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14. Solid Waste ManagementCUPERTINO PUBLIC WORKS DEPARTMENT SUMMARY AGENDA ITEM I AGENDA DATE May 4, 2010 SUBJECT AND ISSUE Assembly Bill (AB) 939 Solid Waste Managerrimt programs: a Adopt a resolution approving the Agency Agreement for the Countywide AB 939 Implementation Fee for FY 10 -11. b. Adopt a resolution approving the Agreement for Countywide Household Hazardous Waste Collection Program for FY 10 -11. c. Adopt a resolution authorizing execution of the First Amendment to the Agency Agreement for the Countywide Household Hazardous Waste Collection Program for FY 09 -10. BACKGROUND In 1989, the California Legislature passed AB 939, which mandated that cities and counties divert from landfills 50% of their solid waste through source reduction, recycling and composting programs. Local agencies could determine their own activities to achieve the waste diversion goals required by the bill. AB 939 Implementation Fee For FY 10 -11 Since July 1992, the County of Santa Clara has collected a Countywide AB 939 Implementation Fee (Fee) from landfills and non - disposal facilities within the County. The Fee is levied on each ton of waste delivered to the landfills and non - disposal facilities. That portion of the Fee collected on behalf of the cities of Santa Clara County (approximately $60,000 annually for the City of Cupertino) is distributed to the cities q uarterly for the purpose of funding city - specific programs required for meeting AB 939 waste stream diversion goals. Countywide Household Hazardous Waste Collection Program for FY 10 -11 The AB 939 Implementation Fee collected by the County on behalf of Cupertino is divided between the City's AB 939 implementation program and the Household Hazardous Waste (HHW) Collection Program administered by the County on the City's behalf, for which the 14 -1 County retains the balance of Cupertino's annual share of the Implementation Fee. As in the past, the proposed 2010 -11 operating budget recommends additional funds ($65,000 for FY 10- 11) to provide HHW services for all Cupertino households that want to participate in the County's HHW drop -off program. The City's augmentation of funds complements the basic HHW Collection program administered by the County to cover approximately 8% of households. The baseline for participation among Santa Clara County cities is 4% of the households. Beginning November 1, 2010, the City's franchised garbage hauler, Recology (formerly known as Los Altos Garbage Company), will provide, by sub - contract with Curbside Inc., door -to -door household hazardous waste collection service to residents. Since the door -to -door collection will not be available until November 1" 2010 and the percentage of residents that will choose to use the door -to -door service is uncertain at this time, the City will utilize both the County's HHW program and Curbside Inc.'s service -by- appointment throughout fiscal year 2010 -2011. Next year, staff will reconsider funding the additional residential participation in the County's HHW program in light of the residents' initial participation in the Curbside Inc. program. In order for the Countywide AB 939 Implementation Fee to continue to be collected and distributed, the County of Santa Clara and the fifteen cities within the County, including Cupertino, have negotiated and are prepared to execute a new Agency Agreement for the Countywide AB 939 Implementation Fee. HHW Program services are directly mandated under AB 939, which establishes statutory authority to provide for funding to support planning and implementation of integrated waste management programs. In order to facilitate a portion of the Implementation Fee being directed to this latter purpose, the County and the fifteen cities have negotiated and are prepared to execute an Agreement for the Household Hazardous Waste Collection Program. On June 30, 2010, both of the current Agreements will expire. The new Agreements have been approved by the County of Santa Clara and presented to the fifteen cities for approval. Components of the Implementation Fee have been set at the appropriate levels to fund the AB 939 and HHW programs. Both Agreements now need to be approved and executed. The Recycling and Waste Reduction Commission (RWRC) of Santa Clara County has determined that in order to fund the HHW services and expanded Universal Waste management in the fifteen cities and the unincorporated area of the County, the Fee should be set at $4.10 per ton, which includes two components, $1.50 to fund AB 939 Programs and $2.60 to fund the Countywide HHW Program. This tonnage fee reflects no change from FY 2009 -10. All fifteen cities are expected to approve the Agency Agreement for Countywide AB 939 Implementation Fee and the Agreement for Countywide Household Hazardous Waste Collection Program before July 1, 2010. If one or more cities do not approve these agreements, the AB 939 Fee will not be collected and the current funding mechanism for providing Countywide HHW services to residents will not be available. The term of the new Agreement for the Countywide AB 939 Implementation Fee and the new Agreement for the Countywide Household Hazardous Waste Collection Program shall be from July 1, 2010 to June 30, 2011. 14 -2 First Amendment to the Agency Agreement f ir the Countywide Household Hazardous Waste Collection Program for FY 09 -10 During FY 2009 -10 residents in the City of Cupertino have participated in safe disposal of household hazardous waste through the County's HI-IW drive - through, drop -off program at a higher level than anticipated. The City had agreed to pay up to $53,000 to provide County HHW services for approximately 1,420 vehicle loads of HHW during FY 09 -10. However, after review of actual service levels, Cupertino's year -end participation total is projected to be approximately 1,570 vehicles. The County has asked the City to amend its previous year's HHW Collection Agreement with the County to fund up to $63,000 thereby allowing more vehicles to participate in drop -off service during the current fiscal year. The additional $10,000 will ensure that the County of Santa Clara wil]. continue to provide household hazardous waste services to Cupertino residents for the remainder of FY 09 -10. If the Amendment to the Agreement is not signed, the County would be forced to turn away Cupertino residents that want to participate in the County's HHW Collection Program during the remaining two months of this fiscal year. FISCAL IMPACT Adoption of the resolutions will facilitate the Countywide AB 939 Implementation Fee being set at the appropriate level to fund the City's and Countywide AB 939 Implementation and HHW Collection programs adequately. Adoption of the First Amendment to the FY 09 -10 HHW Agreement will allocate $63,000 to pay expenditures for FY 09 -10 in FY 10 -11 (from account 520 - 8003 - 7108). Expenses for FY 09 -10 will be invoiced by the County September or October of FY 10 -11. Sufficient funds are available for the increase in residential participation. STAFF RECOMMENDATION Staff recommends that the City Council: a. Adopt Resolution No. 10 0 , approving the Agency Agreement for Countywide AB 939 Implementation Fee for FY 10 -11, and b. Adopt Resolution No. 10 - 0$S" , approving the Agreement for Countywide Household Hazardous Waste Collection for FY 10 1. c. Adopt Resolution No. 10- 0,ft , authorizing execution of the First Amendment to the Agency Agreement for the Countywide Household Hazardous Waste Collection Program for FY 09 -10. Submitted by: c� cat' Ralph A. Qualls, Jr. Director of Public Works Approved for Submission: a3l>( David W. Knapp City Manager 14 -3 ATTACM4ENT A RESOLUTION NO. 10 -084 DR AFT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO APPROVING THE AGENCY AGREEMENT FOR COUNTYWIDE AB939 IMPLEMENTATION FEE FOR FY 10 -11 WHEREAS, there has been presented to the City Council the "Agency Agreement for the Countywide AB939 Implementation Fee ", between the County of Santa Clara and the City of Cupertino; and WHEREAS, a countywide AB939 Implementation Fee was established in 1992 to assist the fifteen cities and the county unincorporated area to fund the costs of preparing, adopting, and implementing an integrated waste management plan in each jurisdiction as specified in the agreement; and WHEREAS, the Recycling and Waste Reduction Commission of Santa Clara County has determined the fee should be $4.10 per ton for fiscal year 2010-11 of the 1 -year term of the new Agency Agreement for Countywide AB939 Implementation Fee (Agreement) (July 1, 2010 to June 30, 2011) and imposed on each ton of waste landfilled or incinerated within the county or generated within the county and subsequently transported to non- disposal facilities or collection facilities located outside the county; and WHEREAS, the Agency Agreement provides for the County to administer the program to collect fees, and distribute the fees to each jurisdiction; and WHEREAS, said Agreement states the terms and conditions under which County will collect and distribute the fee for a 1 -year term that begins July 1, 2010, and provides for subsequent one -year extensions upon the written agreement of the County and cities; and WHEREAS, the provisions of the new Agency Agreement have been reviewed and approved by the Director of Public Works and the City Attorney; NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Cupertino hereby approves "the Agency Agreement for the Countywide AB 939 Implementation Fee for FY 10 -11" and authorizes the Mayor and the City Clerk to execute said agreements on behalf of the City of Cupertino. PASSED AND ADOPTED at a regular adjourned meeting of the City Council of the City of Cupertino this 4 1 day of May 2010, by the following vote: Vote Members of the City Council AYES: NOES: ABSENT: ABSTAIN: ATTEST: City Clerk APPROVED: Mayor, City of Cupertino 14 -4 ATTACHMENT B RESOLUTIOPi NO. 10 -085 LJKAFT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO APPROVING THE AGREEMENT FOR COUNTYWIDE HOUSEHOLD HAZARDOUS WASTE COLLECTION PROGRAM FOR FY 10 -11 WHEREAS, there has been presented to the City Council a new "Agreement For Countywide Household Hazardous Waste Collection Program ", between the County of Santa Clara and the City of Cupertino; and WHEREAS, the Agreement will provide for continued city participation in the household hazardous waste collection prograrri for fiscal year 2010 -2011; and WHEREAS, the provisions of the Agreement have been reviewed and approved by the Director of Public Works and the City latorney; NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Cupertino hereby approves "The Agreement for Countywide Household Hazardous Waste Collection Program for FY10 -11" and authorizes the Mayor and the City Clerk to execute said Agreement on behalf of the City of Cupertino. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 4 th day of May, 2010, by the following vote: Vote Members of the City Council AYES: NOES: ABSENT: ABSTAIN: ATTEST: City Clerk APPROVED: Mayor, City of Cupertino 14 -5 ATTACHMENT C RESOLUTION NO. 10 -086 UKAFT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AUTHORIZING EXECUTION OF THE FIRST AMENDMENT TO THE AGENCY AGREEMENT FOR COUNTYWIDE HOUSEHOLD HAZARDOUS WASTE COLLECTION PROGRAM FOR FY 09 -10 WHEREAS, there has been presented to the City Council the "First Amendment to the Agency Agreement for the Countywide Household Hazardous Waste (HHW) Collection Program ", between the County of Santa Clara and the City of Cupertino; and WHEREAS, the residents in the City of Cupertino have participated in safe disposal of household hazardous waste through the County's HHW drop -off program to a greater level than anticipated; and WHEREAS, an increase of $10,000, to the agreed upon budget for FY09 -10, will provide the County of Santa Clara with sufficient funding to continue to provide household hazardous waste drop -off services for the residents of the City of Cupertino for the remainder of FY 09 -10; and WHEREAS, the provisions of the First Amendment to the Agency Agreement for the Countywide Household Hazardous Waste Collection Program have been reviewed and approved by the Director of Public Works and the City Attorney; NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Cupertino hereby approves the "First Amendment to the Agency Agreement for Countywide Household Hazardous Waste Collection Program FOR FY 09 -10" and authorizes the Mayor and the City Clerk to execute said amendment on behalf of the City of Cupertino. PASSED AND ADOPTED at a regular adjourned meeting of the City Council of the City of Cupertino this 4` day of May 2010, by the following vote: Vote Members of the City Council AYES: NOES: ABSENT: ABSTAIN: ATTEST: City Clerk APPROVED: Mayor, City of Cupertino 14 -6 ATTACHMENTS: A - Resolution No. 10- y B - Resolution No. 10- 0 .- C -Resolution No. 10- 6 9� 14 -7