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HomeMy WebLinkAbout1998-05-26 City CouncilCity of Palo Alto City Manager’s Report TO:HONORABLE CITY COUNCIL 2 FROM:CITY MANAGER DEPARTMENT: PUBLIC WORKS DATE:MAY 26, 1998 CMR:229:98 SUBJECT:RENEWAL OF AGENCY AGREEMENT WITH SANTA CLARA COUNTY FOR CONTINUATION OF AB939 FEE (INTEGRATED WASTE MANAGEMENT ACT) RECOMMENDATION Staff recommends that Council approve and authorize the Mayor to execute two copies of the attached second amendment to the existing Santa Clara County AB 939 Implementation Fee Agreement. BACKGROUND On July 27, 1992 (CMR 347:92), Council approved an agreement with the County of Santa Clara to implement a Countywide AB939 Fee. The AB939 Fee funds municipal programs throughout Santa Clara County (the County) in order to meet the cities’ integrated waste management plans. The Integrated Waste Management Act of 1990 (AB 939), specifically Public Resources Code Section 41901, grants authority to a city, county, or city and county, to impose this type of fee. On June 24, 1996 (CMR 318:96), Council approved an amendment to the agreement granting a two-year extension with a fee increase from $1.15 to $1.30 per ton of waste. This extension expires on June 30, 1998. DISCUSSION This second amendment extends the existing agreement to a two-year term with no increase from the $1.30 per ton charge of waste disposed at landfills in’the County. It also includes a new revenue distribution method which will simplify and streamline County processing of payments to jurisdictions without substantially affecting each jurisdiction’s share of total revenue. The new formula relies on disposal data which is required by the State-mandated Disposal Reporting System. To continue this program, each jurisdiction must contract with the County for the collection and distribution of the fee. Once jurisdictions have approved participation, they must participate until the proposed agreement expires on June 30, 2000. CMR:229:98 Page 1 of 2 In the event that the Countywide Fee is not approved for FY1998-99, the City of San Jose will immediately reactivate its own AB 939 Fee on all waste disposed at landfills located in the City. Revenues from such a fee would benefit only San Jose residents. RESOURCE IMPACT The fiscal impact is relatively neutral with the revenues received equaling fees charged. This fee is budgeted at $123,500 in the proposed FY 1998-99 Refuse Fund Budget. POLICY IMPLICATIONS This agreement does not represent any change to existing policies. TIMELINE All 15 cities in the County must approve the attached Agency Agreement for a Countywide AB 939 Implementation Fee by June 30, 1998. ENVIRONMENTAL REVIEW There is no Environmental Assessment required for this agreement. ATTACHMENTS Attachment A: Attachment B: Attachment C: Resolution approving the collection Implementation Fee First Amendment to Agreement Second Amendment to Agreement of a Countywide AB 939 DEPARTMENT HEAD: PREPARED BY:Russell Reiserer, Solid Waste Manager GLENN S. ROBERTS Director of Public Works CITY MANAGER APPROVAL:~./K~gLt_t_~_ Assistant City Manager CMR:229:98 Page 2 of 2 ATTACHMENT A RESOLUTION APPROVING THE COLLECTION OF A COUNTYWIDE AB 939 IMPLEMENTATION FEE WHEREAS, pursuant to Public Resources Code Section 41901, a city, county, or city and county may impose fees in amounts sufficient to pay the costs of preparing, adopting, and implementing an integrated waste management plan; and WHEREAS, the Solid Waste Commission of Santa Clara County has ~determined that a Countywide AB 939 Implementation Fee (Fee) of $1.30 per ton of wastes disposed of at landfills located within the county should be collected to assist in funding the costs of preparing, adopting and implementing the integrated waste management plan in the fifteen cities and the unincorporated areas of the county; and WHEREAS, the County intends to enter into the agreement before the Board of Supervisors on this date with all cities in the county; WHEREAS, the Solid Waste Commission of Santa Clara County has further determined that the County should collect said Fee from each landfill in the county on behalf of all fifteen cities and the unincorporated area within the county (participating jurisdictions), and distribute the Fee to said participating jurisdictions according to formula; WHEREAS, pursuant to Public Resources Code section 41901, each participating jurisdiction must approve the collection of the Fee; and WHEREAS, in accordance with the California Environmental Quality Act (CEQA), theFe~ is a categorical exemption under Section 15308 and is a statutory exemption u, nder Section 15.273 of CEQA; NOW THEREFORE BE IT RESOLVED AS FOLLOWS: 1. The County of Santa Clara approves the collection of a fee of $1.30 per ton on all wastes landfilled at permitted disposal sites located within the county on behalf of participating jurisdictions. 2. The Chairperson is authorized to execute the Agency Agreement for a Countywide AB 939 Implementation Fee (Agreement) with each participating jurisdiction. 3. The County shall bill the disposal site operators for the Fee and payment shall be due to the County within 45 days of billing. If Fees are not paid within 45 days of the billing, additional charges shall be added as foll6ws: (a) a late processing fee of $150; (b) a delinquent penalty of 1% per month shall be added if balance is not paid within 60 days. 4. Upon collection, the Fee and accrued delinquent penalties, if any, shall be distributed among participating jurisdictions according to the terms of the Agreement. 5. This Fee will become effective july 1, 1998, provided that all fifteen cities approve the Agency Agreement for a Countywide AB 939 Implementation Fee by July 1, 1998. 6. In accordance with CEQA, the Board of Supervisors finds that the collection of the Fee is necessary for meeting operating expenses and purchasing materials and services. The collection of the Fee is a categorical exemption under Section 153Q8 and a statutory exemption under 15273 of the State CEQA guidelines. 2 PASSED AND ADOPTED by the Board of Supervisors of the County of Santa Clara, State of California on by the following vote: AYES:Supervisors NOES:Supervisors ’ABSENT:Supervisors Chairperson Board of Supervisors Date ATTEST: Phyllis Perez, Clerk Board of Supervisors Date APPROVED AS TO FORM AND LEGALITY: Kath~ KretGhmer Deputy County Counsel Ddte 3 ATTACHMENT B AGENCY AGREEMENT FOR A COUNTT3VIDE AB 939 IMPLEMENTATION FEE This Agreement is rffade by and between the (City) and t~e County of Santa Clara (County) On the ,1994. day of __ RECITALS WHEREAS, pursuant to Public Resources Code Section 41901, a city, county, or city and count?," may impose fees in amounts sufficient to pay the costs of preparing, adopting, and implementing an integrated, waste management plan.; and WHEREAS, L~e Solid Waste Commission of Santa Clara County has determined that a CountDvide AB 939 Implementation Fee (Fee) for each ton of wastes disposed of at landfills located within the county should be collected.from landfill operators to assist in funding the costs of preparing, adopt.ing a.’~d implementing the integrated waste w~anagement plan in the fifteen cities and the un,incorporated areas of the county; and WHEREAS, the County of Santa Clara will collect said Fee from each landfill in the county on behalf of the fifteen cities and the unincorporated area (Participating Jurisdictions), arid will apportion the Fee according to formula; NOW, THEREFORE, CITY A~’x’D COUNTY AGREE AS FOLLOWS: 1. PURPOSE. The purpose of this Agreement is to stite the terms and conditions under which County will collect the Fee on each ton of wastes landfilled at permitted landfills located within the county, and will apportion the Fee to City and other Participating Jurisdictions. This Agreement adjusts the Fee established by the Agency Agreement executed in 1992. 2. SERVICES .PROVIDED BY COUNTY. The County will collect and distribute the Fee revenues. The County will collect the Fee by billing operators of the l.andfills listed in Exhibit A, and any landfill site subsequently permitted~ on a quarterly basis using data from tonnage reports filed by landfill operators with the Santa Clara County Integrated Waste Management Program. The revenue collected will be distributed to C. ity and. to other Participating Jurisdictions based on the formulae set forth in Exhibit B. The County shall not be obligated to distribute to Participating Jurisdiction...s revenues which, despite the County’s best efforts, the County has been unable to collect from landfill operators. 3. ROLE OE PARTICIPATEN’G JURISDICTIONS. Within 60 days of the end of each quarter, each Participating Jurisdiction sh~,ll submit a completed .;ummar)" claim form to the County Integrated Waste Management Program for the share of the Fee revenue to be based on documented tonnage. The Participating Jurisdictions will attach franchised or contracted waste stream documentation to the claim form, and will maintain detailed records supporting such claims, such ~s weight tags and disposal receipts, and have them available for inspection upon written request b’y County, or any other Participating Jurisdiction. 4. AMOUNT OF FEE COLLECTED. The Fee’shall be collected in the amount of $1.15 per ton of wastes disposed of at landfills located within the county. No additional administrative fee shall be collected. The revenue share each Participating Jurisdiction will receive shall be used to assist in funding the costs of preparing, adopting and implementing the integrated waste management plan in said Participating ~urisdiction. City shall indemnify, hold harmless, and defend County, its officers, agents, and employees with respect to any loss, damage, liability, cost or expenses, including attorney fees, arising from misuse of the Fee distributed to City. County shall indemnify, hold harmless, and defend City, its officers, agents, and employees with respect to any actions brought by third parties based on County’s negligence in the collection or distribution of said fees. 5. DISTRIBUTION OF FEE. County shall distribute the Fee to the Participating Jurisdictions pursuant to the formulae described in Exhibit B within 45 days of the due date of City’s Claim Form to the County. Payments shall begin in late December, 1994, and continue quarterIy through August, 1996. 6. LATE PAYMENTS. If Fee payments are not received from landfill operators pr.ior to schedu!.ed distribution of’ payments to Participating Jurisdiction’s, payment distribution shall be calculated on a pro rata share of monies received. Upon collection, late Fee payments and accrued delinquent penalties, if any, shall be distributed among Participating Jurisdictions in the same manner as Fee payments for undocumented tonnage pursuant to Exhibit B. 7. ACCOU~’NTh-’qG. County shall maintain records of all transactions related to ’collection and distribution of the Fee for at least five (5) years after the termination date of this Agreement, unless otherwise required by law to retain such records for a longer period. Such records will be available for inspection upon written request by City, and will include but not be limited to tonnage reports submitted by landfills, waste stream documentation provided by the Participating Jurisdictions, and payments made by the landfills to the County and by the County to the Participating Jurisdictions. 8. REQUEST EOR REVIEW. In the event City has a dispute with the calculation of its share, City may request in writing a review by County.within 10 days of receipt of their Fee al!ocation. The review shall be performed within 30 days and results shall be reported to City in writing. 2 9. EFFECTIVE DATE OF AGR.EEMENT: This agreement takes effect only upon approval by all Participating Jurisdictions. Approval constitutes return of a fully executed Agreement to County. 10. TERM OF AGREEMENT. The term of this Agreement shall be from July 1, 1994, to June 30, 1996, or until al! revenue from the last quarter’s Fee payments has been distributed. County will bill the operators of the landfills listed in ExhibitA for the Fee commencing with the Quarter ending September 30, 1994. Said landfills will be billed for the Fee through June 30, 1996. 1!. AMENDMEaNT. Each party to this Agreement shall designate a representative who shall be authorized to approve changes in the distribution formulae for submission and appr.qval by the Solid Waste Commission of Santa Clara County. 12. EXTENSION OF TEP, aM. This Agreement may be extended for s~cceeding ~vo- year terms if all Participating Jurisdictions so agree in writing. 13. NOTICES. All notices and payments shall be made as follows: City of : County of Santa Clara: Integrated Waste Management Program Manager Santa Clara County Solid Waste Program 1735 North First Street, Suite 275 San Jose, CA 95112 3 liW WITNESS WHEREOF, the parties have executed this Agreement on the dates as stated below: "COUNTY" COUNTY OF SANTA CLARA, a political subdivision of the State of California by: Chairperson, Board of Supervisqrs Date ATTEST: Clerk, Board of Supervisors Date APPROVED AS TO FORM AND LEGALITY: Brian Carr Deputy County Counse! Date "CITY" CITY OF a municipal corporation. by: Title:Date 4 EXHIBIT A LANDFILLS LOCATED I!q THE NORTH COUNTY AREA Guadal.upe Rubbish Disposal Site Kirby Canyon Sanitary Landfil! Newby Island Sanitary Landfill OwensTCorning Fiberglas Landfill Palo Alto Refuse Disposal.Area Zanker Road Landfill LANDFILL LOCATED IN THE SOUTH CO .~TY AREA Pacheco Pass Sanitai’y Landfill ATTACHMENT B FIRST AMENDMENT TO AGREEMENT This is the first amendment to that certain agreement by and between the (City) and the County of Santa Clara (County), entitled Agency Agreement for a Countywide AB 939 Implementation Fee, entered into on the day of ...... , 1994. The parties agree that: 1. Said Agreement is amended as follows: "FORMULAE FOR DISTRIBUTION OF FEE," Ex.hibit "B" to the Agency Agreement, is amended in full as set forth in the attachment hereto.. The first sentence of Paragraph 4 is amended to read as foIlows: Until June 30, 1996, the Fee shatl be collected in the amount of $1.15 per ton; beginning July 1, 1996, the Fee shall be collected in the amount of $1.30 per ton of wastes disposed of at land~ffils located within the Co The remaining provisions of Paragraph 4 remain in effect. Paragraph 5 is amended in ful! to read as follows: County shall distribute the Fee to the Participating Jurisdictions pursuant to the formulae described in Exhibit B within 45 days of the due date of City’s Claim Form to the County. Payments shall begin in late December, 1994, and continue quarterly through August, 1998. D. Paragraph 10 is amended in full to read, as follows: The term of this Agreement shall be from July 1,.1994, to June 30, 1998, or until all revenue from the last quarter’s Fee payments has been distributed, whichever is later. County will bill l~he operators of the landfills listed in Exhibit A for the Fee commencing with the Quarter ending September 30, 1994. Said landfills will be billed for the Fee through June 30, 1998. Except as amended herein, all the terms and conditions of said agreement shall .remain in full force and effect. 3. The effective date of this Amendment is July 1, 1996. WHEREFORE the parties, through their duly authorized representatives, have entered into this Amendment to A~eement on the dates shown below: "COUNTY" COUNTY OF SANTA CLARA, a political subdivision of the State of California by: Chairperson, Board of Supervisors Date ATTEST: Clerk, Board of Supervisors Date .. APPROVED AS TO FORM AND LEGALITY: Kathy Kr~.tcl~mer Deputy County Counsel Date "CITY" CITY OF, a municipal corporatign. by: Title:Date ATTACHMENT C SECOND AMENDMENT TO AGREEMENT This is the second amendment to that certain agreement by and between the (City) and the County of Santa Clara (County), entitled Agency Agreement for a Countywide AB 939 Implementation Fee, entered into on the day of , 1994, and previously amended on the day of ~_, 1996. The parties agree that: 1. Said Agreement is amended as follows: A."FORMULA FOR DISTRIBUTION OF FEE," Exhibit "B" to the Agency Agreement, is amended in full as set forth in the attachment hereto.~ B.. Paragraph 3 is deleted in its entirety. C. Paragraph 5 is amended in full to read as follows: County shall distribute the Fee to the Participating Jurisdictions pursuant to the formula described in Exhibit B within 90 days of the end of the calendar quarter for which the fee was collected. Payments shall begin in late December, 1994, and continue quarterly through August, 2000. o D. Paragraph 10 is amended in full to read as follows: The term Of this Agreement shall be from July 1, 1994, to June 30, 2000, or until all revenue from the last quarter’s Fee payments has been distributed, whichever is later. County will bill the operators of the landfills listed in Exhibit A for the Fee commencing with the Quarter ending September 30, 1994. Said landfills will be billed for the Fee through June 30, 2000. Except as amended herein, all the terms and conditions of said Agreement and the First Amendment to Agreement shall remain in full force and effect. 3. The effective date of this Amendment is July 1, 1998. WHEREFORE the parties, through their duly authorized representatives, have entered into this Amendment to Agreement on the dates shown below: "COUNTY" COUNTY OF SANTA CLARA, a political subdivision of the State of California ATTEST: by" Chairperson, Board of Supervisors Date Clerk, Board of Supervisors Date APPROVED AS TO FORM AND LEGALITY: K~hy Kretchr~r " Deputy County Counsel Date "CITY" CITY OF a municipal corporation. by: Title:Date 2 EXHIBIT B FORMULA FOR DISTRIBUTION OF FEE The County of Santa Clara shall allocate proceeds of the AB 939 Implementation Fee to jurisdictions located in Santa Clara County based on the tonnages for each jurisdiction as reported in quarterly landfill disposal. reports submitted to the County by landfill operators under the State of California Disposal Reporting System. Fees collected on tonnage originating outside of Santa Clara County will be distributed to Santa Clara County jurisdictions according to each jurisdiction’s percent share of countywide population, according to the latest available State Department of Finance Report.