Monday, May 16, 2011

Response to the "Stop the garbage rate hike" 5/13/11

Reference "Stop the garbage rate hike", 5/13/11 Fix Pacifica article by Leo Leon. 
Article comment from Chris Porter, General Manager Recology of the Coast,  5/15/11, 8:41pm.
Recology TruckCorrections to comments posted..Recology does not service Millbrae. San Bruno does not offer its citizens food waste in conjunction with its greenwaste pickup and will just begin offering a twenty gallon can when we have had that service in Pacifica for ten years. You can put up comparisons of rates but unless you are comparing like services the comparison does not ring true. 
Recology did not pay back the City of Pacifica for the back owed franchise fees of approximately $810,000, Louie Picardo did before the sale of the Company happened. Yes, there was a sale of Coastside Scavenger Company to Recology with four years remaining on the franchise agreement. The City of Pacifica had the right to review and approve the sale and took the opportunity to request more services that the citizens of Pacifica had been asking for (single stream one container recycling, composting). In order to provide the services the City asked for, Recology negotiated an additional three years to be added to the franchise to be able to finance the needed equipment expenditures and bring our office up to date.  
We also began a new program for customers who have a financial hardship, regardless of age, and used the PGE CARE Program as a measurement for this discount. This replaced the automatic senior discount which went into effect at age 65 whether you had a financial hardship or not. There are close to 500 people on the financial hardship program currently. 
Also, we do not own the Recycling Yard facility on Palmetto Avenue. It is owned by Jim Payne and we have been paying rent to him since 1990 and this is a facility that is exclusive to Pacifica and the coastside customers. We will not be taking our trash to SF and then by train to Yuba City. Our trash goes to HMB's Ox Mountain Landfill and we were successful in negotiating a deal with them at the beginning of the year to hold our disposal rate as is.  
The numbers on the rate increase gave from a year audit done by an outside Company and given to the City of Pacifica. Hilton Farnkoff did not audit the numbers again when they did the rate review. The next rate submission will have the numbers re-audited by Hilton (or whoever is the City's review people) at an additional cost to the City. The franchise agreement allows for a 4% to 8% rate increase. The documents, after being reviewed by the City and their review people, authorized an over 9% rate increase but the agreement holds it to 8% tops. If people are using the programs and have a 20 gallon cart, they will be paying $21.86 with the increase which is over 25% less than the $30.19 they were paying for a 30 gallon can in 2007. Rate payers can help themselves by recycling and composting as the garbage rate is charged by the size garbage cart you use. 
To end I will say this was not a sweetheart deal but a sale of a Company which Mr. Picardo, at 74 years old, had every right to do. He had several offers but felt Recology was the best for him and his employees. Another thing is that Recology found jobs for all our outsourced employees within the Recology family. This is something I as the general manager was most grateful for. I hope this answers some questions. If anyone has a question they want an answer to, please feel free to call my office or City Hall and speak to Steve Rhodes or Ann Ritzma. I am also sure any councilperson will verify the statements I have made. 
Posted by Kathy Meeh 

46 comments:

Kathy Meeh said...

Chris, your recent clarification comment almost got lost in the sea of comments, and it was an important response so I posted it as an article. Hope that's okay with you.

Anonymous said...

Thank you for reposting, Ms. Meeh.

- one of those Anonymouses

Leo Leon said...

Here's a link to a recent article. Please note the part that states Pacifica has the highest rates. Is that a fact or fiction?



http://www.mercurynews.com/san-mateo-county/ci_18029771?IADID=Search-www.mercurynews.com-www.mercurynews.com&nclick_check=1

Chris Porter said...

Leo I am having a problem opening your link but if the article does not say what services are being offered (ie; 20 gallon cart service, single stream recycling, composting, City franchise fee) it is not a fair comparison.

John Muir said...

Pacifica also has the most open space than any city in the Bay Area. All that hiking and recreating has a cost. Not only to the city, but to every business in this town.

Anonymous said...

I appreciate the additional info from Chris Porter. She's right to remind us that comparisons of apples to oranges are not helpful. Too often we forget that and then get all stirred up over what may be absolutely nothing. Too often those who would like to stir the pot lead us in that direction. Easy to do when the city climate is so negative. Pot stirring, call it Pacifica's favorite pasttime.

Tea Party Patriot said...

Pot smoking is Pacifica's favorite pasttime.

Anonymous said...

@TP Patriot: and your point is??

Leo Leon said...

Chris, copy and paste the link to you browser, search and the article will appear. My question is: Does pacifica have the highest Recology rates on the Peninsula?

http://www.mercurynews.com/san-mateo-county/ci_18029771?IADID=Search-www.mercurynews.com-www.mercurynews.com&nclick_check=1

Anonymous said...

This sounds alot like Recology damage control!!

Anonymous said...

The San Mateo County Times article says, "At present, the neighboring city with the highest trash bill is Pacifica, at $31.70 per month, according to a San Bruno staff report."

Chris Porter said...

My answer at 5:36 pm yesterday is the answer. Unless the staff report stated that San Bruno does not include food waste pickup (neither does Millbrae), is just beginning a twenty gallon cart service, does not have a recycling yard facility and what their franchise fees and City related services are it is a comparison of apples to oranges.

Anonymous said...

Translation: Yes.

Chris Porter said...

Translation: Not a fair comparison.

Thomas Clifford said...

Chris My understanding was the the recycling yard had for the most part closed down due to lack of proper permits,if this is no true what services are being offered at the recycling yard?

Is it true that Recology received a 5% rate increase on August 1, 2010 to provide for that additional cost of the new services, including the purchase of new carts and trucks? If so what Equipment is being leased for $522,035.00?
Recology pays rent to Mr.Payne for the recycling yard, how is the building your office is part of accounted for? Is that the $135.00.00 leasing cost for property that shows up in the consultants report? Who owns that property?

How is the designated Disposal Facility arrived at? Does Recology Have any plans to change that from the current Disposal Facility Ox Mountain to it own recently opened site in Yuba county?

Chris Porter said...

The recycling yard operation remained exactly the same except for greenwaste dropoff. We now also accept medical sharps which no other city does. Recology of the Coast will continue to dispose our trash in HMB. I will need to speak to my Controller to answer other questions.

Thomas Clifford said...

Chris; could you please list the services provided at the Recycle yard. What is medical sharps? My 1990 Dictionary Does not have that word It does have sharp; having a very thin edge or fine point.
Did you mean scraps? If so what types of medical scraps?

Anonymous said...

I just took an old microwave to the recycling yard last week. It seems to be working fine - the recycling yard, not the microwave.

Chris Porter said...

Medical sharps are needles used for injections.

The recycling yard is the same operation that it has been since 1990 minus greenwaste. We accept all curbside materials, appliances both small and large, furniture, e-waste, TV's, motor oil, latex paint, unpainted wood, plate glass, flourescent lights, car batteries and other batteries, lawn mowers, bicycles and more that I can't think of now. Please refer to your Recology brochure mailed out in 9/2010. A new one will be mailed out this Fall.

Rocco said...

Duh yuz takes bodies? I hates dumpin 'em off Devil's Slide.

Kathy Meeh said...

Very cool service, Chris. Which bin should Rocco throw himself in? Never mind, just a fleeting thought.

Anonymous said...

"The recycling yard is the same operation that it has been since 1990"

There has been no improvement to the user unfriendly recycling yard since Recology has taken over. There is no signage, or very minimal crappy signage. You have to ask where to put stuff only to be barked at "Put it in the yellow bin!". Well, all the bins are yellow. Also the public is given the impression that the stryofoam is being recycled, it is not, I've seen it loaded into a garbage truck twice. Needing to visit the yard for any reason is a dreadful experience, ask anyone. And the public is constantly told we should be grateful for this wonderful service.

Steve Sinai said...

I've always found the people at the recycling yard to be very friendly. I used to go several times a month, but since they stopped accepting greenwaste, I haven't had any reason to go except to drop some cardboard off.

Anonymous said...

"Needing to visit the yard for any reason is a dreadful experience, ask anyone." Ask me. I don't think it's a dreadful experience. I've always found the people to be friendly and the experience is okay.

Ferris Brown said...

All of you that have had such a dreadful experience at the recycle yard, wtf, violin concerto and wine tasting! What are you, stupid! You don't get the warm and fuzzies, don't go. Ever think of that? Of course not. Keep bitchin or just load your shit up and take it to the dump and pay them. Fu---- morons!

Thomas Clifford said...

Good afternoon Chris. Have you been able to get an answer from your controller for my questions about the 5% rate increase, the $522,035.00 equipment lease or how the building your office is in is accounted for, [is it the $135,000.00 lease for property?] and who owns it?

Henry Ford's Ghost said...

Clifford, you're on the planning commission, go down to city hall and ask for the info. It's public. Porter has a business to run. You know, the kind that employs people here in Pacifica, pays taxes, contributes to the economy. Unlike some people I know.

Thomas Clifford said...

Henry, Chris has been kind enough to answer some of my question and said she would get back to me with the answers to the others once she talked to her controller. So I am not sure what your problem is. Yes I am a Planning Commissioner but that has no bearing on this issue. An 8% garbage rate increase effects me and every other citizen and business in Pacifica. As for going to City Hall I am not sure all the information I have asked for is there and since I am recovering from a life threatening cardiac event that put me on the C.C.U. for Five days I just do not have the stamina to do a large Public record search. It is clear that you do not know me or you would know that I have for the last 25 years run a business in Pacifica that employs' local residents, pays taxes, and contributes to the local economy.

Anonymous said...

I'd like to know the answers to Clifford's questions and Porter said she'd answer them after consulting her company controller. Reasonable questions and a reasonable cause for a short delay in responding. Can we have the answers, please and thank you.

Chris Porter said...

Please read my post in the Pacifica RIPTIDE. I will no longer be posting to any blogs.

Thanks for taking the time to read and listen to me.

Kathy Meeh said...

Now can we move on to Comcast?

Thomas Clifford said...

Chris I am disappointed that you let a few doubters keep you from get the facts out. Although I personally believe that an 8% rate increase is to much at this point in time and that non-competitive government contracts are bad public policy, I have no problem with Recology. The services is good and certainly a big step up from what Coastside provided,and I understand a company negotiating the best deal for it's owners. What I hope to do by supporting the rate increase protest is to get The City to negotiate just as hard for the citizens off Pacifica. Chris thank you again for the answers you have provided and be well.

Anonymous said...

Speaking of a "be tough" negotiating attitude! I wish the city and expected 2012 candidates for council would take a similar position when Sanchez art center got a real sweet ten year lease that allows 50% of the tenants who are not residents of Pacifica to enjoy below market rate rents....

Anonymous said...

Unfortunate and interesting time to decide to stop answering questions. The public has a right to the truth, whatever that may be. I never thought Recology was the villain here. They have every right to negotiate the best deal for themselves with the cities they serve.
My issue is, as always, with the poor representation we ratepayers receive from our elected representatives and well paid city staff. Not hard to believe council is in over their heads in these matters but where was staff? Not sure why Recology is now playing 'love me love my dog'. Legal advice?

Steve Sinai said...

I was never a big fan of Coastside or Recology, but no matter what information Chris provides, it's never going to be enough for some people.

Anonymous said...

Anon @255, sweetheart leases at the Sanchez art center? You must be daft. Those are just a friendly little gesture from council to its friendly little friends. What's the problem? It's been going on for years. Does it bother you that the tenants feel entitled and resist sharing public property with the public? Yeah, some live out of Pac and some are for profit and their needs seem to come before the public's. I'd like to know if everyone is current on their rent. Shine a little light on that whole mess and listen to the excuses.

Anonymous said...

Sure some people are never satisfied with "official" answers but some people are. One sure way to make everyone suspicious is to pick and choose the questions you answer. Recology is doing that. Looks like Ms. Porter should never have responded in the first place.

City Planners Need to Know: said...

I just read all this and can't believe what I'm reading. Leon and Clifford-do you think anyone will vote for you the next time around because you were against the garbage increase? They are a business and have an agreement with the City Hall. You were not elected this last time and won't get anywhere next time. You should have hoped the Planning Commission meetings stopped getting put on Channel 26 so you could fool the people about what you really are all about. I agree with you that Chris Porter should never have responded. Why is it that everyone knows more than her and she has been working at the company for years? Oh well, once we get more business people on the council things will start turning around for Pacifica.

todd bray said...

City Planners NTK: you are out of touch with the franchise agreement contract. Pacifica gets 11% off the top of gross receipts and Recology is guaranteed an 8% profit annually. However it must show annually through an independent audit to determine what if any rate increase is needed to ensure that 8% guaranteed profit, which the city gets 11% of is warranted.

What has been happening is the city has not reviewed the audits relying instead on Recology's word, just as it did with Coastside, that it needs an 8% increase to reach it's guaranteed 8% profit margin and so rates must be increased. And this 8% increase is ... well... laughable really given the lack of oversight.

That is not business it is more akin to fraud and the senior city staffer in charge of the review is not doing the job to the satisfaction of many, me included, and it has the appearance of a criminal activity. The city has the legal contractual right to look at Recology's books at will.

Recology has an opportunity to show it is a different company than Coastside by posting it's annual audit which is public record here, also on Riptide and AOL/Patch but for reasons beyond our understanding it and the senior staffer in charge of this franchise agreement that guarantee's Recology an 8% profit doesn't want to.

Recology can go a long way to EARNING the publics trust by simply publishing audits that are, by law and confirmed by the California Integrated Waste Management Board (CIWMB) who oversees AB939 and the waste hauling industry in California, public record.

And I'll bet a crispy new dollar right here and now Tom and Leo would out reform you in any council election in the future. As for more business folks on council if they are anything like you I'll dedicate myself to defeating them in the next election.

Thomas Clifford said...

City Planners needs to know;
I believe that Leo Leon, Myself, and all the others who are asking questions are far stronger advocates for the Pacifica's business community then you are. While you seek to protect Recology[ a company that has been granted a monopoly,a captive clientele,and a guaranteed profit] from scrutiny. We have been advocating for the hundreds of small businesses in town who must compete for every dollar they make and have to control costs to do that.

Recology does not have to control cost it is allowed to pass its cost thru to the ratepayer plus an 8% profit. The only check on this is if the City of Pacifica does their own audit of the books every year and not just to verify Recology's Numbers but makes them justify any unusual expenditure.

It is the City Council responsibility to represent the citizens of Pacifica in this matter.

An 8% rate increase at this point in time is an unfair burden on both our citizens and our businesses.

When the contract for garbage collection comes up for renewal it must be opened to competitive bids. Non -competitive government bids is just bad public policy.

Thomas Clifford said...

Steve my last post has gone missing any reason why?

Steve Sinai said...

It was in the spam folder, Tom. I de-spammed it.

Sometimes even my comments end up in the spam folder.

Tom Clifford said...

Steve thanks for restoring it.

Leo Leon said...

To City Plannbers need to know:

One thing that I do know is that before Recology was given our contract, I was convinced that we could operate more efficiently by going to a mechanized pickup system here in Pacifica. That system is safer for the operator and less labor intensive for the service. The results should have been lower rates. South Bay Waste Management Authority (SBWMA) is the 12-agency joint powers authority that contracts with Recology on behalf of its members including Belmont, Burlingame, East Palo Alto, Foster City, Menlo Park, Redwood City, San Carlos, San Mateo, Atherton, Hillsborough, San Mateo County and the West Bay Sanitary District. Pacifica should look into joining the rest of recology's customers. They might help us with our rate structure.

Chris Porter said...

Leo, against my better judgement, I will answer this and tell you that Pacifica's terrain is not conducive to the one armed trucks because you need a certain amount of radios for the truck to operate. Many of our streets are too narrow or much too steep. The one armed trucks are operated by one man and our semi-automated
trucks (with the lift pushing the can up an emptying it) are also operated by one man. Our operation is currently operating very efficient. Itwas the City of Pacifica's choice not to join in with the SBWMA cities in circa 1988 because the City felt we had a unique terrain and no large commercial base.

Anonymous said...

I think Chris means radius not radios? Radios we got. The other stuff is uh situational.