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Mr. Boyd introduced Mr. Mario Puccinelli, General Manager for Recology to begin the presentation. He shared recent successes that included the a 78 percent increase in the amount of organics collected, a 31 percent increase in recycling materials, and how they are making strides toward waste zero. He reviewed specific steps Recology has taken and will take to get issues resolved and their work on continuous improvement with a goal of no service interruptions. He said the morale of their team remains strong and committed to exemplary service to the City of Redwood City. A Council Member asked about how old Recology is and it being employee- owned. Mr. Puccinelli, provided historical information on their company. Another Council Member asked about why the diversion rate is important and the implications to the community. Mr. Puccinelli explained that the 52 percent diversion rate means that this is not going into the landfill, thereby extending landfill life and closing the loop. Mr. Boyd said that the state - mandated AB 939 requires that cities 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. (803) 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 JOINT CITY COUNCIUREDEVELOPMENT AGENCY BOARD January 10, 2011 MEETING MINUTES PAGE 6 MINUTE BOOK NO. 63 Page No. 250