Pescadero Transfer Station

1. Pescadero Transfer Station Has served the community from 1986 to the Present We cannot afford to lose this asset

2. Funding • From inception the County’s Solid Waste Fund (SWF) shouldered the lion’s share of the burden • During the year 2007 the SWF was being drawn down at a rate over $300,000/yr • The SWF has no new sources of revenues replenishing it • Without remedial action the SWF will be exhausted and as a result the Transfer Station closes

3. Solid Waste Fund • Pescadero Transfer Station(PTS) is the only program fundedbythe SWF that is not a mandated program • The mandated programs currently using the fund are: 3 closed landfills, National Pollutant Discharge Elimination System (NPDES storm water requirements) required by the State • The projection for the SFW’s total depletion is fiscal year 2015/2016

4. Past Actions to Prolong the Life of the PTS • The County conducted a month long survey in 2007 to determine PTS usage • The survey was in preparation of an Request for Proposals (RFP) to be issued the following year • PMAC was brought into the loop through community presentations by DPW personnel (managers of the asset) • And PMAC input into the RFP process was provided by Rodger Reinhart and Catherine Peery

5. Past Actions to Prolong the Life of the PTS • A number of things were reviewed with the community from the survey and new contract negotiations. • As a result the PTS • Replaced the gate house • Expanded recycling opportunities • Gate rate adjustments (from $1.00 to $4.00 per 32 gallon can)

6. Current Operating Contract & Site Renovations • Of the two responding companies, Allied Waste offered the lowest cost alternative. The contract term is from July 2008 to August 2015. • The RFP outlined several improvements at the site. • Improvement costs were approximately $100,000

7. Impact of Current Contract • Reduced the annual operating subsidy (draw down on the SWF) from approximately $300,000 to today’s deficit of approximately $165,000 • The PTS operates 5 days per week with a very reliable Allied Waste employee to serve us

8. County Required to Reduce Costs • Due to the economic times the County is running a deficit of about $54 million • County management was asked to look at their operations and recommend areas where costs could be reduced or at least controlled • DPW personnel realizing no new revenues would feed the SWF, discussions were held within the community (2010 and 2011) to review future options for the PTS • The goal being a zero subsidy from the SWF

9. PMAC & PTS • Various PMAC members met with the County during the Summer/Fall of 2011 • The intent of the meetings were to work together with the County to find ways to reduce costs and maintain the PTS going forward • PMAC asked for the opportunity to analyze the financials of the operation and make any appropriate suggestions

10. PTSFinancialAnalysis • During the analysis, PMAC members offered several suggestions that might reduce the PTS operating costs • During the Fall of 2011 PMAC suggested the County turn the PTS into a community based operation which we (PMAC) believe could reduce costs by 50% by hiring a non-profit (to be determined) entity to manage the PTS. • This community based operation concept would require review by the various departments: County Council, County Risk Management, County Real Property, and State and local planning commissions.

11. Plans Moving Forward • A new RFP was recommended • Discussions with Allied Waste, DPW and PMAC representatives were held • The County has suggested a feasibility study for the site to determine other potential revenue sources to offset the subsidy rather than a RFP process that potentially replaces the current contractor. • Prior to issuing a RFP we must look at ways to restructure the PTS and how we pay for it. • The RFP process will take some time to assemble, distribute, and review. • A waste characterization study is currently being conducted on two of the recycling boxes to determine what commodity value exists in the boxes.

12. Options Discussed for Public Comments • Reducing the current days of operation from 5 to 3 days reduces costs by $28,000/yr (Thursday, Friday, and Saturday or Friday, Saturday, Sunday) • Restructuring gate rates to align with other similar facilities in the area.

13. Gate Rate Restructure • The vast majority of transactions at the T/S is the single can dump: Currently $4.00 per 32 gallon can • This accounts for 80% of the activity and 25% of the income

14. Single Can Rate • The proposal includes four items: • Increase the size of the can from 32 gallons to 45 gallons • Increase cost a single can dump from $4 to $11 • Restructure cost of second and third cans to be equal to the first. All cans @ $11. • Issue waivers for fixed and low income folks

15. Other Items Re-priced • Small adjustments were made to the following items. • General debris and wood waste: $22.25 and 24 to $26/CY • Mattresses: $3 to $11 • Sofas: $6.50 to $11 • Low/fixed income cans: $5

16. PTS Monthly Averages

17. Summation • Proposed Gate Rates will net over $36,000/yr • Reduction in days of operation will net: $28,000/yr • If these changes are put into place the life of the basic T/S operation is extended • Contract re-negotiations with Allied Waste is being studied by County DPW Management.