19. AB939 Solid Waste ManagementCUPERTINO
SUMMARY
PUBLIC WORKS DEPARTMENT
AGENDA ITEM I q AGENDA DATE May 6, 2008
SUBJECT AND ISSUE
AB 939 Solid Waste Management programs:
1. Resolution to approve the Second Amendment to the Agency Agreement for Countywide
AB939 Implementation Fee.
2. Resolution to approve the Second Amendment to the Agency Agreement for Countywide
Household Hazardous Waste Collection Program.
BACKGROUND
In 1989, the California Legislature passed AB939, 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.
AB939 Implementation Fee
Since July 1992, the County of Santa Clara has collected a Countywide AB939 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. And that portion of the Fee
collected on behalf of the cities of Santa Clara County is distributed to the cities quarterly for the
purpose of funding city-specific programs required for meeting AB939 waste stream diversion
goals.
The portion on the AB939 Implementation Fee collected by the County on behalf of Cupertino is
divided between the City's AB939 implementation program, for which the City receives
approximately $60,000 annually from the Fee proceeds, and the component of the Household
Hazardous Waste {HHW) Collection Program administered by the County on the City's behalf,
for which. the County retains the balance of Cupertino's annual share of the Fee. The Fee
proceeds that the City receives are programmed for various source reduction and recycling
activities expenditures, such as residential and commercial recycling outreach, schools recycling,
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garage sale, and compost programs. As in the past, the proposed 2008-09 operating budget
recommends additional funds of $50,000 to provide HHW services equivalent to approximately
6% of Cupertino's households, which complements the HHW Collection program administered
by the County.
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, negotiated and executed an 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 negotiated and
executed an Agency Agreement for the Household Hazardous Waste Collection Program.
Amendments to both Agreements were executed and went into effect July 1, 2007, in order to
reset components of the Implementation Fee at the appropriate levels to fund the AB939 and
HHW programs. Second amendments to both agreements now need to be executed to set the
Implementation Fee components at the appropriate levels going forward, based on current
program cost data.
Implementation Fee Levels Necessary to Fund AB 939 Im~lernentativn and HHW Collection
In May 200b, the Council approved the Agency Agreement for the Countywide AB 939
Implementation Fee that provided for continued collection of a $3.35 per-ton Fee for athree-year
term beginning July 1, 2006. The Agreement provided for aone-year Fee increase for FYOb-07,
of 37 cents per ton, which was to fund additional HHW services made necessary by increases in
universal waste collection. Universal wastes are mercury-containing wastes such as batteries,
mercury thermostats, and lamps that contain mercury, including compact fluorescent lighting. As
of February 8, 2006, these items can no longer be sent to landfills and must be disposed of as
hazardous waste. The 37-cent increase in FY06-07 represented an estimated $500,000 for HHW
services countywide, necessary to support the collection of additional universal waste.
The Council approved the First Amendment to the Agreement in May 2007, resulting in a $2.05
HHW Fee portion and $1.50 portion for compliance activities for a total AB939 Fee of $3.55.
The Recycling and Waste Reduction Commission 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 remain at $3.55 per ton for the last
year (July 1, 2008 through June 30, 2009) of the three-year term of the Agency Agreement for
Countywide AB939 Implementation Fee (July 1, 2006 to June 30, 2009).
All fifteen cities are expected to approve a Second Amendment to the Agency Agreement for
Countywide AB 939 Implementation Fee by July 1, 2008', in order for the HHW portion of the
Fee to be set ~ at $2.05 per ton. If one or more cities do not approve this agreement, the
appropriate AB 939 Fee will not be collected.
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FISCAL IMPACT
Approval of the resolutions will facilitate the Countywide AB939 Implementation Fee being set
at the appropriate level to fund the City's and countywide AB939 Implementation and HHW
Collection programs adequately.
STAFF RECOMMENDATION
Staff recommends that the City Council:
1. Adopt Resolution No. OS- dll ,approving the Second Amendment to the Agency
Agreement for Countywide AB 939 Implementation Fee.
2. Adopt Resolution No. 08 - O(~ Z. ,approving the Second Amendment to the Agency
Agreement for Countywide Household Hazardous Waste Collection.
Submitted by: Approved for Submission:
~~ C.~ C.t u C,•/~
Ralph A. Qualls, Jr..
Director of Public Works
David W. Knapp
City Manager
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RESOLUTION N0.08-061
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
AUTHORIZING EXECUTION OF THE SECOND AMENDMENT TO THE AGENCY
AGREEMENT FOR COUNTYWIDE AB939 IMPLEMENTATION FEE
WHEREAS, there has been presented to the City Council the "Second Amendment to 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 $3.55 per ton for fiscal year 2008-09 (July 1, 2008 through June 30,
2009) of the three year term of the Agency Agreement for Countywide AB939 Implementation
Fee (Agreement) (July 1, 2006 to June 30, 2009) and imposed on each ton of waste landfilled or
incinerated within the county or taken 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 jurisdictions; and
WHEREAS, said Agreement states the terms and conditions under which County will
collect and distribute the fee for athree-year term that began July 1, 2006, and provides for
subsequent three-yeaf extensions upon the written agreement of the County and cities; and
WHEREAS, the provisions of the Second Amendment to the 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 "Second Amendment to the Agency Agreement for the Countywide AB 939
Implementation Fee" 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 meeting of the City Council of the City of
Cupertino this 6~' day of May, 2008, by the following vote:
Vote Members of the City Council
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
City Clerk
APPROVED:
Mayor, City of Cupertino
19-4
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RESOLUTION N0.08-062
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
AUTHORIZING EXECUTION OF THE SECOND AMENDMENT TO THE AGENCY
AGREEMENT FOR COUNTYWIDE HOUSEHOLD HAZARDOUS
WASTE COLLECTION PROGRAM
WHEREAS, there has been presented to the City Council the "Second
Amendment to the Agency Agreement for Countywide Household Hazardous Waste
Collection Program", between the County of Santa Clara and the City of Cupertino; and
.WHEREAS, the Second Amendment will provide for continued city participation
in the household hazardous waste collection program for fiscal year 2008-09; and
WHEREAS, the provisions of the Agency Agreement have been reviewed and
approved by the Director of Public Works and the City Attorney;
NOW, THEREFORE, BE TT RESOLVED, that the City Council of the City of
Cupertino hereby approves the "Second Amendment to the Agency Agreement for
Countywide Household Hazardous Waste Collection Program" and authorizes the Mayor
and the Ciry 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 Ciry of
Cupertino this 6~' day of May, 2008, by the following vote:
Vote Members of the Cit~Council
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
City Clerk
APPROVED:
Mayor, City of Cupertino
19-5