To: Board of Supervisors
From: John Kopchik, Director, Conservation and Development
Report Title: Second Amended Memorandum of Understanding between the County and Kensington Police Protection and Community Services District
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Board Chair to execute a Second Amended Memorandum of Understanding with the Kensington Police Protection and Community Services District, effective retroactively from September 1, 2024, through August 31, 2034, for the purpose of meeting requirements of the California Integrated Waste Management Act.
FISCAL IMPACT:
There will be no impact to the General Fund. The Second Amended Memorandum of Understanding (“Second 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. In addition to 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 a three percent franchise fee in the rates charged by Bay View to pay for specified solid waste administrative costs incurred by the County, based on Bay View’s gross receipts from the franchise, 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, and an Amended MOU was approved to extend the cooperative arrangement. The Amended MOU was effective September 1, 2016, and expired on August 31, 2024. The franchise fee requirements essentially remained unchanged from the 1997 MOU, except for modifications to the allowable County expenditures of the fee revenue. This included the County’s costs of administering its Household Hazardous Waste Element of the Countywide Integrated Waste Management Plan, some commercial recycling programs, as well as the costs allowed under the original MOU.
The Second Amended MOU would be effective retroactively to September 1, 2024, and expire on August 31, 2034, and all other elements remain unchanged. The intent of the retroactive effective date is to keep the franchise fee collection requirement in place.
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.