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REPORTS OF BOARDS AND COMMISSIONS None ---------------------------------------------------------------------------- - - - - -- REPORTS OF CITY MANAGER 3. Refuse Collection Rate Increase Request (BFI) (1205 -02) Report of City Manager and Director of Finance 10/12/83 Richard Romanski, attorney for Browning- Ferris Industries, commented on the request for a 13% rate increase for refuse collection, 12% of which is related to capital costs for construction of the transfer station, which is expected to be in operation immdiately after the Marsh Road dump closes. He indicated that the joint powers authority cities had con- sidered the alternatives of a 36% increase next May, or divide the increase in half, taking some now in anticipation of the costs for construction of the transfer station, and taking the rest next October. He explained the purpose of the transfer station which will serve as a collection point for refuse which would then be transported to the Ox Mountain site. Mr. Day, BFI, commented and replied to questions by Council regarding the new rate of $5.91 for the average size can; the estimated cost of $14.5 to $15 million for the transfer station; that after the station is paid off in twenty years, the rates could be expected to drop, assuming the infla- tion rate does not catch up with that cost; that even if within that time the state of the art for waste disposal is such that more efficient methods are developed, there will still be a need for the transfer station. Director of Finance Tasseff responded to questions regarding comparative rates in other cities for curbside pickup, and that San Mateo offers a service whereby the resident has the choice of curb pickup for two cans at the same rate as one can for backyard pickup. It was suggested by Council that such options for the City should be looked into. L. J. Devincenzi, President, BFI, 225 Shoreway Road, San Carlos, added that the City of San Mateo also has a 4 -can service for $10.25. City Manager Smith and Finance Director Tasseff responded to questions advising that Redwood City is the only one in the service area that bills direct for BFI; that the cities included in the joint powers authority cover the area from Burlingame to East Palo Alto, and that San Mateo and Redwood City are the only remaining cities to adopt the new rates. Reg.Mtg. 10/17/83 Page 3 MINUTE BOOK NO. 44 Page No. 252