HomeMy WebLinkAbout0347.092-
Ju}y 23. 1992
THE HONORABLE CITY COL~CIL
Palo Alto, california
Agency Agreement for a County:wide AS 9 39 Irnpl~_!llentatiQn Fee
Members of the CO'..lncil:
Report in Brief
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On June 2; 1992 the S;)nta Clara County Board of Supervisors
unanimously adopted a resolution approving collection of a
Countywide AS 939 In-.plementC!tiol"', fee ":In landfills on behalf of all
jurisdictions in the County~ The fee is to fur.d city AB 939
programs. In order tor the fee to t.'!.ke effect, each city must
E:.xe-cute an _'qency Aqreelt'.ent with the County by July 31~ 1992. A
copy of the proposed Agreement is attached (Attachment A). The
proposeQ Countywide fee will provide some financial assistance to
Palo Alto's recycling efforts, more equitably spread the burden of
funding AS 939 implementation, and will result in the elimination
of the City of San Jose AB 939 fee. This CcuntY""ide fee is
initially estimated to be a revenue increasa~ Based on the
County's formula (Att~chrnent 8) ~ Palo Alto 'W:Juld be assessed
$90,500 and actually receive $113,000 in collected fees in E'Y 1992-
93. While the actua.l numbers ""ill vary, Palo Al to ;.rill always
receive more mo~ey than it pays out because it will receive a pro
rated share of the fees generated by all jurisdictions undocumented
tonnage. Eventually, as cities begin to docul'!'.ent more of thei r
wastes, tbe fee is estimated to be fisc.ally neutral to Palo 1>.lto.
The Integrated ~aste Managem~nt Act of 1989 (AS 939), specifically
Public Resources Code section 41901, grants authority to a city.
county I or city and county, to ilI',pose tee.5 in amounts sufficient to
pay the costs of preparing, adopting ar'ld impleme.nting an integrated
~aste management plan.
In March 1991~ the Solid Waste CommittE'c of santa Clara CO'..lnty
(SWC) directed its Technical ~.dvisory Committee (TAC) to evaluate
the feasibility of a tonnage-bas~d countYlNide AS 939 fee to be
assessed on all -.rastes landfille:d in the county. The purpose of
this fee ~ould be to assist all jurisdi=ticns in funding programs
associated with implementing their Source Reduction and Recycling
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l· and Household Haz.ardous Waste Elements of the CountY'Jide rntegrated
Waste Manuqemen~ Plan.
In July 1991 the city of Sa~l Jose imposed a $0.25 per ton AS 939
Fee on all wastp.s disposed of at landfills located in San Jose.
The rever,ues from this fee have been used by San JO;E;.e to fund that
city"s A::l 939 prc-grams. The !rIajority of the solid 'Waste prod1Jced
in Santa Clara county is landfilled in San Jose and is thus subject
to the San Jose fee. other jurisdictions strongly object to paying
t.he current San Jose AB Sl39 fee, .. hieh does not benefit their
residents. Elimination of the Sah JOSE fee (by replacing it with
a countywide fee.) hdS provided mue!'".! of the i'lllpetus fo=-devE':lopment
of a Countywide fee.
On April 22, 1992, the City of San Jose Environment committee
accepted a staff reconmendati~n tha~ the San Jose fee be set at
$0.00 p~r ton if a $1.00 per ton count~'ide fee is in effect as of
July 1, 1992. In tha everlt the Countywide fee is not made
effective as 0: July 1, 1992, San Jose staff recommended setting
the city of San Jose fee at $1.00 per ton, with all proceeds to be
retained by San Jose. If th'a San Jose Environment Comrni ttee
recommendation is approved by ~he San Jose City Council, end if the
countywide AS 939 Fee is not implemented to be effective July 1 as
provided under the attached agree:nent, landfill operators -will have
to pass through to their custO!i1ers the additior.al $0.75 per ton
charge, with all proce.eds going to the City of San Jose,
lnitial Fee Level
The SWC endorsed a '!'AC recommendat ion that county statf develop a
Countywide AB 939 fee on landfill operations, to be set initially
at $1.00 per ton, with the understanding that the city of San Jose
'Would rescind its Landfill 10.8 939 Fee when the Countywide fee
became effective. The $1.00 per ton tee ""as supported by county
staff and a majority of the represented cities' staff. The SWC
requested that all jurisdictior..s stipulate programs to be funded
'ialith the new fee a,s early as practicable. Cit>" of Palo Alto staff
proposes the funds received from this fee be used to offset program
costs already identified in the fiscal years 1392-93 and 199]-94
two-year budget for AB 939 progra~s. county staff has prepared an
initial estimate of revenues expected to be derived from the AB 939
fee (Attachment B).
Revenues ~ould then be allocated according to a formula based first
on the amount of franchised or satisfactorily docunentad .·astes
reported by each jurisdiction, .... ith the remaining funds distributed
on the basis of populaticn. Actual revenue receipts may diffe:r,
depending upon the size of the fiscal year 1992-93 waste stream
landf illed in Santa Clara C01.lnty. and the. amount of 'Waste
documented by each participating jurisdiction. Using the County's
initial estimates, Palo Alto ~Duld be assessed $90,500 in 1992-93
and receive $113,000.
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The county ~ill collect and distribute the AB 939 fee revenues.
'TI-le county solid W'~ste program .... ill bill landfills on 3. quarte.rl~r'
basis., as is done. for the current SOlic! 'Waste planning fee.
Payments to jUt"isdictions ;,,'ould begin 'Within 4S da:l-'s after the
first landfill billing payment due date~ No administrative fees
will :be assessed by the County solid ...... aste prog'ram due to indirect
costs to the county being offset by the interest earned for the
county General Fund on the fees collected.
ApproY·l1 bv the cities
Each jurisdiction nnlst contract 'With the ccunty for the c~llection
and distribution of the fee~ All 15 cities in the County must
approve a form of the attached Agency Agree'1t,ent for a COu:1.t~,.ide A.B
939 11!1ple1"ientaticn Fee by July 31, 1992~ The complexities of santa
Clara County's disposal patterns r.'.a)ce imposition of s'~ch a fee
difficult to accomplish on a jurisdiction-by-jurisdiction basis~
Therefore, the fee cannot be implemented 'dithout the approval of
all jurisdictions in the Co~nty. Because almost all ~aste
generated in the County ,,",ill eventually find its way to one of the
landfills in tne County, the disposal-based fee proposed is an
equi table method of a.llocating a portion of U,e cost of AS 939
compliance to all waste generators in the county.
Once jurisdictions have approved part.ic i_pat ion. they must
participate until the proposed agrep=.ent expires ~n June 30, 1994.
The fee mechanis:JI ",ill be evaluated in January 199(. after a full
year of revenue has been paid to particip~tinq jurisdictions.
Consegu~nct=!:s onL...B_.:;!gative Action
In the event the countywide fee is not impler.ented~ ratepayers from
all jurisdictions whose waste is disposed at landfills located in
the City of San Jose ~il1 continue to underwrite San Jose's AB 939
implementation costs. the San Jose fee ~ould not sunset and could
be ir-.creased. and all jurisdictions would not enj':'lY equity in
funding the implementation of AB 939.
En .... ironmental Impact
The ag,eement is exempt fro~ the California Environmental Quality
Act (CECA) under S€ction 15273, of tne CEQA Guidelines.
Recommendation
Staff recommends that Council:
1) make the follo~inq findings required under Section 15273 of the
CEQA Guidelines:
The City Council hereby fi~ds that CEQA does not apply to the
establishment, structuring or approval of the AS 939
Implementation Fee because the purpose of the fee is to
assist with:
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a) meeting operating expens~s for the City's AB 9)9
programs under the Refuse Enterprise Fund;
b) purchasing or leasing supplies, equipment OL materials
to implement the City's AS 939 programs; and
C) meeting financial reserve neeos and requirements for the
City's Refuse Enterprise Fund Reserve.
2) approve and authorize the. Mayor to execute the attached Agency
Agreement with Santa Clara County for a Countyvide AB 9)9
ImplementatiQn Feea
Respectfully submitted,
~.(¥
MICHAEL .H. MILLER
Deputy Director. public Works Operations
~\ ' ~ /; 11 U,-ou Uu Jlc.~C~~_
DAVID G. ADAMS
Director of Public Worxs
?\~~"
JUNE FLEMING
Assistant city Manager
Attaclunents: A
B
Agency Agre:e~ent
Fee calculation
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Attachment A
AGENCY AGREEMENT FOR A COUNTYWIDE
AB 939 IMPLEMENTA nON FEE
This Agreement is made by and betv.'een the Ci~j of Palo Alto
(City) and tl,. County of Santa Clara (County) on the ___ _
____ ~. 1992.
RECITALS
day of
Vv'HEREAS~ pursuant to Public Resour<:es Code Section 41901 .. a city, county,
or city a..'1d counfy may impose fees in amounts sufficient to pay the costs of
preparin~ adopting. and imple-menting an integrated waste management
plan; and
WHEREAS, the Solid V'laste Commission of Santa Clara. County has
determined that a Countywide AB 939 Implerner.tation Fee (F...,) for each ton
of wastes disrosed of at landfills located within the county should be coilected
to assist in funding the cost~ of preparing, adopting and implementing the
integrated waste management plan in ti-.e flfteen cities and the
unlnoorporated areas of the county; and
\'VHEREAS, t.1-te County of Santa ~1ar~ win coUect said Fee frorn each landfill
in the: counly 0;\ behalf of the fifteen drt~ and the un.!ncorporated area
(p2l.rticipating jurisdictions), and '",.\-ill apportion the Fee according to formula;
NOW, THEREFORE, CITY A.'JD COUNTY AGREE AS FOLLOWS,
1. PVRPOSE. TI-.2' purpose of this Agreement is to state the teru,s and
conditions under ,,,,,hich Cow1fy will collect a Fee ':m each ton of wastes
1andfilled at permitted disposal sites located within the counl)'r.md ~"'m
apportion the Fee to City ar,d other parfidpating jurisdictions.
2. SERVICES PROVIDED BY COll]','TY. The County will collect and
distribute the Fee revenues. The County will collect the Fee by billing
operators of the landfills listed in Exhibit Ar and any disposal site
subsequently permitted, on a guarter1y basis using data from tonnage reports
frled by landfill operators with the State Board of Equalization and/or the
Regional "'Vater Qua!lt)' Control Board. The revenue collected will be
dfsh'ibuted to City and to other participating jurisdictions based on t..~~
forrnu!a set out in paragraph 5 below. The County will not be responsible for
uncollected Fee revenues .
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3. ROLE OF PARTIClPA TING )1JRlSDICTIONS.
{-'J) Upon execution of this Agreement, each participating jurisdiction will
file i..'1iormation v.'ith the County Solid Waste Progr~-n of t.'1e Office of
Toxlcs and Solid Vlastc Management on programs to be funded with
Fee revenues. Information \'liH include but not be limited to brief
sununarjes of funded programs and listing of tbe costs of such
progra!11s.
(b) Within 3G days of the end of each quarter, City shall submit a summary
claim to the County Solid Waste Program for the share of Fee revenue
to be based on City's documented tonnage. City ..... ;ll maintain detailed
records supporting such cJaimsJ induding weight tags and disposal
receipts of CHy's dO<llmented tonnage. and have them avaiiable for
inspection upon 'Written request by County, or .any other p.:..rrkipating
jurisdiction,
4. AMOUNT OF FEE COLLECTED. The Fee shall be collected in the amount
of $1.00 per ton of wastes disposed of at Ian.dfills located w'lthin the County,
The revenue share each participating jurisdiction ..... ill receive shall be used to
assist iT! fUT"O,ding the costs of preparing.. adopting and implementing the
integrated ""aste manag€ment plan in said participating jurisdiction, City
shali indemnify, held harmless. and defend Counly, its officers, agents, and
employees ",,1th respect to any loss, damage, liability, cost or expenses,
indurling attorney fees. arising from rr.isuse of Fee distributed to City.
5. FORMULA FOR DISTRIBUTION Of FEE
The Fee ""ill be dlstribuled according to the follo~ing forrnula:
5 = [OT + (CT-TDT) x prj xJ\
S = participat1p.g fLlr£sdiction's share of Fee revenue
DT = participating jurisdiction's documented tonnage
CT '= countyv.~~de tonnagE: disposed of in landfilis
TDT = ('ountyv .. -ide documented tonnage
PP = participating jurisdiction's population according to the
latest available Stah? Department of Finance Report,
expressed as a percentage of the total county population.
N = Fee amount, currently $1.00 per ton.
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6. DlSTIUBUTION OF FEE. Cou..-,ty shall distribute the Fee to the
participating jurisdictions pursuant to the formula dr:scribed above within 45
days 01 the due date 01 the Fee payment by the ope,ators of the landfills.
Paymt?'1ts shall begin in la.te December, 1992, and continue quarterly through
A4gu,t, 1994.
7. LATE PAYME..I'\'7S. If Fee payme!1ts are not received from !andfH!
opt',rators prior to scheduled dlstribution of paymf'l1.ts to cities. payments shall
be calculated on a pro rata share of monies r~ved. Upon collection, late Fee
payments and accrued delinquent per.a1ties~ if any, shall be distributed among
participating jurisdictiC'ns 'according to the terms of the Agreem.er;t.
8. ACCOlil\FTING. Cou.'"lty" shaH maintain records of all transactions related
to collection and d:stribution of the Fee, and ha.ve them available for
inspection upon written request by City. Sud\ record$ \\oiU include but not be
limited to tonnage reports subznj!ted by landfills, waste stream
doa.;.mentation provided by participating jurisdictions, and payments made
by the landfills to tr.e County and by the County to the participating
jurisdicfions.
9. REQUESf FOR REVlEW. 1n the event City has a dispute with the
calculation of the'ir share, City may request in writing a review by County
within 10 days of receipt of City's Fee allocation. The review shaH be
performed ·within 30 days 3nd results shall be reported in writing.
10. EFFECTIVE DATE OF AGREEMtNT: This a~ent takes effect only
upon approval by all participating jurisdictiGils. Approv.u constih..:tes return
of a fuUy exc'CUted Agreement to County by July 31, 1992.
11. TERM OF AGREEMENT. This tenn of this Agreement sh21! be from July
1,1992, to June 30, 1994, or until aJ.I revenue from the last quarte.r's Fee
payments has been distributed. County "'NiH bill the operators of the landfiUs
listed in Exhibit A for the FE'€ commencing ""ith the Quarter ending
September 30, 1992. Said landfills will be billed for the Fee through June 30,
1994.
12. EXTE!%ION OF TERM. This Agreement may be extended from year to
year with no change in tenns or conditions if all participating jurisdictions so
agree in ·wTiting.
13, NOTICES. All notices hereunder shall be made as follows:
Cit,,-of Palo Alto Ci ty Clerk
250 Hamilton AveC:ue
Palo Alto, CA 94301
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All payments hereunder shall be made a5 hllaws:
City of Palo Alt", Director or Finance
250 Hamilton Avenue
Palo Alto, CA 94301
County of Santa Clara:
Solid Waste Program ~1anager
Santa Clara County Sorid Waste Program
1735 N Oi'tll First Stn=.-'et, Suite 275
San jose, CA 95112
IN WTINESS WHEREOF, the parties have executed this Agreement on the
dates as stated below:
"COUNTY"
COUNTY OF Sfi_".JTA CLARA,
a political subdivision of the
State of Califonua
by::-,---,-
Chairperson; Board of Supervisors Dare
ATTEST:
Clerk-Board of Supenisors
APPROVED AS TO FORM: A"iD LEGALITY:
Kathy Kretchmer
Deputy COunty Counsel
Date
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"cITY"
CITY OF ____ -,-__ _
a municipal corporation.
by: ___________ _
Mayor Date
ATTEST: APPROVED AS TO CO!'.lEST:
City Clerk Director of Publlc Works
APPROVED AS TO FORM: APPROVED:
Sr. Asst. City A !tamey Director of Finance
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EXH!SIT A
LANDHUS LOCATED IN SANTA CL'UIA COUNTY
All Purpose LandfiU (Santa Clara)
Guadalupe Rubbish Disposal Site
Kirby Canyon Sanitary Landnu
Mountain Vi.ew Landfill
N~wby Island Sanitary Landfill
(h,'It"ns-Corning Fiberglas Landfiil
P a meeo F .:a5S Sanitary Landm!
Palo Alto Refuse Disposal Area
Sunnyvale Sanitary Landfill
Zanker Road Disposal and Recycling Center
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COUtfTvwlDE AB 0:19 Fe-E CALCULATION
553,103.25
$46,061.02
$,39.305,85
SG.4!57.48
$-41,5S0.:l!l
$701,135.86
$4,236.69
$Je,74S.05
VIEW 68,iDoi 4.51%t 71.524) 27.106,1/ $'18,710.0(,
1112,1£0.63
S7:l1,!HIO.16
$9:J.3'4."~
$JB,2HLQ7
$1Gg,6:>2.4 Q
1. Popu!nl1on dalA ,mm Coli/ornl,. OllflDrtl'l1lJnt 01 Flrlsnce ~S,rrT1ftlO*. Jnnul'ry " 19D1 (publl.hed Mlly 3,
2. Dor.um8nlad WAIIII '1!rll(lm I(1Mngn W9'8 rarK'"",,1 by jllrl,dlc;)on, lor calendar Y"8f ,~g,. Obr:vmonlld
lo"n"o" drl' primarilY IrAf'lc!'1ll1od; or Dlhll' docvmenlatlon such AS weigh! 1119' I\nd dl'pnlal ,ec81t11.,
::I. lAndfll18d lonnng" Imm (JlJArtl)rly ropnr,! iliAd with Ihll nllglonl'll Welo' Qu_Illy ConltO! BOl'.d by eacM
InndlP) for cAlendAr ylh1r l!)g,.
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