472. From subsequent comments tied to this particular ticket number, it is clear that the ticket was properly channeled to Recology, and that Recology took appropriate action to resolve the situation. However, Recology’s quarterly report does not report a single instance of spills in any jurisdiction for all of Q2, let alone the two in Foster City in June that are shown by this example. Similarly, we found reports of three instances of unacceptable employee behavior in Foster City and one in Belmont that reportedly occurred in May, but that do not appear in Recology’s quarterly report.

ticket_id category title submitted_onresolved_on

address number

address street organization complainant status ch_made_by ch_made_on ch_description

2481 Spills/Discarded Materials (Failure to Pick Up)

garbage materials strewn about street

6/30/2011 17:42 7/1/2011 963 Pizarro Lane

Foster City Karen Schwarz

Closed lgalli 6/30/2011 17:42 The Following email was received this afternoon: Please contact customer and remind drivers to pick up debris that doesn't make it's way into the truck's hopper. Recology did the same thing today as they did last Thursday. Only today was worse. Both garbage and recyclables were strewn all over our drive way and street. Once again, I cleaned it up, in my suit, when I stopped home over lunch. Would you register another complaint for us and tell Recology that this is unacceptable? Thanks. Karen Schwarz 963 Pizarro Lane ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

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HF&H was able to track instances of the following events that would lead to liquidated damages being assessed because they are directly associated with Customer Service Reporting system reason codes:

Unauthorized collection hours;

Inadequate care of or damage to private property;

Failure to provide new service or change existing service level within five (5) business days;

Excessive noise;

Unacceptable employee behavior;

Spills of discarded materials and failure to clean up those spills;

Unreasonable leaks or spills of vehicle fluids; and,

Complaints regarding improper container placement.

In addition, the following events that would lead to liquidated damages would not be captured in Recology’s Customer Service Reporting system because a reason code has not been established or other procedures have not been established, and as such, we were unable to tie them to supporting report documents:

Failure to properly tag at least 50% of containers that require a non‐collection notice ;

Late submittal of reports, applications proposals or other submittals;

Accuracy of submittals: corrections or restatements submitted more than two (2) days after notification;

Late submittal of billing review report;

Disposal of recyclable materials without written approval;

Disposal of organic materials without written approval;

Recyclable Materials not delivered to the designated transfer and processing facility; and,

Solid Waste or Organic Materials not delivered to the designated transfer and processing facility.


Due to the depth of the inconsistencies between SRTS and Recology’s reports, we recommend that Recology identify and restate incentive/disincentive payments and liquidated damages (and payments) as a result of improper coding and customer service logs not including calls from the SRTS.

We recommend that Recology develop a method of incorporating calls received through the SRTS into the CSR reporting system regularly so that all necessary information is captured in the incentive/disincentive and liquidated damages calculations. Due to the depth of the inconsistencies

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between SRTS and Recology’s reports, we recommend that Recology identify and restate incentive/disincentive payments and liquidated damages (and payments) as a result of improper coding and customer service logs not including calls from the SRTS.

Figure 3‐9 summarizes our calculation of incentive/disincentive payments and liquidated damages due as a result of the calls received and logged through the SRTS system.

Figure 3‐9: Summary of Calculated Incentive/Disincentive and Liquidated Damages Resulting From SRTS‐documented Calls

Performance Measure Amount

Collection outside authorized hours/property damage $3,600 Failure to provide new/change service within 5 days $0 Improper placement of containers $0 Excessive noise $0 Unacceptable employee behavior $1,250 Material spills $250 Fluid spills $500 Missed pickups – initial complaint $9,850 Missed pickup – events $0

Total $15,450

In summary,

Recommendation #1: Recology should ensure that its CSR call tracking protocol does not treat

the SRTS derived complaints and issues differently from if the complaint or issue was received via

a phone call

Recommendation #2: Recology should restate their incentive/disincentive payments and

liquidated damage payments for all of 2011 after incorporating the SRTS data into their

Customer Service Reporting System.

Recommendation #3: Create a reason code for documenting complaints regarding improper

container placement by driver after collection.

3.2.6 Verify Accuracy of Reported Outreach and Event-Specific Activities

To verify the accuracy of the reported number of outreach and event‐specific activities included in Recology’s monthly, quarterly, and annual reports we reviewed Recology’s supporting documentation. Recology’s supporting documentation consists of an Excel spreadsheet that lists the date the on‐site

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assessment was made and other relevant information (see an example in Figure 3‐6). We randomly selected two months for each Member Agency and compared Recology’s reported number of outreach activities to their supporting documentation and found Recology had supporting documentation for 397 out of 399 events, or 99.5%.

To verify the assessments took place, we randomly selected events that took place during the year and contacted the customer for confirmation. In all instances, the customer confirmed the assessment took place.

Furthermore, while our review found Recology has properly recorded and reported the occurrence of on‐site assessments, the information that supports or explains the event can be improved, allowing for better follow up with the customers and facilitating independent follow up for verification that the event took place. For example, Figure 3‐10 displays an excerpt from the Second Quarter Recology Report supporting documents:

Figure 3‐10

In this particular entry, there is no indication of who was contacted, or how or when to follow‐up with them, or whether or not the recommended changes were ever made.


Our review found Recology is accurately reporting when an on‐site assessment is made and thus satisfying the monthly, quarterly, and annual reporting requirements; however, it was difficult to verify if the assessment were made or not because a contact name and phone number were not included in the reporting. In addition, the assessments have identified recommended changes/actions the customer can take to recycle more material; however, there is no indication whether the customer was provided any of the recommended education or training or if the experience was useful for the customer.

Recommendation #1: HF&H recommends that Recology provide additional information in their

outreach event reporting, including, but not limited to:

Providing the first and last names of the person contacted;

Providing a phone number for the person contacted; and

Date Company NamePerson

ContactedService Levels Comments Recommended Changes

8/16/2011 Commerce Park Foster City 3553 Pilgrim Dr n/a Garbage 1-3yd Wed

Half of the garbage binwas filled with recyclables:

shredded paper, paper beverage cups, plastic

cups, newspapers.

Customer needs education about single steam recycling.

On-Site Assessments

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A clear summary of the recommended changes, whether the customer received the

recommended assistance/education, and whether the changes were implemented by the

customer.

3.2.7 Verify Accuracy of Reported Call Center Statistics

Recology’s annual report includes a summary of the following call center statistics:

Number of Calls Received

Number of Calls Answered

Number and Percentage of Calls Dropped

Average Hold Time/Speed of Answer (in seconds)*

Percentage of Calls Answered in 30 Seconds*

* Denotes call center statistics subject to performance standards subject to liquidated damages

Based on our interview with Recology’s Customer Service Manager, we found Recology’s phone system (ShoreTel) has reporting capabilities which provides the statistics listed above, with the exception of the Average Hold Time/Speed of Answer. Recology manually calculates the average speed of answer by: 1) multiplying the number of calls answered within the six set ranges in the phone system report (i.e., number of calls answered between 0‐15 seconds, 16‐30 seconds, 31‐45 seconds, 46‐60 seconds, 61‐90 seconds, and 90+ seconds, etc.) by the midpoint of each range; and 2) divide the sum of those calculations by the total number of calls. We reviewed Recology’s phone system reports and found Recology’s annual report tied to the supporting reports for each month with the exception of January. Also, the speed of answer calculations were inaccurate because Recology assumed the sixth range of 90+ seconds was 90‐91 seconds. We believe it would be more accurate to assume calls answered in 90+ seconds would realistically be a range of 91‐105 seconds (the same 15 second interval used for all other ranges).


Recommendation #1: Recology should use a range of 91‐105 seconds when calculating calls

received in the 90+ range to provide a more consistent method of calculating the average speed

of answer.

Recommendation #2: Recology should recalculate the incentive/disincentive payments. Based

on our review of the phone system reports and recalculation of the average speed of answer,

Recology should re‐submit their annual report with the correct phone system statistics. Section

3.2.8 summarizes the total liquidated damage amounts due.

3.2.8 Verify Accuracy of Liquidated Damages, Incentive, and Disincentive Payments

HF&H tested to verify that liquidated damage, incentive, and disincentive payments have been properly calculated in accordance with the franchise agreements and tie to Recology’s supporting

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documentation. To begin, we verified that the liquidated damage, incentive, and disincentive payment stipulations detailed in the collection agreements properly tie to the reports with regards to dollar amounts, as well as monthly allowances. We found that for the events that are directly tied to specific reason codes in the customer service reporting system, 99% of the data points tested tied correctly to the Recology‐provided supporting documents, and in the few instances of disagreement, the number of events reported was never off by more than one.

However, based on the results of our call monitoring and our customer service report verification (Sections 3.2.3 and 3.2.4 above), we find Recology has not properly identified the number of complaints subject to incentive/disincentive or liquidated damage payments.

Therefore, we have recalculated the actual number of instances of the following complaints (and the incentive/disincentive or liquidated damage payments due to the SBWMA or due to Recology resulting from our recalculation):

Initial Missed Pickups

Collection Outside of Approved Hours

Property Damage

Failure to Provide New/Changed Service

Improper Container Placement (after collection)

Unacceptable Employee Behavior

Spills

To quantify the number of complaints subject to incentive/disincentive payments or liquidated damage payments, we took a statistically valid sampling of complaints that had been coded with the reason codes from the seven bullet points listed above. To reach a statistically valid threshold, we sampled 397 individual transactions from the total number of complaints of 77,811; this sample size ensured a confidence level of 95% and a confidence interval of 5%.


HF&H, SBWMA, and Recology staff met to review our extrapolation methodology and all parties agreed with the results. Figure 3‐11 summarizes the incentive/disincentive payments and liquidated damage payments due from Recology, as a result of our extrapolated calculations. HF&H, SBWMA, and Recology staff met to review our extrapolation methodology and all parties agreed with the results.

Based on our calculations, Recology owes the Member Agencies a net $303,177 dollars in disincentive/liquidated damage payments as a result of not meeting the performance standards in accordance with the Agreements (which is $267,912 greater than the $35,265 Recology calculated in their annual report). Figure 3‐13 provides the breakdown by Member Agency of the new calculated payments.

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Figure 3‐11: Summary of HF&H Calculated 2011 Incentive/Disincentive and Liquidated Damages (INCLUDING JANUARY 2011)

Recology’s Customer Service

System

Service Resolution Tracking System (from Fig. 3‐9) Total

Performance Measures Subject to Incentive/Disincentive Payments Missed pickups – Initial Complaint ($58,300) $9,850 ($48,450) Missed pickup – Events $15,100 $0 $15,100 Call Center Statistics – Speed of answer $11,422 n/a $11,422 Call Center Statistics – > 90 second wait time $190,055 n/a $190,055

Subtotal Incentive/(Disincentive) Payment Due (to)/From Recology

$158,277 $9,850 $168,127

Performance Measures Subject to Liquidated Damages Collection outside authorized hours/prop damage $75,150 $3,600 $78,750 Failure to provide new/chg services within 5 days* $1,000 $0 $1,000 Improper placement of containers* $0 $0 $0 Excessive noise $0 $0 $0 Unacceptable employee behavior $51,000 $1,250 $52,250 Material spills $1,300 $250 $1,550 Fluid spills $1,000 $500 $1,500

Subtotal Liquidated Damages Payment Due From Recology

$129,450 $5,600 $135,050

TOTAL PAYMENTS DUE (TO)/FROM RECOLOGY $287,727 $15,450 $303,177

* Reflects performance measure tracking period of July – December 2011 only. The imposition of liquidated damages for these selected performance measures were suspended for the first six months of 2011. Note: Negative numbers denote incentive payment to Recology and positive numbers denote disincentive and liquidated damages payment from Recology due to the member agencies

As shown in Figure 3‐12, approximately 50% ($151,164 of the total $303,177 shown in Figure 3‐11) of the calculated payment is the result of performance during January 2011. During our meeting with SBWMA and Recology staff to review our calculations, Recology management requested the suspension of performance measures subject to incentive/disincentive and liquidated damage payments until February 2011. Figure 3‐12 summarizes the total payment due from Recology excluding the calculated incentive/disincentive and liquidated damages due from January 2011 operations.

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Figure 3‐12: Summary of Performance Incentives/Disincentives and Liquidated Damages (EXCLUDING JANUARY 2011)

Performance Measure Total 2011 (from Fig 3‐12)

Less: January2011

Total (excluding

January 2011)

Missed pickups – initial complaint ($48,450) ($20,900) ($69,350)Missed pickup – events $15,100 ($8,450) $6,650Call Center Statistics – Speed of answer $11,422 ($6,059) $5,363Call Center Statistics – > 90 second wait time $190,055 ($74,305) $115,750Collection outside authorized hours/prop damage $78,750 ($27,150) $51,600Failure to provide new/chg services within 5 days* $1,000 ($0) $1,000Improper placement of containers* $0 ($0) $0Excessive noise $0 ($0) $0Unacceptable employee behavior $52,250 ($12,750) $39,500Material spills $1,550 ($1,550) $0Fluid spills $1,500 ($0) $1,500

TOTAL PAYMENT DUE (TO)/FROM RECOLOGY $303,177 ($151,164) $152,013

*Reflects performance measure tracking period of July – December 2011 only. The imposition of liquidated damages for these selected performance measures was suspended for the first six months of 2011.

Figure 3‐13 summarizes the HF&H‐calculated performance incentive/disincentive and liquidated damages due from Recology, by member agency (with and without January 2011).

Figure 3‐13: Summary of Performance Incentives/Disincentives and Liquidated Damages (by Member Agency)

Member Agency Total 2011(from Fig 3‐12)

Less: January2011

Total (excluding January 2011)

Atherton $7,925 ($4,667) $3,258 Belmont $19,320 ($8,446) $10,874 Burlingame $38,404 ($17,104) $21,300 East Palo Alto $14,112 ($6,850) $7,261 Foster City $20,365 ($8,531) $11,834 Hillsborough $10,022 ($6,815) $3,207 Menlo Park $29,842 ($12,816) $17,026 North Fair Oaks $7,760 ($4,536) $3,223 Redwood City $58,087 ($29,378) $28,708 San Carlos $27,415 ($14,109) $13,306 San Mateo $61,596 ($30,376) $31,219 San Mateo County $6,094 ($5,082) $1,012 West Bay $2,236 ($2,453) ($216)

TOTAL $303,177 ($151,163) $152,013

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Recommendation #1: Based on our review of Recology’s customer service reports and our call

monitoring activities, we recommend Recology re‐submit their Annual Report to reflect the

revised counts of customer complaints and liquidated damage payments based on our analysis.

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SBWMA Section 4. Evaluate Accuracy of SBR Data Collection Services and Facility Operations Auditing Project


SECTION 4. EVALUATE ACCURACY OF SBR DATA

4.1 Verify Accuracy of In-Bound Tonnage Data Reported

As part of our review of Recology’s tonnage reported (see Section 4.1 of this report), HF&H verified that the tonnage reported by Recology tied to the tonnage reported by SBR. In this task, we compared tonnage reported by SBR to the actual weight ticket summaries from SBR’s PC Scale system. We verified that the following reported inbound categories all tied accurately to the PC Scale system reports:

Franchised Inbound Tons (Recology);

Member Agency Vehicles Inbound Tons;

Recology Maintenance Box Tons;

Buyback Recyclable Materials Tons; and,

South Bay Recycling Internal Tons (residue tons from MRF operations disposed at Transfer Station).

SBR currently reports self‐haul tonnage as the effective difference between reported inbound and outbound tonnage. However, SBR tracks self‐haul yardage as it is received through the PC Scale system. HF&H verified that the following self‐haul categories reported in the back‐up data for SBR’s reports accurately ties to the PC Scale system reports:

C&D Yards;

Green Waste Yards;

Wood Waste Yards;

Asphalt Roofing;

Concrete;

Dirt;

Appliances;

Garage Doors;

Mattresses;

Refrigerators;

Sofas;

Tires; and,

Water Heaters.

HF&H found no discrepancies or instances of substantial variances in any tonnage category tested.

4.2 Verify Accuracy of Out-Bound Tonnage Data Reported

SBR’s quarterly report includes out‐bound tonnage shipped from the facility. We sampled tonnages reported in SBR’s Q4 2011 report to verify the amounts tied to the supporting documents. The testing included reviewing tonnage summaries produced by SBR as well as reports from the facilities to which the material was delivered (e.g., Ox Mountain Landfill, Newby Island Compost Facility, etc.). We found that of the initial data points tested, 44% of the tonnages reported did not tie correctly to the

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supporting documents. We requested an explanation for the discrepancies, and learned that the initial errors were a result of SBR needing to submit the report before complete supporting documents were available. Subsequently, SBR independently located the errors and resubmitted the report. HF&H then tied the revised version of the report to the supporting documents and found that 89% (8 out of 9) tied correctly. The singular data point that did not tie showed a variance of 3.65 tons of food waste delivered to Recology’s Grover Environmental Products processing facility. While 11% inaccuracy does not necessarily indicate poor reporting in a relatively small sample size, HF&H performed an additional test to ensure that amounts in other months tied to supporting documents. In the retest, 100% of data points selected from the quarterly report tied correctly to the supporting documents. We found no additional errors or inconsistencies upon retesting, HF&H has no recommended revisions to SBR’s reported out‐bound tonnages.

4.3 Verify Accuracy of Commodity Revenue Data Reported

SBR’s quarterly report includes average per ton commodity revenue received from the marketing of recyclable materials. To complete this task, HF&H needed to verify the accuracy of several levels of reporting within SBR’s reporting system. In order to closely examine the calculation of commodity revenue, HF&H followed not only the reported commodity tonnage, but also the commodity prices from the respective source documents to the final monthly reports.

In order to establish a single, reliable summary document to use in testing multiple months, HF&H performed a detailed test of the tonnage and revenue calculations for the month of December 2011. In this detailed test, we sought to verify that the tonnage and revenue values shown in the data entry tab of SBR’s mass balance worksheet (which acts as the monthly, quarterly and ultimately annual reports) accurately tied to SBR’s PC Scales tonnage report, the bid sheets from each commodity buyer, as well as the actual invoices provided to commodity buyers from SBR. In this test, we found that 100% of tonnage data points tested tied accurately from the PC Scale report to the mass balance worksheet. In tying agreed‐upon commodity prices from the bid sheets, to the invoices, and to the mass balance sheet, we found that 1 data point, out of the 28 tested, was recorded inaccurately. In this instance, the bid sheet from Ming’s Recycling Corp stated that the price for HDPE‐Natural would be $595/ton. The invoice and mass balance sheet, however, reported the HDPE‐Natural price as $600/ton. We determined that the resulting overall $100 discrepancy (once the $rate was applied to the outbound tonnage) was within a reasonable margin of error. HF&H also found that, while the mass balance sheet accurately captures the revenue that should have been collected according to the agreements between SBR and commodity buyers, it does not accurately reflect revenue that was actually collected. In four out of fourteen invoice data points tested, adjustments to the revenue amounts were made, but are not reflected in the mass balance sheet. For example, a December 16, 2011 invoice from SBR to Anheuser‐Busch Recycling shows that there was a $4,733.60 price reduction for 23.42 tons of Aluminum that came as a result of poor quality material. This brought the overall revenue from the transaction from $33,724.80 (23.42 tons x $1,440/ton) to $28,991.20 ($33,724.80 less $4,377.60). The revenue stated in the mass balance, however, reflects only the agreed‐upon price multiplied by the reported tons, and not the actual revenue from the transaction. We further verified that 100% of data points tested tie accurately from the mass balance sheet to the South Bay Recycling Outbound Recyclable Revenue and Tonnage Report,

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which means that, while the report accurately reflects the bid sheets and tonnage reports, it likely does not present an accurate representation of all actual transactions.

In order to obtain a broader view of how these inconsistencies may have effected other months, HF&H conducted a higher level analysis of how the values shown and calculated in the mass balance sheet compare to the tonnage and revenue values reported in the MRF Commodity Marketing Report in the SBR Monthly Reports. Our results are summarized in Figure 4‐1 and Figure 4‐2 below.

Figure 4‐1

Figure 4‐2

Due to the discrepancies identified in Figure 4‐1 and Figure 4‐2 above, SBR’s December 2011 report has understated fiber revenues by a total of $40,306 and understated container revenues by a total of $365,149. We recommend that SBR restates and resubmits their December 2011 report (which includes annual results broken down by month) to correct the errors indentified above. It should be noted that the transfer of funds from SBR to the Authority for all commodity revenue collected during the year took place independently of this reporting; therefore, the actual revenues transferred to the Authority may differ.

Figure 4‐3 compare SBR’s reported revenue per‐ton from the sale of commodities to the regional average from April 2011 through December 2011.

April May June July August September October November December TotalFibers

Tons per PC Scales Report 2,742 3,158 3,936 3,340 3,623 3,580 3,338 3,918 4,076 31,711Tons per Dec. 2011 Report to SBWMA 2,742 3,158 3,936 3,340 3,623 3,580 3,338 3,918 4,076 31,711Amount Over/(Under) Reported (0) 0 0 (0) 0 (0) (0) (0) 0 0

ContainersTons per PC Scales Report 771 1,207 1,282 1,181 1,204 1,236 1,290 1,154 1,249 10,574Tons per Dec. 2011 Report to SBWMA 771 1,155 1,282 1,181 1,204 1,195 1,252 1,154 1,249 10,443Amount Over/(Under) Reported 0 (52) 0 (0) 0 (41) (38) (0) (0) (131)

Commodity Tonnage Report Comparison

April May June July August September October November December TotalFibers

Scrap Value per PC Scales Report $498,026 $580,391 $714,341 $632,948 $688,303 $664,302 $566,729 $478,394 $533,122 $5,356,555Revenue per Dec. 2011 Report to SBWMA $469,734 $555,166 $714,341 $632,948 $688,303 $677,512 $566,729 $478,394 $533,122 $5,316,249Amount Over/(Under) Reported ($28,292) ($25,225) $0 $0 $0 $13,210 ($0) $0 $0 ($40,306)

ContainersScrap Value per PC Scales $28,425 $249,968 $145,883 $141,843 $111,101 $110,787 $145,546 $79,401 $92,479 $1,105,432CRV Revenue $135,214 $351,913 $306,116 $346,179 $306,542 $322,964 $388,047 $273,819 $279,356 $2,710,149

Total Container Revenue $163,638 $601,881 $451,999 $488,022 $417,643 $433,750 $533,593 $353,219 $371,835 $3,815,580

Revenue per Dec. 2011 Report to SBWMA $156,350 $472,127 $408,319 $476,739 $403,454 $416,311 $518,503 $353,219 $248,409 $3,453,431Amount Over/(Under) Reported ($7,288) ($129,754) ($43,680) ($11,283) ($14,189) ($17,439) ($15,090) ($0) ($123,426) ($362,149)

Commodity Revenue Report Comparison

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Figure 4‐3

4.4 On-Site Monitoring of Scale House Transactions

Our team met with the then Interim General Manager, David Langer, of South Bay Recycling to understand the process put in place for the scale house transactions. The discussion explained the different types of trucks entering the scale house, which scales they go to, how the Radio Frequency Identification (RFID) tags work, material type, coding, the methodology behind the flow of the transactions between SBR and Recology and the different quality assurance processes in place to ensure the information is accurate and properly forwarded to Recology for reporting purposes. An SBR Facility Procedure Manual was provided and reflects the information provided during the interview with SBR staff, and follows the process currently in place.

Summary of SBR Operations. Interview with David Langer ‐ November 1, 2011

Customers Franchise trucks (Recology) – weighed in tons

Member Agency Vehicles (City Public Works vehicles) – weighed in tons

South Bay Recycling and Recology Roll Offs (from their yards/shops which are charged through) – weighed in tons

Self Haul (MSW, Green Waste, C&D) – measured in yards

3rd Party recyclables (Redwood Debris / School District, others) – weighed in tons

Material

MSW, clean cardboard, green waste, clean paper, residential organics (yardwaste & food combined), commercial organics (clean food / organics is charged the same) and Recycling

SBR Reported HFH Calculated$/Ton Rates $/Ton Rates [2] Variance ($) Variance (%)

# 1 PET ‐ 701 $699 $744 ($45) ‐6.1%# 2 HDPE‐Nat ‐ 702 $624 $619 $5 0.8%# 2 HDPE‐Col ‐ 703 $433 $462 ($29) ‐6.3%Aluminum ‐ 705 $1,579 $1,722 ($143) ‐8.3%Tin/Steel Cans ‐ 707 [3] $228 $122 $107 87.8%BB Clean Glass ‐ 704 $11 $18 ($7) ‐37.3%OCC ‐ Cardboard ‐ 801 $187 $171 $15 8.9%ONP ‐ Newspaper ‐ 808 $167 $148 $19 13.0%Mixed Paper ‐ 809 $153 $135 $18 13.0%1. Al l amounts shown are for Apri l ‐December 2011 and do not include CRV revenue.2. HFH Calculated us ing Apri l ‐December 2011 regional average commodity price benchmarks .3. Tin/Steel Can benchmarks ca lculated us ing national averages .

Benchmark Revenue Comparison [1]

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Coding There is a code set up for each material type

Self Haul charges per units and/or yards. There is a price sheet and the staff is evaluated on existing procedures on a regular basis (What are they doing, how are they doing it, how are they estimating it, is it done accurately?).

Franchise trucks (TARE weights have been entered into PC Scales system) come in and do their own coding. They have an RFID tag which has the truck number registered. If they don’t have the number, they will key in their route number which tells them the material type.

SBR does a daily audit to find any duplicates, to see if an obvious mistake has been made, if the driver punched in two times, etc.

Scales / Monitoring

There are three rows at the scale house. One self haul and two scales for the franchised trucks that already have TARE weights of their trucks.

a. Franchised trucks will get a tag generated at scale house b. Roll off trucks have one more step. They will enter their box number, truck number,

material type and the member agency the material was collected from.

SBR staff checks the tickets at the door prior to emptying the load. The drivers are required to put in the box number for each roll off box (the TARE weights of each box are also in the PC Scales system).

Activity and Times

10am and 1pm are the busiest at the SEC.

The Franchised trucks come in between 8am and 10am

Reporting / Weights

There is remote access to reporting schematics with PC Scale Tower through a VPN for review.

Transfer trucks can willingly go in and out with a PO process in truck.

Transfer trucks are weighed at SBR and the company uses SBR weight tickets

There are two facilities that don’t have a scale (Bio Fuel and Grover –they also have their own check / balance done).

SBR in general does a hard key for every ticket into PC Scale with tag provided by Ox Mountain Landfill, Newby Island, Grover and Zanker.

Scrap metal, refrigerators, mattresses, e‐waste, other bulky items –they have separate trucks that come in to pick up. SBR will weigh the truck in and out and keep a manifest. Units are billed individually.

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SBR uploads information to Recology and they check it, then Recology links it to their routes and allocate their volumes.

SBR invoices Recology monthly, revenue for self haul tonnage is provided two times a month with tonnage to Recology one time a month. SBR prepares monthly reporting balance of facility and invoice out bound commodities.

Franchise and Member Agency Vehicles

Franchised trucks enter one of two scales, type in their truck number if the RFID tag did not pick it up, the scale weighs the load and a tag is generated and printed for the driver to take. The entire process only takes a few moments. The load is then taken to the appropriate location in the transfer station or MRF. Each ticket shows the ticket number, date, commodity, cost, truck number and net weight. The computer system already identifies the TARE weight for each truck, the commodity and member agency by truck number. According to the 46 loads monitored, all information appears accurate and the process is exactly as described in the manual and by the SBR General Manager.

Self‐Haul Scale House Operations

The scale house operators estimate the yardage of each load, and thus determine what to charge each customer, using multiple techniques. Two of the three scale house operators have worked in the scale house for more than 10 years. The operators visually estimate the yardage of most loads in pick‐up trucks or similar standard vehicles. While evaluating self‐haul loads that came in personal vehicles, the operators mentioned the capacity of truck beds in specific vehicles (Ford F‐150, Toyota Tacoma’s, etc.). For loads of large loose material that made the truck bed look full but were not likely to add a lot of tonnage or volume once broken down (bookshelf without shelves, bulky piping), the operators mentioned that they picture those items broken down when determining yardage. The operators mentioned that some loads were technically under what they would estimate as a yard, but because a yard is the minimum unit of charge for every material type, they must charge for at least a yard for every load. Operators took care to subtract toolboxes and other items that were not a part of the load from the total yardage for each self‐haul vehicle that passed through the scale house.

For loads that came in trucks that were too large to estimate tonnage visually, the operators used a stick marked out to six feet to estimate the yardage of the load. Using this stick, the operators measured and multiplied the length X width X height of the load, and divided the result by 27 to get the total yardage.

Loads that contained a lot of dirt, concrete, etc. were the only loads weighed instead of measuring.

Test Weight Tickets

To verify the accuracy of the system‐generated reported from SBR’s PC Scales systems, we tested the tare weight of Recology’s collection vehicles; the collection route stated on the weight ticket ties to the

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information from Recology’s daily dispatch log; and the type of material listed on the weight ticket ties to the information from Recology’s daily dispatch log which will state the assigned route and material type (i.e., is the assigned vehicle collecting solid waste, recyclable materials, or organic materials).

We randomly selected weight tickets to test. Specifically, we compared the truck number, route number, material type, and tare weight from each selected dispatch log entry from a given day to a weight ticket from the same day. Recology provided all of the weight tickets for April 2011 through November 2011 from the scales accepting franchised collection vehicles at SEC. We randomly selected 381 tickets from these 8 months of tickets, with at least one ticket selection per day. The 381 tickets covered 20 different days during 2011:

April 9 April 25 June 18 June 15 June 29 July 5 July 19

August 2 August 22 August 27 September 1 September 2 September 13 September 22

October 4 October 10 October 19 November 8 November 21

To start the verification process, we chose 19 entries from each of the 20 dispatch logs Recology provided. We chose every five entries from each dispatch log to verify, and continued through the log until 19 entries were selected. Many of the dispatch log days listed trucks in the same order, so for each dispatch log day, we began the entry selection process at a different point in the log, to ensure diversity in the trucks selected for verification. From each selected dispatch log entry, we recorded the truck number, route number, and material type from the dispatch log in a tracking spreadsheet. Then, to begin the comparison process, we linked each dispatch log entry to its corresponding weight ticket first by date, and then by truck number. Once we had verified that a weight ticket matching a dispatch log entry existed, staff verified that the truck number, route number, and material type were the same between the dispatch log entry and corresponding weight ticket. If this information did not match between the log and ticket, then staff noted what information was on the weight ticket that conflicted with the dispatch log entry. For every weight ticket verified, staff also noted the ticket number for purposes of future reference, and the truck’s tare weight. For the final step in the verification process, we verified the tare weight of each truck listed in selected tickets with the tare weights listed in Recology’s truck tare list, which contains the true tare weights for all trucks in Recology’s fleet.

In total, we tested 380 weight tickets against their associated dispatch log entries. Of these 380 tickets, 21 (5.53%) displayed information that did not correspond with information shown in the dispatch logs. In each of these cases, the truck number listed in the dispatch log was not present in the tickets for a selected day, so staff searched instead for the route associated with that truck as listed in the dispatch log, and verified information from the ticket for that route. Of the 21 inaccurately recorded tickets, seven (1.84% of the total) of the route numbers listed in the dispatch logs did not match the route numbers in the tickets associated with the truck number from the dispatch log, and 14 (3.68% of the total) truck numbers listed in the dispatch log did not have matches in the weight tickets for a given

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route All 380 (100%) of the material types listed in the dispatch logs matched the materials types in the weight tickets. In addition, 100% of the tare weights shown on correctly reported tickets tied accurately to Recology’s truck and trailer tare list.

4.5 Verify Accuracy of Liquidated Damages

SBR’s quarterly and annual reports did not include any reportable instances of service issues that would trigger the payment of liquidated damages in accordance with Attachment I of the operating agreement.

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SBWMA Section 5. Recommendations Collection Services and Facility Operations Auditing Project


SECTION 5. RECOMMENDATIONS

This section includes a comprehensive list of the recommendations included throughout this report.

Recology

Section 2.1

Recommendation #1: Re‐submit their annual report with missing and/or incomplete information Recommendation #2: In future reports, state “nothing to report” when applicable instead of omitting the applicable section.

Section 2.3

None

Section 3.1.1

Recommendation #1: Recology should stop adding cell phone, battery, oil, and oil filter tons to the tons reported by SBR’s monthly scale report. Recommendation #2: Recology should restate their tonnage figures included in the annual report to accurately reflect the revised cell phone, battery, oil and oil filter tonnage.

Section 3.1.2

Recommendation #1: Because Recology manually tracks the abandoned waste/illegal dumping

collected from each member agency, we recommend Recology include a summary of tonnage

collected in their monthly report. The summary should include who called it in, when the call

was made, when it was collected, what type of material was collected, when the material was

collected, and the weight of the material collected. This will allow member agencies to track this

activity.

Recommendation #2: We recommend Recology be required to report to the Authority whenever

their tonnage allocation methodology changes, as such changes will impact future cost

allocations. The reporting should include the rationale for the update and variances between the

“old” and the “new” allocators.

Recommendation #3: Recology’s quarterly reports should provide a narrative describing their

methodology for manually allocating tons. The narrative should include any changes from the

previous methodology, the rationale for the change, and the variances between the results using

the “old” and the “new” methods.

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Section 3.2.1

None

Section 3.2.2

None

Section 3.2.3

Recommendation #1: Review the spreadsheets that we compiled during the dummy and live

monitored calls to understand where the majority of the improper reason code usage is

occurring and speak to the CSRs involved to ensure they understand how they should code them

in the future. In addition, highlighting the CSR protocol activities that are not being followed in

the spreadsheet (improper reason code usage, not asking for addresses, not placing a note on

the account, etc.) and discuss them during staff meetings to further train all staff.

Recommendation #2: Review the different descriptions of each reason code to see if they

provide a clear description of applicable complaints that is understood by the CSRs.

Recommendation #3: Provide trainings to the CSRs to discuss the usage of reason codes and the

importance of documenting all calls. One approach could be to highlight a few reason codes

each week at staff meetings for review.

Recommendation #4: The Customer Service Manager should follow up after the trainings by

listening in to customer calls and reviewing accounts to ensure the proper reason codes are

being used. The Customer Service Manager should prepare, and submit to the Authority, a

summary of the training (i.e., what topics were covered, who received the training, duration of

the training, etc.) and the results of call monitoring.

Recommendation #5: Once it appears the CSRs understand the different uses of each reason

code and are consistently using them properly, we recommend conducting another round of

dummy calls be performed to ensure the trainings have been effective.








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Section 3.2.4

Recommendation #1: Analyze the currently used reason codes and provide the SBWMA the results. These results should include but not be limited to providing details on the number of times each reason code was used monthly, quarterly and annually in 2011; why the reason code should be omitted now and the implications of this change; and, what specific events the “new” reason codes will be used to capture. Recommendation #2: Tie language from Liquidated Damages to relevant reason codes to increase clarity. Recommendation #3: Reduce the overall number of reason codes and identify a few target areas for which to require additional detail. Recommendation #4: Train CSRs to use specific key words in the “Notes” section to provide

additional detail and enable quality control checks. When such training is conducted, we

recommend Recology provide documentation to the Authority of the nature of the training, who

attended, and the materials distributed.

Recommendation #5: Recology should recalculate the incentive/disincentive payments and







Section 3.2.5

Recommendation #1: Recology should ensure that its CSR call tracking protocol does not treat

the SRTS derived complaints and issues differently from if the complaint or issue was received via

a phone call

Recommendation #2: Recology should restate their incentive/disincentive payments and

liquidated damage payments for all of 2011 after incorporating the SRTS data into their

Customer Service Reporting System.

Recommendation #3: Create a reason code for documenting complaints regarding improper

container placement by driver after collection.

Section 3.2.6

Recommendation #1: HF&H recommends that Recology provide additional information in their

outreach event reporting, including, but not limited to:

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Providing the first and last names of the person contacted;

Providing a phone number for the person contacted; and

A clear summary of the recommended changes, whether the customer received the

recommended assistance/education, and whether the changes were implemented by the

customer.

Section 3.2.7

Recommendation #1: Recology should use a range of 91‐120 seconds when calculating calls

received in the 90+ range to provide a more consistent method of calculating the average speed

of answer.

Recommendation #2: Recology should recalculate the incentive/disincentive payments. Based

on our review of the phone system reports and recalculation of the average speed of answer,

Recology should re‐submit their annual report with the correct phone system statistics. Section

3.2.8 summarizes the total liquidated damage amounts due.

Section 3.2.8

Recommendation #1: Based on our review of Recology’s customer service reports and our call

monitoring activities, we recommend Recology re‐submit their Annual Report to reflect the

revised counts of customer complaints and liquidated damage payments based on our analysis.

SBR

Section 2.2

None

Section 2.4

Recommendation #1: We recommend that SBR restates and resubmits their 2011 annual report

to correct the mathematical errors.

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Attachment 1: Recology and SBR Reporting Flow Chart

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RecologyandSBRReportingMatrix

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Attachment 2: Customer Service Reason Codes

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Customer Service Reason Codes

System Code Description31000 NOT OUT31001 LEFT EXTRAS31002 CONTAMINATED31003 CONTAINER DAMAGED31004 BLOCKED31005 LOCKED31006 EMPTY31007 NOT CURBSIDE31008 MESS-CONTAINERS OVERFLOWING31009 SET OUT NOTICE LEFT31010 LEFT NON-COLLECTION NOTICE31011 INCREASE SERVICE NOTICE31012 DECREASE SERVICE NOTICE31013 HANG UP-DISCONNECT31014 NEW ADDRESS/NEW STREET31015 DISTANCE CHARGE31016 SPECIAL HANDLING SERVICE - NO CHARGE31017 SPECIAL HANDLING SERVICE - CHARGE31018 PHONE PAYMENT31019 DISABLED APPROVED31020 DISABLED DENIED31021 VACATION START-NO PICK UP31022 VACATION STOP-RESUME PICK UP31023 CALL BACK-VERIFY CUST SATISFACTION31024 BACK YARD SERVICE REQUEST31025 CUST CONTACT / LEFT MSG31027 CHANGE/RTE/LOAD/STOP/DAY31029 2ND CALL SAME DAY31030 3RD CALL SAME DAY31031 ROUTE CHANGE/COMMENT31032 PENDING BACK YARD EXEMPT FORM31033 BACK YARD EXEMPT FORM ON FILE31034 OPTING OUT OF BACK YARD SERVICE31035 VACATION REQUEST31036 NOT OUT NEEDS TO BE AUDITED31037 ALLIED CAN-IMPROPER CONTAINER31038 INFORMATION PACKET REQUEST31039 OPERATIONS ATTENTION31040 SERVICE INQUIRY31041 GARBAGE INQUIRY31042 RECYCLE INQUIRY31043 ORGANICS INQUIRY31044 BACK YARD SERVICE INQUIRY31045 HAZARDOUS WASTE INQUIRY31046 HOURS OF OPERATION INQUIRY31047 DIRECTIONS TO FACILITY31048 BILLING INQUIRY31049 E-COM INQUIRY31050 CHRISTMAS TREE PICK-UP31051 RETURNED MAIL-NO FWD ADDRESS

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System Code Description31052 COMPLAINT RE TIME OF PICK UP31053 COMPLAINT RE DRIVER31054 INSURANCE CLAIM SUBMITTED31055 OFFICE MANAGER ATTENTION31056 RWC CTCD CUST DATA CHANGE31057 COMPLIMENT31058 DISTANCE EVALUATION31059 SERVICE AUDIT31060 ON STOP-TSD-DO NOT SERVICE31061 RESUME SERVICE31062 SENT DELINQUENT LETTER31063 SENT RETURN CHECK LETTER31064 SENT TO COLLECTIONS31065 NEED KEY31066 NEED LOCK31067 NEED REMOTE31068 NEED CODE31069 DRIVER CANNOT FIND LOCATION31070 DUPLEX REQUEST31071 DRV LEFT CANS OUT/NOT RETURNED31072 VACANT31073 DRIVER DID NOT PICK UP31074 SBWMA SRT31075 ALREADY ON RS SCHEDULE31076 OVERLOADED31077 CONTACT US31078 CONTACT US WAITING FOR CUST RESPONSE31079 NEEDS TO BE ROUTED31080 RWC# NEEDED FOR NEW START31081 CALLED CUST/LFT MSG RE DAY CHG31082 REMINDER-SERVICE TODAY31083 RWC DISTANCE CHG-PENDING31084 EXCESSIVE NOISE31085 DISCOURTEOUS BEHAVIOR31086 PROPERTY DAMAGE31087 CONTAMINATED31088 CUST MISSED/USING ALLIED CAN31089 CONTAINER RENTAL FOR INSIDE USE31090 NEED CARD31091 CART PLACEMENT INQUIRY31093 UNAUTHORIZED COLLECTION HOURS31094 ABANDONED WASTE P/U REQUEST31095 RTE WARE DRIVER COMMENTS31096 SERVICE QUALITY ASSURANCE CALL31097 PICK UP TIME CONFIRMATION31098 CUST RPTS MESS LEFT AFTER SRV31099 DISPUTED SERV-1 TIME RETURN31100 CARTS TOO HEAVY31101 SVC LEVEL NE TO WHAT IS PUT OUT31102 CUSTOMER IS INACTIVE




System Code Description31103 KEY/LOCK/REMOTE DLVD TO OFC31104 SPECIAL EVENT REQUEST31105 CUSTOMER WALK IN - OFFICE31106 REF: TO RECYCLING DEPT GROUP31108 MA REQUESTED WASTE AUDIT31109 SCHOOL PRESENTATION31110 1ST SERVICE REMINDER31111 2ND SERVICE REMINDER31112 3RD SERVICE REMINDER31113 4TH SERVICE REMINDER31114 RETURN CALL SLIP GIVEN TO OFM31115 MESS-POSSIBLE ANIMAL SCAVENGING31116 CUST RPTS VEHICLE FLUID SPILL31117 SERVICE VERIFIED BY SUPERVISOR31118 OPEN ROUTE INQUIRY31120 FAILURE-NEW/CHG IN SRVC W/IN 5 DAYS31300 AR SERVICE ADJUSTMENT REQUEST31301 ALTAR SERVICE ADJUSTMENT REQUEST31302 CART NOT EMPTIED COMPLETELY31303 RETURN PAYMENT VIA KUBRA32014 MISSED P/U INITIAL COMPLAINT32015 IMMEDIATE RESPONSE REQUIRED!!32016 BIC MISS33000 EXTRA SERVICE33001 BULKY ITEM COLLECTION33002 BULKY ITEM COLLECTION - CHARGE33003 OVERAGE 133004 OVERAGE 233005 OVERAGE CHARGE33010 EXTRA WITH BAG TAG33011 EXTRA OFFICE REQUEST33012 EXTRA BAGS #______33013 OIL JUGS PICKED UP #______33014 OIL JUGS DELIVERED #______33015 EXTRA 1 YARD33016 EXTRA 2 YARD33017 EXTRA 3 YARD33018 EXTRA 4 YARD33019 EXTRA 6 YARD33020 LOCK PURCHASE - CHARGE34000 DELIVER34001 EXCHANGE34002 PULL34003 CLEAN34004 REPLACE - NO CHARGE34005 REPLACE - CHARGE34007 CART REPAIR34008 DELIVER - FELL IN HOPPER34009 PURCHASE 32G GREEN CART34010 PURCHASE 64G GREEN CART




System Code Description34011 PURCHASE 96G GREEN CART34012 CONT DEL DIF SIZE THAN ORDERD34013 NOT IN STOCK-RESCHEDULE34021 RC'D CART AFTER OPT OUT-REMOVE34022 RC'D WRONG SIZE CART34024 RC'D RSMC CONT- RMVE FR DEL RTE SHEET34026 HAS 32G NEEDS 20G34027 PULL 64G DEL 32G NEEDS 20G34028 PULL 96G DEL 32G NEEDS 20G34032 20G BLK EXCHGE TO 32G-BLK INSERT34100 MISSING CONT / RE-DELIVER34101 REPAIR CONTAINER35000 STOP SERVICE35001 STOP SRVC-MOVED WITHIN RSMC AREA35002 STOP SRVC-MOVED OUT OF RSMC AREA35003 OWNER STOPPING TENANTS SERVICE35005 STOP SERVICE - NON PAYMENT35006 STOP SVC-STOP CHG ON ONC RTE35010 STOP SERVICE-INCORRECT ADDRESS-CLEAN UP35011 STOP SERVICE CONV DATA CLEAN UP35012 STOP - BANKRUPTCY36000 NEW START36001 START SERVICE-TF ANOTHER RSMC AREA36002 START SERVICE-NEW CUST-OLD CUST ACTIVE36003 NEW START PENDING SERVICE EVAL36004 OWNER STARTING TENANT SERVICE36010 START SERVICE-INCORRECT ADDRESS-CLEAN UP36011 START SERVICE - MOBILE HOME PARK36012 NO SVC POST CARD START37000 INCREASE SERVICE37001 DECREASE SERVICE37002 TSV VACATION START37003 TSV VACATION STOP37004 TSD-STOP FOR NON-PAYMENT37005 TSD-PAID RESUME SERVICE37006 TSD-STOP-RETURN CHECK37007 CHNG IN SRVC PENDING EVAL37008 FIX RATE CODE FROM CONVERSION37010 START/STOP SERVICE DATA CONV CLEAN UP37011 STOP CHG ON ONC RTE37012 UPDATE/CHANGE ROUTE P/U DAY37013 TAX ROLL CREDIT37014 REL TO FEL37015 FEL TO REL38000 CHANGE PHONE #38001 CORRECT SPELLING OF NAME38002 EMAIL ADDRESS38003 BILLING ADDRESS CHANGE38004 LIEN EXEMPT FLAG-YES38005 RETURNED MAIL-NEW FORWARDING




System Code Description38006 CUST INFORMATION CHANGED38007 RTN MAIL NO FWD NO P/U PUT ON TSD38020 ADDED ALLIED ACCT#-INCORRECT ADDRESS CLEAN UP38021 ADD GROUP NUMBER38500 DEL 2YD PAYS FOR 1YD38501 CUST NAME MISSPELLED - CHANGE39000 SAFETY MEETING39001 ROAD CLOSURE NOTICE39002 ADD TRACKING DATA TO FIELDS39010 MESSAGE TO ALL DRIVERS39966 RWC - CUSTOMER DATA CHANGES THRU IMPORT



Member AgencyTotal

Liquidated Damages 2

Net Performance Incentives and Disincentives

TotalTotal

Liquidated Damages


TotalTotal

Liquidated Damages


Total

Atherton $400 ($12,134) ($11,734) $1,900 ($11,898) ($9,998) $2,850 ($8,181) ($5,331)Belmont $900 ($50,786) ($49,886) $8,100 ($46,030) ($37,930) $10,650 ($40,135) ($29,485)Burlingame $250 ($99,224) ($98,974) $10,550 ($100,071) ($89,521) $14,800 ($87,217) ($72,417)East Palo Alto $250 ($54,700) ($54,450) $3,200 ($53,320) ($50,120) $4,900 ($48,169) ($43,269)Foster City $750 ($59,203) ($58,453) $8,650 ($56,248) ($47,598) $11,100 ($50,167) ($39,067)Hillsborough $0 ($16,563) ($16,563) $2,850 ($16,284) ($13,434) $4,250 ($10,870) ($6,620)Menlo Park $500 ($81,062) ($80,562) $9,700 ($76,930) ($67,230) $13,850 ($68,264) ($54,414)North Fair Oaks $0 ($28,143) ($28,143) $1,150 ($27,881) ($26,731) $2,200 ($24,395) ($22,195)Redwood City $1,250 ($178,844) ($177,594) $16,250 ($174,191) ($157,941) $23,400 ($151,963) ($128,563)San Carlos $2,000 ($66,364) ($64,364) $10,750 ($64,583) ($53,833) $15,150 ($54,873) ($39,723)San Mateo $1,000 ($200,721) ($199,721) $18,600 ($194,472) ($175,872) $27,750 ($173,246) ($145,496)SM County $0 ($27,256) ($27,256) $1,900 ($23,971) ($22,071) $3,300 ($20,290) ($16,990)WBSD $0 ($10,091) ($10,091) $0 ($8,767) ($8,767) $850 ($7,164) ($6,314)Total $7,300 ($885,092) ($877,792) $86,300 ($854,647) ($768,347) $127,750 ($744,934) ($617,184)

Variance $79,000 $30,445 $109,445 $120,450 $140,159 $260,609

Exhibit BSUMMARY OF RECOLOGY 2011 ANNUAL REPORT LIQUIDATED DAMAGES AND PERFORMANCE INCENTIVES AND DISINCENTIVES

Negative number in parenthesis denotes Incentive payment due to Recology.1 Per second restatement of 2011 Annual Report received on March 14, 2012.2 Recology issued checks to Member Agencies in April 2012.

Original Restated 2011 Annual Report 1 Per HF&H Audit Excluding January 2011 Per HF&H Audit Including January 2011TABLE 1 TABLE 2 TABLE 3

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_______________________________________________________________________ AGENDA ITEM: 6D EXHIBIT B p - 1

Combined LD's and I/D's

Member Agency

Collection Outside

Authorized Hours

Failure to Provide New

Service Change Within 5 Days


Material Spills

Fluid Spills

SFD Missed P/U Initial Complaints

SFD Missed P/U

Events

Average Speed of Answer

90 Second

Max Hold Time

Diversion 2Net

Incentives and

Disincentives

Total

Atherton $150 $0 $250 $0 $0 ($2,650) $1,200 $189 $2,383 ($13,256) ($12,134) ($11,734)Belmont $150 $0 $250 $0 $500 ($12,050) $600 $694 $8,774 ($48,804) ($50,786) ($49,886)Burlingame $0 $0 $250 $0 $0 ($11,500) $1,600 $1,575 $19,922 ($110,821) ($99,224) ($98,974)East Palo Alto $0 $0 $250 $0 $0 ($8,750) $300 $816 $10,315 ($57,381) ($54,700) ($54,450)Foster City $0 $0 $250 $0 $500 ($12,150) $850 $845 $10,684 ($59,432) ($59,203) ($58,453)Hillsborough $0 $0 $0 $0 $0 ($4,450) $1,300 $237 $2,991 ($16,641) ($16,563) ($16,563)Menlo Park $0 $0 $500 $0 $0 ($14,150) $1,000 $1,198 $15,146 ($84,256) ($81,062) ($80,562)North Fair Oaks $0 $0 $0 $0 $0 ($4,550) $550 $426 $5,385 ($29,954) ($28,143) ($28,143)Redwood City $0 $0 $1,250 $0 $0 ($31,050) $2,650 $2,653 $33,553 ($186,650) ($178,844) ($177,594)San Carlos $0 $0 $2,000 $0 $0 ($14,050) $1,800 $955 $12,069 ($67,138) ($66,364) ($64,364)San Mateo $0 $0 $1,000 $0 $0 ($35,850) $2,050 $2,944 $37,227 ($207,092) ($200,721) ($199,721)SM County $0 $0 $0 $0 $0 ($9,350) $700 $328 $4,150 ($23,084) ($27,256) ($27,256)WBSD $0 $0 $0 $0 $0 ($3,700) $500 $122 $1,537 ($8,550) ($10,091) ($10,091)Total $300 $0 $6,000 $0 $1,000 ($164,250) $15,100 $12,982 $164,136 ($913,060) ($885,092) ($877,792)

Exhibit B ‐‐ TABLE 1Recology 2011 Annual Report

1 Recology issued checks directly to Member Agencies in April 2012.2 Per second restatement of Recology 2011 Annual Report received on March 14, 2012.

Negative number in parenthesis denotes Incentive payment due to Recology.

Performance Incentives and DisincentivesLiquidated Damages

Total LD's 1

$400$900$250$250$750$0

$500$0

$1,250$2,000$1,000$0$0

$7,300

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Member Agency

Collection Outside

Authorized Hours




Material Spills

Fluid Spills

Deduct LD's

Already Paid to MA's 2

Total LD'sSFD Missed P/U Initial Complaints

SFD Missed P/U

Events


90 Second

Max Hold Time

Diversion 3

Net Incentives

and Disincentives

Total % Total

Atherton $1,200 $200 $500 $0 $0 ($400) $1,900 ($850) $450 $78 $1,680 ($13,256) ($11,898) ($9,998) ‐17% ($1,736)Belmont $4,350 $0 $3,250 $0 $500 ($900) $8,100 ($3,850) $150 $287 $6,187 ($48,804) ($46,030) ($37,930) ‐32% ($11,956)Burlingame $6,450 $600 $3,500 $0 $0 ($250) $10,550 ($4,900) $950 $651 $14,049 ($110,821) ($100,071) ($89,521) ‐11% ($9,453)East Palo Alto $1,950 $0 $1,250 $0 $0 ($250) $3,200 ($3,750) $200 $337 $7,274 ($57,381) ($53,320) ($50,120) ‐9% ($4,330)

Foster City $3,900 $0 $3,750 $0 $1,000 ($750) $8,650 ($5,300) $600 $349 $7,535 ($59,432) ($56,248) ($47,598) ‐23% ($10,855)Hillsborough $2,100 $0 $750 $0 $0 $0 $2,850 ($2,350) $500 $98 $2,109 ($16,641) ($16,284) ($13,434) ‐23% ($3,129)Menlo Park $5,250 $200 $4,250 $0 $0 ($500) $9,700 ($4,550) $700 $495 $10,681 ($84,256) ($76,930) ($67,230) ‐20% ($13,332)North Fair Oaks $900 $0 $250 $0 $0 $0 $1,150 ($2,000) $100 $176 $3,797 ($29,954) ($27,881) ($26,731) ‐5% ($1,412)Redwood City $8,250 $0 $8,000 $0 $0 ($1,250) $16,250 ($13,200) $900 $1,096 $23,662 ($186,650) ($174,191) ($157,941) ‐12% ($19,652)San Carlos $6,000 $0 $4,750 $0 $0 ($2,000) $10,750 ($7,250) $900 $394 $8,511 ($67,138) ($64,583) ($53,833) ‐20% ($10,532)San Mateo $10,350 $0 $8,250 $0 $0 ($1,000) $18,600 ($15,900) $1,050 $1,216 $26,253 ($207,092) ($194,472) ($175,872) ‐14% ($23,848)SM County $900 $0 $1,000 $0 $0 $0 $1,900 ($4,000) $50 $136 $2,927 ($23,084) ($23,971) ($22,071) ‐23% ($5,184)WBSD $0 $0 $0 $0 $0 $0 $0 ($1,450) $100 $50 $1,084 ($8,550) ($8,767) ($8,767) ‐15% ($1,325)Total $51,600 $1,000 $39,500 $0 $1,500 ($7,300) $86,300 ($69,350) $6,650 $5,363 $115,750 ($913,060) ($854,647) ($768,347) ‐14% ($109,445)

Liquidated Damages Performance Incentives and Disincentives

2 Recology issued checks directly to Member Agencies in April 2012.

Variance of Combined for Table 1 and 2

Exhibit B ‐‐ TABLE 2REVISED Liquidated Damages and Performance Incentive/Disincentive Payments EXCLUDING January 2011 Per HF&H Audit 1

Negative number in parenthesis denotes Incentive payment due to Recology.

3 Per second restatement of Recology 2011 Annual Report received on March 14, 2012.

1 Per Figure 3‐12 in the HF&H Collection Services and Facility Operations Auditing Project Report.

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Member Agency

Collection Outside

Authorized Hours




Material Spills

Fluid Spills

Deduct LD's

Already Paid to MA's 2

Total LD'sSFD Missed P/U Initial Complaints

SFD Missed P/U

Events


90 Second

Max Hold Time

Diversion 3Net

Incentives and

Disincentives

Total % Total

Atherton $1,800 $200 $750 $100 $0 ($400) $2,850 $950 $1,200 $166 $2,759 ($13,256) ($8,181) ($5,331.17) ‐120% ($6,403)Belmont $6,150 $0 $4,000 $0 $500 ($900) $10,650 ($2,700) $600 $611 $10,159 ($48,804) ($40,135) ($29,485) ‐69% ($20,402)Burlingame $9,000 $600 $4,750 $450 $0 ($250) $14,800 ($2,450) $1,600 $1,386 $23,068 ($110,821) ($87,217) ($72,417) ‐37% ($26,557)East Palo Alto $3,150 $0 $1,750 $0 $0 ($250) $4,900 ($3,750) $300 $718 $11,944 ($57,381) ($48,169) ($43,269) ‐26% ($11,181)Foster City $5,550 $0 $4,500 $50 $1,000 ($750) $11,100 ($4,700) $850 $744 $12,371 ($59,432) ($50,167) ($39,067) ‐50% ($19,386)Hillsborough $3,000 $0 $1,250 $0 $0 $0 $4,250 $800 $1,300 $208 $3,464 ($16,641) ($10,870) ($6,620) ‐150% ($9,944)Menlo Park $8,100 $200 $5,500 $50 $0 ($500) $13,850 ($3,600) $1,000 $1,054 $17,538 ($84,256) ($68,264) ($54,414) ‐48% ($26,148)North Fair Oaks $1,650 $0 $500 $50 $0 $0 $2,200 ($1,600) $550 $375 $6,235 ($29,954) ($24,395) ($22,195) ‐27% ($5,949)Redwood City $13,050 $0 $10,250 $100 $0 ($1,250) $23,400 ($9,150) $2,650 $2,335 $38,852 ($186,650) ($151,963) ($128,563) ‐38% ($49,031)San Carlos $8,550 $0 $6,250 $350 $0 ($2,000) $15,150 ($4,350) $1,800 $840 $13,975 ($67,138) ($54,873) ($39,723) ‐62% ($24,641)San Mateo $16,350 $0 $11,000 $400 $0 ($1,000) $27,750 ($13,900) $2,050 $2,590 $43,106 ($207,092) ($173,246) ($145,496) ‐37% ($54,225)SM County $1,800 $0 $1,500 $0 $0 $0 $3,300 ($3,000) $700 $289 $4,805 ($23,084) ($20,290) ($16,990) ‐60% ($10,266)WBSD $600 $0 $250 $0 $0 $0 $850 ($1,000) $500 $107 $1,779 ($8,550) ($7,164) ($6,314) ‐60% ($3,777)Total $78,750 $1,000 $52,250 $1,550 $1,500 ($7,300) $127,750 ($48,450) $15,100 $11,422 $190,055 ($913,060) ($744,934) ($617,184) ‐42% ($260,609)Negative number in parenthesis denotes Incentive payment due to Recology.

3 Per second restatement of Recology 2011 Annual Report received on March 14, 2012.

1 Per Figure 3‐11 in the HF&H Collection Services and Facility Operations Auditing Project Report.

Liquidated Damages Performance Incentives and Disincentives

2 Recology issued checks directly to Member Agencies in April 2012.

Variance of Combined for Table 1 and 3

Exhibit B ‐‐ TABLE 3REVISED Liquidated Damages and Performance Incentive/Disincentive Payments INCLUDING January 2011 Per HF&H Audit 1

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STAFF REPORT To: SBWMA Board Members From: Marshall Moran, Finance Manager Date: June 28, 2012 Board of Director’s Meeting Subject: Report on Financial Systems Audit of Recology and SBR Performed by Hilton, Farnkopf and Hobson Consulting, LLC Recommendation This staff report is for discussion purposes only and no formal action is requested of the Board of Directors Analysis The audit work performed by Hilton, Farnkopf and Hobson Consulting, LLC (HF&H) commenced in March 2012 and has recently concluded with submittal of the audit report attached (see Attachment A). HF&H reviewed the reporting and payment of financial data to the SBWMA and our Agencies of both Recology San Mateo County (Recology) and South Bay Recycling (SBR) covering calendar 2011. The results of this auditing work are summarized in their report under separate recommendations for each contractor; see Section 2.7 for Recology and Section 3.3 for SBR. For Recology, an adjustment was made to their 2011 Revenue Reconciliation to reduce their cost for service to non-franchised schools by $108,000 to match the school revenue that had already been deducted. This is simply a timing issue between their various reports for 2011 and 2012 but does reduce the total shortfall for 2011. There is also a contractual issue that was found regarding agency fees on percent based Schedule Q rates whereby agency fees are “double counted”. While Recology is following the language in the Agreement and the amount at issue is relatively immaterial, the result has been to disadvantage the agencies by approximately $36,000 in total. Otherwise, Recology was found to have accurately and properly reported data and payments to the SBWMA and its Member Agencies. For SBR, the audit did find several discrepancies in payments to the SBWMA totaling $67,000. SBR has agreed to most of the underpayment and has since remitted this to the SBWMA ($34,000). The remaining underpayment occurred at the start-up of the MRF and is still being investigated by the SBWMA to determine if SBR is responsible for the underpayment ($28,000). We would like to acknowledge that SBR’s reporting structure is extremely difficult and that SBR has been very cooperative in working together with the SBWMA to improve their reporting process. We have agreed on an additional report to specifically cover CRV payments and adjustments. Background The Member Agency’s Collection Services Franchise Agreements with Recology prescribe numerous reporting and payment requirements including paying franchise fees to the Member Agencies and paying to the SBWMA for disposal at Shoreway. They also must track collected tonnage by material and Member Agency, allocate costs to Member Agencies and prepare an annual revenue reconciliation showing the net surplus or shortfall owed to


Recology by each Member Agency. The Shoreway Facility Operations Agreement with SBR requires the company to pay to the SBWMA all commodity and public revenue. The information and data contained in both contractors’ reports are substantially self-reported by the companies. Staff issued the Request for Proposals (RFP) for Financial Systems Audit of the Recology and SBR contracts and the Board approved the contract to HFH in March 2012 for a not to exceed amount of $70,412. The general purpose of the audit was to make an evaluation and audit of financial reporting systems, processes and record keeping, analysis and audit of billing and revenue, and analyze and audit allocation of revenue and costs to the twelve Member Agencies. To summarize the scope of work, this project entailed a thorough review and verification of Recology San Mateo County’s (Recology) 2011 Annual Revenue Reconciliation, Attachment Q revenue and costs, customer billing rates, and cost allocation methodology for final 2011. The South Bay Recycling review included a verification of public revenue and commodity revenue reported and paid to the SBWMA for 2011. The general rationale for this project was to conduct an audit to ensure the accuracy of self-reported data and payments to the SBWMA and our Member Agencies. Fiscal Impact The fiscal impact results in a cost reduction ($108,000) for Recology and additional payments from SBR to the SBWMA of at least $34,000.

Attachments: Attachment A - HF&H Financial Systems Audit of Collection Services and Facility Operations Contractors Report. Attachment B – SBR response to the audit report.

June 20, 2012

South Bayside Waste Management AuthorityFinancial Systems Audit of Collection Services and Facility Operations Contractors

HF&H Consultants, LLC

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_______________________________________________________________________ AGENDA ITEM: 6E ATTACHMENT A p - 1

______________________________________________________________________________ SBWMA BOD PACKET 06/28/12


Managing Tomorrow’s Resources Today

201 N. Civic Drive, Suite 230 Robert D. Hilton, CMC Walnut Creek, California 94596 John W. Farnkopf, PE Telephone: 925/977‐6950 Laith B. Ezzet, CMC Fax: 925/977‐6955 Richard J. Simonson, CMC www.hfh‐consultants.com Marva M. Sheehan, CPA

June 20, 2012 Mr. Marshall Moran Finance Manager South Bayside Waste Management Authority 610 Elm Street San Carlos, CA 94070 Subject: Financial Systems Audit of Collection Services and Facility Operations Contractors

Reference Number: S2955

Dear Mr. Moran:

This report documents HF&H Consultants, LLC’s (HF&H)) findings and recommendations to the South Bayside Waste Management Authority (SBWMA) from our review of the legitimacy and accuracy of the information contained in reports issued by both Recology of San Mateo (Recology) and South Bay Recycling (SBR), collectively “Contractors”.

* * * * HF&H appreciates the assistance provided by Recology and SBR management and staff during our review and the direction and assistance received from the SBWMA. Should you have any questions, please call me at 925/977‐6957. Very truly yours, HF&H CONSULTANTS, LLC Richard J. Simonson, CMC Vice President cc: HF&H Client Files

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______________________________________________________________________________ SBWMA BOD PACKET 06/28/12


SBWMA Table of Contents Financial Systems Audit of Collection Services and Facility Operations Contractors

June 20, 2012 Page i HF&H Consultants, LLC

TABLE OF CONTENTS

SECTION 1: INTRODUCTION ........................................................................................ 2 1.1 Background ......................................................................................................... 2 1.2 HF&H Scope of Work .......................................................................................... 2 1.3 Limitations ........................................................................................................... 2

SECTION 2. EVALUATE ACCURACY OF RECOLOGY DATA ................................... 3 2.1 Verify Mathematical Accuracy of Recology’s 2011 Revenue Reconciliation ....... 3 2.2 Review of Gross Revenue Billed ......................................................................... 4 2.3 Review of Solid Waste Disposal and Organics Processing Costs ...................... 4 2.4 Review of Agency Fees Billed and Paid ............................................................. 5 2.5 Review of Cost Allocators ................................................................................... 6 2.6 Review of Recology’s Allowable 2011 Compensation for Base Services and Unscheduled Services (i.e., Attachment Q) ............................................................... 8 2.7 Recommendations – Recology Review ............................................................ 11

SECTION 3. EVALUATE SBR FINANCIAL REPORTING .......................................... 12 3.1 Self-Haul Transfer Station Revenue Review ..................................................... 12 3.2 MRF Commodity Revenue Review ................................................................... 12 3.3 Recommendations – SBR Review .................................................................... 16

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SECTION 1: INTRODUCTION

1.1 Background

Each Member Agency has executed separate franchise agreements with Recology to provide solid waste, recycling, and organic material collection services.

The contracts with Recology and SBR have various financial aspects that need to be verified and audited. The Franchise Agreement(s) with Recology require the company to perform a broad range of solid waste, recyclable and organic materials collection services and supporting functions. The pertinent supporting functions include billing residential and commercial customers, remitting agency fees billed and allocating the weight of materials collected in trucks to the various agencies provided service. In addition, the company is required to compile and maintain records related to its operations as necessary to develop various reports required per the Franchise Agreement(s). The primary nature of the quantitative data presented in the Recology reports is self‐reported by the company. At the end of the year, Recology reports by agency the net revenue billed compared to the amount owed to Recology for service. In addition, SBR pays the SBWMA all commodity revenue and all public gate revenue and the SBWMA pays SBR for operating the SEC based on their reports of tonnage volume received into the facility.

Therefore, on behalf of the twelve Member Agencies who each have executed separate Franchise Agreement(s) with Recology, and on behalf of the SBWMA who contracted with SBR to operate the Shoreway Environmental Center (SEC), HF&H conducted a review to confirm the legitimacy and accuracy of the information contained in reports provided by both companies.

1.2 HF&H Scope of Work

The SBWMA retained HF&H Consultants (HF&H) to review, test, and verify the legitimacy and accuracy of the information contained in the reports, as well as provide recommendations for improvement, if necessary. Our scope of work involved the following tasks:

Meeting with the SBWMA, Recology, and SBR staff to: (1) discuss the goals and objectives of the reporting audit; (2) reach agreement on the roles and responsibilities of HF&H, SBWMA, Recology, and SBR staff; (3) discuss the structure and components to be included in the final project report; and, (4) reach agreement on a project timeline.

Assessing reports for compliance with the agreements;

Examining reports for mathematical accuracy and logical consistency;

Interviewing Contractor staff to understand policies and procedures for gathering and reporting various data contained in the reports;

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SBWMA Section 1: Introduction Financial Systems Audit of Collection Services and Facility Operations Contractors


Reviewing Contractors’ financial data and historical reports;

Presenting our findings and providing recommendations for improvement.

1.3 Limitations

The scope of our work does not constitute an audit of financial statements, or any part thereof. As with any project of this type, other matters might have come to our attention that would have been pertinent to report if we had performed additional procedures. Additionally, we did not perform testing procedures that would provide statistically‐valid results. The sample sizes used were intended to confirm that the Companies’ stated policies and procedures used were implemented consistently and accurately.

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SBWMA Section 2. Evaluate Accuracy of Recology Data Financial Systems Audit of Collection Services and Facility Operations Contractors


SECTION 2. EVALUATE ACCURACY OF RECOLOGY DATA

2.1 Verify Mathematical Accuracy of Recology’s 2011 Revenue Reconciliation

Purpose: Verify Recology has accurately calculated each Member Agency’s 2011 revenue surplus/shortfall for the franchised services provided by Recology during calendar year 2011. In accordance with each Member Agency’s Collection Services Franchise Agreement with Recology (Agreement), the 2011 surplus/shortfall will be added to or subtracted from Recology’s 2013 compensation.

Figure 2‐1 summarizes Recology’s 2011 revenue reconciliation calculated and submitted in compliance with Section 11.03 of the Member Agencies’ Agreements. We reviewed the calculations to verify the mathematical accuracy and logical consistency of Recology’s calculations and that the information tied to the supporting schedules included in the electronic version of Recology’s submission. No mathematical discrepancies were found.

Figure 2‐1 2011 Less: Expenses

Revenue Disposal/ Agency Recology Recology Surplus/Member Agency Billed Processing Fees Base Services "Extra" Services (Shortfall)Atherton 2,092,735$ (898,821)$ (224,794)$ (1,529,988)$ (11,707)$ (572,575)$ Belmont 5,292,502 (1,195,980) (1,694,298) (2,964,813) (38,588) (601,177)Burlingame 8,483,736 (2,839,230) (1,356,397) (4,982,914) (30,358) (725,163)East Palo Alto 4,627,012 (1,327,806) (786,536) (2,047,591) (6,445) 458,634Foster City 5,332,705 (1,496,204) (375,036) (3,491,936) (10,316) (40,787)Hillsborough 2,483,083 (680,532) (243,461) (2,113,916) (2,245) (557,071)Menlo Park 9,849,081 (2,592,898) (2,056,269) (5,195,618) (67,611) (63,315)North Fair Oaks 2,455,961 (645,256) (112,051) (1,610,040) (5,693) 82,921Redwood City 16,881,761 (4,573,524) (2,739,316) (9,281,023) (81) 287,817San Carlos 7,250,696 (1,835,965) (1,445,585) (4,140,469) (33,025) (204,348)San Mateo 18,976,297 (5,199,528) (3,284,053) (11,520,053) (105,748) (1,133,085)West Bay 1,065,900 (330,288) (61,987) (781,687) (3,497) (111,559)County 2,615,163 (692,467) (123,512) (1,711,790) (2,732) 84,662

SBWMA Total 87,406,633$ (24,308,499)$ (14,503,295)$ (51,371,838)$ (318,046)$ (3,095,045)$

Sections 2.2 through 2.6 of this report summarize our detailed analysis of the individual components of Recology’s 2011 revenue reconciliation:

Gross Revenue Billed

Solid Waste Disposal and Organics Processing Costs

Agency Fees Collected and Paid

Recology’s 2011 Compensation for Base Services and “Extra” Services

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Each Member Agencies’ 2011 revenue surplus or shortfall shall be included as an adjustment to Recology’s 2013 allowable compensation for each Member Agency (a reduction in compensation to Recology’s 2013 allowable compensation if a Member Agency has a surplus balance and an increase to Recology’s compensation if a Member Agency has a shortfall balance). Some Member Agencies have included in their adopted 2012 rates revenue to cover their estimated 2011 revenue shortfall.

2.2 Review of Gross Revenue Billed

Purpose: Verify Recology has accurately billed customers in accordance with approved rates and accurately reflected total billed revenue in each Member Agency’s 2011 revenue surplus/shortfall calculation for the franchised services provided by Recology during calendar year 2011.

Recology bills and collects revenue from most of the residential and commercial customers within the SBWMA service area. Some Member Agencies bill for services and remit the collected revenue to Recology periodically. All revenue is recorded by Recology on their general ledger. To verify the accuracy of Recology’s reported $87,406,633 total billed revenue for the 2011, we compared the billed revenue amounts included in Recology’s 2011 revenue reconciliation report to Recology’s system‐generated general ledger and detailed journal entries by Member Agency. We found Recology’s general ledger included approximately $103,000 in additional revenue for schools that were serviced through June 2011. It is our understanding that service to the schools is not part of the SBWMA franchise area; therefore, revenue from services provided to the school has been accurately removed from the revenue reconciliation process. Other than the school revenue, we found no discrepancies between Recology’s revenue reconciliation report and their general ledger.

Testing Base Service Rates

To verify Recology is properly billing customers in accordance with the approved rates, we selected over 10 customers from each Member Agency (residential, apartment, and commercial customers). We received a list of all customers from Recology and randomly selected at least 130 customers and compared the approved rates within each jurisdiction to Recology’s billing system. We found no discrepancies between the rates charged by Recology and the approved rates within each Member Agency.

2.3 Review of Solid Waste Disposal and Organics Processing Costs

Purpose: Verify disposal and processing costs paid to the SBWMA reflects the tonnage collected within each Member Agency multiplied by the then‐current rates at the designated transfer and disposal facility. In accordance with Section 11.03.b of the Franchise Agreements, Recology’s annual revenue reconciliation calculation subtracts the payments made to the Authority for the delivery of materials to the designated transfer and disposal facility.

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Recology’s 2011 revenue reconciliation reduced each Member Agencies’ billed revenue by their allocated share of solid waste disposal and organics processing costs, a total of $24,308,499. First, we verified that what Recology was charging the Member Agencies tied to the total expenses remitted to the SBWMA during the year. We found Recology paid $24,412,402 to the SBWMA during 2011. The variance of $103,980 ($24,412,402 paid to the SBWMA less the $24,308,499 “charge” to the member agencies) was properly omitted from the reconciliation, therefore paid by Recology and not reimbursed by the Member Agencies, as a result of the following:

$59,000 for disposal and processing of material collected from schools, which Recology is responsible for paying.

$36,000 for disposal of solid waste generated on‐site by Recology operations, which Recology is responsible for paying.

$8,000 for disposal of tires from Recology vehicles.

Once we established the accuracy of Recology’s SBWMA‐wide disposal and processing costs, we verified the individual allocation to each Member Agency. We verified Recology accurately calculated the Member Agency disposal and organic processing costs by multiplying the then‐current per‐ton rates ($90 for solid waste and $79 for organics) by the tonnage collected from each Member Agency. We tied the stated tons back to Recology’s 2011 annual report which was previously tested and found to be accurate. During the previous audit, we verified the accuracy of reported tons by agency, without exception. We found no discrepancies between Recology’s revenue reconciliation report and the actual disposal and processing expenses.

2.4 Review of Agency Fees Billed and Paid

Purpose: Verify Recology has properly calculated and remitted the appropriate Agency Fees (in accordance with Attachment M of each Franchise Agreement) due each Member Agency.

To verify Recology properly calculated and remitted agency fees, we first confirmed the type and amount or rate of agency fees by contacting each Member Agency. We confirmed each Member Agency received the amount of fees included in Recology’s 2011 revenue reconciliation, without exception.

We reviewed detailed general ledger revenue transactions to confirm Recology properly calculated agency fees using gross revenue and not gross revenue net of bad debt.

During our testing, we found Recology calculated agency fees using gross revenue billed net of agency fees (with the exception of Belmont and Redwood City, which has instructed Recology to calculate agency fees on gross revenue billed) for all agency fees except for fees for Allied Balancing Accounts.

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Article 10 of the Agreements, agency fees are to be calculated and remitted based on billed revenue. However, Recology is calculating and remitting fees for Allied Balancing Accounts based on cash receipts rather than gross billed revenue. There is no contractual basis for this method and it is recommended that Recology pay the Allied fee like all other fees on a billed basis rather than on a cash basis. Figure 2‐2 compares the Allied Balancing Account due based on billed revenues and the actual Allied Balancing Account revenues remitted by Recology (which was based on actual cash receipts). This issue only affects the five agencies listed below inFigure 2‐2.

Figure 2‐2

2011 Allied Balancing Account Fees

Amount PaidAmount Due by Recology

Member Agency (based on billed revenue) (based on cash receipts) VarianceBurlingame 361,889$ 323,770$ (38,119)$ Menlo Park 267,522 212,447 (55,075) Redwood City 434,412 434,412 ‐ San Carlos 637,979 598,919 (39,060) San Mateo 549,817 472,191 (77,626)

Total 2,251,619$ 2,041,738$ (209,881)$

The variances shown above in Figure 2‐2 do not impact the revenue reconciliation because the revenue reconciliation reflects the amount based on billed revenues; however, Recology has not actually paid that amount to the Member Agencies. Recology keeps track of the amount billed versus the amount paid for each Member Agency; however, this methodology will require each Member Agency to keep track of the balance due from Recology and the annual revenue reconciliation will not provide an accurate representation. This issue does not affect the amount paid to or retained by Recology other than timing and classification issues.

2.5 Review of Cost Allocators

Purpose: Verify Recology has accurately gathered and applied the operating statistics to properly allocate various costs to each Member Agency (i.e., labor costs are allocated among the Member Agencies based on their respective percentage share of annual labor hours, fuel costs are allocated among the Member Agencies based on their respective percentage share of annual route hours, etc.).

For the four weeks ending May 27, 2011, Recology gathered route statistics to determine the number of accounts, number of containers collected, and the actual time spent providing collection services within each member agency. The operating statistics were gathered using Recology’s RouteWare system that uses GPS to calculate the amount of time spent in each Member Agencies service area. Each driver’s route is pre‐programmed into the RouteWare system. Upon passing each customer’s service location, the driver is responsible for hitting a button to indicate a successful collection or that the container was not out for service. This allows the driver to know if they missed any customers when they have completed their route. This also allows the RouteWare system to determine the amount of time spent

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in each service area as each customer account is assigned to a specific Member Agency based on their location.

Recology provided us with the Excel spreadsheet which summarized the data from the RouteWare system for the four weeks ending May 27. We verified the mathematical accuracy of the Excel spreadsheet and found no formula errors. We tested the data by comparing the data entered into the Excel spreadsheet to the system‐generated reports from Recology’s RouteWare system, without exception.

It was noted that there were many instances where the collection time in the RouteWare system was 1 or 2 seconds per account. We noted the average collection time for a residential account was between 1 and 2 minutes, not 1 or 2 seconds. It was determined, through discussions with Recology staff, that periodically, a driver at the end of his route, notices that he did not hit the “done” button at the time of pick up, and hits “done” at the end of his route.

This may have an impact on the accuracy of the actual time spent in each service area; therefore, we reviewed the entire four week period to identify how often this happened and in which jurisdictions. Figure 2‐3 summarizes how often, by member agency, the RouteWare system logged a collection time of 1 or 2 seconds per account during the four week period.

Figure 2‐3 # of

1 or 2 Second % of TotalMember Agency Collection TimesAtherton 17 5%Belmont 21 6%Burlingame 19 5%East Palo Alto 7 2%Foster City 14 4%Hillsborough 49 14%Menlo Park 50 14%North Fair Oaks 7 2%Redwood City 23 6%San Carlos 8 2%San Mateo 30 8%West Bay 55 15%County 56 16%

SBWMA Total 356 100% Considering there are over 1 million collections per month and we found 356 instances of collections that took less than 3 seconds, we do not believe they materially impact the cost allocations.

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2.6 Review of Recology’s Allowable 2011 Compensation for Base Services and Unscheduled Services (i.e., Attachment Q)

Purpose: Verify the Revenue Reconciliation report includes Recology’s allowable 2011 compensation for base services (in accordance with the Board‐approved compensation) and Recology’s compensation for providing unscheduled services.

In October 2011, the SBWMA Board approved Recology’s 2011 allowable compensation totaling $51,383,753. Recology’s 2011 revenue reconciliation was tied, by Member Agency, to Recology’s 2011 Board‐approved compensation, without exception.

We noted in our review that Recology did adjust their compensation in the 2011 Revenue Reconciliation by a net decrease to their compenstion of $11,915, as a result of the following:

A $27,687 decrease in Hillsborough’s Recology‐related expenses; to credit Hillsborough for previously purchased (used) residential organic material containers.

A $6,928 decrease in San Carlos’ Recology‐related expenses; to credit San Carlos for kitchen containers previously purchased by the city.

A $22,700 increase to Menlo Park’s Recology‐related expenses; to provide billing services.

In addition, in accordance with the annual revenue reconciliation process described in Section 11.03 of the Agreements, Recology retains 100% of the revenue collected for the provision of unscheduled or intermittent services identified in Attachment Q up to the costs allowed in Attachment Q since “the amount of such services may vary from year to year and is unpredictable, the costs and revenues associated with them are not included in the Authority’s prospective calculation of Contractor’s Compensation. Therefore, we tested whether Recology charged the appropriate rates in accordance with Attachment Q, that the total Attachment Q revenue excluded from the revenue reconciliation is accurate, and that the Attachment Q revenue that has been excluded does not mistakenly include revenue for base services.

Figure 2‐4 summarizes the total unscheduled services revenue billed by category. “Other” charges include bulky‐item collections, unlock services, returned check charges, etc.

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Figure 2‐4 2011 Revenue from Unscheduled Service ("Attachment Q" Revenue)

Residential Commercial Extra Recyc/ TotalBackyard Push/Pull Organic Cart Other Unscheduled

Member Agency Services Charges Rental Charges Services RevenueAtherton 39,455$ ‐$ 59,284$ 389$ 99,128$ Belmont 2,235 34,778 908 2,902 40,823 Burlingame 3,598 23,482 1,104 5,772 33,956 East Palo Alto ‐ 4,508 492 1,445 6,445 Foster City ‐ 8,517 99 1,701 10,316 Hillsborough 32,245 ‐ 2,182 63 34,490 Menlo Park ‐ 44,390 3,437 19,785 67,611 North Fair Oaks 18 3,117 1,297 1,279 5,711 Redwood City ‐ ‐ ‐ 81 81 San Carlos 2,743 26,136 1,074 5,815 35,768 San Mateo 7,007 88,544 2,152 15,052 112,755 West Bay 2,977 1,425 1,735 337 6,474 County 3,094 ‐ 1,882 850 5,826

SBWMA Total 93,372$ 234,897$ 75,645$ 55,470$ 459,384$

Retained by Recology ‐$ 234,897$ 27,679$ 55,470$ 318,046$

We verified that 100% of all revenues for backyard service have been included in each Member Agencies’ gross revenues billed and not retained by Recology. Per the Agreements, Recology only retains backyard service revenues once the total number of residential customers subscribing to backyard service exceeds 20% of all residential customers within that member agencies service area. No member agency has exceeded the 20% threshold required for Recology to retain any backyard revenue.

We verified with each member agency their approved Attachment Q compensation to Recology, as well as, the approved rates to customers for the Attachment Q services (e.g., extra recycling or organics containers, back yard service instead of curbside, unlock services). With the exception of Atherton and Hillsborough, all Member Agencies approved rates that were the same as Recology’s compensation.

Atherton approved a $6 per month rate to customers for extra organic material containers, while Recology’s approved compensation is $1 per month. In total, Recology billed $59,284 to Atherton customers for organic and recyclable material cart rental fees (of which $58,000 was for organic carts). We verified only $9,800 was retained by Recology in their 2011 Revenue Reconciliation, the remaining revenue was properly used to offset Recology’s base service compensation.

To verify Recology has billed the approved rates for Attachment Q services, we received a download of all Attachment Q services and selected over 100 individual transactions covering all 12 Member Agencies. In all cases, we found Recology charged the appropriate rates. In some cases, Recology added agency fees to the Attachment Q rates, upon approval from those Member Agencies, which include:

Belmont Burlingame

East Palo Alto San Carlos

San Mateo

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We confirmed Recology did remit agency fees on all unscheduled services revenue even if the rates were not grossed up to include agency fees. We also found that Recology included the full rate (including agency fees) in the unscheduled revenue retained by Recology. By retaining the full rate for those cart rental fees that have been “grossed up” to include agency fees, Recology has been overcompensated for providing these services, a total of $600 for 2011 for the five Member Agencies in which Recology has “grossed‐up” cart rental fees. The impact of this is shown, by member agency, in Figure 2‐5. The total excess revenue retained by Recology is minimal for 2011; however, as requests for these services increase over time, the excess revenue retained may increase in the future and we recommend that Recology adjusts their revenue reconciliation process accordingly.

Figure 2‐5 Agency FeesRetained by

Member Agency RecologyBelmont 235$ Burlingame 127 East Palo Alto 13 San Carlos 80 San Mateo 134

Total 589$

It should also be noted that the majority, $235,000 out of the $318,000 billed by Recology (as shown in Figure 2‐4), of unscheduled services revenue retained by Recology are for services that are charged to customers as a set percentage of their solid waste collection rate, which includes all agency fees (commercial distance charges and extra pickups). For example, the rate charged to customers (and also retained by Recology in accordance with Attachment Q) to move a container in order to allow the collection vehicle to tip the container into the hopper (requiring the driver to exit their vehicle) is 10% of their base rate, if less than 100 feet. Because Recology retains the full 10% of the base rate for commercial distance charges up to 100 feet (which includes agency fees), the agency fee component of these percentage based rates are being paid twice, once to the Member Agency in their monthly agency fee payment and a second time to Recology when they submit their annual revenue reconciliation. Recology is following the method as specified in the Agreements to calculate their cost but this method is causing this problem; Recology is not the cause of this problem but the method itself is causing the problem. The solution is for Agencies to not add franchise fees on these Schedule Q percent based rates or for Recology to base their costs on the base rates excluding agency fees (which would have to be agreed to by both parties).

Figure 2‐6 quantifies the impact of such “double counting” of agency fees on each Member Agencies’ 2011 surplus or shortfall. The “double counting” is an unintended consequence of Recology paying agency fees on the percentage‐based Attachment Q rates. Therefore, Member Agency revenue reconciliations will always be negatively impacted unless the Member Agency requests that Recology not pay franchise fees on the percentage‐based Attachment Q rates. Should be Figure 2‐6 below?

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Description below “on Commercial Push/Pull Charges” is confusing – is this the total “double counting of agency fees? If so, please clarify description below:

Figure 2‐6 Agency Fees

on CommercialMember Agency Push/Pull ChargesAtherton ‐$ Belmont 7,434 Burlingame 3,095 East Palo Alto 654 Foster City 559 Hillsborough ‐ Menlo Park 7,375 North Fair Oaks 142 Redwood City ‐ San Carlos 4,247 San Mateo 12,612 West Bay 78 County ‐

SBWMA Total 36,196$

2.7 Recommendations – Recology Review

Based on our review, as discussed above, we recommend the following adjustment to Recology’s 2011 Revenue Reconciliation:

Reduce Recology’s 2011 Contractor’s Compenstion by $108,105 (thus decreasing shortfalls and increasing surpluses) to remove costs to provide services to public schools during 2011, since the revenues have already been removed. It should be noted that since this was already deducted from Recology’s 2012 Contractor’s Compensation, this will be added back in the 2012 Revenue Reconciliation next year. The reason this adjustment is being recommended now, is so that costs and revenues associated with public schools are either both in or both out of this reconciliation.

The recommended adjustment reduces the SBWMA‐wide 2011 revenue shortfall from $3,095,045 to $2,969,940.

Figure 2‐7 summarizes each Member Agencies’ 2011 HF&H‐adjusted revenue surplus or shortfall to be included as an adjustment to Recology’s 2013 allowable compensation for each Member Agency (a reduction in compensation Recology’s 2013 allowable compensation if a Member Agency has a surplus balance and an increase to Recology’s compensation if a Member Agency has a shortfall balance).

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Figure 2‐7. HF&H Adjusted 2011 Revenue Surplus/(Shortfall) (by Member Agency)

Surplus/(Shortfall) Adjustedper Recology's 2011 Public Schools Surplus/

Member Agency Report Adjustment (Shortfall)Atherton (572,575)$ 14,718$ (557,857)$ Belmont (601,177) 9,130 (592,047)Burlingame (725,163) 15,278 (709,885)East Palo Alto 458,634 2,530 461,164Foster City (40,787) ‐ (40,787)Hillsborough (557,071) 17,343 (539,728)Menlo Park (63,315) 12,449 (50,866)North Fair Oaks 82,921 6,186 89,107Redwood City 287,817 4,661 292,478San Carlos (204,348) 25,810 (178,538)San Mateo (1,133,085) ‐ (1,133,085)West Bay (111,559) ‐ (111,559)County 84,662 ‐ 84,662

SBWMA Total (3,095,045)$ 108,105$ (2,969,940)$

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SBWMA Section 3. Evaluate SBR Financial Reporting Financial Systems Audit of Collection Services and Facility Operations Contractors


SECTION 3. EVALUATE SBR FINANCIAL REPORTING

3.1 Self-Haul Transfer Station Revenue Review

Purpose: Verify SBR has accurately accounted for and remitted to the SBWMA all gate fee revenue collected from persons delivering self‐haul materials to the SEC.

The transfer station receives approximately 6,000 loads per month from the public. Each load is measured by the scale house operator and charged the published per‐yard rates for the type of material being delivered. Each transaction is entered into SBR’s tracking software, PC Scales. Twice per month, SBR runs revenue reports and remits all public revenue to the SBWMA. To verify all self‐haul revenue has been remitted to the SBWMA, we compared the monthly revenue reports to what was remitted and found a variance of $10,019.80.

Figure 3‐1 summarizes, by month, the 2011 revenue received from self‐haul transactions and the amount SBR remitted to the SBWMA.

Figure 3‐1 2011 2011

Self‐Haul Revenue Self‐Haul RevenueMonth Remitted to SBWMA (per PC Scales) VarianceJanuary 384,990.56$ 385,935.56$ 945.00$ February 298,393.50 298,822.50 429.00 March 309,784.00 311,057.30 1,273.30 April 376,002.60 376,663.10 660.50 May 370,842.20 371,944.20 1,102.00 June 387,017.30 388,017.80 1,000.50 July 398,087.70 399,972.70 1,885.00 August 421,317.50 421,926.50 609.00 September 395,964.30 397,195.30 1,231.00 October 415,733.70 416,618.20 884.50 November 335,093.60 335,093.60 ‐ December 329,158.60 329,158.60 ‐

Total 4,422,385.56$ 4,432,405.36$ 10,019.80$

The variances were the result of one pre‐paid customer whose revenue did not get remitted to the SBWMA because the account was not set up properly. In October 2011, SBR found the account had not been properly set up and deleted the account and set it up properly; therefore, beginning in November 2011 SBR has properly remitted the revenue to the SBWMA. On January 25, 2012, SBR wired the $10,019.80 in underpaid revenue to the SBWMA; therefore, no additional monies are due.

3.2 MRF Commodity Revenue Review

Purpose: Verify SBR has accurately accounted for and remitted to the SBWMA all recyclable material commodity revenue (including CRV monies received from the State of California)

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from the sale of recyclable materials brought to the Material Recovery Facility (MRF) by Recology and the public.

3.2.1 Commodity Scrap Revenue Review

SBR is responsible for receiving, processing, and marketing the recyclable material brought to the MRF by Recology and the public. The commodities are sold to third parties at the current scrap value and each transaction is entered into SBR’s tracking software, PC Scales. On a monthly basis, SBR runs MRF material reports and remits all commodity revenue to the SBWMA. To verify all scrap value of commodity revenue has been properly remitted to the SBWMA, we compared the monthly material revenue reports to what was remitted and found minor variances each month, as shown in Figure 3‐2. These variances are the result of SBR discovering a variance in one month and correcting it the next month. For example, SBR staff found they short remitted in September $9,900 in scrap revenue; therefore, they added $9,900 to their remittance in October. The total scrap revenue variance for 2011 is $427, which SBR paid back in their January 2012 remittance.

Figure 3‐2 2011 2011

Scrap Revenue Scrap RevenueMonth Received1 Remitted to SBWMA VarianceJanuary ‐$ ‐$ ‐$ February ‐ ‐ ‐ March ‐ ‐ ‐ April 524,324 524,332 8.00 May 722,197 722,189 (8.00) June 864,702 871,653 6,950 July 774,791 766,674 (8,117) August 799,404 800,571 1,167 September 788,299 778,399 (9,900) October 712,276 722,176 9,900 November 557,794 557,794 ‐ December 632,211 632,637 427

Total 6,375,998$ 6,376,424$ (427)$ 1 Excludes revenue from the sale of materials from Transfer Station floor sorting retained by SBR

3.2.2 CRV Revenue Review

In addition to the scrap value of the material, SBR receives the California Redemption Value (CRV) from the State of California for processing and recyclable materials. Each month, SBR submits a Processor Invoice Report (PIR) to the State requesting payment of CRV based on the total tons of eligible recyclable material (e.g., aluminum, PET, and glass) processed during the month at the prevailing per‐ton rates (which are established by the State). We reviewed SBR’s PC Scales material reports and verified they prepared and submitted monthly PIRs to the State requesting payment once they began

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processing material in April 2011. Each month, the PIRs include 10‐15 attached shipping reports which identify the type of material processed, weight of the material, name of contact person, and signature.

We verified that the amount of tons included on the PIRs tied to the reported tonnage volumes from their 2011 annual report, without exception. In addition, we reviewed the checks received from the State to verify SBR has been paid the correct amounts and that they have been remitted to the SBWMA. As shown in Figure 4‐3, we found the State underpaid SBR by $56,597 for the tons processed in 2011. Upon review, we found one instance where SBR did not submit the required shipping report; therefore, the State short paid their request by $6,436. We confirmed with SBR staff that the $6,436 was not re‐submitted for payment. We found another instance where the State short paid by $15,375, which was the amount of one of the supporting shipping reports, which SBR had attached to the submitted PIR, but the State did not include the amount in their payment. We confirmed with SBR staff that they have not followed up on the short paid invoices and subsequently reduced the CRV Revenue reported, and therefore remitted, to the SBWMA by the short payments.

Figure 3‐3 2011 2011

CRV Revenue CRV Revenue MonthRequested Received Received and

Month from State from State Deposited VarianceJanuary February N/A ‐ SBR began processing material in April 2011MarchApril 150,588$ 135,214$ Jun 2011 (15,375)$ May 369,580 352,096 Jul 2011 (17,485) June 328,756 306,116 Aug 2011 (22,641) July 347,196 346,179 Sep 2011 (1,017) August 307,309 306,542 Oct 2011 (767) September 323,000 321,837 Nov 2011 (1,164) October 388,047 387,191 Dec 2011 (856)

Subtotal Variance for Money Received in 2011 (59,304) A

November 291,132 290,149 Jan 2012 (983) December 279,356 283,047 Feb 2012 3,691

Total 2,784,965$ 2,155,173 Total Variance for Money Requested for 2011 tons (56,597) B

In accordance with the Operating Agreement, SBR submitted an annual report for 2011 summarizing their operational and financial statistics. One section of the report provides a “CRV Revenue Balance Due” as of December 31st. This calculation represents the CRV Revenue due to the SBWMA (for the tons processed during 2011) versus the actual revenue remitted to the SBMWA during the calendar year. SBR’s 2011 annual report calculated at balance due to the SBWMA of $564,168.

We reviewed SBR’s reporting and compared the CRV revenue requested from the State to the actual checks received by SBR and deposited in 2011. We calculated a balance due to the SBWMA of $639,841, a variance of $75,673, as shown in Figure 3‐4.

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Figure 3‐4 2011 CRV Revenue

CRV Revenue Remitted MonthRequested to SBWMA Received and Balance Due

Month from State as of 12/31/11 Remitted to SBWMAJanuary February n/a ‐ SBR began processing material in April 2011MarchApril 150,588$ 135,214 Jun 2011 15,375$ May 369,580 352,096 Jul 2011 17,485 June 328,756 336,684 Aug 2011 (7,927) July 347,196 305,563 Sep 2011 41,634 August 307,309 306,542 Oct 2011 767 September 323,000 321,837 Nov 2011 1,164 October 388,047 387,191 Dec 2011 856 November 291,132 n/a ‐ remitted in 2012 291,132 ADecember 279,356 n/a ‐ remitted in 2012 279,356 B

Total 2,784,965$ 2,145,124$ 639,841$ C

Balance Due per SBR December 2011 Report 564,168$ Variance 75,673 D

The components of the $639,841 balance due to the SBWMA as of December 31, 2011, are as follows:

$291,132 due for the State payment for processing November 2011 tons not yet received as of December 31. (“A” from Figure 3‐4)

$279,356 due for the State payment for processing December 2011 tons not yet received as of December 31. (“B” from Figure 3‐4)

$59,304 due for the short payments by the State. (“A” from Figure 3‐3)

$10,049 due for a payment from the State received by SBR but not remitted to the SBWMA.

The components of the variance of $75,673 between our calculation and SBR’s calculation are as follows:

$59,304 due to SBR’s understating of CRV revenue still due from the State resulting from the short paid invoices by the State.

$17,303 due to SBR’s understating November 2011 CRV revenue due in their annual report (SBR reported $273,319 to the SBWMA but had requested $291,132 from the State); partially offset by,

$934 reduction due to SBR’s overstating CRV revenue due in their annual report.

______________________________________________________________________________ SBWMA BOD PACKET 06/28/12




3.2.2 Buyback Revenue Review

SBR operates a buyback center at the MRF. The center offers residents and the general public the opportunity to redeem California Redemption Value (CRV) containers. Based on State‐set redemption prices, SBR weighs and pays the public for the plastic, glass, and aluminum containers brought to the MRF.

We traced the amounts paid to the buyback customers to verify SBR was weighing and paying the customers the State‐approved buyback rates. We found no discrepancies.

3.3 Recommendations – SBR Review

Recommendation #1: Follow‐up with the State to receive $56,597 for the CRV revenue short payments for tons processed in 2011. Recommendation #2: SBR should develop internal procedures for recognizing and following up with the State, when the State short pays the CRV revenue. Recommendation #3: Remit $10,049 to SBWMA for the money received from the State but not remitted to the SBWMA. Recommendation #4: SBWMA and SBR should meet and agree on a revised CRV revenue reporting methodology to provide more transparency for when the State short pays SBR. The reporting methodology should include a comment section in which SBR describes the steps being taken to receive the under payment or explanation from the State why the short payment is justified.

______________________________________________________________________________ SBWMA BOD PACKET 06/28/12


______________________________________________________________________________ SBWMA BOD PACKET 06/28/12


SouthBayRecycling,LLC

333 Shoreway Road | San Carlos, California 94070 Tel 650.802.8355 | Fax 650.412.2495 | SBRecycling.net

Marshall Moran June 19, 2012 Finance Manager Rethink Waste 610 Elm Street, Suite 202 San Carlos, CA 94070 Dear Marshall: Following is SBRs response to the HF&H Financial Systems Audit of Collection Services and Facility Operations Contractors. Response to Recommendation #1: SBR recognizes that here were discrepancies between CRV revenue requested from the State and CRV revenue received from the State, identified in Figure 3‐3 and 3‐4.

1) April and May 2011; based on direction from Mike Center, which was done in coordination with the SBWMA and Recology, SBR began invoicing CalRecycle using Individual Commingled Rate (ICR) in April 2011. However, CalRecycle did not begin paying CRV at IRCRs until they had approved the new Curbside (CS) numbers transferred over the ICR rates and advised their third party payment processor (IKON) of the change. Therefore, there is a discrepancy in the revenue requested and the revenue received for these two months. SBR paid to the SBWMA the revenue received from the State for these commodities which was based on the State Average (SA) and not the ICR.

2) June 2011; SBR submitted 14 pages for Aluminum and Glass on its DR6; however it looks like CalRecycle short paid SBR (per the comments from CalRecycle on the Processor Invoice Report, they were missing a page). This was brought to SBRs attention at the time of the HF&H audit; however, too much time had passed and we could not submit a correction to CalRecycle; therefore SBR owes to the SBWMA the amount of $22,641.00.

3) July through December 2011; there were minor variances which total $1,097, which are owed to the SBWMA by

SBR. The total amount in question totals $23,738.00, due to the revenue share guarantee, 75% or $17,803.50 is owed to the SBWMA by SBR. Response to Recommendation #2: SBR recognizes the need to establish internal procedures to ensure it receives the correct revenue for CRV payments requested from the State. SBR has developed and implemented the following procedure which is now in affect:

1) SBR submits to the State Processor Invoice Report for each commodity with corresponding Shipping Reports (Forms DR7 &DR6 respectively).

2) IKON (third party administrator for CalRecycle) identifies data errors and reports their findings to SBR in the form of an Error Transmittal Report (ETR).

3) Once SBR receives payment for the State, SBR requests documentation to the corresponding claim schedule. 4) SBR then researches any payment discrepancies and either takes the steps necessary to receive the correct

payment or provide an explanation as to why the under payment is justified.

______________________________________________________________________________ SBWMA BOD PACKET 06/28/12

_______________________________________________________________________ AGENDA ITEM: 6E ATTACHMENT B p - 1

Sou

RespWhileSBR iAuguerror RespCRV montModfor esectioexpla If you Since

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u have any qu

erely,

ght E Herring eral Manager

Recycling,

ommendationg the discrepaat for the repoe amount of iately notified

ommendationuested from trequest. At tbe part of SBRCRV revenue rSBR will descrthe State wh

uestions or re

LLC

n #3: ancies in CRV orting period $10,048.57. d the SBWMA

n #4: he State by Sthe request oRs Monthly Rrequested anribe any discrey the short p

equire further

revenue requof June 2011This paymenA and remitte

SBR for a partf the SBWMAeporting. Thd the CRV revepancies andayment is jus

r clarification

Tel

uested from t1, SBR receivet was never red the payme

icular month A, SBR is in this will providevenue receive the actions bstified.

, please don’t

333 Shorew650.802.835

the State anded the CRV reremitted to thent owed on J

is not receivee process of de full transpaed and appliebeing taken to

t hesitate to c

way Road | Sa55 | Fax 650.4

d CRV revenuevenue from the SBWMA. UJune 5, 2012.

ed by SBR fordeveloping a rency to the Sed. This repoo receive any

contact me.

an Carlos, Cal412.2495 | SB

e received frothe State for HUpon recogni

r as far out asCRV PaymenSBWMA and rt will includey under paym

ifornia 94070BRecycling.ne

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s four (4) nt Tracking clearly show e a comment ment or

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,

______________________________________________________________________________ SBWMA BOD PACKET 06/28/12

_______________________________________________________________________ AGENDA ITEM: 6E ATTACHMENT B p - 2

TO BE PRESENTED AT THE JUNE 2012 BOARD OF DIRECTOR’S MEETING

7A. RSMC FRANCHISE AGREEMENT OPERATIONAL AND CONTRACT ADMINISTRATION UPDATE 7B. SBR SHOREWAY OPERATION AGREEMENT UPDATE

Agenda Item 7

Agenda Item 8

SBWMA BOD PACKET 06/28/2012 AGENDA ITEM: 8a – p1

STAFF UPDATE To: SBWMA Board Members From: Cliff Feldman, Recycling Programs Manager Date: June 28, 2012 Board of Directors Meeting Subject: Update on Recology Commercial Recycling Outreach Efforts Recommendation This is an informational report and no action is necessary. Analysis Recology San Mateo County (Recology) is not required to submit monthly statistics on its commercial recycling activities; however, the company is required to submit a quarterly status report on this program per section 9.06.N of the Franchise Agreement(s). Even though a monthly update is not contractually required, the company has agreed to provide the status of some key commercial recycling metrics each month. Below is information voluntarily submitted by Recology for this staff report to the Board, and staff will continue working with Recology to determine what other pertinent information can be provided on a monthly basis. May 2012 Recology Commercial Recycling Outreach Program Metrics

• 147 commercial recycling brochures and posters were distributed • 484 internal recycling containers were distributed • 780 Buddy Bags were delivered • 10 MFD tool kits were delivered • 3 commercial recycling “community events” were reported for April

Date Franchise Customer Name Location Name of Event Time

05/05/2012 C07 CITY OF MENLO PARK - CORP YARD 333 BURGESS DRMENLO PARK SHREDDING AND E-WASTE

9:00 AM - 3:00 PM

05/08/2012 C08 CITY OF REDWOOD CITY1400 BROADWAY, REDWOOD CITY

REDWOOD CITY SHREDDING EVENT 9:00 AM-3 PM

05/19/2012 C09 COMMUNITY FAIR & PARADE BURTON PARK HOMETOWN DAYS 9:30 - 5:00

Franchise codes: ATH = Atherton, BEL = Belmont, BUR = Burlingame, CSM = County of San Mateo, EPA = East Palo Alto, FOC = Foster City, HIL = Hillsborough, MAT = San Mateo, MPK = Menlo Park, NFO = North Fair Oaks, RWC = Redwood City, SNC = San Carlos, WBS = West Bay Sanitary District


• May 2012 Recology Commercial Service Level Changes Commencing with April 2012 staff report, a new section is being provided as per staff’s request for Recology to report monthly on the net result of its commercial recycling sales efforts with regard to providing service. This table provides the changes in commercial service subscription levels (i.e., service volume) for the various materials picked up. For example:

Burlingame’s commercial sector experienced: a net increase in 21.13 cubic yards of commercial recycling service a net increase of 138.89 cubic yards of commercial compost service a net increase of 61.1 cubic yards of commercial garbage service

Menlo Park’s commercial sector experienced: a net increase of 30.32 cubic yards of commercial recycling service a net decrease of 84.52 cubic yards of commercial compost service a net decrease of 244.73 cubic yards of commercial garbage service (The “net” change in service includes all increases or decreases by current customers and all increases of new customers.)

•

Sum of Monthly Net Change CommodityFranchise Code Garbage Organics Recycling Grand TotalATH 51.96 25.98 77.94BEL -153.11 1.56 197.45 45.9BUR 61.1 138.89 21.17 221.16C01 25.98 12.99 25.98 64.95C03 3.81 4.16 5.89 13.86C04 17.15 25.98 12.82 55.95C05 16.63 16.63 16.63 49.89C06 13.86 13.86 20.79 48.51C07 9.01 84.87 189.3 283.18C08 18.01 31.52 29.09 78.62C09 38.1 61.31 64.08 163.49C10 37.06 19.74 149.29 206.09CSM -62.36 -0.69 -30.15 -93.2EPA -55.6 -2.94 -7.46 -66FOC -59.5 -20.26 -79.76HIL -51.96 51.96 25.98 25.98MAT 37.67 76.9 49.36 163.93MPK -244.73 -84.52 30.32 -298.93NFO -22.96 -4.16 -23.91 -51.03RWC 135.71 16.28 -12.62 139.37SNC -63.11 22.52 33.43 -7.16WBS 46.94 46.94Grand Total -200.34 486.86 803.16 1089.68

Attachment A provides Recology’s new monthly commercial service level changes report. This report provides the detail for each member Agency in the first tab titled “Monthly Volume Change May 2012.” The second tab titled “Net Volume Change May 2012” summarizes the information and consists of the above table. Per feedback from the Board, Recology was requested to reformat this report into a printable version and this new version is attached. Staff appreciates the extensive work put into this by Recology.


• 14 different commercial accounts were included in the list of recycling “presentations and trainings” reported for May:

Date Franchise Customer Name Location

Attendees (staff, custodians, students, etc.) Time Description

05/01/2012 BEL SILVERADO SENIOR LIVING 1301 RALSTON AVE, BEL KITCHEN STAFF AND MANAGER 1:00 PM TRAINING

05/01/2012 BEL SILVERADO SENIOR LIVING 1301 RALSTON AVE, BEL HOUSE KEEPING STAFF AND MANAGER 1:30 PM TRAINING

05/01/2012 SNC BAJA FRESH #476 240 EL CAMINO REAL MANAGERS 3:30 TRAINING

05/02/2012 NFO IHSD 419 6TH AVE STUDENTS AND TEACHERS 10:00 AM PRESENTATION

05/02/2012 NFO IHSD 419 6TH AVE STUDENTS AND TEACHERS 1:15 PM PRESENTATION

05/03/2012 C09 ADULT COMMUNITY CENTER (SNC) SC ADULT COMMUNITY CENTER VOLUNTEERS AND FOOD VENDORS 7:30 PRESENTATION

05/08/2012 MPK CANYON HOUSE 16 COLEMAN PL., MPK HOUSE KEEPING, CARE TAKERS & CHEF 2:45PM-4:00PM TRAINING

05/16/2012 MPK CANYON HOUSE 16 COLEMAN PL, MENLO PARK KITCHEN STAFF 2PM TRAINING

05/16/2012 RWC WHOLE FOODS MARKET 1250 JEFFERSON AVE EMPLOYEES 11:00 AM - 2:00 PM PRESENTATION

05/17/2012 BUR CHRISTIES RESTAURANT 245 CALIFORNIA DR RESTARAUNT EMPLOYEES 10:45AM TRAINING

05/18/2012 BUR LA CORNETA TAQUERIA 1123 BURLINGAME AVE RESTAURANT STAFF 11:15 TRAINING

05/18/2012 MPK LA HACIENDA MARKET 1933 MENALTO AVE, MENLO PARK KITCHEN STAFF AND STOCK CREW 8:30AM TRAINING

05/21/2012 MAT MR PIZZAMAN 201 E 4TH AVE, SAN MATEO KITCHEN STAFF 5:00 PM TRAINING (Spanish)

05/21/2012 MAT MR PIZZAMAN 201 E 4TH AVENUE, SAN MATEO KITCHEN STAFF 5:00 PM TRAINING (English)

05/22/2012 EPA WELLS REAL ESTATE SVCS-REIT II 1900 UNIVERSITY AVE EMPLOYEES 11:30 AM - 1:30 PM PRESENTATION

05/22/2012 FOC REAL MEX RESTAURANTS 979 EDGWATER BLVD KITCHEN STAFF AND MANAGEMENT 3:30 PM TRAINING

05/22/2012 SNC KING CHUAN RESTAURANT 1188 SAN CARLOS AVE OWNER, DISHWASHER, WAITRESS 11:00 TRAINING

05/30/2012 FOC 5 JOY RESTAURANT 1489 BEACH PARK BLVD KITCHEN STAFF 02:00 TRAINING

Staff had numerous meetings with Recology during 2011 and 2012 on commercial recycling and requested additional analysis and data to facilitate decision-making on next steps regarding increasing tonnage from the commercial sector. In addition to analysis of the program’s performance, staff has requested Recology to provide information on profiling commercial customers, the net change on account retention and attraction efforts and information related to the internal metrics used to measure the relative success and cost effectiveness of its commercial recycling outreach (sales) efforts. The results of these inquiries were discussed in detail at the Special Board Workshop on Commercial Recycling on March 29, 2012. While Recology has greatly improved its reporting on commercial recycling activities, staff will continue to encourage the company to establish and begin using metrics to measure the success and cost effectiveness of the commercial recycling program.


Background On April 22, 2010, the Board adopted Resolution No. 2010-14 approving the Commercial Recycling Agreement between Recology and Allied Waste/Republic Services. This agreement transferred Allied’s commercial recycling outreach program to RSMC commencing on July 1, 2010. In addition, Recology moved its commercial recycling staff into the Shoreway Administration building on this date. The Member Agencies Franchise Agreements with Recology required the company to commence the first new program, the Recycling Blitz Commercial Recycling Campaign, also on July 1, 2010. Recology’s Recycling Blitz Plan and the SBWMA Commercial Recycling Communications and Outreach Plans were shared with the Board in May 2010. These plans outline the next steps regarding stepping up efforts to increase diversion from the commercial sector in the near term. Commencing with Recology’s first quarterly report due on April 30, 2011, the company is required to submit with each quarterly report a detailed update on its commercial recycling program outreach efforts. This requirement is prescribed in Franchise Agreement section 9.06.N, as follows:

“N. Commercial Recycling Promotion Program Status Report. Contractor must prepare and submit, both quarterly and annually, to Agency and SBWMA, a Commercial Recycling Program Status Report. The Commercial Recycling Program Status Report shall include, but not be limited to: 1. A summary of training and professional development activities for the Commercial Recycling

Promotion and supervisory staff. 2. A description of the strategy and overall approach to attract and retain a high quality and

effective Commercial Recycling Promotion Program and supervisory staff. 3. A description and status of meeting the goals and objectives for the Commercial Recycling

Promotion team and how these goals and objectives are tied to the compensation incentive plan. (Contractor must explain how the stated goals and objectives will be accomplished if no compensation incentive plan is used.)

4. A description of Contractor’s sales strategy for maintaining and/or expanding the existing Commercial Recycling account base and diversion levels.

5. A description of the services provided to the Commercial and Agency Facility sectors. 6. A detailed accounting of diversion statistics for the Commercial and Agency Facility sectors.”

Recology has now submitted all four quarterly reports for 2011, its 2011 annual report, and the first quarter report for 2012 and it is important to note that the commercial recycling section of all these reports has fallen short of establishing quantifiable goals with regards to increasing diversion, nor have these reports provided a detailed description of the strategic approach employed by the Recology sales team to increase diversion. The recent reports provide general goals that are supported by task based metrics for each Zero Waste Specialist. If quantifiable diversion goals and a specific sales based approach are shared with staff, this information will in turn be promptly shared with the Member Agencies. Attachment: Attachment A – Recology May 2012 Monthly Commercial Volume Change Report


NET CHANGES REPORT - DETAIL

MAY 2012

Fran-

chise Commodity

Account

Type Name House # Street Name Apt #

Prev

Month

Volume

Current

Month

Volume

Monthly

Net

Change

Weekly

Volume

Change

Customer

Status Last

Month

Customer

Status

Current

Month

Customer

Start Date

Customer End

Date

ATH Garbage Commercial SACRED HEART SCHOOLS 50 EMILIE AVE 0 51.96 51.96 12 New 05/16/2012

Garbage Total 12

ATH Recycling Commercial SACRED HEART SCHOOLS 50 EMILIE AVE 0 25.98 25.98 6 New 05/16/2012

Recycling Total 6

BEL Garbage Apartment FILOUS MARIA 2180 CARLMONT DR 4.33 0 -4.33 -1 Active Stopped 03/16/2006 04/30/2012

BEL Garbage Apartment JACK SAFRA 1048 CONTINENTALS WAY 25.98 0 -25.98 -6 Active Active 12/01/1985

BEL Garbage Apartment PLUME PROPERTIES 181 IRENE CT 10.39 0 -10.39 -2.4 Active Stopped 05/30/2006 05/04/2012

BEL Garbage Commercial AZIZ SHARIAT 1485 EL CAMINO REAL 4.33 8.66 4.33 1 Active Active 06/13/2005

BEL Garbage Commercial IRAJ SHAHROK 572 RALSTON AVE 0.69 0 -0.69 -0.16 Active Active 03/01/1986

BEL Garbage Apartment SILVERADO SENIOR LIVING 1301 RALSTON AVE 34.64 51.96 17.32 4 Active Active 01/19/1998

BEL Garbage Commercial NOTRE DAME DE NAMUR UNIVERSITY1500 RALSTON AVE 424.34 285.78 -138.56 -32 Active Active 11/08/1982

BEL Garbage Commercial ALLIED IRON 620 WALTERMIRE ST 4.33 2.08 -2.25 -0.52 Active Active 12/17/1986

BEL Garbage Commercial BLOCKBUSTER/FM #BBROO6525 990 EL CAMINO REAL 8.66 0 -8.66 -2 Active Stopped 09/07/2010 05/01/2012

BEL Garbage Commercial BUGAEFF, MIKE 537 MOUNTAIN VIEW AVE 0 0.69 0.69 0.16 Active Active 04/26/2011

BEL Garbage Commercial SANCHEZ, YEVETTE 1520 EL CAMINO REAL 0 0.69 0.69 0.16 New 05/03/2012

BEL Garbage Apartment STALCAR, MARIA 2180 CARLMONT DR 0 4.33 4.33 1 Active 05/01/2012

BEL Garbage Apartment 181 IRENE CT 181 IRENE CT 0 10.39 10.39 2.4 New 05/11/2012

Garbage Total -35.36

BEL Organics Commercial DAVIS ASSOCIATES 20 DAVIS DR 2.77 4.33 1.56 0.36 Active Active 01/01/1986

Organics Total 0.36

BEL Recycling Apartment CASA BELVIEW APTS 1015 CONTINENTALS WAY 8.66 225.16 216.5 50 Active Active 03/01/1986

BEL Recycling Apartment BELVIEW HGTS 1016 CONTINENTALS WAY 20.78 14.55 -6.23 -1.44 Active Active 03/01/1986

BEL Recycling Apartment PLUME PROPERTIES 181 IRENE CT 8.31 0 -8.31 -1.92 Active Stopped 05/30/2006 05/04/2012

BEL Recycling Commercial SAFEWAY STORE #668 2100 RALSTON AVE 4.16 0 -4.16 -0.96 Active Active 06/30/1984

BEL Recycling Commercial BLOCKBUSTER/FM #BBROO6525 990 EL CAMINO REAL 8.66 0 -8.66 -2 Active Stopped 09/07/2010 05/01/2012

BEL Recycling Apartment 181 IRENE CT 181 IRENE CT 0 8.31 8.31 1.92 New 05/11/2012

Recycling Total 45.6

BUR Garbage Apartment TOWN & COUNTRY REALTY 1144 CAPUCHINO AVE 4.16 0 -4.16 -0.96 Active Stopped 04/01/1986 05/01/2012

BUR Garbage Apartment TUSCAN PROPERTIES 1475 LINCOLN AVE 8.66 4.33 -4.33 -1 Active Active 12/01/1991

BUR Garbage Apartment TURRI PROPERTIES 1136 PALOMA AVE 6.24 0 -6.24 -1.44 Active Active 08/15/1996

BUR Garbage Commercial FOX INVESTMENTS 1300 BAYSHORE HWY 25.98 0 -25.98 -6 Active Stopped 02/08/1995 05/25/2012

BUR Garbage Commercial VILLAGE HOST RESTAURANT 1201 BROADWAY ST 17.32 4.33 -12.99 -3 Active Active 07/31/1978

BUR Garbage Commercial IT'S IT ICE CREAM CO. 865 BURLWAY RD 34.64 43.3 8.66 2 Active Active 04/19/1984

BUR Garbage Commercial CHRISTIES RESTAURANT 245 CALIFORNIA DR 16.63 2.77 -13.86 -3.2 Active Active 04/01/1986

BUR Garbage Commercial JP LINDSTROM INC 1015 CALIFORNIA DR 4.33 2.08 -2.25 -0.52 Active Active 10/17/2001

BUR Garbage Commercial H&N FOODS INTERNATIONAL 819 COWAN RD B 0 2.08 2.08 0.48 Active Active 02/03/2009

BUR Garbage Commercial CA DEVELOPMENT 270 EAST LN 12.99 21.65 8.66 2 Active Active 02/26/2001

BUR Garbage Commercial HILLS POOL SERVICE 23 EDWARDS CT 12.99 25.98 12.99 3 Active Active 06/24/1986

BUR Garbage Commercial AMERICAN HEART ASSOC 1710 GILBRETH RD 38.97 25.98 -12.99 -3 Active Active 08/19/1991

BUR Garbage Commercial BAY AREA WINDOW PROS 215 HIGHLAND AVE 1.39 0.69 -0.7 -0.16 Active Active 02/24/2010

BUR Garbage Apartment C/O DANACO 917 HOWARD AVE 4.16 0 -4.16 -0.96 Active Stopped 11/27/2003 05/16/2012

BUR Garbage Commercial IL FORNAIO RESTAURANT 327 LORTON AVE 37.41 24.94 -12.47 -2.88 Active Active 03/06/1995

BUR Garbage Commercial BLOOMING VASE 269 PRIMROSE RD 1.39 2.77 1.38 0.32 Active Active 09/28/2009

BUR Garbage Commercial STATUS THIMBLE 277 PRIMROSE RD 1.39 0 -1.39 -0.32 Active Stopped 04/02/1999 04/30/2012

Page 1 of 17

______________________________________________________________________________ SBWMA BOD PACKET 06/28/12

_______________________________________________________________________ AGENDA ITEM: 8a ATTACHMENT A p - 1



MAY 2012

Fran-

chise Commodity

Account


Prev

Month

Volume

Current

Month

Volume

Monthly

Net

Change

Weekly

Volume

Change

Customer

Status Last

Month

Customer

Status

Current

Month

Customer

Start Date

Customer End

Date

BUR Garbage Commercial STELLA ALPINA OSTERIA 401 PRIMROSE RD 4.16 2.08 -2.08 -0.48 Active Active 08/06/2009

BUR Garbage Apartment ANTONIO OLIVAS 849 ROLLINS RD A 4.16 0 -4.16 -0.96 Active Stopped 04/01/1986 05/28/2012

BUR Garbage Apartment GORDEN CHAN 921 ROLLINS RD 4.33 2.77 -1.56 -0.36 Active Active 09/21/1988

BUR Garbage Commercial BELLA TILE DESIGN 1550 ROLLINS RD H 1.39 0 -1.39 -0.32 Active Stopped 09/19/2001 05/30/2012

BUR Garbage Commercial CLASSIC PARTY RENTALS 1635 ROLLINS RD 51.96 77.94 25.98 6 Active Active 07/13/2004

BUR Garbage Commercial RIGGS DISTRIBUTING 1755 ROLLINS RD 17.32 34.64 17.32 4 Active Active 04/08/2004

BUR Garbage Commercial AMS BEKINS 1873 ROLLINS RD 187 0 12.99 12.99 3 Active Active 09/01/1990

BUR Garbage Commercial GONSALVES & STRONCK JOB #259 1 MANGINI WAY 8.66 0 -8.66 -2 Active Stopped 11/05/2010 04/30/2012

BUR Garbage Commercial NOVAVISTA FULFILLMENT 383 BEACH RD 4.33 0 -4.33 -1 Active Stopped 03/08/2011 04/30/2012

BUR Garbage Commercial RETAIL SYSTEMS INC 308 LANG RD 0.43 0.69 0.26 0.06 Active Active 03/29/2011

BUR Garbage Commercial TAMER MICKEL SALON 264 LORTON AVE 1.39 0.69 -0.7 -0.16 Active Active 07/25/2011

BUR Garbage Commercial B & B MARBLE INC 341 BEACH RD 4.33 0 -4.33 -1 Active Active 08/23/2011

BUR Garbage Apartment CORCOLEOTES, NICK 1124 LAGUNA AVE 4.16 2.08 -2.08 -0.48 Active Active 10/25/2011

BUR Garbage Commercial SALON 222 222 LORTON AVE 0.69 0 -0.69 -0.16 Active Stopped 01/26/2012 05/03/2012

BUR Garbage Commercial BALDI,JUDY 1308 EL CAMINO REAL 0.87 1.3 0.43 0.1 Active Active 03/06/2012

BUR Garbage Commercial BATHINDA FOODS LLC 1200 HOWARD AVE 106 0 2.08 2.08 0.48 New 05/08/2012

BUR Garbage Commercial GREENCITIZEN 1576 ROLLINS RD 0 4.33 4.33 1 New 05/09/2012

BUR Garbage Commercial KSI CORP 839 MITTEN RD 0 4.16 4.16 0.96 New 05/23/2012

BUR Garbage Apartment RICHARD G. SAMUELSON & JANICE917 HOWARD AVE 0 1.39 1.39 0.32 New 05/17/2012

BUR Garbage Apartment AMBUS,GEORGE 1144 CAPUCHINO AVE 0 3.46 3.46 0.8 New 05/22/2012

BUR Garbage Commercial 101 TRUCKING 50 EDWARDS CT 0 4.33 4.33 1 New 05/28/2012

BUR Garbage Commercial BWRS 1333 BAYSHORE HWY 0 77.94 77.94 18 New 05/30/2012

BUR Garbage Apartment STIEHLER, PETER 849 ROLLINS RD A 0 4.16 4.16 0.96 New 05/29/2012

Garbage Total 14.12

BUR Organics Apartment PEZZULICH MARIA 208 MYRTLE RD 2.08 0 -2.08 -0.48 Active Active 04/01/1986

BUR Organics Commercial HILTON SFO AIRPORT 600 AIRPORT BLVD 49.88 41.57 -8.31 -1.92 Active Active 02/18/2009

BUR Organics Commercial HYATT REGENCY 1333 BAYSHORE HWY 106.69 0 -106.69 -24.64 Active Stopped 01/22/1987 05/28/2012

BUR Organics Commercial VILLAGE HOST RESTAURANT 1201 BROADWAY ST 0 8.66 8.66 2 Active Active 07/31/1978

BUR Organics Commercial CHRISTIES RESTAURANT 245 CALIFORNIA DR 0 11.08 11.08 2.56 Active Active 04/01/1986

BUR Organics Commercial IL FORNAIO RESTAURANT 327 LORTON AVE 24.94 33.25 8.31 1.92 Active Active 03/06/1995

BUR Organics Commercial BLOOMING VASE 269 PRIMROSE RD 1.39 2.77 1.38 0.32 Active Active 09/28/2009

BUR Organics Commercial RSNA RED RO0F INN 7228 777 AIRPORT BLVD 13.86 11.08 -2.78 -0.64 Active Active 09/07/2010

BUR Organics Commercial UNITED PROPERTY SALES 1238 EL CAMINO REAL 2.08 0 -2.08 -0.48 Active Active 09/01/2011

BUR Organics Commercial BAY BREAD LLC 1152 BURLINGAME AVE 19.4 9.7 -9.7 -2.24 Active Active 09/28/2011

BUR Organics Commercial BATHINDA FOODS LLC 1200 HOWARD AVE 106 0 2.08 2.08 0.48 New 05/08/2012

BUR Organics Commercial BWRS 1333 BAYSHORE HWY 0 239.02 239.02 55.2 New 05/30/2012

Organics Total 32.08

BUR Recycling Apartment PANOS INVESTMENTS 1501 CHAPIN AVE 12.47 18.71 6.24 1.44 Active Active 03/02/1988

BUR Recycling Apartment HILLSBORO PROP 1545 FLORIBUNDA AVE 18.71 12.47 -6.24 -1.44 Active Active 04/01/1986

BUR Recycling Apartment GUS PANOS 1900 GARDEN DR 8.31 12.47 4.16 0.96 Active Active 01/01/1986

BUR Recycling Apartment AHL FAMILY ONE 1727 MARCO POLO WAY 173 12.47 4.16 -8.31 -1.92 Active Active 05/01/1986

BUR Recycling Apartment SC PROPERTY MANAGEMENT 681 ROLLINS RD 0 4.16 4.16 0.96 Active Active 04/12/2010

BUR Recycling Commercial YELLOW ALLIED CAB INC 1745 ADRIAN RD 17 0.69 0 -0.69 -0.16 Active Active 04/21/2010

BUR Recycling Commercial FOX INVESTMENTS 1300 BAYSHORE HWY 25.98 0 -25.98 -6 Active Stopped 02/08/1995 05/25/2012

Page 2 of 17

______________________________________________________________________________ SBWMA BOD PACKET 06/28/12




MAY 2012

Fran-

chise Commodity

Account


Prev

Month

Volume

Current

Month

Volume

Monthly

Net

Change

Weekly

Volume

Change

Customer

Status Last

Month

Customer

Status

Current

Month

Customer

Start Date

Customer End

Date

BUR Recycling Commercial HYATT REGENCY 1333 BAYSHORE HWY 39.84 0 -39.84 -9.2 Active Stopped 01/22/1987 05/28/2012

BUR Recycling Commercial LUCY ACTIVEWEAR 1208 BURLINGAME AVE 10.74 8.66 -2.08 -0.48 Active Active 06/11/2001

BUR Recycling Commercial CHRISTIES RESTAURANT 245 CALIFORNIA DR 20.78 21.65 0.87 0.2 Active Active 04/01/1986

BUR Recycling Commercial SHEAR MAGIC 311 CALIFORNIA DR 0 1.39 1.39 0.32 Active Active 04/01/1986

BUR Recycling Commercial PENINSULA PRIME MOTORS 621 CALIFORNIA DR 2.08 6.24 4.16 0.96 Active Active 07/01/2007

BUR Recycling Commercial AUDIO IMAGES 1011 CALIFORNIA DR 0 1.39 1.39 0.32 Active Active 01/01/2004

BUR Recycling Commercial JP LINDSTROM INC 1015 CALIFORNIA DR 8.66 2.08 -6.58 -1.52 Active Active 10/17/2001

BUR Recycling Apartment C/O DANACO 917 HOWARD AVE 2.08 0 -2.08 -0.48 Active Stopped 11/27/2003 05/16/2012

BUR Recycling Commercial THE UNIQUE BRIDE 1209 HOWARD AVE 0 8.66 8.66 2 Active Active 08/08/1989

BUR Recycling Apartment ANTONIO OLIVAS 849 ROLLINS RD A 1.39 0 -1.39 -0.32 Active Stopped 04/01/1986 05/28/2012

BUR Recycling Apartment GORDEN CHAN 921 ROLLINS RD 0 2.77 2.77 0.64 Active Active 09/21/1988

BUR Recycling Apartment EMCEE INVESTMENTS/ACTION PROP933 ROLLINS RD 4.16 6.24 2.08 0.48 Active Active 04/01/1986

BUR Recycling Commercial BELLA TILE DESIGN 1550 ROLLINS RD H 2.08 0 -2.08 -0.48 Active Stopped 09/19/2001 05/30/2012

BUR Recycling Apartment SUBHI ABDELHALIM 904 TOYON DR 0 1.39 1.39 0.32 Active Active 04/16/2001

BUR Recycling Commercial NOVAVISTA FULFILLMENT 383 BEACH RD 6.24 0 -6.24 -1.44 Active Stopped 03/08/2011 04/30/2012

BUR Recycling Commercial RETAIL SYSTEMS INC 308 LANG RD 0.69 1.39 0.7 0.16 Active Active 03/29/2011

BUR Recycling Commercial SALON 222 222 LORTON AVE 1.39 0 -1.39 -0.32 Active Stopped 01/26/2012 05/03/2012

BUR Recycling Commercial BALDI,JUDY 1308 EL CAMINO REAL 4.16 6.24 2.08 0.48 Active Active 03/06/2012

BUR Recycling Commercial BATHINDA FOODS LLC 1200 HOWARD AVE 106 0 2.08 2.08 0.48 New 05/08/2012

BUR Recycling Commercial GREENCITIZEN 1576 ROLLINS RD 0 25.98 25.98 6 New 05/09/2012

BUR Recycling Commercial KSI CORP 839 MITTEN RD 0 4.16 4.16 0.96 New 05/23/2012

BUR Recycling Apartment RICHARD G. SAMUELSON & JANICE917 HOWARD AVE 0 2.08 2.08 0.48 New 05/17/2012

BUR Recycling Apartment AMBUS,GEORGE 1144 CAPUCHINO AVE 0 4.16 4.16 0.96 New 05/22/2012

BUR Recycling Commercial 101 TRUCKING 50 EDWARDS CT 0 4.33 4.33 1 New 05/28/2012

BUR Recycling Commercial BWRS 1333 BAYSHORE HWY 0 39.84 39.84 9.2 New 05/30/2012

BUR Recycling Apartment STIEHLER, PETER 849 ROLLINS RD A 0 1.39 1.39 0.32 New 05/29/2012


C01 Garbage Commercial MENLO SCHOOL 50 VALPARAISO AVE SPE 0 25.98 25.98 6 Active Active 07/15/2011

Garbage Total 6

C01 Organics Commercial MENLO SCHOOL 50 VALPARAISO AVE SPE 0 12.99 12.99 3 Active Active 07/15/2011

Organics Total 3

C01 Recycling Commercial MENLO SCHOOL 50 VALPARAISO AVE SPE 0 25.98 25.98 6 Active Active 07/15/2011

Recycling Total 6

C03 Garbage Commercial CITY OF BURLINGAME - FIRE DEPT1399 ROLLINS RD 8.66 8.31 -0.35 -0.08 Active Active 01/04/1983

C03 Garbage Commercial CITY OF BURLINGAME 501 PRIMROSE RD SPE 0 4.16 4.16 0.96 New 05/25/2012

Garbage Total 0.88

C03 Organics Commercial CITY OF BURLINGAME 501 PRIMROSE RD SPE 0 4.16 4.16 0.96 New 05/25/2012

Organics Total 0.96

C03 Recycling Commercial CITY OF BURLINGAME - FIRE DEPT1399 ROLLINS RD 8.66 8.31 -0.35 -0.08 Active Active 01/04/1983

C03 Recycling Commercial CITY OF BURLINGAME 501 PRIMROSE RD SPE 0 6.24 6.24 1.44 New 05/25/2012


C04 Garbage Commercial EAST PALO ALTO - CLEAN UP 1960 TATE ST SPE 0 4.16 4.16 0.96 New 05/17/2012

C04 Garbage Commercial RIVER CLEAN UP 0 BEECH ST SPE 0 12.99 12.99 3 New 05/18/2012

Garbage Total 3.96

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C04 Organics Commercial RIVER CLEAN UP 0 BEECH ST SPE 0 25.98 25.98 6 New 05/18/2012

Organics Total 6

C04 Recycling Commercial EAST PALO ALTO - CLEAN UP 1960 TATE ST SPE 0 4.16 4.16 0.96 New 05/17/2012

C04 Recycling Commercial RIVER CLEAN UP 0 BEECH ST SPE 0 8.66 8.66 2 New 05/18/2012


C05 Garbage Commercial POLYNESIAN FESTIVAL 650 SHELL BLVD SP1 0 16.63 16.63 3.84 New 05/04/2012

Garbage Total 3.84

C05 Organics Commercial POLYNESIAN FESTIVAL 650 SHELL BLVD SP1 0 16.63 16.63 3.84 New 05/04/2012

Organics Total 3.84

C05 Recycling Commercial POLYNESIAN FESTIVAL 650 SHELL BLVD SP1 0 16.63 16.63 3.84 New 05/04/2012


C06 Garbage Commercial TOWN OF HILLSBOROUGH 1600 FLORIBUNDA AVE SPE 0 4.16 4.16 0.96 New 05/28/2012

C06 Garbage Commercial TOWN OF HILLSBOROUGH 545 EUCALYPTUS AVE SPE 0 9.7 9.7 2.24 New 05/28/2012

Garbage Total 3.2

C06 Organics Commercial TOWN OF HILLSBOROUGH 1600 FLORIBUNDA AVE SPE 0 4.16 4.16 0.96 New 05/28/2012

C06 Organics Commercial TOWN OF HILLSBOROUGH 545 EUCALYPTUS AVE SPE 0 9.7 9.7 2.24 New 05/28/2012

Organics Total 3.2

C06 Recycling Commercial TOWN OF HILLSBOROUGH 1600 FLORIBUNDA AVE SPE 0 6.24 6.24 1.44 New 05/28/2012

C06 Recycling Commercial TOWN OF HILLSBOROUGH 545 EUCALYPTUS AVE SPE 0 14.55 14.55 3.36 New 05/28/2012

Recycling Total 4.8

C07 Garbage Commercial MENLO PARK SHRED EVENT 333 BURGESS DR SPE 0 2.08 2.08 0.48 New 05/04/2012

C07 Garbage Commercial SUNSET CELEBRATION 80 WILLOW RD SPE 0 6.93 6.93 1.6 New 05/25/2012

Garbage Total 2.08

C07 Organics Commercial SUNSET CELEBRATION 80 WILLOW RD SPE 0 38.97 38.97 9 New 05/25/2012

C07 Organics Commercial SUNSET MAGAZINE 275 MIDDLEFIELD RD SPE 0 45.9 45.9 10.6 New 05/29/2012

Organics Total 19.6

C07 Recycling Commercial MENLO PARK SHRED EVENT 333 BURGESS DR SPE 0 34.29 34.29 7.92 New 05/04/2012

C07 Recycling Commercial SUNSET CELEBRATION 80 WILLOW RD SPE 0 71.01 71.01 16.4 New 05/25/2012

C07 Recycling Commercial SUNSET MAGAZINE 275 MIDDLEFIELD RD SPE 0 84 84 19.4 New 05/29/2012


C08 Garbage Commercial WOODSIDE KIWANIS 909 ROOSEVELT AVE SPE 0 5.54 5.54 1.28 New 05/04/2012

C08 Garbage Commercial REDWOOD CITY EDUCATION FOUNDAT1100 SEAPORT BLVD SPE 0 4.16 4.16 0.96 New 05/03/2012

C08 Garbage Commercial MID PENINSULA OLD TIME AUTO 1300 SEAPORT BLVD SPE 0 8.31 8.31 1.92 New 05/18/2012

Garbage Total 4.16

C08 Organics Commercial WOODSIDE KIWANIS 909 ROOSEVELT AVE SPE 0 5.54 5.54 1.28 New 05/04/2012

C08 Organics Commercial MT CARMEL CARNIVAL 601 KATHERINE AVE SPE 0 25.98 25.98 6 New 05/03/2012

Organics Total 7.28

C08 Recycling Commercial WOODSIDE KIWANIS 909 ROOSEVELT AVE SPE 0 8.31 8.31 1.92 New 05/04/2012

C08 Recycling Commercial REDWOOD CITY EDUCATION FOUNDAT1100 SEAPORT BLVD SPE 0 12.47 12.47 2.88 New 05/03/2012

C08 Recycling Commercial MID PENINSULA OLD TIME AUTO 1300 SEAPORT BLVD SPE 0 8.31 8.31 1.92 New 05/18/2012


C09 Garbage Commercial HOT HARVEST NIGHTS 0 LAUREL ST SP2 0 4.16 4.16 0.96 Active 05/01/2012

C09 Garbage Commercial MOTORCYCLE POKER RUN 975 INDUSTRIAL RD SPE 0 11.08 11.08 2.56 New 05/11/2012

C09 Garbage Commercial COMMUNITY FAIR & PARADE 1001 CHESTNUT ST SPE 0 22.86 22.86 5.28 New 05/18/2012

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Garbage Total 8.8

C09 Organics Commercial HOT HARVEST NIGHTS 0 LAUREL ST SP2 0 1.39 1.39 0.32 Active 05/01/2012

C09 Organics Commercial MOTORCYCLE POKER RUN 975 INDUSTRIAL RD SPE 0 11.08 11.08 2.56 New 05/11/2012

C09 Organics Commercial COMMUNITY FAIR & PARADE 1001 CHESTNUT ST SPE 0 48.84 48.84 11.28 New 05/18/2012


C09 Recycling Commercial HOT HARVEST NIGHTS 0 LAUREL ST SP2 0 4.16 4.16 0.96 Active 05/01/2012

C09 Recycling Commercial MOTORCYCLE POKER RUN 975 INDUSTRIAL RD SPE 0 11.08 11.08 2.56 New 05/11/2012

C09 Recycling Commercial COMMUNITY FAIR & PARADE 1001 CHESTNUT ST SPE 0 48.84 48.84 11.28 New 05/18/2012


C10 Garbage Commercial ST TIMOTHY CHURCH 1600 DOLAN AVE SPE 0 17.32 17.32 4 New 05/11/2012

C10 Garbage Commercial PENINSULA HEALTH SERVICES 1701 COYOTE POINT DR SP2 0 11.08 11.08 2.56 New 05/18/2012

C10 Garbage Commercial JOINVILLE SWIM CENTER 2111 KEHOE AVE . 0 8.66 8.66 2 New 05/30/2012

Garbage Total 8.56

C10 Organics Commercial CITY OF SAN MATEO 200 FRANKLIN PKWY 0 8.66 8.66 2 Active Active 05/20/2009

C10 Organics Commercial PENINSULA HEALTH SERVICES 1701 COYOTE POINT DR SP2 0 11.08 11.08 2.56 New 05/18/2012

Organics Total 4.56

C10 Recycling Commercial CITY CAN - SAN MATEO 60 E 3RD AVE 155.88 259.8 103.92 24 Active Active 02/02/2012

C10 Recycling Commercial PENINSULA HEALTH SERVICES 1701 COYOTE POINT DR SP2 0 37.06 37.06 8.56 New 05/18/2012

C10 Recycling Commercial JOINVILLE SWIM CENTER 2111 KEHOE AVE . 0 8.31 8.31 1.92 New 05/30/2012


CSM Garbage Apartment JERICO 5 NIMITZ AVE 7.62 0 -7.62 -1.76 Active Stopped 01/13/2006 04/30/2012

CSM Garbage Apartment 1963 WOODSIDE VISTA LLC 1963 WOODSIDE RD 16.63 0 -16.63 -3.84 Active Stopped 03/01/1986 04/30/2012

CSM Garbage Apartment HOOPER B C/O BEHLING & ASSC.2007 WOODSIDE RD 8.31 0 -8.31 -1.92 Active Stopped 03/01/1986 04/30/2012

CSM Garbage Commercial SWIMMING POOL PERFECTIONS 629 BAIR ISLAND RD 214 4.33 0 -4.33 -1 Active Stopped 05/21/2002 04/30/2012

CSM Garbage Commercial LENCIONI CONSTRUCTION CO INC.420 MAPLE ST 2.08 0 -2.08 -0.48 Active Stopped 06/14/2010 04/30/2012

CSM Garbage Commercial WOODSIDE DELI 1453 WOODSIDE RD 17.32 0 -17.32 -4 Active Stopped 01/01/1979 04/30/2012

CSM Garbage Commercial US BANK 1475 WOODSIDE RD 6.41 0 -6.41 -1.48 Active Stopped 06/29/1991 04/30/2012

CSM Garbage Apartment 1775 WOODSIDE RD LLC. 1775 WOODSIDE RD 25.98 0 -25.98 -6 Active Stopped 07/01/2004 04/30/2012

CSM Garbage Apartment BELMONT MOBILE PARK HOMES 100 HARBOR BLVD 006 0.69 0.43 -0.26 -0.06 Active Active 01/01/2011

CSM Garbage Apartment BELMONT MOBILE PARK HOMES 100 HARBOR BLVD 061 0.69 0 -0.69 -0.16 Active Active 01/01/2011

CSM Garbage Apartment BELMONT MOBILE PARK HOMES 100 HARBOR BLVD 063 0 0.43 0.43 0.1 Active Active 01/01/2011

CSM Garbage Apartment TOM MUELLER 131 CERRITO AVE 4.16 0 -4.16 -0.96 Active Stopped 01/01/2011 04/30/2012

CSM Garbage Commercial COUNTY OF SAN MATEO AGEING 330 HARBOR BLVD E 0 25.98 25.98 6 New 05/04/2012

CSM Garbage Commercial BELMONT MOBILE HOME PARK 100 HARBOR BLVD 011 0 0.69 0.69 0.16 New 05/17/2012

CSM Garbage Commercial STEVE P. RADOS, INC 699 HASSLER RD 0 4.33 4.33 1 New 05/25/2012

Garbage Total -14.4

CSM Organics Apartment JERICO 5 NIMITZ AVE 0.69 0 -0.69 -0.16 Active Stopped 01/13/2006 04/30/2012

Organics Total -0.16

CSM Recycling Apartment JERICO 5 NIMITZ AVE 5.54 0 -5.54 -1.28 Active Stopped 01/13/2006 04/30/2012

CSM Recycling Apartment 1963 WOODSIDE VISTA LLC 1963 WOODSIDE RD 16.63 0 -16.63 -3.84 Active Stopped 03/01/1986 04/30/2012

CSM Recycling Apartment HOOPER B C/O BEHLING & ASSC.2007 WOODSIDE RD 6.24 0 -6.24 -1.44 Active Stopped 03/01/1986 04/30/2012

CSM Recycling Commercial LENCIONI CONSTRUCTION CO INC.420 MAPLE ST 2.77 0 -2.77 -0.64 Active Stopped 06/14/2010 04/30/2012

CSM Recycling Commercial COUNTY OF SAN MATEO 50 TOWER RD 15.07 12.99 -2.08 -0.48 Active Active 03/17/2003

CSM Recycling Commercial WOODSIDE DELI 1453 WOODSIDE RD 17.32 0 -17.32 -4 Active Stopped 01/01/1979 04/30/2012

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CSM Recycling Apartment 1775 WOODSIDE RD LLC. 1775 WOODSIDE RD 17.32 0 -17.32 -4 Active Stopped 07/01/2004 04/30/2012

CSM Recycling Apartment BELMONT MOBILE PARK HOMES 100 HARBOR BLVD 061 0.69 0 -0.69 -0.16 Active Active 01/01/2011

CSM Recycling Apartment BELMONT MOBILE PARK HOMES 100 HARBOR BLVD 063 0 0.69 0.69 0.16 Active Active 01/01/2011

CSM Recycling Apartment TOM MUELLER 131 CERRITO AVE 4.16 0 -4.16 -0.96 Active Stopped 01/01/2011 04/30/2012

CSM Recycling Commercial RAISER PROPERTY MANAGEMENT400 HARBOR BLVD 450 19.4 17.32 -2.08 -0.48 Active Active 06/17/2011

CSM Recycling Commercial COUNTY OF SAN MATEO AGEING 330 HARBOR BLVD E 0 25.98 25.98 6 New 05/04/2012

CSM Recycling Commercial BELMONT MOBILE HOME PARK 100 HARBOR BLVD 011 0 0.69 0.69 0.16 New 05/17/2012

CSM Recycling Commercial STEVE P. RADOS, INC 699 HASSLER RD 0 17.32 17.32 4 New 05/25/2012

Recycling Total -6.96

EPA Garbage Commercial THE INSTITUTE FOR HUMAN & 1385 BAY RD 4.33 0 -4.33 -1 Active Active 10/01/1998

EPA Garbage Commercial GRACE TEMPLE CHURCH 1970 CLARKE AVE 8.66 2.08 -6.58 -1.52 Active Active 08/01/1994

EPA Garbage Apartment CARRIE, ALTHEDA K 1971 EUCLID AVE 196 2.08 0 -2.08 -0.48 Active Stopped 11/07/1988 04/30/2012

EPA Garbage Commercial WELLS REAL ESTATE SVCS-REIT II1950 UNIVERSITY AVE 51.96 34.64 -17.32 -4 Active Active 09/02/2003

EPA Garbage Commercial BEST BUY/0185 1751 E BAYSHORE RD 25.98 0 -25.98 -6 Active Stopped 09/07/2010 05/25/2012

EPA Garbage Commercial BUILDING FUTURES NOW 1848 BAY RD . 1.39 2.08 0.69 0.16 Active Active 09/06/2011


EPA Organics Apartment B.M.C 235 E OKEEFE ST 0 1.39 1.39 0.32 Active Active 07/01/1995

EPA Organics Apartment MORAN FAMILY LIMITED 275 E OKEEFE ST 1.39 0 -1.39 -0.32 Active Active 05/01/1973

EPA Organics Apartment B.M.C. 561 SACRAMENTO ST 0 1.39 1.39 0.32 Active Active 11/23/1998

EPA Organics Commercial THE INSTITUTE FOR HUMAN & 1385 BAY RD 4.33 0 -4.33 -1 Active Active 10/01/1998


EPA Recycling Commercial THE INSTITUTE FOR HUMAN & 1385 BAY RD 8.66 0 -8.66 -2 Active Active 10/01/1998

EPA Recycling Apartment CARRIE, ALTHEDA K 1971 EUCLID AVE 196 1.39 0 -1.39 -0.32 Active Stopped 11/07/1988 04/30/2012

EPA Recycling Apartment STANFORD GARDENS APTS 1735 WOODLAND AVE 40.53 44.86 4.33 1 Active Active 06/01/1986

EPA Recycling Commercial BEST BUY/0185 1751 E BAYSHORE RD 4.16 0 -4.16 -0.96 Active Stopped 09/07/2010 05/25/2012

EPA Recycling Apartment EQUITY RESIDENTIAL 245 E OKEEFE ST 6.24 8.66 2.42 0.56 Active Active 12/02/2011


FOC Garbage Commercial CAREER CLOSET 1163 CHESS DR 2.08 0 -2.08 -0.48 Active Stopped 02/03/2004 05/15/2012

FOC Garbage Commercial 99 RANCH MARKET 1070 FOSTER CITY BLVD 69.28 0 -69.28 -16 Active Active 05/25/2004

FOC Garbage Commercial COMMERCE PARK FOSTER CITY 3553 PILGRIM DR 34.64 17.32 -17.32 -4 Active Active 07/27/1984

FOC Garbage Commercial PORT ROYAL MASTER ASSOCIATION2 PORT ROYAL AVE 0 8.66 8.66 2 Active Active 06/01/2009

FOC Garbage Commercial CUSTOM HOMES OF WOODSIDE 1161 CHESS DR A 1.39 0.69 -0.7 -0.16 Active Active 02/09/2011

FOC Garbage Commercial MARLIN COVE SHOPPING CENTER1098 FOSTER CITY BLVD 86.6 0 -86.6 -20 Active Stopped 12/20/2011 05/10/2012

FOC Garbage Commercial CERVEL NEUROTECH 1164 TRITON DR 200 0 1.39 1.39 0.32 New 05/02/2012

FOC Garbage Commercial ROIC CALIFORNIA LLC 1098 FOSTER CITY BLVD 0 86.6 86.6 20 New 05/11/2012

FOC Garbage Commercial ARISTON INC 1163 CHESS DR 0 0.43 0.43 0.1 New 05/16/2012

FOC Garbage Commercial CAREER CLOSET 1163 CHESS DR A 0 2.08 2.08 0.48 New 05/30/2012

FOC Garbage Commercial TRION WORLDS 551 FOSTER CITY BLVD M 0 17.32 17.32 4 New 05/30/2012


FOC Recycling Commercial BASIL CHA CHA 1457 BEACH PARK BLVD 4.33 8.66 4.33 1 Active Active 09/18/2008

FOC Recycling Commercial CAREER CLOSET 1163 CHESS DR 4.33 0 -4.33 -1 Active Stopped 02/03/2004 05/15/2012

FOC Recycling Commercial REAL MEX RESTAURANTS 979 EDGEWATER BLVD 51.96 77.94 25.98 6 Active Active 04/01/2009

FOC Recycling Commercial T W M INDUSTRIES 1140 TRITON DR 64.95 38.97 -25.98 -6 Active Active 07/27/1985

FOC Recycling Commercial SOLAR CITY 391 FOSTER CITY BLVD 175.28 131.98 -43.3 -10 Active Active 02/22/2011

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FOC Recycling Commercial MARLIN COVE SHOPPING CENTER1098 FOSTER CITY BLVD 51.96 0 -51.96 -12 Active Stopped 12/20/2011 05/10/2012

FOC Recycling Commercial CERVEL NEUROTECH 1164 TRITON DR 200 0 1.39 1.39 0.32 New 05/02/2012

FOC Recycling Commercial ROIC CALIFORNIA LLC 1098 FOSTER CITY BLVD 0 51.96 51.96 12 New 05/11/2012

FOC Recycling Commercial CAREER CLOSET 1163 CHESS DR A 0 4.33 4.33 1 New 05/30/2012

FOC Recycling Commercial TRION WORLDS 551 FOSTER CITY BLVD M 0 17.32 17.32 4 New 05/30/2012


HIL Garbage Commercial CRYSTAL SPRINGS UPLANDS SCHOOL400 UPLANDS DR 103.92 51.96 -51.96 -12 Active Active 06/09/1986

Garbage Total -12

HIL Organics Commercial CRYSTAL SPRINGS UPLANDS SCHOOL400 UPLANDS DR 51.96 103.92 51.96 12 Active Active 06/09/1986

Organics Total 12

HIL Recycling Commercial THE NUEVA SCHOOL 6565 SKYLINE BLVD 10.74 36.72 25.98 6 Active Active 04/01/1986

Recycling Total 6

MAT Garbage Apartment GUS PANOS 130 DARTMOUTH RD 0 8.31 8.31 1.92 Active Active 08/04/2006

MAT Garbage Apartment SC PROPERTIES 60 E 40TH AVE 0 6.24 6.24 1.44 Active Active 10/21/2008

MAT Garbage Apartment JOHN VIGLIZZO 2210 FLORES ST 0 6.24 6.24 1.44 Active Active 02/19/1988

MAT Garbage Apartment GRIFFIN M 337 HIGHLAND AVE 8.66 0 -8.66 -2 Active Stopped 01/01/1986 05/04/2012

MAT Garbage Apartment LARAMAR URBAN APARTMENT PRTNR600 MARINERS ISLAND BLVD 25.98 0 -25.98 -6 Active Stopped 07/22/2009 05/09/2012

MAT Garbage Apartment DENNIS O'LEARY 410 MONTE DIABLO AVE 8.66 0 -8.66 -2 Active Stopped 08/06/2001 05/03/2012

MAT Garbage Apartment MARK SCAFINE 1225 S B ST 8.66 0 -8.66 -2 Active Stopped 09/01/2007 04/30/2012

MAT Garbage Apartment PAUL'S AT THE VILLA 4000 S EL CAMINO REAL . 4.33 8.66 4.33 1 Active Active 04/01/2008

MAT Garbage Apartment SYLVIA LEE 417 STUDIO CIR 6.24 4.85 -1.39 -0.32 Active Active 03/01/2008

MAT Garbage Apartment MO MAR PROPERTIES 1 W SANTA INEZ AVE 16.63 12.47 -4.16 -0.96 Active Active 04/01/1986

MAT Garbage Apartment FIESTA GARDENS HOME ASSOC 1075 BERMUDA DR 0.69 2.08 1.39 0.32 Active Active 05/12/1986

MAT Garbage Apartment SILVA AND KEMP PROPERTIES 516 E HILLSDALE CT 2.77 0 -2.77 -0.64 Active Stopped 09/05/1988 05/21/2012

MAT Garbage Commercial HARMAN DIANE & STACEY INC 406 E 3RD AVE 38.97 0 -38.97 -9 Active Stopped 01/16/1985 04/30/2012

MAT Garbage Commercial MR PIZZAMAN 201 E 4TH AVE 8.31 2.77 -5.54 -1.28 Active Active 05/10/1999

MAT Garbage Commercial HAIR STUDIO BY ELIANA 319 E 4TH AVE 0.69 0 -0.69 -0.16 Active Stopped 02/12/2008 05/10/2012

MAT Garbage Apartment CASA CONTENTA CONDOMINIUM 212 EATON RD 18.71 8.31 -10.4 -2.4 Active Active 03/01/1986

MAT Garbage Commercial FRANKLIN TEMPLETON INVESTMENTS1 FRANKLIN PKWY 920 64.95 0 -64.95 -15 Active Stopped 02/01/2008 05/16/2012

MAT Garbage Commercial EXTENDED STAY HOTEL #9611 1830 GATEWAY DR 51.96 77.94 25.98 6 Active Active 03/01/2010

MAT Garbage Apartment FARANGIS OSTOWARI 337 GRAND BLVD 2.77 11.08 8.31 1.92 Active Active 06/18/2007

MAT Garbage Apartment THE LESLEY FOUNDATION 700 LAUREL AVE 148.95 89.37 -59.58 -13.76 Active Active 03/01/1986

MAT Garbage Commercial SAN MATEO BAGELS CAFE 29 LAURIE MEADOWS DR 0.69 0 -0.69 -0.16 Active Stopped 07/01/2007 05/28/2012

MAT Garbage Apartment BURA MACARIO JR 22 N CLAREMONT ST 8.66 4.33 -4.33 -1 Active Active 10/11/1988

MAT Garbage Commercial DR BROWN & HARRIS 117 N SAN MATEO DR 4.33 0 -4.33 -1 Active Stopped 03/01/1986 05/29/2012

MAT Garbage Commercial FOOD PAK CORP 2300 PALM AVE 0.69 0 -0.69 -0.16 Active Stopped 10/01/1974 04/30/2012

MAT Garbage Commercial OLD TOWN SUSHI 100 S B ST 8.31 12.47 4.16 0.96 Active Active 11/16/2009

MAT Garbage Commercial CHA CHA CHA CUBA 112 S B ST 6.24 4.16 -2.08 -0.48 Active Active 05/31/2010

MAT Garbage Apartment WYMAN LEE 1323 S B ST 4.16 0 -4.16 -0.96 Active Active 11/17/2008

MAT Garbage Commercial F & F PLUMBING 2030 S DELAWARE ST 8.66 0 -8.66 -2 Active Stopped 06/01/1998 05/14/2012

MAT Garbage Commercial SAN MATEO INVESTMENT 4100 S EL CAMINO REAL 4.33 0 -4.33 -1 Active Stopped 03/01/1986 05/01/2012

MAT Garbage Commercial CROSSROADS 1825 S GRANT ST 155.88 173.2 17.32 4 Active Active 11/01/1984

MAT Garbage Apartment HOMEOWNERS ASSOC 606 S HUMBOLDT ST 8.66 4.33 -4.33 -1 Active Active 11/08/1979

MAT Garbage Commercial NEXCYCLE 500 S NORFOLK ST 4.33 0 -4.33 -1 Active Stopped 02/02/2009 04/30/2012

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MAT Garbage Commercial PIZZA BYTES INC 1852 S NORFOLK ST 12.99 0 -12.99 -3 Active Stopped 09/30/1996 04/30/2012

MAT Garbage Commercial PROMETHEUS REAL ESTATE MS #21900 S NORFOLK ST 138.56 103.92 -34.64 -8 Active Active 06/26/1984

MAT Garbage Commercial BEST WESTERN LOS PRADOS INN2940 S NORFOLK ST 25.98 38.97 12.99 3 Active Active 04/02/1984

MAT Garbage Commercial ERIC PENNINGTON'S BODY & PAINT49 S RAILROAD AVE 12.99 8.66 -4.33 -1 Active Active 06/26/1990

MAT Garbage Apartment MAUREEN WILLIAMS 226 1ST AVE 1 0.69 0 -0.69 -0.16 Active Stopped 02/12/2010 04/30/2012

MAT Garbage Commercial CHEESE PLEASE 211 12TH AVE 17.32 8.66 -8.66 -2 Active Active 10/02/1998

MAT Garbage Commercial ALHANA FOODS 25 37TH AVE 2.77 0 -2.77 -0.64 Active Stopped 04/20/2005 05/16/2012

MAT Garbage Commercial TAT WONG KUNG FU 25 43RD AVE B 2.08 1.39 -0.69 -0.16 Active Active 12/05/2010

MAT Garbage Commercial AVOS 273 S RAILROAD AVE A 2.08 0 -2.08 -0.48 Active Stopped 01/25/2011 05/29/2012

MAT Garbage Commercial SAMARITAN HOUSE 1515 S CLAREMONT ST 25.98 64.95 38.97 9 Active Active 01/01/2011

MAT Garbage Commercial FAT BOX 307 2ND AVE 0.69 0 -0.69 -0.16 Active Stopped 04/29/2011 05/18/2012

MAT Garbage Commercial HEART OF SAN MATEO, LLC 44 E 3RD AVE 4.33 21.65 17.32 4 Active Active 05/18/2011

MAT Garbage Commercial SIAM THAI RESTAURANT 204 E 2ND AVE A 2.08 0 -2.08 -0.48 Active Stopped 06/17/2011 05/17/2012

MAT Garbage Commercial GATEWAY CROSSING INC 668 E 3RD AVE 51.96 64.95 12.99 3 Active Active 06/27/2011

MAT Garbage Apartment VAN METER, TARA 226 1ST AVE 4 0.69 0 -0.69 -0.16 Active Stopped 07/20/2011 04/30/2012

MAT Garbage Commercial KINGSTON CAFE 19 N KINGSTON ST 0 1.39 1.39 0.32 Active Active 09/07/2011

MAT Garbage Apartment SLEEP HAVEN BEDDING 2690 S EL CAMINO REAL 4.33 0.69 -3.64 -0.84 Active Active 09/06/2011

MAT Garbage Commercial NGYUEN, LILI 333 E 4TH AVE 0 1.39 1.39 0.32 Active Active 09/29/2011

MAT Garbage Commercial ENTERPRISE 4001 30 S EL CAMINO REAL 4.33 0 -4.33 -1 Active Stopped 10/13/2011 05/16/2012

MAT Garbage Commercial H R BLOCK 17 S B ST 1.39 0 -1.39 -0.32 Active Stopped 01/10/2011 05/09/2012

MAT Garbage Commercial H R BLOCK 21 41ST AVE 1.39 0 -1.39 -0.32 Active Stopped 01/03/2012 05/09/2012

MAT Garbage Commercial SUBWAY #15994 1308 W HILLSDALE BLVD 4.33 8.66 4.33 1 Active Active 03/21/2012

MAT Garbage Commercial PATELCO CREDIT UNION 51 BOVET RD 0 2.08 2.08 0.48 Active 05/01/2012

MAT Garbage Commercial TRIBUZI FOR HAIR 25 W 25TH AVE 5 0 2.08 2.08 0.48 New 05/04/2012

MAT Garbage Commercial SAN MATEO INVESTMENT 14 41ST AVE 0 0.69 0.69 0.16 New 05/08/2012

MAT Garbage Commercial CHIC TAEKWOA DO 2300 PALM AVE 0 0.43 0.43 0.1 New 05/07/2012

MAT Garbage Apartment EDNANMARY PROPERTIES LLC 1225 S B ST 0 8.66 8.66 2 Active 05/01/2012

MAT Garbage Commercial ARIAS, JOEL 201 N SAN MATEO DR 0 2.08 2.08 0.48 New 05/03/2012

MAT Garbage Commercial KINGS LIQUOR 8 41ST AVE 0 0.69 0.69 0.16 New 05/03/2012

MAT Garbage Commercial ROUND TABLE PIZZA 1852 S NORFOLK ST 0 12.99 12.99 3 New 05/07/2012

MAT Garbage Apartment PERI SEARCY 337 HIGHLAND AVE 0 8.66 8.66 2 New 05/08/2012

MAT Garbage Commercial FRANKLIN TEMPLETON INVESTMENTS1 FRANKLIN PKWY 920 0 64.95 64.95 15 New 05/17/2012

MAT Garbage Commercial RUDOLPH, GARY 165 N AMPHLETT BLVD 0 1.39 1.39 0.32 New 05/16/2012

MAT Garbage Apartment C/O LARMAR 600 MARINERS ISLAND BLVD 0 25.98 25.98 6 New 05/11/2012

MAT Garbage Commercial MEYER PLUMBING SUPPLIES 2030 S DELAWARE ST 0 25.98 25.98 6 New 05/15/2012

MAT Garbage Commercial LOWE ENTERPRISES / BPCC 3000 CLEARVIEW WAY 0 8.66 8.66 2 New 05/29/2012

MAT Garbage Commercial TAM CONSTRUCTION INC 30 S EL CAMINO REAL 0 4.33 4.33 1 New 05/23/2012

MAT Garbage Commercial PIXCO SLCK 307 2ND AVE 0 0.69 0.69 0.16 New 05/25/2012

MAT Garbage Commercial CARDENAS, JANINA 319 E 4TH AVE 0 0.69 0.69 0.16 New 05/24/2012

MAT Garbage Commercial KITCHO JAPANESE RESTAURANT 204 E 2ND AVE A 0 6.24 6.24 1.44 New 05/18/2012

MAT Garbage Commercial SAN MATEO COLLISION 1317 S RAILROAD AVE 0 0.69 0.69 0.16 New 05/23/2012

MAT Garbage Apartment ROBIN ZELDA PROPERTIES 516 E HILLSDALE CT 0 2.77 2.77 0.64 New 05/28/2012

MAT Garbage Commercial THE SANDWHICH SPOT 65 E 4TH AVE 0 0.69 0.69 0.16 New 05/24/2012

MAT Garbage Commercial SUNRISE DAY SPA 160 W 25TH AVE 0 0.69 0.69 0.16 New 05/30/2012

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MAT Garbage Commercial SELVITELLA PROPERTIES, LLC 117 N SAN MATEO DR 0 4.33 4.33 1 New 05/30/2012

MAT Garbage Commercial LINCOLN WASTE SOLUTIONS 406 E 3RD AVE 0 38.97 38.97 9 Active 05/01/2012

Garbage Total 8.7

MAT Organics Commercial INTERLAND LLC 411 BOREL AVE 0 25.98 25.98 6 Active Active 02/07/1986

MAT Organics Commercial MR PIZZAMAN 201 E 4TH AVE 0 5.54 5.54 1.28 Active Active 05/10/1999

MAT Organics Commercial LEGAL AID SOCIETY OF SM 521 E 5TH AVE 0 1.39 1.39 0.32 Active Active 07/28/2000

MAT Organics Commercial FRANKLIN TEMPLETON INVESTMENTS1 FRANKLIN PKWY 910 0 21.65 21.65 5 Active Active 02/01/2008

MAT Organics Apartment RC PROPERTIES 2011 PARROTT DR 0 0.69 0.69 0.16 Active Active 03/01/1986

MAT Organics Commercial THE FISH MARKET 1855 S NORFOLK ST 90.93 77.94 -12.99 -3 Active Active 09/16/1983

MAT Organics Commercial PROMETHEUS REAL ESTATE MS #21900 S NORFOLK ST 0 34.64 34.64 8 Active Active 06/26/1984


MAT Recycling Apartment GRIFFIN M 337 HIGHLAND AVE 4.16 0 -4.16 -0.96 Active Stopped 01/01/1986 05/04/2012

MAT Recycling Apartment LARAMAR URBAN APARTMENT PRTNR600 MARINERS ISLAND BLVD 6.24 0 -6.24 -1.44 Active Stopped 07/22/2009 05/09/2012

MAT Recycling Apartment DENNIS O'LEARY 410 MONTE DIABLO AVE 4.16 0 -4.16 -0.96 Active Stopped 08/06/2001 05/03/2012

MAT Recycling Apartment FRANK LOUIE 640 N EL CAMINO REAL 6.24 8.31 2.07 0.48 Active Active 08/12/1987

MAT Recycling Apartment MARK SCAFINE 1225 S B ST 8.31 0 -8.31 -1.92 Active Stopped 09/01/2007 04/30/2012

MAT Recycling Apartment FOUNTAIN GLEN AT THE VILLA 4000 S EL CAMINO REAL 60.62 121.24 60.62 14 Active Active 07/25/2007

MAT Recycling Commercial TRAGS MARKET INC 303 BALDWIN AVE 8.66 0 -8.66 -2 Active Active 09/13/1977

MAT Recycling Commercial BALDWIN PROP 310 BALDWIN AVE 194.85 155.88 -38.97 -9 Active Active 11/01/1997

MAT Recycling Commercial WINDY CITY PIZZA 35 BOVET RD 6.24 19.23 12.99 3 Active Active 03/10/1995

MAT Recycling Apartment SCHNEIDER'S PROPERTIES, LP 157 CRYSTAL SPRINGS RD 2.08 4.16 2.08 0.48 Active Active 09/16/2005

MAT Recycling Apartment SILVA AND KEMP PROPERTIES 516 E HILLSDALE CT 2.08 0 -2.08 -0.48 Active Stopped 09/05/1988 05/21/2012

MAT Recycling Commercial HARMAN DIANE & STACEY INC 406 E 3RD AVE 103.92 0 -103.92 -24 Active Stopped 01/16/1985 04/30/2012

MAT Recycling Commercial HAIR STUDIO BY ELIANA 319 E 4TH AVE 4.16 0 -4.16 -0.96 Active Stopped 02/12/2008 05/10/2012

MAT Recycling Commercial FRANKLIN TEMPLETON INVESTMENTS1 FRANKLIN PKWY 920 64.95 0 -64.95 -15 Active Stopped 02/01/2008 05/16/2012

MAT Recycling Commercial SAN MATEO BAGELS CAFE 29 LAURIE MEADOWS DR 4.33 0 -4.33 -1 Active Stopped 07/01/2007 05/28/2012

MAT Recycling Apartment COLONIAL GARDEN APTS 467 N IDAHO ST 34.64 33.25 -1.39 -0.32 Active Active 11/16/1982

MAT Recycling Commercial DR BROWN & HARRIS 117 N SAN MATEO DR 8.66 0 -8.66 -2 Active Stopped 03/01/1986 05/29/2012

MAT Recycling Commercial SNYDER BRUCE DR 130 N SAN MATEO DR 8.31 4.16 -4.15 -0.96 Active Active 09/21/1992

MAT Recycling Commercial WOODLAKE CLEANERS 516 PENINSULA AVE 2.08 0.69 -1.39 -0.32 Active Active 09/01/2008

MAT Recycling Commercial CRYSTAL SPRINGS PRODUCE 770 POLHEMUS RD 25.98 38.97 12.99 3 Active Active 08/17/2009

MAT Recycling Commercial SAN MATEO MARRIOTT 1770 S AMPHLETT BLVD 53.35 17.32 -36.03 -8.32 Active Active 10/01/1998

MAT Recycling Commercial THE PAUL GREEN SCHOOL OF ROCK711 S B ST 0 0.69 0.69 0.16 Active Active 03/19/2008

MAT Recycling Commercial F & F PLUMBING 2030 S DELAWARE ST 25.98 0 -25.98 -6 Active Stopped 06/01/1998 05/14/2012

MAT Recycling Commercial MAGIC THEATER 2206 S EL CAMINO REAL 0.69 1.39 0.7 0.16 Active Active 09/01/2000

MAT Recycling Commercial OCEANIC RESTAURANT 2507 S EL CAMINO REAL 17.32 25.63 8.31 1.92 Active Active 01/01/1986

MAT Recycling Commercial BURGER KING 2817 S EL CAMINO REAL 8.31 6.24 -2.07 -0.48 Active Active 05/01/1986

MAT Recycling Commercial SAN MATEO INVESTMENT 4100 S EL CAMINO REAL 1.39 0 -1.39 -0.32 Active Stopped 03/01/1986 05/01/2012

MAT Recycling Commercial PIZZA BYTES INC 1852 S NORFOLK ST 8.66 0 -8.66 -2 Active Stopped 09/30/1996 04/30/2012

MAT Recycling Commercial IMPORT AUTO REPAIRS 105 17TH AVE 2.08 8.66 6.58 1.52 Active Active 03/01/1986

MAT Recycling Commercial DOWNTOWN PROPERTIES V,LLC 181 2ND AVE 24.94 43.65 18.71 4.32 Active Active 07/28/2008

MAT Recycling Commercial ALHANA FOODS 25 37TH AVE 14.55 0 -14.55 -3.36 Active Stopped 04/20/2005 05/16/2012

MAT Recycling Commercial AVOS 273 S RAILROAD AVE A 1.39 0 -1.39 -0.32 Active Stopped 01/25/2011 05/29/2012

MAT Recycling Commercial SIAM THAI RESTAURANT 204 E 2ND AVE A 2.08 0 -2.08 -0.48 Active Stopped 06/17/2011 05/17/2012

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MAT Recycling Commercial NGYUEN, LILI 333 E 4TH AVE 0 1.39 1.39 0.32 Active Active 09/29/2011

MAT Recycling Commercial ENTERPRISE 4001 30 S EL CAMINO REAL 6.24 0 -6.24 -1.44 Active Stopped 10/13/2011 05/16/2012

MAT Recycling Commercial H R BLOCK 17 S B ST 0.69 0 -0.69 -0.16 Active Stopped 01/10/2011 05/09/2012

MAT Recycling Commercial H R BLOCK 21 41ST AVE 2.08 0 -2.08 -0.48 Active Stopped 01/03/2012 05/09/2012

MAT Recycling Commercial PATELCO CREDIT UNION 51 BOVET RD 0 4.16 4.16 0.96 Active 05/01/2012

MAT Recycling Commercial SAN MATEO INVESTMENT 14 41ST AVE 0 0.69 0.69 0.16 New 05/08/2012

MAT Recycling Apartment EDNANMARY PROPERTIES LLC 1225 S B ST 0 8.31 8.31 1.92 Active 05/01/2012

MAT Recycling Commercial ARIAS, JOEL 201 N SAN MATEO DR 0 1.39 1.39 0.32 New 05/03/2012

MAT Recycling Commercial KINGS LIQUOR 8 41ST AVE 0 12.99 12.99 3 New 05/03/2012

MAT Recycling Commercial ROUND TABLE PIZZA 1852 S NORFOLK ST 0 8.66 8.66 2 New 05/07/2012

MAT Recycling Apartment PERI SEARCY 337 HIGHLAND AVE 0 4.16 4.16 0.96 New 05/08/2012

MAT Recycling Commercial FRANKLIN TEMPLETON INVESTMENTS1 FRANKLIN PKWY 920 0 64.95 64.95 15 New 05/17/2012

MAT Recycling Commercial RUDOLPH, GARY 165 N AMPHLETT BLVD 0 2.08 2.08 0.48 New 05/16/2012

MAT Recycling Apartment C/O LARMAR 600 MARINERS ISLAND BLVD 0 6.24 6.24 1.44 New 05/11/2012

MAT Recycling Commercial MEYER PLUMBING SUPPLIES 2030 S DELAWARE ST 0 25.98 25.98 6 New 05/15/2012

MAT Recycling Commercial LOWE ENTERPRISES / BPCC 3000 CLEARVIEW WAY 0 17.32 17.32 4 New 05/29/2012

MAT Recycling Commercial TAM CONSTRUCTION INC 30 S EL CAMINO REAL 0 6.24 6.24 1.44 New 05/23/2012

MAT Recycling Commercial CARDENAS, JANINA 319 E 4TH AVE 0 4.16 4.16 0.96 New 05/24/2012

MAT Recycling Commercial KITCHO JAPANESE RESTAURANT 204 E 2ND AVE A 0 6.24 6.24 1.44 New 05/18/2012

MAT Recycling Apartment ROBIN ZELDA PROPERTIES 516 E HILLSDALE CT 0 2.08 2.08 0.48 New 05/28/2012

MAT Recycling Commercial SUNRISE DAY SPA 160 W 25TH AVE 0 0.69 0.69 0.16 New 05/30/2012

MAT Recycling Commercial SELVITELLA PROPERTIES, LLC 117 N SAN MATEO DR 0 8.66 8.66 2 New 05/30/2012

MAT Recycling Commercial LINCOLN WASTE SOLUTIONS 406 E 3RD AVE 0 103.92 103.92 24 Active 05/01/2012


MPK Garbage Apartment SPIEKER COMPANIES 445 ENCINAL AVE 8.66 0 -8.66 -2 Active Active 09/05/2007

MPK Garbage Apartment 465 GARWOOD APT 465 GARWOOD WAY 8.66 0 -8.66 -2 Active Active 06/22/1984

MPK Garbage Apartment BRE PROPERTIES #1116 350 SHARON PARK DR 311.76 259.8 -51.96 -12 Active Active 10/31/1984

MPK Garbage Apartment CLASSIC PROPERTY SERVICES 560 UNIVERSITY DR 4.85 0 -4.85 -1.12 Active Stopped 03/28/2006 05/29/2012

MPK Garbage Commercial NATIONAL RAILROAD PASSENGER4000 CAMPBELL AVE 25.98 0 -25.98 -6 Active Stopped 07/22/2002 05/22/2012

MPK Garbage Commercial COMCAST CABLE 1205 CHRYSLER DR 34.64 0 -34.64 -8 Active Stopped 12/14/2005 04/30/2012

MPK Garbage Commercial HARRIS INVESTMENTS 607 MENLO AVE 1.39 0 -1.39 -0.32 Active Stopped 03/08/2010 04/30/2012

MPK Garbage Commercial ROBINSON & CO. 671 OAK GROVE AVE 4.16 2.77 -1.39 -0.32 Active Active 03/01/1986

MPK Garbage Apartment MIKE CARTER 228 OCONNOR ST 248 2.77 0 -2.77 -0.64 Active Stopped 03/01/1986 05/17/2012

MPK Garbage Apartment SAMUEL L WRIGHT JR 775 ROBLE AVE 2.77 0 -2.77 -0.64 Active Stopped 03/01/1998 05/17/2012

MPK Garbage Commercial LE CIRQUE 789 SANTA CRUZ AVE 4.33 0 -4.33 -1 Active Stopped 01/06/2005 05/24/2012

MPK Garbage Commercial CHAMP FITNESS 101 40 SCOTT DR 12.99 0 -12.99 -3 Active Stopped 11/11/1986 05/10/2012

MPK Garbage Apartment DULING GRAIG 327 WAVERLEY ST 0 2.08 2.08 0.48 Active Active 12/28/2000

MPK Garbage Apartment WILLOW WEST HOMEOWNERS 21 WILLOW RD 40.88 6.24 -34.64 -8 Active Active 03/01/1986

MPK Garbage Apartment RUDOLF TEH 1169 WILLOW RD 8.66 0 -8.66 -2 Active Stopped 05/28/2010 04/30/2012

MPK Garbage Apartment SHARON OAKS ASSOCIATION 2416 SHARON OAKS DR 0.69 1.39 0.7 0.16 Active Active 01/01/2011

MPK Garbage Commercial NOVO CONSTRUCTION 3565 HAVEN AVE 12.99 0 -12.99 -3 Active Stopped 11/03/2011 05/03/2012

MPK Garbage Commercial FACEBOOK INC 1601 WILLOW RD 18 212.17 125.57 -86.6 -20 Active Active 12/12/2011

MPK Garbage Commercial H R BLOCK 510 SANTA CRUZ AVE . 4.33 0 -4.33 -1 Active Stopped 01/05/2012 05/10/2012

MPK Garbage Commercial COMCAST CABLE 3760 HAVEN AVE 0 34.64 34.64 8 New 05/03/2012

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MPK Garbage Commercial LOW, KWOK C. 1906 EL CAMINO REAL 0 12.99 12.99 3 New 05/08/2012

MPK Garbage Commercial LIVE OAK PROPERTY INVESTMENT650 LIVE OAK AVE 0 2.08 2.08 0.48 New 05/17/2012

MPK Garbage Commercial MENLO PARK COMM CHURCH OF GOD1410 CHILCO ST 0 0.69 0.69 0.16 New 05/24/2012

MPK Garbage Commercial CARRIE, ALTHEDA K 1971 EUCLID AVE 196 0 2.08 2.08 0.48 Active 05/01/2012

MPK Garbage Apartment NOONEN,LARRY 560 UNIVERSITY DR 0 4.16 4.16 0.96 New 05/29/2012

MPK Garbage Commercial GRAPH DIVE 1295 EL CAMINO REAL B 0 0.69 0.69 0.16 New 05/28/2012

MPK Garbage Apartment CHAEN,JIE 228 OCONNOR ST 248 0 2.77 2.77 0.64 New 05/29/2012


MPK Organics Apartment DULING GRAIG 327 WAVERLEY ST 0 2.08 2.08 0.48 Active Active 12/28/2000

MPK Organics Commercial FACEBOOK INC 1601 WILLOW RD 18 324.75 238.15 -86.6 -20 Active Active 12/12/2011


MPK Recycling Apartment BRE PROPERTIES #1116 350 SHARON PARK DR 194.85 246.81 51.96 12 Active Active 10/31/1984

MPK Recycling Apartment CLASSIC PROPERTY SERVICES 560 UNIVERSITY DR 4.16 0 -4.16 -0.96 Active Stopped 03/28/2006 05/29/2012

MPK Recycling Commercial NATIONAL RAILROAD PASSENGER4000 CAMPBELL AVE 25.98 0 -25.98 -6 Active Stopped 07/22/2002 05/22/2012

MPK Recycling Commercial COMCAST CABLE 1205 CHRYSLER DR 17.32 0 -17.32 -4 Active Stopped 12/14/2005 04/30/2012

MPK Recycling Apartment PAUL COLETTI 610 CREEK DR 620 8.31 0 -8.31 -1.92 Active Stopped 09/22/2004 05/03/2012

MPK Recycling Commercial KOPFMANN CONSTRUCTION 3523 HAVEN AVE G 4.16 0 -4.16 -0.96 Active Stopped 04/17/2000 05/08/2012

MPK Recycling Apartment DAWN POSTON 40 KENT PL 0 4.16 4.16 0.96 Active Active 03/01/1986

MPK Recycling Commercial LA HACIENDA MARKET 1933 MENALTO AVE . 2.77 0 -2.77 -0.64 Active Active 04/24/2000

MPK Recycling Commercial HARRIS INVESTMENTS 607 MENLO AVE 2.77 0 -2.77 -0.64 Active Stopped 03/08/2010 04/30/2012

MPK Recycling Apartment MIKE CARTER 228 OCONNOR ST 248 4.16 0 -4.16 -0.96 Active Stopped 03/01/1986 05/17/2012

MPK Recycling Commercial LE CIRQUE 789 SANTA CRUZ AVE 4.33 0 -4.33 -1 Active Stopped 01/06/2005 05/24/2012

MPK Recycling Commercial CHAMP FITNESS 101 40 SCOTT DR 8.66 0 -8.66 -2 Active Stopped 11/11/1986 05/10/2012

MPK Recycling Apartment DULING GRAIG 327 WAVERLEY ST 4.16 7.62 3.46 0.8 Active Active 12/28/2000

MPK Recycling Apartment WILLOW WEST HOMEOWNERS 21 WILLOW RD 33.25 37.41 4.16 0.96 Active Active 03/01/1986

MPK Recycling Apartment RUDOLF TEH 1169 WILLOW RD 2.77 0 -2.77 -0.64 Active Stopped 05/28/2010 04/30/2012

MPK Recycling Commercial NOVO CONSTRUCTION 3565 HAVEN AVE 8.66 0 -8.66 -2 Active Stopped 11/03/2011 05/03/2012

MPK Recycling Commercial COMCAST CABLE 3760 HAVEN AVE 0 34.64 34.64 8 New 05/03/2012

MPK Recycling Commercial LOW, KWOK C. 1906 EL CAMINO REAL 0 8.66 8.66 2 New 05/08/2012

MPK Recycling Commercial LIVE OAK PROPERTY INVESTMENT650 LIVE OAK AVE 0 4.16 4.16 0.96 New 05/17/2012

MPK Recycling Commercial MENLO PARK COMM CHURCH OF GOD1410 CHILCO ST 0 0.69 0.69 0.16 New 05/24/2012

MPK Recycling Commercial CARRIE, ALTHEDA K 1971 EUCLID AVE 196 0 1.39 1.39 0.32 Active 05/01/2012

MPK Recycling Apartment NOONEN,LARRY 560 UNIVERSITY DR 0 6.24 6.24 1.44 New 05/29/2012

MPK Recycling Commercial GRAPH DIVE 1295 EL CAMINO REAL B 0 0.69 0.69 0.16 New 05/28/2012

MPK Recycling Apartment CHAEN,JIE 228 OCONNOR ST 248 0 4.16 4.16 0.96 New 05/29/2012

Recycling Total 7

NFO Garbage Commercial NATERA INC. 2686 MIDDLEFIELD RD D 17.32 0 -17.32 -4 Active Stopped 03/11/2008 05/25/2012

NFO Garbage Commercial COUNTY OF SM AGING ADULT SVCS2710 MIDDLEFIELD RD . 25.98 0 -25.98 -6 Active Stopped 12/06/1996 05/04/2012

NFO Garbage Commercial ALL STAR KARATE CENTER 816 WARRINGTON AVE 1.39 0 -1.39 -0.32 Active Stopped 07/25/2007 05/30/2012

NFO Garbage Commercial IHSD 419 6TH AVE 8.31 0 -8.31 -1.92 Active Active 09/01/1999

NFO Garbage Commercial CALIFORNIA KITCHEN & FURNITURE425 STANFORD AVE 1.39 4.33 2.94 0.68 Active Active 01/27/2011

NFO Garbage Commercial ISELA MORENO 3227 MIDDLEFIELD RD 0 8.66 8.66 2 Active Active 01/01/2011

NFO Garbage Commercial AUGIES LATIN KITCHEN SVC LLC 2655 MIDDLEFIELD RD 4.33 0 -4.33 -1 Active Stopped 10/13/2011 05/10/2012

NFO Garbage Commercial TOMRA PACIFIC INC 46 E 5TH AVE 8.66 12.99 4.33 1 Active Active 11/01/2011

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NFO Garbage Commercial LAURA & MIKE REBHOLTZ 751 WARRINGTON AVE 1.39 0 -1.39 -0.32 Active Stopped 12/29/2011 05/03/2012

NFO Garbage Commercial UNITED PALETERIA Y NEVERIA 3196 MIDDLEFIELD RD 2.08 4.33 2.25 0.52 New Active 04/16/2012

NFO Garbage Commercial WHITE, SAMUEL 2853 EL CAMINO REAL A 0 0.43 0.43 0.1 New 05/08/2012

NFO Garbage Commercial JESUS,MURELO 3360 MIDDLEFIELD RD 0 4.33 4.33 1 New 05/14/2012

NFO Garbage Commercial CREATIVE SHOWER DOORS 701 HURLINGAME AVE 0 12.82 12.82 2.96 New 05/24/2012

Garbage Total -5.3

NFO Organics Commercial IHSD 419 6TH AVE 4.16 0 -4.16 -0.96 Active Active 09/01/1999


NFO Recycling Commercial MAN PROPERTY 2881 EL CAMINO REAL C 4.16 0.69 -3.47 -0.8 Active Active 07/08/1988

NFO Recycling Commercial NATERA INC. 2686 MIDDLEFIELD RD D 8.66 0 -8.66 -2 Active Stopped 03/11/2008 05/25/2012

NFO Recycling Commercial COUNTY OF SM AGING ADULT SVCS2710 MIDDLEFIELD RD . 25.98 0 -25.98 -6 Active Stopped 12/06/1996 05/04/2012

NFO Recycling Commercial ALL STAR KARATE CENTER 816 WARRINGTON AVE 2.08 0 -2.08 -0.48 Active Stopped 07/25/2007 05/30/2012

NFO Recycling Commercial CHAVEZ SUPERMARKET 46 5TH AVE 12.99 25.98 12.99 3 Active Active 07/05/2006

NFO Recycling Commercial IHSD 419 6TH AVE 2.08 0 -2.08 -0.48 Active Active 09/01/1999

NFO Recycling Apartment DEMIGUEL & JOHNSON LLC 2944 CALVIN AVE 4.16 0 -4.16 -0.96 Active Active 12/01/2000

NFO Recycling Commercial ISELA MORENO 3227 MIDDLEFIELD RD 6.24 12.47 6.23 1.44 Active Active 01/01/2011

NFO Recycling Commercial AUGIES LATIN KITCHEN SVC LLC 2655 MIDDLEFIELD RD 4.33 0 -4.33 -1 Active Stopped 10/13/2011 05/10/2012

NFO Recycling Commercial LAURA & MIKE REBHOLTZ 751 WARRINGTON AVE 2.08 0 -2.08 -0.48 Active Stopped 12/29/2011 05/03/2012

NFO Recycling Commercial WHITE, SAMUEL 2853 EL CAMINO REAL A 0 1.39 1.39 0.32 New 05/08/2012

NFO Recycling Commercial JESUS,MURELO 3360 MIDDLEFIELD RD 0 2.08 2.08 0.48 New 05/14/2012

NFO Recycling Commercial CREATIVE SHOWER DOORS 701 HURLINGAME AVE 0 6.24 6.24 1.44 New 05/24/2012


RWC Garbage Apartment THE REDWOODS C/O N PARHAM 1333 EBENER ST 133 2.08 0 -2.08 -0.48 Active Stopped 11/15/1995 05/07/2012

RWC Garbage Apartment AUREA BAZAN 129 LINCOLN AVE 16.63 0 -16.63 -3.84 Active Stopped 01/01/1996 05/03/2012

RWC Garbage Apartment MRS L. & MICHAEL MASSONI 1515 REGENT ST 5.54 0 -5.54 -1.28 Active Stopped 01/01/1996 05/24/2012

RWC Garbage Apartment EDELMIRA SOLIS PEREDA 3558 ROLISON RD 8.66 4.33 -4.33 -1 Active Active 01/01/1996

RWC Garbage Apartment SANDRA&ANGELO BERTOLLI 203 ALDEN ST 215 8.66 4.33 -4.33 -1 Active Active 07/01/1999

RWC Garbage Commercial CASTLE GOLF & GAMES 320 BLOMQUIST ST 69.28 0 -69.28 -16 Active Active 04/01/1982

RWC Garbage Commercial NATIONAL GLASS #289 110 CHESTNUT ST 12.99 0 -12.99 -3 Active Stopped 10/01/1994 04/30/2012

RWC Garbage Apartment PENINSULA LANDING 401 CORK HARBOUR CIR 181.86 164.54 -17.32 -4 Active Active 03/28/1988

RWC Garbage Commercial PACIFIC BELL 2001 E BAYSHORE RD 34.64 25.98 -8.66 -2 Active Active 06/01/2000

RWC Garbage Commercial MUFFLER EXPRESS 1414 EL CAMINO REAL 4.33 2.08 -2.25 -0.52 Active Active 10/21/2009

RWC Garbage Commercial PAT TRAN 1428 EL CAMINO REAL 1.39 2.08 0.69 0.16 Active Active 12/25/2006

RWC Garbage Commercial KWOK C. LOW 1906 EL CAMINO REAL 12.99 0 -12.99 -3 Active Stopped 05/09/1994 04/30/2012

RWC Garbage Commercial SPECTREX CORP 3580 HAVEN AVE . 2.77 0 -2.77 -0.64 Active Stopped 12/08/1988 05/02/2012

RWC Garbage Commercial CLEANSLEEVES.COM 500 HOWLAND ST 1-3 12.99 25.98 12.99 3 Active Active 07/19/2006

RWC Garbage Commercial AT&T SERVICES, INC. 1121 JEFFERSON AVE 0 12.99 12.99 3 Active Active 01/01/1996

RWC Garbage Commercial SBC SERVICES 1200 MARSH RD 25.98 51.96 25.98 6 Active Active 02/11/2004

RWC Garbage Commercial R SPENCER ALLEN 648 N EL CAMINO REAL 8.66 0 -8.66 -2 Active Stopped 09/22/2003 05/17/2012

RWC Garbage Commercial LOW PRICE AUTO GLASS 1151 ODDSTAD DR 4.33 0 -4.33 -1 Active Stopped 05/22/2003 05/18/2012

RWC Garbage Commercial RALPH ALPERIN, M.D. 1181 ODDSTAD DR 0.69 0 -0.69 -0.16 Active Stopped 01/01/1996 04/30/2012

RWC Garbage Commercial CODEXIS INC 200 PENOBSCOT DR 51.96 43.3 -8.66 -2 Active Active 03/23/2005

RWC Garbage Commercial POTTER DRILLING, INC 599 SEAPORT BLVD 4.33 0 -4.33 -1 Active Active 09/22/2009

RWC Garbage Commercial SPINNAKER SAILING 451 SEAPORT CT 0.69 0 -0.69 -0.16 Active Stopped 01/01/1996 05/28/2012

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RWC Garbage Commercial FASHION TUNE 336 WALNUT ST 0 2.08 2.08 0.48 Active Active 09/01/1995

RWC Garbage Commercial PENINSULA MOTORSPORTS 890 2ND AVE 4.33 0 -4.33 -1 Active Stopped 04/01/2010 05/15/2012

RWC Garbage Commercial JACK IN THE BOX #525 1205 BROADWAY ST 25.98 34.64 8.66 2 Active Active 08/05/2010

RWC Garbage Commercial JACK IN THE BOX #469 986 WOODSIDE RD 25.98 34.64 8.66 2 Active Active 08/05/2010

RWC Garbage Apartment CANADA VISTA 1 OLIVE CT 103.92 77.94 -25.98 -6 Active Active 09/07/2010

RWC Garbage Apartment THE MANOR ASSOCIATION 503 MENDOCINO WAY 0.69 0 -0.69 -0.16 Active Stopped 01/01/2011 05/23/2012

RWC Garbage Commercial KIM HOI NGUYEN 1406 EL CAMINO REAL FRT 0.43 0 -0.43 -0.1 Active Stopped 01/25/2011 05/03/2012

RWC Garbage Apartment PHILIP DURDEN 1567 REGENT ST 6.24 0 -6.24 -1.44 Active Stopped 01/28/2011 05/11/2012

RWC Garbage Commercial BABIES R US #6517 220 WALNUT ST 0 25.98 25.98 6 Active Active 03/01/2011

RWC Garbage Apartment OTT, RICHARD & RENE OTT 402 REDWOOD AVE 17.32 38.97 21.65 5 Active Active 01/09/2012

RWC Garbage Apartment OTT, RICHARD & RENE OTT 422 REDWOOD AVE 25.98 0 -25.98 -6 Active Stopped 01/06/2012 05/18/2012

RWC Garbage Commercial A D&W MARKET 3115 JEFFERSON AVE 0.43 0.69 0.26 0.06 Active Active 01/25/2012

RWC Garbage Commercial CORNELL, JOHN 1526 STAFFORD ST 1.39 0 -1.39 -0.32 Active Stopped 03/14/2012 05/07/2012

RWC Garbage Commercial YUME COMPANY 935 MAIN ST 8.66 17.32 8.66 2 New Active 04/10/2012

RWC Garbage Commercial NATIONAL GLASS #289 110 CHESTNUT ST 0 17.32 17.32 4 Active 05/01/2012

RWC Garbage Commercial CHAVEZ, RAFAEL PRADO 2966 BAY RD 0 0.69 0.69 0.16 Active 05/01/2012

RWC Garbage Apartment 129 LINCOLN AVE APARTMENTS 129 LINCOLN AVE 0 16.63 16.63 3.84 New 05/04/2012

RWC Garbage Apartment JERICO 5 NIMITZ AVE 0 7.62 7.62 1.76 Active 05/01/2012

RWC Garbage Apartment 1963 WOODSIDE VISTA LLC 1963 WOODSIDE RD 0 16.63 16.63 3.84 Active 05/01/2012

RWC Garbage Commercial SWIMMING POOL PERFECTIONS 629 BAIR ISLAND RD 214 0 4.33 4.33 1 Active 05/01/2012

RWC Garbage Apartment HOOPER B C/O BEHLING & ASSC.2007 WOODSIDE RD 0 8.31 8.31 1.92 Active 05/01/2012

RWC Garbage Commercial LENCIONI CONSTRUCTION CO INC.420 MAPLE ST 0 2.08 2.08 0.48 Active 05/01/2012

RWC Garbage Commercial WOODSIDE DELI 1453 WOODSIDE RD 0 17.32 17.32 4 Active 05/01/2012

RWC Garbage Commercial US BANK 1475 WOODSIDE RD 0 6.41 6.41 1.48 Active 05/01/2012

RWC Garbage Apartment 1775 WOODSIDE RD LLC. 1775 WOODSIDE RD 0 25.98 25.98 6 Active 05/01/2012

RWC Garbage Apartment TOM MUELLER 131 CERRITO AVE 0 4.16 4.16 0.96 Active 05/01/2012

RWC Garbage Commercial CHARMING NAILS 1406 EL CAMINO REAL FRT 0 0.43 0.43 0.1 New 05/15/2012

RWC Garbage Commercial RALPH MANAK CABINETMAKER 1526 STAFFORD ST 0 0.69 0.69 0.16 New 05/14/2012

RWC Garbage Commercial GEN.HARDWARE/BUILDERS 890 2ND AVE 0 12.99 12.99 3 New 05/22/2012

RWC Garbage Apartment THOMAS CONLEY 1567 REGENT ST 0 6.24 6.24 1.44 New 05/18/2012

RWC Garbage Apartment OTT, RICHARD 1515 REGENT ST 0 5.54 5.54 1.28 New 05/25/2012

RWC Garbage Commercial UCCELLI, ANDREW 648 N EL CAMINO REAL 0 8.66 8.66 2 New 05/21/2012

RWC Garbage Commercial R. DELUCCHI 3700 FLORENCE ST . 0 12.99 12.99 3 New 05/24/2012

RWC Garbage Apartment MARITA GHILARDI 1333 EBENER ST 133 0 1.39 1.39 0.32 New 05/23/2012

RWC Garbage Commercial EVERNOTE CORP 305 WALNUT ST 0 77.94 77.94 18 New 05/25/2012

RWC Garbage Commercial MENTAL HEALTH ASSOCIATION 104 CEDAR ST 0 4.33 4.33 1 New 05/25/2012

Garbage Total 31.34

RWC Organics Commercial SEQUOIA HOSPITAL 0 ALAMEDA 40.53 0 -40.53 -9.36 Active Stopped 10/14/2004 05/24/2012

RWC Organics Commercial SEQUOIA HOSPITAL 170 ALAMEDA DE LAS PULGAS 0 51.96 51.96 12 Active Active 01/01/1996

RWC Organics Commercial J WEINGARTEN ORAL SCH FOR THE3518 JEFFERSON AVE 0 2.08 2.08 0.48 Active Active 09/16/1994

RWC Organics Commercial THE VISTA 2022 BROADWAY ST 0 2.08 2.08 0.48 Active Active 02/27/2012

RWC Organics Apartment JERICO 5 NIMITZ AVE 0 0.69 0.69 0.16 Active 05/01/2012

Organics Total 3.76

RWC Recycling Apartment BAY AREA PROPERTY MANAGEMENT176 DUANE ST 0 2.08 2.08 0.48 Active Active 03/21/1995

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RWC Recycling Apartment CONSOR BUISAN 1414 GORDON ST 2.08 6.24 4.16 0.96 Active Active 03/01/1982

RWC Recycling Apartment AUREA BAZAN 129 LINCOLN AVE 10.39 0 -10.39 -2.4 Active Stopped 01/01/1996 05/03/2012

RWC Recycling Apartment LINDEN COURT APARTMENTS 224 LINDEN ST 0 4.16 4.16 0.96 Active Active 02/12/1999

RWC Recycling Commercial DONART MACHINING 1003 ARGUELLO ST 0 0.69 0.69 0.16 Active Active 04/01/1988

RWC Recycling Commercial BIG LOTS 1525 BROADWAY ST 311.76 77.94 -233.82 -54 Active Active 07/07/1994

RWC Recycling Commercial STONEBROOK INVESTMENTS 1764 BROADWAY ST 176 0 1.39 1.39 0.32 Active Active 05/30/2000

RWC Recycling Commercial NATIONAL GLASS #289 110 CHESTNUT ST 12.99 0 -12.99 -3 Active Stopped 10/01/1994 04/30/2012

RWC Recycling Apartment PENINSULA LANDING 401 CORK HARBOUR CIR 162.12 153.8 -8.32 -1.92 Active Active 03/28/1988

RWC Recycling Commercial SAVADA ADAMICH OPTICIANS 771 EL CAMINO REAL 2.08 4.16 2.08 0.48 Active Active 01/01/1996

RWC Recycling Commercial KWOK C. LOW 1906 EL CAMINO REAL 8.66 0 -8.66 -2 Active Stopped 05/09/1994 04/30/2012

RWC Recycling Apartment DOROTHY/CHRIS LOPEZ 3515 FARM HILL BLVD 0 4.16 4.16 0.96 Active Active 01/01/1996

RWC Recycling Apartment KARL DRESDEN 644 FULTON ST 0 1.39 1.39 0.32 Active Active 01/01/1996

RWC Recycling Commercial SPECTREX CORP 3580 HAVEN AVE . 4.16 0 -4.16 -0.96 Active Stopped 12/08/1988 05/02/2012

RWC Recycling Commercial CLEANSLEEVES.COM 500 HOWLAND ST 1-3 8.66 12.99 4.33 1 Active Active 07/19/2006

RWC Recycling Commercial AM PARTY RENTALS 1830 INDUSTRIAL WAY 0 8.66 8.66 2 Active Active 05/18/2010

RWC Recycling Commercial AT&T SERVICES, INC. 1121 JEFFERSON AVE 0 8.66 8.66 2 Active Active 01/01/1996

RWC Recycling Commercial R SPENCER ALLEN 648 N EL CAMINO REAL 6.24 0 -6.24 -1.44 Active Stopped 09/22/2003 05/17/2012

RWC Recycling Commercial LOW PRICE AUTO GLASS 1151 ODDSTAD DR 8.66 0 -8.66 -2 Active Stopped 05/22/2003 05/18/2012

RWC Recycling Commercial RALPH ALPERIN, M.D. 1181 ODDSTAD DR 2.08 0 -2.08 -0.48 Active Stopped 01/01/1996 04/30/2012

RWC Recycling Commercial POTTER DRILLING, INC 599 SEAPORT BLVD 2.08 0 -2.08 -0.48 Active Active 09/22/2009

RWC Recycling Commercial ABBOTT BIOTHERAPEUTICS 1500 SEAPORT BLVD 38.97 56.29 17.32 4 Active Active 11/09/2007

RWC Recycling Commercial SPINNAKER SAILING 451 SEAPORT CT 6.24 0 -6.24 -1.44 Active Stopped 01/01/1996 05/28/2012

RWC Recycling Apartment HERON COURT CO-OPERATIVE INC30 TURKSHEAD CT 2.08 6.24 4.16 0.96 Active Active 06/13/2007

RWC Recycling Commercial MAGUIRE DETENTION FACILITY 0 WINSLOW ST 122.11 169.74 47.63 11 Active Active 04/27/1999

RWC Recycling Commercial PENINSULA MOTORSPORTS 890 2ND AVE 17.32 0 -17.32 -4 Active Stopped 04/01/2010 05/15/2012

RWC Recycling Apartment CANADA VISTA 1 OLIVE CT 51.96 77.94 25.98 6 Active Active 09/07/2010

RWC Recycling Commercial THAIBODIA 910 WOODSIDE RD 0 8.66 8.66 2 Active Active 09/07/2010

RWC Recycling Apartment THE MANOR ASSOCIATION 503 MENDOCINO WAY 0.69 0 -0.69 -0.16 Active Stopped 01/01/2011 05/23/2012

RWC Recycling Apartment PHILIP DURDEN 1567 REGENT ST 2.08 0 -2.08 -0.48 Active Stopped 01/28/2011 05/11/2012

RWC Recycling Commercial BABIES R US #6517 220 WALNUT ST 0 8.66 8.66 2 Active Active 03/01/2011

RWC Recycling Commercial WESTPORT OFFICE PARK LLC 2200 BRIDGE PKWY 12.99 17.32 4.33 1 Active Active 01/01/2011

RWC Recycling Apartment OTT, RICHARD & RENE OTT 402 REDWOOD AVE 8.66 17.32 8.66 2 Active Active 01/09/2012

RWC Recycling Apartment OTT, RICHARD & RENE OTT 422 REDWOOD AVE 17.32 0 -17.32 -4 Active Stopped 01/06/2012 05/18/2012

RWC Recycling Commercial CORNELL, JOHN 1526 STAFFORD ST 2.08 0 -2.08 -0.48 Active Stopped 03/14/2012 05/07/2012

RWC Recycling Apartment ERP OPERATING LIMITED 1107 2ND AVE 17.32 25.98 8.66 2 Active Active 03/16/2012

RWC Recycling Commercial NATIONAL GLASS #289 110 CHESTNUT ST 0 12.99 12.99 3 Active 05/01/2012

RWC Recycling Commercial CHAVEZ, RAFAEL PRADO 2966 BAY RD 0 4.16 4.16 0.96 Active 05/01/2012

RWC Recycling Apartment 129 LINCOLN AVE APARTMENTS 129 LINCOLN AVE 0 10.39 10.39 2.4 New 05/04/2012

RWC Recycling Apartment MENLO GATES GROUP 6 123 REDWOOD AVE 0 2.08 2.08 0.48 New Active 04/25/2012

RWC Recycling Apartment JERICO 5 NIMITZ AVE 0 5.54 5.54 1.28 Active 05/01/2012

RWC Recycling Apartment 1963 WOODSIDE VISTA LLC 1963 WOODSIDE RD 0 16.63 16.63 3.84 Active 05/01/2012

RWC Recycling Apartment HOOPER B C/O BEHLING & ASSC.2007 WOODSIDE RD 0 6.24 6.24 1.44 Active 05/01/2012

RWC Recycling Commercial LENCIONI CONSTRUCTION CO INC.420 MAPLE ST 0 2.77 2.77 0.64 Active 05/01/2012

RWC Recycling Commercial WOODSIDE DELI 1453 WOODSIDE RD 0 17.32 17.32 4 Active 05/01/2012

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RWC Recycling Apartment 1775 WOODSIDE RD LLC. 1775 WOODSIDE RD 0 17.32 17.32 4 Active 05/01/2012

RWC Recycling Apartment TOM MUELLER 131 CERRITO AVE 0 4.16 4.16 0.96 Active 05/01/2012

RWC Recycling Commercial CHARMING NAILS 1406 EL CAMINO REAL FRT 0 1.39 1.39 0.32 New 05/15/2012

RWC Recycling Commercial RALPH MANAK CABINETMAKER 1526 STAFFORD ST 0 0.69 0.69 0.16 New 05/14/2012

RWC Recycling Commercial GEN.HARDWARE/BUILDERS 890 2ND AVE 0 25.98 25.98 6 New 05/22/2012

RWC Recycling Apartment THOMAS CONLEY 1567 REGENT ST 0 2.08 2.08 0.48 New 05/18/2012

RWC Recycling Commercial UCCELLI, ANDREW 648 N EL CAMINO REAL 0 4.16 4.16 0.96 New 05/21/2012

RWC Recycling Apartment MARITA GHILARDI 1333 EBENER ST 133 0 1.39 1.39 0.32 New 05/23/2012

RWC Recycling Commercial EVERNOTE CORP 305 WALNUT ST 0 17.32 17.32 4 New 05/25/2012

RWC Recycling Commercial MENTAL HEALTH ASSOCIATION 104 CEDAR ST 0 2.08 2.08 0.48 New 05/25/2012


SNC Garbage Apartment PARTHENON PROP 540 ELM ST 34.64 25.98 -8.66 -2 Active Active 08/18/1999

SNC Garbage Apartment PING DAN & SUE 412 LAUREL ST 1.39 2.08 0.69 0.16 Active Active 12/04/1990

SNC Garbage Commercial COMMERCIAL SYSTEMS 1030 COMMERCIAL ST 4.33 1.39 -2.94 -0.68 Active Active 03/07/2006

SNC Garbage Commercial ENGELHART ELECTRIC 1052 COMMERCIAL ST 12.99 0 -12.99 -3 Active Stopped 07/28/2004 05/09/2012

SNC Garbage Commercial BASKIN ROBBINS ICE CREAM 1648 EL CAMINO REAL 17.32 12.99 -4.33 -1 Active Active 12/23/1986

SNC Garbage Commercial PLANT PARENTHOOD 80 GLENN WAY 1.39 0 -1.39 -0.32 Active Stopped 03/18/2003 05/01/2012

SNC Garbage Commercial ROBERT SPADARELLA 100 GLENN WAY 1 0.69 0 -0.69 -0.16 Active Stopped 05/14/2009 05/01/2012

SNC Garbage Commercial PENINSULA CARPET LLC 695 INDUSTRIAL RD 17.32 0 -17.32 -4 Active Stopped 11/16/2006 05/09/2012

SNC Garbage Commercial GOLDEN STATE FLOORING 871 INDUSTRIAL RD F 4.33 0 -4.33 -1 Active Stopped 09/07/2005 05/25/2012

SNC Garbage Commercial SALLY BEAUTY SUPPLY #8741 1581 INDUSTRIAL RD 8.66 4.33 -4.33 -1 Active Active 09/07/2005

SNC Garbage Commercial ENGLISH ROSE 663 LAUREL ST 2.08 0 -2.08 -0.48 Active Stopped 11/01/2003 05/01/2012

SNC Garbage Commercial BURAK EPIR 680 LAUREL ST 4.33 0 -4.33 -1 Active Stopped 04/23/2007 05/03/2012

SNC Garbage Commercial J&D WASTE MANAGEMENT,INC 760 LAUREL ST 4.16 0 -4.16 -0.96 Active Stopped 06/01/2009 04/30/2012

SNC Garbage Commercial FLIGHT LOUNGE INC 971 LAUREL ST 4.33 0 -4.33 -1 Active Stopped 03/05/2010 05/25/2012

SNC Garbage Commercial DECORATORS ENTERPRISES 295 OLD COUNTY RD 0.69 0 -0.69 -0.16 Active Stopped 06/25/1991 05/01/2012

SNC Garbage Commercial KING CHUAN RESTAURANT 1188 SAN CARLOS AVE 12.47 4.16 -8.31 -1.92 Active Active 05/26/2006

SNC Garbage Commercial MEETS THE EYE LLC 940 TANKLAGE RD 10.74 8.66 -2.08 -0.48 Active Active 05/11/2009

SNC Garbage Commercial MODERN SPACES 585 TAYLOR WAY 3 4.33 2.08 -2.25 -0.52 Active Active 03/23/2006

SNC Garbage Commercial BORROW LENSES 1664 INDUSTRIAL RD 17.32 25.98 8.66 2 Active Active 08/05/2010

SNC Garbage Commercial FINISHMASTER 1021 HOWARD AVE 17.32 8.66 -8.66 -2 Active Active 10/05/2010

SNC Garbage Commercial FOOD SNACKS 300 INDUSTRIAL RD 0.69 2.08 1.39 0.32 Active Active 08/09/2011

SNC Garbage Commercial LEFTHAND DIST 80 GLENN WAY 8 0.43 0 -0.43 -0.1 Active Active 10/11/2011

SNC Garbage Commercial SUNERGEN TECHNOLOGY 100 GLENN WAY 5 0.43 0 -0.43 -0.1 Active Active 12/13/2011

SNC Garbage Apartment A&D PROTOCOL TRANS., INC 681 CEDAR ST 8.66 0 -8.66 -2 Active Stopped 12/12/2011 04/30/2012

SNC Garbage Apartment BURLINGAME PROPERTY MGMT 681 CEDAR ST 0 8.66 8.66 2 Active 05/01/2012

SNC Garbage Commercial APPLEWOOD PIZZA 560 EL CAMINO REAL 4.33 12.99 8.66 2 New Active 04/23/2012

SNC Garbage Commercial DECORATORS ENTERPRISES 80 GLENN WAY 14 0 0.69 0.69 0.16 Active 05/01/2012

SNC Garbage Commercial RON WALKER 1065 AMERICAN ST 0 0.69 0.69 0.16 Active 05/01/2012

SNC Garbage Commercial BANK OF AMERICA #CA5-153 760 LAUREL ST 0 4.16 4.16 0.96 Active 05/01/2012

SNC Garbage Commercial SPARDARELLA,ROBERT 100 GLENN WAY 7 0 2.08 2.08 0.48 New 05/08/2012

SNC Garbage Commercial ENGLISH ROSE 663 LAUREL ST 0 1.39 1.39 0.32 New 05/03/2012

SNC Garbage Commercial PLANT PARENTHOOD 80 GLENN WAY 6 0 1.39 1.39 0.32 New 05/08/2012

SNC Garbage Commercial BAKLAVA RESTAURANT 680 LAUREL ST 0 1.39 1.39 0.32 New 05/15/2012

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SNC Garbage Commercial PENINSULA CARTPET LLC 695 INDUSTRIAL RD 0 0.43 0.43 0.1 New 05/10/2012


SNC Organics Apartment VIP REAL ESTATE 832 WALNUT ST 1.39 4.16 2.77 0.64 Active Active 03/01/1986

SNC Organics Apartment GRANADA CONDO ASSOCIATION INC775 CHESTNUT ST 0.69 1.39 0.7 0.16 Active Active 03/01/1986

SNC Organics Commercial BAJA FRESH #476 240 EL CAMINO REAL 0 4.33 4.33 1 Active Active 10/29/2009

SNC Organics Commercial ENGLISH ROSE 663 LAUREL ST 1.39 0 -1.39 -0.32 Active Stopped 11/01/2003 05/01/2012

SNC Organics Commercial BURAK EPIR 680 LAUREL ST 1.39 0 -1.39 -0.32 Active Stopped 04/23/2007 05/03/2012

SNC Organics Commercial KING CHUAN RESTAURANT 1188 SAN CARLOS AVE 0 8.31 8.31 1.92 Active Active 05/26/2006

SNC Organics Commercial FALE HUFANGA 2851 SAN CARLOS AVE 0 4.33 4.33 1 Active Active 07/29/1993

SNC Organics Commercial THE OFFICE 1748 EL CAMINO REAL 12.99 17.32 4.33 1 Active Active 10/05/2010

SNC Organics Commercial ST CHARLES CHURCH 880 TAMARACK AVE 0 2.08 2.08 0.48 Active Active 01/01/2011

SNC Organics Commercial APPLEWOOD PIZZA 560 EL CAMINO REAL 4.33 1.39 -2.94 -0.68 New Active 04/23/2012

SNC Organics Commercial ENGLISH ROSE 663 LAUREL ST 0 1.39 1.39 0.32 New 05/03/2012

Organics Total 5.2

SNC Recycling Commercial ISIS SERVICES 1031 BING ST 17.32 43.3 25.98 6 Active Active 04/28/2008

SNC Recycling Commercial APPLIED SURFACE TECHNOLOGY831 BRANSTEN RD J 0 2.08 2.08 0.48 Active Active 04/19/1995

SNC Recycling Apartment CEDAR CREEK OF SAN CARLOS 734 CHESTNUT ST 6.24 2.08 -4.16 -0.96 Active Active 02/26/1997

SNC Recycling Commercial ENGELHART ELECTRIC 1052 COMMERCIAL ST 6.24 0 -6.24 -1.44 Active Stopped 07/28/2004 05/09/2012

SNC Recycling Commercial BASKIN ROBBINS ICE CREAM 1648 EL CAMINO REAL 51.96 17.32 -34.64 -8 Active Active 12/23/1986

SNC Recycling Apartment SPRING VALLEY HOA 1 ELM ST 2 0 16.97 16.97 3.92 Active Active 04/02/1986

SNC Recycling Commercial PLANT PARENTHOOD 80 GLENN WAY 2.08 0 -2.08 -0.48 Active Stopped 03/18/2003 05/01/2012

SNC Recycling Commercial ROBERT SPADARELLA 100 GLENN WAY 1 2.08 0 -2.08 -0.48 Active Stopped 05/14/2009 05/01/2012

SNC Recycling Commercial BMR - 201 INDUSTRIAL RD LLC 201 INDUSTRIAL RD 25.98 38.97 12.99 3 Active Active 11/02/2005

SNC Recycling Commercial PENINSULA CARPET LLC 695 INDUSTRIAL RD 38.8 0 -38.8 -8.96 Active Stopped 11/16/2006 05/09/2012

SNC Recycling Commercial GOLDEN STATE FLOORING 871 INDUSTRIAL RD F 8.66 0 -8.66 -2 Active Stopped 09/07/2005 05/25/2012

SNC Recycling Commercial SALLY BEAUTY SUPPLY #8741 1581 INDUSTRIAL RD 8.66 12.99 4.33 1 Active Active 09/07/2005

SNC Recycling Commercial ENGLISH ROSE 663 LAUREL ST 10.05 0 -10.05 -2.32 Active Stopped 11/01/2003 05/01/2012

SNC Recycling Commercial BURAK EPIR 680 LAUREL ST 4.16 0 -4.16 -0.96 Active Stopped 04/23/2007 05/03/2012

SNC Recycling Commercial FLIGHT LOUNGE INC 971 LAUREL ST 2.77 0 -2.77 -0.64 Active Stopped 03/05/2010 05/25/2012

SNC Recycling Commercial DECORATORS ENTERPRISES 295 OLD COUNTY RD 0.69 0 -0.69 -0.16 Active Stopped 06/25/1991 05/01/2012

SNC Recycling Commercial SAN CARLOS SCHOOL DISTRICT 200 PHELPS RD 8.31 0 -8.31 -1.92 Active Stopped 02/07/2000 05/24/2012

SNC Recycling Commercial SPECIAL F/X SALON 1178 SAN CARLOS AVE 1.39 2.08 0.69 0.16 Active Active 03/18/1999

SNC Recycling Commercial MEETS THE EYE LLC 940 TANKLAGE RD 10.74 8.66 -2.08 -0.48 Active Active 05/11/2009

SNC Recycling Commercial MODERN SPACES 585 TAYLOR WAY 3 0 2.08 2.08 0.48 Active Active 03/23/2006

SNC Recycling Commercial PROVENCE STONE INC. 1040 VARIAN ST 0 2.08 2.08 0.48 Active Active 10/02/2003

SNC Recycling Commercial BORROW LENSES 1664 INDUSTRIAL RD 12.99 38.97 25.98 6 Active Active 08/05/2010

SNC Recycling Commercial ST CHARLES CHURCH 880 TAMARACK AVE 16.97 8.66 -8.31 -1.92 Active Active 01/01/2011

SNC Recycling Commercial LEFTHAND DIST 80 GLENN WAY 8 2.08 0 -2.08 -0.48 Active Active 10/11/2011

SNC Recycling Apartment FUENTES, CLAUDIA 1441 SAN CARLOS AVE 4.16 6.24 2.08 0.48 Active Active 11/02/2011

SNC Recycling Commercial SUNERGEN TECHNOLOGY 100 GLENN WAY 5 2.08 0 -2.08 -0.48 Active Active 12/13/2011

SNC Recycling Apartment A&D PROTOCOL TRANS., INC 681 CEDAR ST 4.16 0 -4.16 -0.96 Active Stopped 12/12/2011 04/30/2012

SNC Recycling Commercial CAREY REALTY 1580 LAUREL ST 1.39 5.72 4.33 1 Active Active 01/17/2012

SNC Recycling Apartment WEST GROVE HOLDINGS LLC 335 TORINO DR 4.16 6.24 2.08 0.48 Active Active 03/15/2012

SNC Recycling Apartment BURLINGAME PROPERTY MGMT 681 CEDAR ST 0 4.16 4.16 0.96 Active 05/01/2012

Page 16 of 17

______________________________________________________________________________ SBWMA BOD PACKET 06/28/12




MAY 2012

Fran-

chise Commodity

Account


Prev

Month

Volume

Current

Month

Volume

Monthly

Net

Change

Weekly

Volume

Change

Customer

Status Last

Month

Customer

Status

Current

Month

Customer

Start Date

Customer End

Date

SNC Recycling Commercial APPLEWOOD PIZZA 560 EL CAMINO REAL 12.47 17.32 4.85 1.12 New Active 04/23/2012

SNC Recycling Commercial DECORATORS ENTERPRISES 80 GLENN WAY 14 0 0.69 0.69 0.16 Active 05/01/2012

SNC Recycling Commercial RON WALKER 1065 AMERICAN ST 0 1.39 1.39 0.32 Active 05/01/2012

SNC Recycling Commercial BANK OF AMERICA #CA5-153 760 LAUREL ST 0 2.08 2.08 0.48 Active 05/01/2012

SNC Recycling Commercial SPARDARELLA,ROBERT 100 GLENN WAY 7 0 4.16 4.16 0.96 New 05/08/2012

SNC Recycling Commercial ENGLISH ROSE 663 LAUREL ST 0 10.05 10.05 2.32 New 05/03/2012

SNC Recycling Commercial PLANT PARENTHOOD 80 GLENN WAY 6 0 4.16 4.16 0.96 New 05/08/2012

SNC Recycling Commercial BAKLAVA RESTAURANT 680 LAUREL ST 0 2.77 2.77 0.64 New 05/15/2012

SNC Recycling Commercial PENINSULA CARTPET LLC 695 INDUSTRIAL RD 0 38.8 38.8 8.96 New 05/10/2012


WBS Garbage Commercial ALCHEMY 3543 ALAMEDA DE LAS PULGAS 2.08 1.39 -0.69 -0.16 Active Active 06/14/2001

WBS Garbage Commercial LADERA RECREATION DISTRICT 150 ANDETA WAY 0 38.97 38.97 9 Active Active 07/01/2002

WBS Garbage Apartment ALEX ABELA PROP MGMT 3536 ALAMEDA DE LAS PULGAS 17.32 25.98 8.66 2 Active Active 01/23/2012

Garbage Total 10.84

Grand Total 251.66

Page 17 of 17

______________________________________________________________________________ SBWMA BOD PACKET 06/28/12


SBWMA BOD PACKET 06/28/12 AGENDA ITEM: 8b – p1

STAFF UPDATE To: SBWMA Board Members From: Recycling Staff Date: June 28, 2012 Board of Director’s Meeting Subject: Recycling and Outreach Programs Update Recommendation This is an informational report and no action is necessary. Residential Survey The customer satisfaction telephone survey of single-family residents throughout the service area, conducted by Godbe Research on behalf of RethinkWaste, was completed in early May. A presentation on the survey results was made at the May 24, 2012 Board of Directors’ meeting and the Elected Officials Briefing that same afternoon. Staff has forwarded Member Agency specific topline reports of the survey to each Board member. Those Member Agencies interested in having Godbe conduct a presentation at their City Council or Board meeting can send an email to RethinkWaste Staff Monica Devincenzi with the request. Board members are asked to include two to three dates in the request for scheduling purposes. To date, presentations have been scheduled for the cities of San Carlos (July 9) and Belmont (August 14.) 2012 Public Education and Outreach Update A commercial bill insert addressing the mandatory commercial recycling requirements of Assembly Bill (AB) 341 was sent in Recology’s invoices at the end of May to all commercial customers. Extra copies of the insert will be available at the June 28th Board meeting. Staff encourages Member Agencies to include the insert on their permit counters or other appropriate area. In addition, the RethinkWaste website has been updated to include information on AB 341. Community Activities RethinkWaste staff often participates in community events and activities, or as presenters/speakers for various organizations, groups and customers in the service area on programs and services. Most recently, Kevin McCarthy presented at the Oregon Recyclers Association’s Sustainable Oregon 2012 conference on June 8, 2012 on the collection and facilities operations procurement process, and the master plan. The annual conference features both public and private speakers and attendees from throughout the country, and provides a great forum to discuss the latest in industry news, issues and legislation. WM Curbside Door-to-Door HHW Collection Program The following nine Member Agencies are now participating in the program: Belmont, East Palo Alto, Foster City, Hillsborough, Menlo Park, San Carlos, San Mateo, San Mateo County, and West Bay Sanitary District. San Mateo County is the ninth Member Agency to roll out the program which commenced for their residents beginning on May 1, 2012. Interest in the program has been strong and the company has made approximately 7,976 collections since the program started in mid-May 2010 through May 2012. Approximately 304,504 pounds of HHW material,


238,389 pounds of Universal Waste and 120,613 pounds of E-Scrap has been collected since the start of the program. We encourage additional Member Agencies to offer the program as it provides a more convenient and cost-effective option to properly recycle and dispose of a wide variety of materials (such as common HHW) than is currently available through the County’s drop-off program at Tower Road. Household Battery and Cell Phone Curbside Recycling Collection Program The monthly average of batteries and cell phones collected through the curbside recycling program during 2011 was 3,945 pounds. A total of 53,000 pounds was collected during 2010, which is slightly less than the 57,000 pounds collected in 2009. While early participation in CartSmart program resulted in an increase of household battery and cell phone collection, it appears this increase has now leveled off as the full year result (i.e., 47,334 pounds) is below that achieved in 2010. It is anticipated that this trend will continue as a similar year over year reduction will likely be experienced. The total amount of batteries and cell phones collected in May 2012 was 3,840 pounds. Shoreway Education Center School Groups and Public Tours Update Public tours on Open House Days (every third Thursday of the month) and summer tour groups will continue to be scheduled during the summer months while schools are on break. Staff will also continue to schedule tours for the next school year in fall. The Tour Program continues to be promoted via various channels, (emails, press release, flyers, website, social media, environmental education platforms, etc.). Staff will work on developing on-line registration for tours and revamping the Tours’ webpage. Staff will also be giving tours to municipal and environmental groups such as the San Francisco Department of the Environment staff, City of Sunnyvale’s SMaRT Station recycling staff, Northern California Recycling Association (NCRA) members and many more. Staff has received very positive feedback about the education tour program, which gives the community an opportunity to learn first-hand what happens to their recyclables, plant materials, food scraps and garbage at a working materials recovery facility (MRF) and transfer station. In addition, students and the community are given an opportunity to learn and practice the 4Rs (reduce, reuse, recycle, and rot/composting), resource conservation and be empowered to conserve resources in their lives, at school and residences. The table below shows the tours that have been conducted and those scheduled for June 2012.

Date School/Group Jurisdiction Grade/Group Total # of Participants June 4 Horall Elementary San Mateo 5th 36 June 4 Phillips Brooks School Menlo Park 3rd 40 June 5 Horall Elementary San Mateo 5th 36 June 6 Home School Group Peninsula K-6th 43 June 7 Horall Elementary San Mateo 5th 36

June 11 Cub Scouts Belmont 1st-5th 35 June 11 Abott Middle School San Mateo 6th-8th 27 June 12 Fiesta Gardens International San Mateo 3rd 34 June 13 Fiesta Gardens International San Mateo 3rd 34 June 14 Fiesta Gardens International San Mateo 3rd 34

June 18 Gifted and Talented Education (GATE) San Mateo 4th-5th 40


June 19 Gifted and Talented Education (GATE) San Mateo 4th-5th 40

June 20 SmaRtStation Sunnyvale Adults 10 June 21* Open House Day Various Adults 36 June 25 Open House Day Various Adults 59 June 26 Gateway Community School San Mateo 9th-12th 30

Total Participants 564** *Thursday, June 21sth, is the Monthly Public Open House Day. The number of participants is based on only those that have made a reservation for the tour on the Public Open House Day. While reservations are recommended, they are not required. **Includes estimated numbers for those scheduled tours that have not been conducted by the date this report is issued. Photos of tour participants at Shoreway Environmental Center.

Tour availability Tours are offered Monday-Wednesday from 9:30am – 11:30am, 12:30pm - 2:30pm, and Thursday 9:30am – 11:30am. Every third Thursday of the month is a designated Public Open House Day for the general public from 9:30am – 12:00pm. Shoreway Environmental Education Video RethinkWaste’s “Where Your Stuff Goes: From Curbside to Shoreway Environmental Center and Beyond” was debuted at the May 24th Elected Officials Briefing. The environmental educational video shows the full spectrum of what happens to the various materials in the CartSMART carts once they are picked up at the curb, delivered to Shoreway and then transferred to their ultimate destinations for recycling, processing or disposal. The video has been posted on the RethinkWaste website, and YouTube and Facebook pages. It is being used as part of the tours program, and in other outreach and education efforts. RethinkWaste Website and Social Media The RethinkWaste website continues to be updated with information on the CartSMART residential collection and new BizSMART commercial collection services, and the Shoreway Environmental Center. The current site averaged approximately 570 visits per week since the last Board meeting, of which over 71% were new visits. The most commonly visited sections of the site during this period continued to be “Beyond the Cart,” “Shoreway Services” and “Shoreway Location” sections. Plans are underway to revamp the website to make it more user-friendly and interactive based on feedback from customers, Board Members and the Public Education Subcommittee. Nine proposals were received to a Request


for Proposals (RFP) for website redesign by the May 31, 2012 due date, of which eight were deemed responsive. The ninth proposal was received after the deadline and, as such, deemed non-responsive. The Pub Ed Subcommittee, comprised of Brian Moura (San Carlos), Laura Galli (Foster City), Lillian Clark (RecycleWorks/San Mateo County), Roxanne Murray (San Mateo) and RethinkWaste Staff Cathy Hidalgo and Monica Devincenzi evaluated the proposals and interviewed the firms. A decision is still pending on a recommended firm to work with. Staff will continue to work with the Pub Ed Subcommittee on the redesign and seek some additional feedback from the Board. Staff anticipates the new website going live this fall. RethinkWaste also continues to use its Facebook and Twitter pages to promote program information and new services. To date, the Facebook page has 254 “fans,” and the Twitter page has 88 followers, an increase since the May 24, 2012 Staff Update. Staff will continue to work on strategies to drive more people to the pages. Our Facebook page can be found at www.facebook.com/rethinkwaste, and the Twitter page is located at www.twitter.com/rethinkwaste. Business Awards Program Winners of the BizSMART@Work 2012 Awards were recognized at a luncheon held on June 22nd at the Shoreway Environmental Center. Assemblymember Jerry Hill, D-San Mateo, presented the awards to the recipients. The winners for the 2012 Awards are:

Recycling Category Winners Type Award Level Chesapeake Point, San Mateo Medium Sized Multi-Family Dwelling Gold MB Garage Inc., San Mateo Services Gold PAL Market, East Palo Alto Grocer Gold San Mateo Peninsula Regent, San Mateo Large Sized Multi-Family Dwelling Gold

Composting Category Winners Type Award Level EFI, Foster City Large Commercial Office Gold Sisters of Mercy, Burlingame Services Silver

Recycling & Composting Category Winners Type Award Level 99 Ranch Market, Foster City Grocer Gold Bianchini’s Market, San Carlos Grocer Silver Empire Lumber, Belmont Retail Silver Gilead Sciences, Foster City Large Commercial Office Gold Lakeview Montessori, Foster City Service/Small School Silver Merry Moppet School, Belmont Service/Large School Gold SilverSpring Networks, Redwood City Large Commercial Office Gold St. Anthony’s Padua Dining Room, North Fair Oaks Services/Dining Hall Gold St. Bedes Episcopal, Menlo Park Services/Medium School Gold Woodlake Association, San Mateo Large Multi-Family Dwelling Gold In addition, Gilead Sciences of Foster City is the Rethinker’s Choice Award winner by garnering the most votes from the public. The winners received plaques made of recycled glass, commendations from Assemblymember Hill, and decals identifying them as winners to display on the windows of their places of business.

http://www.facebook.com/rethinkwaste

http://www.twitter.com/rethinkwaste


The nomination period for the RethinkWaste BizSMART@Work 2012 Awards program took place in April and early May. Staff received applications from 29 businesses and five multi-family complexes. The program was created in partnership with Recology to recognize businesses and multi-family complexes in the RethinkWaste service area for their efforts in reducing waste in 2011 through the BizSMART Recycle, Compost and Garbage collection services. The awards program will be held annually. rethinker Newsletter The summer issue of the rethinker is in production and focuses on the most frequently asked questions from customers and multi-family programs and services. It will be sent to residents in June. Following the release of an issue of the rethinker newsletter, there is always a notable increase in activity on the RethinkWaste website and Facebook and Twitter pages. Staff will continue driving residents to go paperless with the newsletter. Community Outreach Events Community Outreach Events (Compost Giveaway, E-Scrap/Shredding events, Recology’s Bring Your Own Bucket giveaway of compost and the Confidential Document Destruction Service Event) are still taking place and are posted on the RethinkWaste website. Agencies are encouraged to contact staff to schedule additional events.


Approved Operating Agreement Amendments or Recommended Recology Franchise Agreement Administrative Changes Staff is requesting that Member Agencies keep us apprised if any administrative changes have been made.

Agreement Board Approval Staff Recommendation Description

Operations Agreement

October 28, 2010 N/A

Amendment No. 1. Is now effective as eight Member Agencies have approved the Amendments. Approved by: Belmont, Foster City, Menlo Park, Redwood City, San Carlos, City of San Mateo, San Mateo County, and West Bay Sanitary District.

Franchise Agreement(s) N/A Via email on

October 20, 2010

Requested Member Agencies send letter accepting interest waiver offer from Recology on potential 2011 revenue requirement shortfall if rates approved after January 1 but before March 1, 2011. Approved by: Atherton, Foster City, Redwood City, City of San Mateo, San Mateo County, and West Bay Sanitary District.

Franchise

Agreement(s) N/A Via email on

December 9, 2010

Overage “bags” change to “tags”; SBWMA relief from purchasing battery/cell-phone bags; On-call bulky item collection temporary schedule for January 2011. Approved by: Foster City.


December 13, 2010

Member Agency self haul remittance of payments to SBWMA by Recology. Approved by: Burlingame, Foster City, and Redwood City.


June 3, 2011

Six Member Agencies (i.e., Belmont, Burlingame, Foster City, Menlo Park, Redwood City, San Carlos and City of San Mateo) are requested to allow Recology to continue using used collection vehicles through September 30, 2011. Approved by Foster City.

Franchise Agreements N/A Via email on

December 2, 2011

All Member Agencies were requested by Recology to modify the Bulky Item Collection service schedule. While customers can sign up for this service anytime, this change provides the company relief from providing the service from January 1-22, 2012 in lieu of December 1, 2011-January 2, 2012. The company has assured staff that all customers on the wait list will receive the service within the contractually specified two weeks commencing on January 23, 2012. Approved by Foster City, Menlo Park, City of San Mateo, San Mateo County, and West Bay Sanitary District.

SBWMA BOD PACKET 06/28/12 AGENDA ITEM: 8c-p1

STAFF UPDATE To: SBWMA Board Members From: Hilary Gans, Facility Operations Contracts Manager Date: June 28, 2012 Board of Director’s Meeting Subject: Shoreway Construction Update Construction Update This project update summarizes the status of the construction of the Shoreway Master Plan Phase II improvements which include the construction of new Materials Recovery Facility (MRF) building, modifications to the Transfer Station (TS), and various site work; and Phase III improvements which are comprised solely of the purchase and installation of the single stream processing equipment. This report includes a discussion of completed and upcoming construction activities (both master plan and non-master plan related), updates to the construction schedule, and a summary of the project budget. Financial Update On July 23, 2009 the Board approved the sale of Bonds for the Shoreway Master Plan Project in a total dollar amount of $56.5 million of which $46.97 million was dedicated to actual physical improvements. Through the end of May 2012, $45,346,600 has been spent, leaving a fund balance of $1,625,300 (see SEC Master Plan Budget table on page 3 of this report for detail). At this time, it is forecasted that there are sufficient funds to cover the remaining project expenditures through the completion of the Master Plan project without tapping the transfer station bid deduct funds of $515,000 or the projected remaining unallocated project contingency of $211,400.

Issues of Note

No issues to note.

Building and Equipment Project 2012 The following construction activities occurred since the last update report:

MRF and Transfer Station Buildings o Installation of TS tunnel water pumping system o Installation of TS traffic and material bunkers o Transfer station roof vent installed o Installation of electrical, water and air supply to TS maintenance shop Site, Other Buildings and Projects o Stenciling of overhead traffic signage at entrance o Ongoing touch-up painting at entire site (non-master plan) o Completion of barrier installation in rear of transfer station (non-master plan) o Parking barriers installed in Recology parking area (non-master plan)

The following construction activities are expected to occur during the next reporting period:


MRF and Transfer Station Buildings o Pressure wash interior of old transfer station (non-master plan) o TS floor resurfacing contract work completed (non-master plan) o TS rollup door assessment and repair

Site, Other Buildings and Projects o Reconfigure entry gate at public tours entry o Recology shop compressor replacement (non-master plan) o Recology shop roof replacement (non-master plan) o Paving repairs at transfer station exterior (non-master plan) o Repair to overhead sign damaged by SBR truck (non-master plan)

Master Plan Project Expenditures Summary Construction Management Budget (Covello)

Covello’s construction oversight and onsite staff was completed in December 2011. The company continues to a low level of support related to permit approval, construction documentation preparation. Expenditure for Covello total $4,241 for the month of May.

Design Support Services (JRMA) The Master Plan design support services contract with JRMA is closed except for the project LEED commissioning. The LEED Commissioning is a standalone scope of work with in JRMA’s design support services contract. JRMA has finalized and submitted the LEED application and the USGBC has indicated that they are reviewing the application. Expenditure for JRMA totals $0 for the month May.

Building and Equipment Projects 2012 There were payments to contractors in the month of April totaling $0. Total anticipated cost for remaining master plan projects total $580,958 and will be drawn from the Soft Costs and CM & Other budget lines.


SHOREWAY ENVIRONMENTAL CENTER MASTER PLAN BUDGET THROUGH MAY 2012 (000's)

Vendor Original Project Budget Amount

Allocated Contingency

Revised Project Total Spent Amount

Remaining Amount

PROJECT COST SUMMARYPreliminary Costs

Planning, Design & Engineering Various 2,404.0 28.5 2,432.5 (2,418.0) 14.5 Bond Issuance Costs 90.5 (7.4) 83.1 (83.1) 0.0

Phase IConstruction Rodan 2,405.0 31.3 2,436.3 (2,436.3) 0.0Construction Management Covello 444.3 15.9 460.2 (460.2) 0.0

Phase IIConstruction Amoroso 16,209.0 - 16,209.0 (16,209.0) 0.0

Construction Contingency (10%) Amoroso 3,053.9 3,053.9 (3,053.3) 0.6 Permit, CM, & Design Support Services Covello/JRMA 2,259.0 714.0 2,973.0 (2,753.1) 219.9 Construction Soft Costs Various 786.7 6.0 792.7 (526.1) 266.6

Phase IIIEquipment Installation BHS 2,432.4 30.0 2,462.4 (2,462.4) 0.0

Contingency (10%) BHS 246.2 246.2 246.2 Camera System, elec. 85.0 - 85.0 (25.9) 59.1 Supplemental Fire Suppression 75.0 - 75.0 (69.8) 5.2 Equipment BHS 14,273.2 81.2 14,354.4 (14,305.2) 49.2

Contingency BHS 492.8 492.8 (335.4) 157.4 Construction Management Various 95.0 (6.0) 89.0 (6.0) 83.0

Building and Equipment Projects 2012 (202.8) Project Total 41,559.1 4,686.4 46,245.5 (45,346.6) 898.87

Other Project DollarsUnallocated Contingency (Balance of Funds) 4,684.8 4,684.8 (4,473.4) 211.4 Transfer Station Public Area (SJA Bid Deduction) 728.0 728.0 (213.0) 515.0

Project Subtotal 46,971.9 1,625.3

SBWMA BOD PACKET 06/28/2012 AGENDA ITEM: 8d – p1

STAFF UPDATE To: SBWMA Board Members From: Kevin McCarthy, Executive Director Marshall Moran, Finance Manager Date: June 28, 2012 Board of Directors Meeting Subject: Update on 2012/2013 Franchise Rate Setting Process Recommendation This is an informational report and no action is necessary other than the various requested future responses below. Analysis This staff report has been provided monthly to the Board commencing with the November 17, 2011 Board meeting. The purpose of this staff update report is to keep the Board informed on the timing, schedule of events and issues affecting Member Agencies during the 2013 Compensation Application review (performed in 2012) and the Recommended Rate Adjustment process for the upcoming 2013 Rate Year (i.e., establishing rates for January 1-December 31, 2013). The goal is to provide and update pertinent information for Member Agencies to effectively plan for and manage communications regarding the next year’s compensation application and rate setting process. Attached is the draft 2012 (for calendar year 2013 rates) Rate Approval Schedule (Attachment A). New Issues Affecting 2013 Compensation Adjustment include:

• Service Level Adjustments. Per the Member Agency Franchise Agreements with Recology, the company will include in its 2013 Compensation Application the second and final service level cost adjustment to account for changes in accounts for residential service, lifts for commercial service, and pulls for roll-off service that have occurred since the first adjustment that was made in 2010 to the company’s cost proposal submitted in 2008. It is important to note that the 2008 cost proposal which was used as the basis for establishing 2011 rates relied on customer service level data provided by Allied Waste/Republic Services. Preliminary service level adjustment figures have been prepared by Recology and are under review by staff; further details were provided in the April 26, 2012 staff report for agenda item 4B.

• Recology Annual Revenue Reconciliation for 2011. Recology submitted a Revenue Reconciliation

Application to the SBWMA on March 30, 2012 which compares the approved compensation owed to Recology for 2011 with the actual net compensation retained by Recology after paying for Pass-Through costs for disposal at Shoreway and Agency fees (e.g., Franchise Fees) paid to each Member Agency. Each Agency will have a surplus or shortfall which will be added to or subtracted from the 2013 Revenue Requirement; this surplus or shortfall can not be carried forward to 2014 rates. This application is under


review by HF&H as part of the Financial Systems Audit project and the results will be presented at the June Board meeting.

• Service to Agency Facilities for 2012. The allocation of the cost to provide service to each Member

Agency’s facilities will be adjusted retroactively for 2012 based on final statistics from Recology. The initial allocation for 2012 was based on projections in lieu of the actual operating statistics. In September 2011, SBWMA staff recommended and the Board approved using a temporary allocation until the company returned with actual statistics in 2012 as directed by the Board. Recology included a revised allocation for 2012 based on actual operating statistics compiled in January and February 2012. This revised allocation was included with the company’s Revenue Reconciliation Report submitted on March 30, 2012.

• Performance Incentive/Disincentive Payments. The Franchise Agreement(s) with Recology prescribe that payments related to performance incentives/disincentives will be calculated in the company’s Annual Report submitted in mid-February and then included in their Compensation Application due on July 1 each year (with the exception of Contamination related disincentive payments which are calculated quarterly and paid directly to SBWMA). Therefore, both incentive payments due to Recology and disincentive payments (with the exception of Contamination related disincentives) due to Member Agencies shall be included in the Annual Compensation Application. Recology has provided preliminary figures for such payments which are still under review by staff.

Schedule of Rate Review Activities March 2012

• SBWMA sent a letter to the Board requesting feedback on how to improve the annual rate setting process. Staff received comments from Foster City and Hillsborough only.

• Recology submitted the first Revenue Reconciliation Application on March 30, 2012 (and annually thereafter).

• SBWMA awarded a contract to audit the financial data provided by SBR and Recology for 2011 to ensure this data is accurate. This contract was awarded to HFH on March 22nd and work is underway.

April 2012

• Staff presentation at April 26th Board Meeting to discuss rate setting process.

May 2012 • May 24 - Elected official briefing on rate setting process, rate issues and results of customer satisfaction

survey. June 2012

• SBWMA issued a letter to the Board requesting feedback from all agencies on issues affecting 2012 rate adjustments (e.g., changes to Agency fees, revenue and tonnage projections). Response requested by July 1.

• SBWMA to issue report summary on the Recology 2011 Revenue Reconciliation Application. July 2012

• July 1 - Compensation Applications due from Recology and SBR for 2013 compensation adjustment.


• July 1 - Response from Member Agencies to SBWMA on issues affecting 2013 rate adjustments (e.g., changes in agency fees, revenue and tonnage projections).

• July 1-15 – SBWMA to provide Recology Compensation Application to all Member Agencies and commence a process to include Member Agency feedback. The Member Agency feedback will be needed by August 1.

• July 19 – BOD Staff reports/issues to be discussed at July 26th Board meeting: o Estimated residential revenue changes due to cart migration by Member Agency with an update

on cart migration since July 2011;. o SBWMA to issue a report on projected 2012 revenue (based on six months of actual) compared

to the base revenue projection in the 2012 rate projections. o Agencies with a projected revenue shortfall are encouraged to review their residential rate

structure for deficiencies (i.e., rates don’t cover costs) – especially in the small cart (20 and 32-gallon) rates.

August 2012

• August 1 - Member Agency feedback due on 2013 Recology Compensation Application. • August 8 - Feedback from agencies on what to include in 2013 collection rate adjustment for current and

future cart migration (agencies may decline to include an estimate for future cart migration). September 2012

• September 1 - Preliminary report issued by SBWMA on Recology’s Rate Application for 2013 compensation adjustment.

• September 1 - Preliminary report issued by SBWMA on SBR’s Rate Application for 2013 compensation adjustment.

• September 11 - Comments due back from Member Agencies on preliminary Rate Reports for Recology and SBR.

• September 20 - Final Rate Report issued for Recology’s Rate Application for 2013 compensation adjustment (for consideration at September 27, 2012 Board meeting).

• September 20 - Final Rate Report issued for SBR’s Rate Application for 2013 compensation adjustment (for consideration at September 27, 2012 Board meeting).

• September 20 - Consolidated Rate Report issued with recommended total collection rate adjustments for 2013 (including Recology compensation, disposal expense at Shoreway, agency fees, and agency directed cart migration impact for 2013).

• September 27 – Board consideration and approval of SBR 2013 Compensation Application. • September 27 – Board consideration and approval of Recology 2013 Compensation Application. • September 27 – Board consideration and approval of SBWMA Consolidated Rate Report.

September 27 – December 31, 2012

• Member Agencies notice and approve final 2013 solid waste rates November 2012

• Report to Board on Recommended January 1, 2013 Shoreway tip fee adjustment including Bond proforma update for 2013 SBWMA financial projection with assumed tip fee and reserve balances.

Attachment: Attachment A – Draft 2013 Rate Approval Schedule

DRAFT

______________________________________________________________________ SBWMA BOD PACKET 06/28/2012 AGENDA ITEM: 8d ATTACHMENT A - p 1

DRAFT 2013 Rate Approval Schedule

Member Agency Rate Setting Process The 2013 Recology Compensation Application is due to the SBWMA on July 1, 2012 per the deadline prescribed in the Member Agency Franchise Agreement(s). On September 1, 2012 (also per the Franchise Agreements), the SBWMA will issue its Report on Recology’s Compensation Application. The Member Agencies then have 10 days to provide comments on the SBWMA’s Report. The comments received will be incorporated in the 2013 SBWMA Consolidated Rate Report that will become binding upon the Board’s approval at the September Board meeting. The overarching implications of this are that the rate increases put forth in the SBWMA Rate Report will be the minimum rate increases each Member Agency is obligated to adopt or face interest penalties for amounts owed to Recology. September 27, 2012 BOD Meeting

• Recology and SBR Compensation Applications Approved • Consolidated Rate Report Approved

Member Agency Residential Billing Schedule Group A: October-November-December (Billed September 30, 2012; December 31, 2012)

• Menlo Park • Redwood City (Not applicable to Residential, Redwood City does its own billing.) • San Mateo • West Bay Sanitary District

Group B: November-December-January (Billed October 31, 2012; January 31, 2013)

• Atherton • Burlingame • San Carlos

Group C: December-January-February (Billed November 30, 2012; February 28, 2013)

• East Palo Alto (Not applicable to Residential.)

DRAFT


• Foster City • Hillsborough • County of San Mateo

Prop 218 Public Notice Implications Prop 218 requires an agency to provide 45 days public notice directly to all account holders prior to authorizing a rate increase. If more than 50% of all account holders file a protest letter within the 45 day public comment period, the agency cannot adopt the proposed rate increase. Bill Insert Considerations Recology typically requires that a bill insert is prepared and ready for insertion with the bills a minimum of two weeks prior to the scheduled bill issuance date. However, the company may reduce this deadline to 5 business days for special circumstances, such as a Prop 218 Notice. The company has detailed guidelines regarding the specifications for bill inserts and will share these upon request. Agencies issuing a Prop 218 Notice via Recology’s bills will need to pay directly for the costs associated with production and printing but will save on mailing expenses since Recology can include the insert with its bills at no additional cost. Direct Mail Considerations Member Agencies sending the Prop 218 Notice via direct mail will need to pay directly for the costs associated with production, printing and mailing. Agencies sending a direct mail piece typically include these costs in their rates. Sending the Prop 218 Notice via direct mail provides the Agency with total control and flexibility regarding production and mailing of the notice. Bill Insert vs. Direct Mail: Group A These agencies may be able to prepare and print a bill insert in time for inclusion with the September 30, 2012 mailing. Therefore these agencies will need to produce a direct mail piece in order to close the Prop 218 public hearing process and adopt rates prior to January 1, 2013. Proposed Schedule: September 27, 2012 .......... SBWMA BOD Approves Recology and SBR Compensation. October 1-15 ..................... Governing body or agency staff approves issuance of the

Prop 218 notice. October 16-31 ................... Prop 218 Notice printed and issued via direct mail

DRAFT


November 1-15 ................. Governing body closes the Prop 218 public notice period and adopts 2012 rates effective January 1, 2013.

December 31 ..................... First Recology bill issued with new 2013 rates. Group B These agencies will likely be able to prepare and print a bill insert in time for inclusion with the October 31, 2012 mailing. However, since the Prop 218 process will not close for 45 days after issuance of the Prop 218 rate increase notice, these agencies will have to bring the results of the Prop 218 notice before their governing body between December 16 and 31, 2012. Otherwise, these agencies will need to produce a direct mail piece in order to close the Prop 218 public hearing process prior to January 1, 2013. Proposed Schedule: September 27, 2012 .......... SBWMA BOD Approves Recology and SBR Compensation October 1 – October 15 ..... Governing body or agency staff approves issuance of the

Prop 218 notice. October 31 ........................ Prop 218 Notice included with Recology bills December 15-31 ............... Governing body closes the Prop 218 public notice period

and adopts 2013 rates. January 31, 2013 .............. First Recology bill issued with new 2013 rates including a

retroactive rate adjustment for January. Group C While these agencies will have ample time to prepare and print a bill insert in time for inclusion with the November 30, 2012 mailing, this is moot since the 45 day Prop 218 notification period will not close until after January 1, 2013 (i.e., on January 14, 2013). Therefore these agencies will be required to produce a direct mail piece in order to close the Prop 218 public hearing process prior to January 1, 2013. Proposed Schedule: September 27, 2012 .......... SBWMA BOD Approves Recology and SBR Compensation October 1-15 ..................... Governing body or agency staff approves issuance of the

Prop 218 notice. October 16-31 ................... Prop 218 Notice printed and issued via direct mail December 1-15 ................. Governing body closes the Prop 218 public notice period

and adopts 2013 rates. February 28, 2013 ............. First Recology bill issued with new 2013 rates including a

retroactive rate adjustment for January and February.

SBWMA BOD PACKET 06/28/12 AGENDA ITEM: 8e– p1

JULY – NOVEMBER 2012 BOARD AGENDA ITEMS (SUBJECT TO CHANGE)

July 26, 2012 (MEETING AT SHOREWAY)

• Consideration of Modifications to Unrestricted Cash Reserve Policy • Review of Cart Migration Data for Member Agencies and Rates vs. Costs Analysis • Update on Issues Potentially Affecting 2013 Compensation for Recology San Mateo County and South Bay

Recycling • Discussion on Potential Amendments to the Uniform Franchise Agreement for Collection Services

September 27, 2012

• Resolution Approving 2013 South Bay Recycling Compensation Application • Resolution Approving 2013 Recology San Mateo County Compensation Application • Presentation on Consolidated 2013 Rate Report • Approval of Quarterly Investment Report as of 6/30/12

October 25, 2012

• Results of 2012 Third Quarter Recology Franchise Agreement(s) Quarterly Contamination Measurement for Loads of Recyclable Materials, Organic Materials and Plant Materials

November 15, 2012

• Approval of Quarterly Investment Report as of 9/30/12 • Approval of 2013 Board Meeting Calendar • Consideration of Shoreway Facility Tipping Fee Adjustments Effective 1/1/13