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C. 28

To:	Board of Supervisors
From:	John Kopchik, Director, Conservation & Development Department
Date:	June 12, 2018

Contra

Costa

County

Subject:

Amended Memorandum of Understanding between County and Kensington Police Protection and Community Services District

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 06/12/2018

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Diane Burgis, District III Supervisor
Federal D. Glover, District V Supervisor

ABSENT:

Karen Mitchoff, District IV Supervisor

Contact:

Demian Hardman, (925) 674-7826

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: June 12, 2018
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

APPROVE and AUTHORIZE the Board Chair to execute an Amended Memorandum of Understanding (MOU) with the Kensington Police Protection and Community Services District (District) for the period of September 1, 2016 through August 31, 2024, to provide for continued collection of a franchise fee to fund County solid waste diversion programs, indemnification by District for specified State fines and penalties, and District assistance in meeting requirements under the California Integrated Waste Management Act of 1989.

FISCAL IMPACT:

There will be no impact to the General Fund. The Amended Memorandum of Understanding (“Amended MOU”) would provide for the continued collection of franchise fees to pay County staff costs associated with satisfying obligations under the California Integrated Waste Management Act of 1989.

BACKGROUND:

In 1997, the Kensington Police Protection and Community Services District (“District”) entered into a franchise agreement with Bay View Refuse and Recycling Services, Inc. (“Bay View”), to provide solid waste collection and disposal services within the District’s jurisdictional boundaries. Concurrently with the approval of the franchise agreement, the County and District entered into a Memorandum of Understanding (“MOU”) for a period of 19 years for the purpose of meeting the mandates of the California Integrated Waste Management Act of 1989 (the “Act”). Under the 1997 MOU, the District was required to include in the rates charged by Bay View a franchise fee to pay for specified solid waste administrative costs incurred by the County, in the amount of 3 percent of Bay View’s gross receipts unless otherwise directed by the County. The 1997 MOU also provided for franchise fee increases and decreases based on the County’s actual costs.

The District’s 1997 franchise agreement with Bay View expired on August 30, 2015, and the 1997 MOU expired on August 31, 2016. The District entered into a new franchise agreement with Bay View effective September 1, 2015. The proposed Amended MOU, which has been approved and executed by the District would be effective retroactively to September 1, 2016, and expire on August 31, 2024, and would retain franchise fee requirements essentially unchanged from the 1997 MOU, except for modifications as to allowable County expenditures of the fee revenue. Specifically, under the Amended MOU, the County’s costs of administering its Household Hazardous Waste Element and commercial recycling programs would be authorized, along with the costs allowed under the original MOU. The intent of the retroactive effective date is to keep the franchise fee collection requirement in force; without it, the status of franchise fee payments made after September 1, 2016, may have been in question.

CONSEQUENCE OF NEGATIVE ACTION:

The County would not receive the funding needed to cover County staff costs for implementing the County’s solid waste diversion programs and other costs incurred in connection with the requirements mandated under the Act.