CC 05-07-2024 Item No. 8 -Approve a First Amendment with HF&H Consultants_Written CommunicationsWritten Communications
CC 05-07-2024
Item No. 8
Approve a First
Amendment with HF&H
Consultants
From:Rhoda Fry
To:City Clerk; City Council
Subject:City Council Agenda Item #8 - HF&H Consultants Garbage May 1 2024
Date:Wednesday, May 1, 2024 8:06:54 PM
Attachments:GARBAGE.pdf
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Dear City Council,
Regarding the revised contract with HF&H, please remove this item from the consent
calendar.
I think that it would be beneficial for the contract to include the following work items:
1. The franchise fee that we are charging to Recology are looking like a tax and we need to
ensure that there is a nexus
2. The value that we are getting for our money from the Recology contract (it seems that
other cities are getting more bang for their buck – e.g. more recycling for less $)
Please read the attached (which I sent you last December) regarding the above.
Dear City Clerk,
Please included the attached inline to ensure that it can be viewed.
Thanks,
Rhoda Fry
Virus-free.www.avg.com
From: Rhoda Fry
To: Cupertino City Council
Re: Agenda Item #6 Recology
I am writing you regarding two aspects of the garbage contract, the fees paid by Recology to
Cupertino and the garbage rates.
Fees Charged by City to Recology - looks like a Tax
In 2024 (actually Feb 2024 – Jan 2025) the City will charge Recology a Fee of approximately
$3.7M. If garbage rates go up, the fee goes up. In 2021, this fee was $2.9M per year. That’s a 27%
increase in fees levied on Recology! An $800K hike in just three years! (2.9 x 1.27 = 3.7). In order
for Recology to recoup that cost and remain profitable, it would need to charge more for our
garbage. INCREASES IN CITY FEES, INCREASES RESIDENTS’ COST OF GARBAGE.
Fees Collected from Recology go to Two City Funds
• General Fund gets $2.1M. That looks like a tax. There’s no apparent connection (nexus)
between the fee charged and the purpose for which it has been charged.
• Solid Waste Fund Operations Fees Fund 520 gets $1.6M. But that money hasn’t been used
much. In August 2023, that fund balance was $4.8M.1 So once again, there’s no apparent
connection (nexus) between the fee charged and the purpose for which it has been charged.
Furthermore, is it okay to use this restricted fund to kick back money to Recology to
“smooth” garbage rates?
And because the City is reducing its kickback to Recology, the net increase to the City
coffers has been just over $1M in the past three years.
Why Do We Care? Taxation without Representation
The City appears to be taxing our garbage in order to raise funds for general use and for a fund that
is not being fully used. The residents have not voted for these fees that sure look like taxes and the
California Supreme Court thinks so too. The City cannot tax residents without a vote.
California Supreme Court Ruled on Franchise Fees in 2022
In 2022, the City of Oakland failed to demonstrate that solid waste franchise fees included in the
City’s solid waste franchise agreements were exempt from voter approval.2 The firm BBK,
recommends “Local agencies that receive franchise fees from a solid waste hauler may wish to
consult with their legal counsel to discuss implications of the case.”
1. Please consider that fees charged to Recology are taxing residents on their garbage rates
2. Please ask City Attorney to provide an opinion as to whether:
A) Is it okay to use the Restricted Fund 520 to kickback money to Recology?
B) The California Supreme Court ruling on fees applies to Cupertino.
1 City Treasurer’s Report 8/23:
https://cupertino.legistar.com/LegislationDetail.aspx?ID=6348231&GUID=1BB9CCFE-6363-4367-ADC0-
903E190950E0&Options=&Search=
2 Franchise Fees BBK: https://bbklaw.com/resources/california-supreme-court-rules-on-franchise-fees-for-solid-
waste-contract; Franchise Fees CAL Cities: https://www.calcities.org/news/post/2022/08/24/california-supreme-
court-ruling-in-franchise-fee-case-offers-more-questions-than-answers
Garbage Rates are High It looks like we are getting less for our money than other communities. Our
effective rate without the $2.01 per month subsidy is $44.20, making Cupertino higher than Campbell,
Gilroy, Morgan Hill, and Mountain View. The table below provides more data than the staff report.
Recology serves Gilroy and Morgan Hill which cost less. Separately, our Council received a presentation on
reducing our environmental impact through improved trash sorting that is used by our neighbors such as
Mountain View and Sunnyvale; this would increase our rates by $5 to $8 per month (see $5 added in table
below titled Cupertino GREEN to compare).3 If Cupertino offered a greener level of services like Mountain
View Sunnyvale, Cupertino rates would be higher than most communities in Santa Clara County.
1. Please read the San Francisco Chronicle article, “S.F. waste giant Recology made millions more in
profits than allowed, according to new report” 4 2. Please try to improve the Recology contract or
consider a different vendor so that resident’s get their money’s worth.
City/Monthly Cost 19-24 Gal 32 Gal 35- 36 Gal 64- 65 Gal Company
Campbell $34.51 $42.74 $77.56 West Valley
Cupertino $37.78 $40.18 $77.33 Recology
Cupertino Hills $62.10 $64.51 $125.91 Recology
Cupertino 2024 $39.67 $42.19
Cupertino 2024 $41.68 $44.20 Including Subsidy
Cupertino GREEN $46.68 $50.20 Minimum of $5 more if Cupertino goes greener
Gilroy $40.42 $57.81 Recology
Los Altos $48.44 $96.87 Mission Trail
Los Altos Hills $42.52 $59.26 $118.58 Green Waste
Milpitas $36.46 $53.54 Milpitas Sanitation
Monte Sereno $42.48 $52.83 $96.64 West Valley
Morgan Hill (48 gal.) $41.49 Recology
Mountain View $28.90 $42.10 $84.20
Palo Alto $27.81 $50.07 $100.15
San Jose $51.40 $102.80
Santa Clara $49.12 $72.74
Saratoga $37.38 $46.40 $84.65 West Valley
Sunnyvale (43 gal) $38.46 $46.64 $52.46 Bay Counties
Unincorporated Burb. $30.64 $37.64 *Burbank* $59.04 Green Waste
Unincorporated East $43.57 $45.08 $83.39 Recology
Unincorporated West $30.32 $50.76 $105.46 Green Team
Unincorporated South $34.98 $40.47 $90.47 Green Waste
Franchise Agreements in California: https://calrecycle.ca.gov/lgcentral/franchiseagreement/
Links to Garbage Rates in Santa Clara County Cities:
https://westvalleyrecycles.com/garbage-rates-and-cart-sizes/city-of-campbell-garbage-rates/
https://www.cupertino.org/home/showpublisheddocument/30289/638150887302100000
https://www.cityofgilroy.org/DocumentCenter/View/13481/Gilroy-Franchise-Agreement---12-01-2022-
https://missiontrail.com/losaltos/los-altos-service-rate-for-cart-bin-dumpster/
https://www.losaltoshills.ca.gov/479/GARBAGE-RECYCLING-COMPOST
https://www.milpitassanitation.com/residential/servicemenu/ (sizes are different)
https://westvalleyrecycles.com/garbage-rates-and-cart-sizes/city-of-monte-sereno-garbage-rates/
https://www.morganhill.ca.gov/DocumentCenter/View/43478/Recology-South-Valley-Agreement?bidId= page 44
https://www.morganhill.ca.gov/106/Garbage-Recycling phone call $41.49 for 48 gal, not in hills and no street sweep
https://www.mountainview.gov/our-city/departments/finance-and-administrative-services/billing/utility-billing/trash-recycling-
rates?locale=en
https://www.cityofpaloalto.org/Departments/Public-Works/Zero-Waste/About-Us/Refuse-Rates
https://www.sanjoseca.gov/your-government/departments-offices/environmental-services/recycling-garbage/residents/garbage-
recycling-rates-billing
https://www.sunnyvale.ca.gov/homes-streets-and-property/utility-billing/utility-rates (2-month billing)
https://reducewaste.sccgov.org/taxonomy/term/266 (many unincorporated areas)
Stanford rates not provided – need login https://pssirecycling.com/faculty-staff/rates/
3 https://www.sunnyvale.ca.gov/homes-streets-and-property/recycling-and-garbage/smart-station-recycling-center
4 https://www.sfchronicle.com/sf/article/S-F-waste-giant-Recology-made-millions-more-in-17177504.php