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6.1.A. - Page 6 divert 50 percent of waste from landfill or fines could potentially be imposed. He said that the current Ox Mountain landfill life is about 17 years or until 2028, as it is the only active landfill in San Mateo County. This Council Member also asked about the street cleaning scheduling and Mr. Boyd said that he and Recology will be working together to change the schedules so they do not conflict. Mayor Ira thanked the presenters and invited the public who has questions to meet with Recology personnel outside the Council Chambers. Mayor Ira also congratulated Tammy Del Bene who will be given the Woman of the Year award by the Redwood City San Mateo County Chambers at their January 2011 event. 8. PUBLIC HEARINGS A. Solid Waste Collection Rate Increase. Mr. Evan Boyd, Public Works Director presented information on the staff and Utilities Subcommittee recommendation for a rate increase of up to 18 percent (presentation on file). He reviewed the process for the rate increase and noted that they have received 106 written protests as of this evening prior to his presentation at the podium. He noted that this is not a general fund item, is not the result of any shortfall, and that solid waste collection rate funds only goes toward solid waste services and to compensate the service provider . He said that Redwood City has been the established billing agent for the collection contractor and it remits payment to the collection contractor. A Council Member asked for clarification between general funds and enterprise funds. Mr. Boyd concurred and reiterated that these funds do not go to any city service, goes to pay the collection contractor, and operates similar to an enterprise fund, such as sewer and water. He spoke about the three factors they looked at for determining the rate: compensation to Allied for 2010 collection services, rates to cover cost of new services to Recology in 2011 and to account for can size reductions resulting in decreased revenue to cover fixed costs. A Council Member asked for clarification regarding can size. Mr. Boyd explained that under the old contract and rate table, there were many can sizes and provided specifics. Another Council Member questioned if this new model is better than the old one. Mr. Boyd explained the contract differences in detail, and noted that under the past contract, there may have been wide fluctuation without cost control. Under the current contract, costs may go up and be more in line with CIP (consumer price index). Further Council discussion and questions included the JPA's decision-making process for the current contract; if there was any incentive to contain costs; having costs that will be more predictable and stable over time; wrapping up and covering the 2010 collection costs from the old contract with Allied; setting the rates for the new contract; new and more robust service due to increased recycling services; automation; food scrap collection; the shortfall d ue to known can size red uction, folk may decide to choose smaller cans due to the weekly collection service; the use of the rate stabilization fund as a "rainy day" fund that has been used once in the prior ten years and again this year to mitigate increases (this fund came from the fiscal year 2005 - 2006 overcharges by Allied to the Ox Mountain landfill and Allied paid the City back over time into this fund); projections JOINT CITY COUNCIL/REDEVELOPMENT AGENCY BOARD January 10, 2011 MEETING MINUTES PAGE 6