REPORT TO COUNCIL
SUBJECT
Title
Action on Agreements with the County of Santa Clara for the Countywide AB 939 Implementation Fee and Countywide Household Hazardous Waste Collection Program
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure; Sustainability
BACKGROUND
In 1989, Assembly Bill (AB) 939 was passed, which required jurisdictions to develop plans to implement source reduction, recycling, composting, public education, and household hazardous waste (HHW) programs to achieve 50 percent waste diversion by the year 2000. Known as the California Integrated Solid Waste Management Act of 1989, AB 939 provided local fee authority to cities and counties to impose fees to fund the development and implementation of waste diversion activities. The jurisdictions in Santa Clara County developed and approved the Countywide AB 939 Implementation Fee in 1992 to help fund waste reduction efforts.
The Countywide AB 939 Implementation Fee agreement imposes a $4.10 per ton fee on each ton of waste generated within the County that is destined for disposal in a landfill. Landfills are required by the state to allocate all disposal tonnage to specific jurisdictions. All disposal facilities located within the County and solid waste haulers that transport waste outside of the County for landfill disposal are required to pay the AB 939 Implementation Fee on each ton of waste.
The $4.10 per ton AB 939 Implementation Fee is composed of a Program Fee of $1.50 per ton and a HHW Fee of $2.60 per ton. The County of Santa Clara collects and distributes the AB 939 Implementation Fee on behalf of all jurisdictions. The Program Fee revenues are distributed to the City on a quarterly basis and reduce the City programs cost element of the residential recycling rate charged to all residential customers. This agreement has been renewed upon each successive expiration. The current agreement, effective July 1, 2021 through June 30, 2024, was approved by Council on May 25, 2021.
The County of Santa Clara retains the revenue generated by the HHW Fee to fund the City’s participation in the Countywide Household Hazardous Waste Program (CoHHWP). The CoHHWP provides HHW drop-off services and collects abandoned hazardous waste during the annual Cleanup Campaign under the agreement for the Countywide Household Hazardous Waste Collection Program. City Council originally authorized this agreement in 2002 and has renewed it upon each successive expiration. The current agreement approved by Council on May 25, 2021 is effective July 1, 2021 through June 30, 2024.
DISCUSSION
Countywide AB 939 Implementation Fee Agreement
The Santa Clara County Board of Supervisors approved reimposing the AB 939 Implementation Fee at $4.10 per ton of waste disposed, effective July 1, 2024 through June 30, 2027. The successor AB 939 Implementation Fee agreement (Attachment 1) authorizes the County of Santa Clara to continue to collect and distribute a landfill disposal fee that is imposed on each ton of waste generated in the County on behalf of the City. The AB 939 Implementation Fee will remain flat, with the Program Fee and HHW Fee components remaining at $1.50 and $2.60 per ton, respectively.
The $1.50 per ton Program Fee component of the AB 939 Implementation Fee is distributed by the County to the City on a quarterly basis to help fund the weekly curbside residential recycling program, which qualifies as an AB 939 landfill diversion program. The Program Fee revenues are projected to generate approximately $171,000 in FY 2024/25. This revenue is applied to the City programs cost element of the residential recycling rate charged to all residential customers. In order to continue to receive the AB 939 Implementation Fee revenues the City must approve the agreement.
Countywide Household Hazardous Waste Collection Program Agreement
Under the Countywide Household Hazardous Waste Collection Program Agreement, the CoHHWP provides residents several opportunities throughout the year to properly dispose of hazardous waste. Multiple convenient disposal opportunities reduce the potential for improper disposal and illegal dumping of hazardous waste. Santa Clara residents can use any of the CoHHWP scheduled drop-off events to dispose of their hazardous waste at no charge. Each year the CoHHWP typically schedules three temporary collection events at the City’s Public Works Corporation Yard (January, April and September). The permanent collection sites in San Jose and San Martin continue to schedule drop-off appointments and have added additional days of operation to accommodate appointment requests.
Participation in the CoHHWP is funded by the $2.60 per ton HHW Fee component of the AB 939 Implementation Fee, which is projected to generate $296,000. All participating public agencies must agree to provide service for a minimum of 4 percent of their respective households in the baseline agreement. The baseline 4 percent participation for the City of Santa Clara is 2,135 households. The City must agree to augment funding for additional households to continue to use the program at the variable cost per household, which is projected to be $66.02 per participant.
The successor three-year term Countywide Household Hazardous Waste agreement (Attachment 2) provides for the augmentation of $237,003 in fiscal year 2024/25 to enable approximately 3,669 households to utilize the HHW services, if needed. Amendments to the agreement will need to be processed for each of the subsequent fiscal years to augment funds beyond the baseline 4 percent participation.
The County will retain all revenues generated by the HHW component of the AB 939 Implementation Fee. At the end of each fiscal year, the County prepares a final report that details the City’s disposal tonnage, HHW fees collected, participation, revised variable cost per car that reflects actual expenditures, and calculation of the cost to provide services. The cost to provide service is anticipated to be greater than the revenues generated by the HHW fees collected. The County will invoice the City for the difference, which will be paid out of the Solid Waste Fund operating budget.
Landfill disposal tonnage has declined in recent years with the implementation of organics recycling. The $2.60 HHW Fee is estimated to generate approximately $296,000 in FY 2024/25 based on 114,000 tons disposed, compared to $417,000 based on 160,000 tons disposed before organics recycling programs were implemented. Additionally, CoHHWP costs have risen to cover permanent facility lease payments, labor and transportation costs paid to contractors, and to establish a HHW hotline to make appointments because the San Jose State’s Center for the Development of Recycling (CDR), which utilized volunteer interns, is discontinuing its hotlines services in FY 2024/25.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
FISCAL IMPACT
The AB 939 Implementation Fee is projected to generate approximately $467,000 of revenue in fiscal year 2024/25. The $1.50 per ton Program Fee component is projected to generate $171,000 and the $2.60 per ton HHW Fee component is projected to generate $296,000. The Program Fee revenue collected and distributed by the County will be allocated to the City’s Solid Waste Fund to reduce the residential recycling program monthly rate charged to customers. The County will retain the HHW Fee to fund the City’s participation in the CoHHWP. The City funding of $237,003 to enable 3,669 households to utilize the HHW services was incorporated into the resource and production budget in the Solid Waste Fund operating budget in the FY 2024/25 and FY 2025/26 Proposed Biennial Capital Budget.
COORDINATION
This report has been coordinated with the Finance Department and City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Approve and Authorize the City Manager to execute the Agreement for Countywide AB 939 Implementation Fee to collect and distribute the AB 939 Implementation Fee over the three-year term of the agreement, in a final form approved by the City Attorney;
2. Approve and authorize the City Manager to execute the Agreement for Countywide Household Hazardous Waste Collection Program with the County of Santa Clara to enable residents to participate in the Countywide Household Hazardous Waste Collection Program for a three-year term, in a final form approved by the City Attorney;
3. Authorize the City Manager to execute future amendments to the Agreement for Countywide Household Hazardous Collection Program with the County of Santa Clara to adjust the annual augmentation over the baseline 4 percent participation level, in final forms approved by the City Attorney; and
4. Authorize the City Manager to execute future license agreements with the County of Santa Clara that enable drop-off events to be conducted on the Public Works Corporation Yard premises, in final forms approved by the City Attorney.
Staff
Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. Agreement for the Countywide AB 939 Implementation Fee
2. Agreement for the Countywide Household Hazardous Waste Collection Program