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Home My WebLink About101-Agency Agreement for Countywide AB 939 Implementation Fee and for Countywide Household Hazardous Waste Services .pdf SARATOGA CITY COUNCIL MEETING DATE: June 6, 2007 AGENDA ITEM: ____ ORIGINATING DEPT: City Manager’s Office CITY MANAGER: Dave Anderson PREPARED BY:Cathleen Boyer, City ClerkDEPT HEAD: Dave Anderson SUBJECT: Agency Agreement for Countywide AB 939 Implementation Fee and for Countywide Household Hazardous Waste Services RECOMMENDED ACTION: Authorize City Manager to execute agreement for Countywide AB 939 Implementation Fee and the First Amendment to the Agency Agreement for Countywide Household Hazardous Waste (HHW) Collection Programs. REPORT SUMMARY: BACKGROUND The California Integrated Waste Management Act of 1989 (AB939) and subsequent legislation required cities and counties to prepare, adopt, and implement plans to reduce their jurisdiction's waste disposed in landfills by 50% by 2000 and to plan and implement programs to properly manage HHW. Jurisdictions are required to maintain their mandated diversion level in subsequent years, to submit annual reports to document compliance with diversion mandates and implementation of their recycling/waste diversion and HHW plans, and to periodically update their adopted and state-approved plans. The Integrated Waste Management (IWM) Division is responsible for meeting Santa Clara County's countywide and unincorporated area mandated responsibilities under AB939, except for HHW services, which are the responsibility of the Department of Environmental Health, HHW Program. IWM collects the AB939 Fee to fund activities to comply with state mandates and related jurisdiction and/or County established goals. The AB939 Fee is collected on behalf of the jurisdictions of Santa Clara County. AB939 Fee revenues fund HHW services, and a portion is distributed to jurisdictions to fund jurisdiction-specific programs required for meeting mandated waste diversion goals. Because IWM collects the AB939 Fee on behalf of other jurisdictions, each jurisdiction contracts with the County for collection and distribution of these funds. All fifteen cities must approve the Agency Agreement for Countywide AB939 Implementation Fee by July 1, 2006. In the event that one or more jurisdictions fails to approve the agreement, the AB939 Fee increase would not be collected. City staff has indicated support for the proposed reauthorization for three years and an increase in the AB939 Fee for a one-year period. In accordance with the California Environmental Quality Act (CEQA), adjustment of the Countywide AB939 Implementation Fee is a categorical exemption under Section 15308 and is a statutory exemption under Section 15273 of CEQA. Implementation Fee: The County has collected the AB939 Fee on behalf of all jurisdictions within the County since July 1992 on behalf of the jurisdictions of Santa Clara County. Fee revenues are distributed to jurisdictions quarterly for the purpose of funding jurisdiction-specific programs required for meeting AB939 waste stream diversion goals. The attached Agency Agreement for Countywide AB 939 Implementation Fee provides for continued collection of the AB939 Fee for an adjusted level for FY 2007/2008. The amendment also reduces the AB939 Fee by 0.17 per ton in FY 2007/2008, for a total of $3.55 per ton for a period of one year (July 1, 2007 to June 30, 2008) and returns it to $3.35 in FY 2008/2009.Of the $3.55 Fee, $2.05 per ton will fund countywide HHW services; the remaining $1.50 per ton will be paid to jurisdictions to fund other AB939 compliance activities. The return of the AB939 Fee is $3.35 per ton will fund HHW activities at $1.85 per ton unless a second amendment is executed. Countywide Household Hazardous Waste Collection Program: To comply with state law and local needs, the County of Santa Clara and fourteen cities cooperated in creation of the HHW Program. This cooperative effort was intended to provide for legal, convenient, and economical services to enable residents to safely dispose of such unwanted hazardous household products as paints, solvents, pesticides, cleaning chemicals, aerosols, automotive fluids, and batteries. Most cities have contracted with the County to provide for HHW services through an Agency Agreement since 1992. The countywide HHW Program serves all jurisdictions except the City of Palo Alto. Initially, most funding for HHW services to city residents was approved by participating cities through separate annual agreements approved each year. This funding structure resulted in varying and unpredictable revenues. Beginning in FY 2001, cities agreed to provide base funding from the Countywide AB939 Implementation Fee, and to augment this funding with separate city monies if desired. This change stabilized the revenue base of the HHW Program and has supported a substantial expansion in services provided to local residents. For the unincorporated area, services were initially funded from a surcharge on unincorporated area residential garbage/recycling service rates. Beginning in FY 2001, unincorporated area services have been funded from the AB939 Fee, plus revenues from a reduced surcharge on residential garbage rates. The Agency Agreement for Countywide Household Hazardous Waste Collection Services provides for continuation of HHW services to participating cities through June 30, 2009, or until all revenue from the last quarter's fee payments has been distributed. Local jurisdictions rely upon the Countywide AB939 Fee to fund a portion of the programs and activities required to meet state-mandated waste stream reduction goals and to fund all or the majority of the HHW services provided to their residents. Under State law, AB939 Fee revenue is restricted to funding of AB939-related costs. As in the past, the HHW portion of the AB939 Fee does not fund an optimum level of HHW services; instead, it reflects the consensus of city representatives regarding an acceptable fee level. Cities desiring a higher level of service may choose to augment the funding provided by the AB939 Fee. Most jurisdictions augment the HHW portion of the AB939 Fee to provide additional services to residents. The countywide average is roughly 4% of households, historically, 8% of Saratoga households request service. Saratoga has historically generated less solid waste per capita than other jurisdictions. City residents have a high level of environmental awareness which minimizes solid waste tonnage going for disposal, which of course is what the AB 939 solid waste tipping fee is based on. The tipping fee generates approximately $37,000 per year for the City's HHW services. The funding available to serve residents does not support the minimum level of service (3% of households in each jurisdiction) that was the basis for the tipping fee. To compound matters, a higher than average number of household from Saratoga request services. On March 2006 the City augmented the HHW Collection Program $20,000 for the remaining months of FY 2005-2006. No funds were allocated for HHW augmentation for the FY 2006- 2007 budget because the West Valley Solid Waste Management Authority JPA signed a new solid waste and recycling contract. On March 1, 2007 West Valley Collection & Recycling (WVC&R) commenced services in the cities of Campbell, Monte Sereno, Saratoga, and the Town of Los Gatos. As part of their contract they offer a free E-Waste and Universal Waste drop off site for residents of the JPA. This will help reduce the need to refer residents to use the County HHW program. There is still a need for the County’s program because WVC&R does not accept the following chemicals: Toxics - poisons, pesticides, gardening chemicals, ammonia, and solvents. Oxidizers - pool chemicals, hydrogen peroxide, iodine, and perchlorates. Misc.- propane, helium, small oxygen tanks, smoke detectors. FISCAL IMPACTS: Staff is recommending that Council augment the HHW Collection Program $10,000 for FY 2007/08. This augmentation will be funded with Solid Waste Reserve Program. CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: All fifteen cities must approve the Amended Agency Agreement for Countywide AB939 Implementation Fee by June 30, 2007. In the event that one or more jurisdictions fail to approve the agreement, the AB939 Fee increase would not be collected. ALTERNATIVE ACTION: N/A FOLLOW UP ACTION: Send executed copies of the agreement to Wendy Fong, Management Analyst, 1555 Berger Drive, Suite 300, San Jose Ca 95112-1716. ADVERTISING, NOTICING AND PUBLIC CONTACT: Posting of the agenda according to the Brown Act. ATTACHMENTS: Attachment A – E-Waste & Universal Drop Off Brochures from the County HHW Program and WVC&R Attachment B – Memo from Rob D’Arcy, Hazardous Material Program Manager Attachment C – First Amendment for AB 939 Agreements FY 2007/2008 Attachment D – First Amendment for HHW Agreement FY 2007/2008