Agmt05 BFI Waste Systems - Laserfiche WebLink

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BACKGROUND Prior to the formation of the SBTSA, member agencies individually negotiated with BFI and its predecessor, San Mateo Scavenger, to set solid waste collection rates. It was presumed that the solid waste collection rates in each of the jurisdictions represented the approximate cost to provide service in that jurisdiction. Prior to 1995, the member agencies increased rates uniformly each year based on the SBTSA's recommendations. Significant changes occurred in BFI's operations, including the implementation of curbside recycling and plant material collection programs, the start-up of the Recyclery and expansion of the Ox Mountain Landfill. These changes have resulted in significant rate increases. Member agencies became aware of jurisdictional differences regarding factors affecting the cost of servicing each jurisdiction. These differences include franchise fees, curbside versus backyard service, distance to the transfer station, use of end-of-month service and services provided to jurisdictions without charge. The member agencies have also realized that the uniform rate-setting methodology prevented individual jurisdictions from reducing expenses through changes in service levels (e.g., curbside service). Because of these concerns, the SBTSA members believed it would be in their best interest to revise the rate-setting process in 1995 from a company-wide to a jurisdiction-based revenue requirement. The revisions allow each jurisdiction to make decisions (such as service changes, implementation of volume-based rates, adjustments to franchise fees or implementation of waste diversion programs), realize any cost savings, and pay the cost of new programs. In February 2000, acting on behalf of the Member Agencies, the South Bay Waste Management Authority (SBWMA), successor to the SBTSA, acquired the Transfer Station and the Recyclery as well as related facilities and equipment (Facilities) which were owned and operated by Contractor in accordance with a Purchase Agreement between SBWMA and Contractor. As part of that Purchase Agreement, and because of the Contractor's past experience with these Facilities and similar facilities nationwide, Contractor's past cooperative relationship with SBWMA, and Contractor's agreement to provide operation of the facilities in a manner and on terms which are in the best interest of the SBWMA Member Agencies, the SBWMA agreed to enter into an Operations Agreement to provide SBWMA Compensation Adjustment Guidelines June 6, 2000 PAGE 2