SBWMA Facility Operator Contract Receives Approval from Eight Agencies

The final operations agreement, which was approved by the SBWMA’s board of directors in July, required approval by two-thirds of its 12 Member Agencies by November 30.

Member agencies who approved the operations agreement are the following: East Palo Alto, Belmont, Foster City, Menlo Park, Redwood City, San Carlos and San Mateo; and the town of Hillsborough. The SBWMA anticipates that the remaining Member Agencies will consider the agreement in the upcoming weeks.

"We are extremely proud and pleased with the end result of our two-year procurement effort to now have an approved final contract in place with such an outstanding operator," said Kevin McCarthy, Executive Director of the SBWMA. "We have also filled in the last remaining piece to our Shoreway master plan capital improvement effort with approval of an agreement with BHS."

SBR, a joint venture between privately owned Community Recycling & Resource Recovery and Potential Industries, was selected by the SBWMA as its future facility operator following an extensive request for proposal process that was initiated in November 2007. Allied Waste of San Mateo County currently operates SBWMA’s Shoreway Recycling and Disposal Center in San Carlos under a contract until December 31, 2010. SBR will assume operations of the facility starting January 1, 2011. SBR’s estimated annual first year operating revenues, exclusive of pass-through costs (such as landfill disposal), is estimated to be more than $13 million.

"South Bay Recycling is pleased to have received two-thirds of the Member Agency votes for the operations contract. We look forward to commencing work on this important project which will provide tremendous benefits to the community," said Tony Fan, executive VP of SBR.

The SBWMA’s board also recently approved a purchase agreement with Bulk Handling Systems for single stream processing equipment design, fabrication and installation. The equipment will be used by SBR to process recyclables at the Shoreway facility and was imbedded into the facility operator contractor selection process.

The new equipment is a key component of the SBWMA’s master plan to guide much-needed facility improvements, including retrofitting the existing Shoreway transfer station and constructing a new materials recovery facility (where the BHS equipment will be installed to process recyclables), to transform the Shoreway Recycling and Disposal Center into the Shoreway Environmental Center. The Shoreway facility serves as a central location for receiving, transferring and/or process all garbage, recyclables, yard trimmings and food scraps collected in the SBWMA service area.

The Shoreway improvements are the outcome of a two-year planning process to modernize the facilities for the future solid waste, recycling and organics collection programs. The plan includes $25.42 million for building and traffic improvements, and $16.87 million for the recycling processing equipment.

"Approval of the SBR and the BHS agreements mark another important milestone in SBWMA’s ongoing work to upgrade and modernize solid waste collection and operation of the Shoreway Center. The new Shoreway Center will bring the convenience of single stream recycling to residents and businesses in the 12 agency SBWMA service area," said Brian Moura, SBWMA assistant city manager for San Carlos. "It is also estimated to boost recycling by an additional 15% – 20% which will have a major effect on improving the environment and addressing the region’s climate change and green program goals. This is going to be a project and program which everyone can be proud of."

Future services will include weekly single stream (commingled bottles, cans, papers) recycling and food scraps and yard trimmings collection for most of the SBWMA service area, which are slated to begin by January 1, 2011.

For additional information on the future services and Shoreway construction updates, visit www.RethinkWaste.org. In addition, SBR’s presentation to the SBWMA, which includes an animated video of the BHS equipment, can be found at http://www.rethinkwaste.org/rfps/rfqs/facility-presentations/south-bay-video.