Item 17 Staff Report Adopt Resolution Authorizing the Town Manager to Execute an Agreement for a Country-Wide AB 939 Implementation Fee-1-
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
DATE: June 25, 1992
TO: MAYOR AND TOWN COUNCIL
FROM: TOWN MANAGER
SUBJECT:
COUNCIL AGENDA
DATE: 7-6-92
ITEM NO. /
ADOPT RESOLUTION AUTHORIZING THE TOWN MANAGER TO EXECUTE AN
AGREEMENT FOR A COUNTY -WIDE AB 939 IMPLEMENTATION FEE
RECOMMENDATION:
Adopt the attached resolution authorizing the Town Manager to execute the agreement for a County -wide
AB 939 Implementation Fee.
BACKGROUND:
The Integrated Waste Management Act of 1989 (AB 939) grants authority to cities and counties to impose
fees in amounts sufficient to pay the costs of preparing, adopting, and implementing an integrated waste
management plan. The City of San Jose has taken advantage of this authority.
As of July 1991, the City of San Jose has collected a surcharge of $0.25/ton on all material that was
landfilled within San Jose. The surcharge is collected from waste originating from many different
jurisdictions, the fees support the development and implementation of AB 939 programs solely within San
Jose. Other jurisdictions have strongly opposed the surcharge and have worked through the County's Solid
Waste Technical Advisory Committee to arrive at a more equitable arrangement for assessing and
distributing the AB 939 fees collected on landfilled materials.
If a County -wide AB 939 fee is implemented, San Jose has agreed to eliminate their current surcharge. If
the County -wide AB 939 fee is not implemented, San Jose is expected to raise the surcharge to $1.00/ton
and continue using this source to support its AB 939 programs.
The attached agreement outlines the terms and conditions under which the County will collect and apportion,
on behalf of all cities and the county, a fee on each ton of wastes disposed at all landfills within the County
of Santa Clara. The agreement is effective from July 1, 1992, through June 30, 1994.
PREPARED BY: Regina A. Fa
Community
RAF:dr
CSD014:A:CNCLRPTS\IMPLEMEN.FEE
s Director
6/25/92 2:57 pm
File #
ATTACHMENTS: See Page 2 for list of Attachments.
DISTRIBUTION: Margaret J. Rands, County of Santa Clara Dept. of Planning and Development,
Ofc. of Toxics & Solid Wst. Mg t., 735 N. First St., Ste 275, San Jose 95112
Reviewed by:, Attorney Clerk `/finance Treasurer
COUNCIL ACTION/ACTION DIRECTED TO:
'I
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: ADOPT RESOLUTION AUTHORIZING THE TOWN MANAGER TO EXECUTE AN AGREEMENT
FOR A COUNTY -WIDE AB 939 IMPLEMENTATION FEE
June 25, 1992
DISCUSSION:
The County estimates that the Town of Los Gatos disposed of approximately 36,610 tons of franchised waste
and 10,940 tons of unfranchised waste at Guadalupe Landfill during calendar year 1991. This equals 47,550
tons of waste Iandfilled from residents and businesses within Los Gatos. As a result of the $0.25/ton San
Jose surcharge, it is estimated that Los Gatos residents and businesses have contributed $11,890 to AB 939
programs within San Jose. With the implementation of the County -wide AB 939 fee, a $1.00/ton surcharge
would be collected by the County and distributed to each jurisdiction. This translates into a $47,550 revenue
to the Town of Los Gatos for implementation of the AB 939 integrated solid waste management plans.
Benefits of the County -wide AB 939 fee are:
•
All waste generators will share in the costs of integrated solid waste management. Currently,
only rate payers (franchised waste) are assessed surcharges to cover the City's integrated
solid waste management activities.
• The current Town surcharge placed on refuse rates can be reduced.
.
Los Gatos residents and businesses will no longer subsidize AB 939 programs in San Jose
through the landfill AB 939 surcharge.
Fees will be apportioned to each municipality based on documented tonnages disposed of
at the landfill. Fees collected from undocumented tonnages will be apportioned to each
city based on population.
FISCAL IMPACT:
None. Currently all integrated solid waste management activities are funded through the refuse rates. The
County -wide AB 939 fee could be used to reduce the surcharge added to the refuse rates, or to support an
increased level of service in solid waste programs.
ATTACHMENTS:
1. Draft Resolution
2. FY93 AB 939 Landfill Fee Summary
3. County -Wide AB 939 Fee Calculation
4. Letter from Margaret J. Rands, Solid Waste Program Manager, County of Santa Clara, dated 6-3-92.
ATTACHMENT 1
RESOLUTION
RESOLUTION OF THE TOWN COUNCIL
OF THE TOWN OF LOS GATOS
AUTHORIZING THE TOWN MANAGER TO EXECUTE AN
AGENCY AGREEMENT FOR A COUNTY -WIDE AB 939 FEE
WHEREAS, pursuant to Public Resources Code Section 41901,
a city, county, or city and county may impose fees in amounts
sufficient to pay the costs of preparing, adopting, and implement-
ing an integrated waste management plan; and
WHEREAS, the Town of Los Gatos, in agreement with the
Solid Waste Commission of Santa Clara County have determined that
a County -wide AB 939 Implementation Fee (Fee) of $1.00 per ton of
waste disposed of at landfills located within the county should be
collected to assist in funding the costs of preparing, adopting,
and implementing the integrated waste management plan in the
fifteen cities and the unincorporated areas of the county; and
WHEREAS, the Town of Los Gatos finds that entering into
an agreement for the implementation of a County -wide AB 939 fee
collection program is in the best interests of the residents and
businesses of the Town of Los Gatos; and
WHEREAS, the Solid Waste Commission of Santa Clara County
has further determined that the County should collect said Fee from
each landfill in the county on behalf of all fifteen cities and the
unincorporated area within the county (participating jurisdic-
tions), and distribute the Fee to said participating jurisdictions
according to the formula in said agreement; and
WHEREAS, pursuant to Public Resources Code Section 41901,
each participating jurisdiction must approve the collection of the
Fee;
CSD08:A:\CS070692.R03
-1-
NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
DOES HEREBY RESOLVE AS FOLLOWS: that the Town Manager be authoriz-
ed execute the Agency Agreement for a County -wide AB 939 Implemen-
tation Fee.
PASSED AND ADOPTED at a regular meeting of the Town
Council of the Town of Los Gatos, California, held on the 6th day
of July, 1992, by the following vote:
COUNCIL MEMBERS:
AYES:
NAYES:
ABSENT:
ABSTAIN:
SIGNED:
ATTEST:
CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
CSD08:A:\CS070692.R03
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
-2-
EXHIBIT A
AGENCY AGREEMENT FOR A COUNTYWIDE
AB 939 IMPLEMENTATION FEE
This Agreement is made by and between the
(City) and the County of Santa Clara (County) on the day of
,1992.
RECITALS
WHEREAS, pursuant to Public Resources Code Section 41901, a city, county,
or city and county may impose fees in amounts sufficient to pay the costs of
preparing, adopting, and implementing an integrated waste management
' plan; and
WHEREAS, the Solid Waste Commission of Santa Clara County has
determined that a Countywide AB 939 Implementation Fee (Fee) for each ton
of wastes disposed of at landfills located within the county should be collected
to assist in funding the costs of preparing, adopting and implementing the
integrated waste management plan in the fifteen cities and the
unincorporated areas of the county; and
WHEREAS, the County of Santa Clara will collect said Fee from each landfill
in the county on behalf of the fifteen cities and the unincorporated area
(participating jurisdictions), and will apportion the Fee according to formula;
NOW, THEREFORE, CITY AND COUNTY AGREE AS FOLLOWS:
1. PURPOSE. The purpose of this Agreement is to state the terms and
conditions under which County will collect a Fee on each ton of wastes
landfilled at permitted disposal sites located within the county, and will
apportion the Fee to City and other participating jurisdictions.
2. SERVICES PROVIDED BY COUNTY. The County will collect and
distribute the Fee revenues. The County will collect the Fee by billing
operators of the landfills listed in Exhibit A, and any disposal site
subsequently permitted, on a quarterly basis using data from tonnage reports
filed by landfill operators with the State Board of Equalization and/or the
Regional Water Quality Control Board. The revenue collected will be
distributed to City and to other participating jurisdictions based on the
formula set out in paragraph 5 below. The County will not be responsible for
uncollected Fee revenues.
3. ROLE OF PARTICIPATING JURISDICTIONS.
(a) Upon execution of this Agreement, each participating jurisdiction will
file information with the County Solid Waste Program of the Office of
Toxics and Solid Waste Management on programs to be funded with
Fee revenues. Information will include but not be limited to brief
summaries of funded programs and listing of the costs of such
programs.
(b) Within 30 days of the end of each quarter, each participating
jurisdiction shall submit a summary claim to the County Solid Waste
Program for the share of Fee revenue to be based on documented
tonnage. Said jurisdictions will maintain detailed records supporting
such claims, including weight tags and disposal receipts, and have
them available for inspection upon written request by County, or any
other participating jurisdiction.
4. AMOUNT OF FEE COLLECTED. The Fee shall be collected in the amount
of $1.00 per ton of wastes disposed of at landfills located within the County..
The revenue share each participating jurisdiction will receive shall be used to
assist in funding the costs of preparing, adopting and implementing the
•
integrated waste management plan in said participating jurisdiction. City
shall indemnify, hold harmless, and defend County, its officers, agents, and
employees with respect to any loss, damage, liability, cost or expenses,
including attorney fees, arising from misuse of Fee distributed to City.
5. FORMULA FOR DISTRIBUTION OF BEE.
The Fee will be distributed according to the following formula:
S = DT + [(CT - TDT) x PP] x N
S = participating jurisdiction's share of Fee revenue
DT = participating jurisdiction's documented tonnage
CT = countywide tonnage disposed of in landfills
TDT = countywide documented tonnage
PP = participating jurisdiction's population according to the
latest available State Department of Finance Report,
expressed as a percentage of the total county population.
N = Fee amount, currently $1.00 per ton.
6. DISTRIBUTION OF FEE. County shall distribute the Fee to the
participating jurisdictions pursuant to the formula described above within 45
days of the due date of the Fee payment by the operators of the landfills.
Payments shall begin in late December, 1992, and continue quarterly through
August, 1994.
7. LATE PAYMENTS. If Fee payments are not received from landfill
operators prior to scheduled distribution of payments to cities, payments shall
be calculated on a pro rata share of monies received. Upon collection, late Fee
payments and accrued delinquent penalties, if any, shall be distributed among
participating jurisdictions according to the terms of the Agreement.
8. ACCOUNTING. County shall maintain records of all transactions related
to collection and distribution of the Fee, and have them available for
inspection upon written request by City. Such records will include but not be
limited to tonnage reports submitted by landfills, waste stream
documentation provided by participating jurisdictions, and payments made
by the landfills to the County and by the County to the participating
jurisdictions.
9. REQUEST FOR REVIEW. In the event City has a dispute with the
calculation of their share, City may request in writing a review by County
within 10 days of receipt of their Fee allocation. The review shall be
performed within 30 days and results shall be reported in writing.
10. EFFECTIVE DATE OF AGREEMENT: This agreement takes effect only
upon approval by all participating jurisdictions. Approval constitutes return
of a fully executed Agreement to County by July 31, 1992.
11. TERM OF AGREEMENT. This term of this Agreement shall be from July
1, 1992, to June 30, 1994, or until all revenue from the last quarter's Fee
payments has been distributed. County will bill the operators of the landfills
listed in Exhibit A for the Fee commencing with the Quarter ending
September 30, 1992. Said landfills will be billed for the Fee through June 30,
1994.
12. EXTENSION OF TERM. This Agreement may be extended from year to
year with no change in terms or conditions if all participating jurisdictions so
agree in writing.
13. NOTICES. All notices and payments shall be made as follows:
City of
County of Santa Clara:
Solid Waste Program Manager
Santa Clara County Solid Waste Program
1735 North First Street, Suite 275
San Jose, CA 95112
IN WITNESS WHEREOF, the parties have executed this Agreement on the
dates as stated below:
"COUNTY"
COUNTY OF SANTA CLARA,
a political subdivision of the
State of California
by:
Chairperson, Board of Supervisors Date
ATTEST:
Donald M. Rains, Clerk Date
Board of Supervisors
APPROVED AS TO FORM AND LEGALII'Y:
i
co v\,
Kathy Kretc mer Date
Deputy County Counsel
"CITY"
CITY OF
• a municipal corporation.
by:
Title: Date
EXHIBIT A
LANDFILLS LOCATED IN SANTA CLARA COUNTY
All Purpose Landfill (Santa Clara)
Guadalupe Rubbish Disposal Site
Kirby Canyon Sanitary Landfill
Mountain View Landfill
Newby Island Sanitary Landfill
Owens-Corning Fiberglas Landfill
Pacheco Pass Sanitary Landfill
Palo Alto Refuse Disposal Area
Sunnyvale Sanitary Landfill
Zanker Road Disposal and Recycling Center
FY93 AB 939
Landfill Fee
Summary
San Jose 250/ton fee [2]
`tacth ent 2
272,000
100%
0%
0%
Existing fee, will be
increased by San Jose or
replaced by
Countywide fee.
San Jose $1.00/ton fee
[2]
1,250,000
100%
0%
0%
San Jose fee increase if
no countywide fee is
implemented.
Countywide $1.00/ton
fee [3]
1,720,000
42.6%
51.0%
6.4%
Countywide fee,
revenue to every
jurisdiction.
[1] Revenue estimates for San Jose fees provided by City staff. Revenue estimates for
Countywide fee based on 1991 tonnage disposed at landfills in Santa Clara County.
[2] Fee is paid by every user of a landfill located in the City of San Jose. At present,
only Gilroy, Morgan Hill, Palo Alto, and Sunnyvale do not use landfills located in San Jose.
Once the Sunnyvale Materials Recovery and Transfer Station begins operation, Palo Alto
and Sunnyvale will also use a landfill located in San Jose.
[3] Fee is paid by every user of a landfill located in Santa Clara County, it will affect every
user equally. Jurisdiction share of revenue should approximate level of payments by city
residents and businesses.
COUNTYWIDE AB 939 FEE CALCULATION
AttacI at 3
r- to N t() CO CO CO 0) LO (D
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$731,880.16
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Total Documented Waste
Undocumented Waste
1991 (published May 3, 1991
Population data from California Department of Finance estimates, January 1
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Countyof Santa Clara
Department of Planning and Development
Office of Toxics and Solid Waste Management
1735 North First Street, Suite 275
San Jose, California 951 12
Toxics (408) 441-1 195
Solid Waste (408) 441-1 198
ATTACHMENT 4
TOWN MANAGIR
7:51/1rLN,
t JAction h : r....
)
June 3, 1992
David W. Knapp, Town Manager
Town of Los Gatos
Box 949
Los Gatos, CA 95030
1 �rnrollmauon
t 1 COPY :
Other:
RE: Agency Agreement for a Countywide AB 939 Implementation Fee
Dear Mr. Knapp:
On June 2, the Santa Clara County Board of Supervisors unanimously adopted a
resolution approving collection of the Countywide AB 939 Implementation Fee on
behalf of all jurisdictions in the county. In order for the Fee to take effect, each city
must execute an Agency Agreement with the County by July 31, 1992. A copy of the
proposed Agreement is attached.
The Solid Waste Commission, the Solid Waste Technical Advisory Committee, and
County staff have worked together for over a year to develop this recommendation.
This Agreement is the culmination of those efforts. Background information and
details are provided in the attached staff report and Board resolution. Your city's
TAC representative can also provide detailed information. Note that under State
law, all revenue from this fee must be used to fund AB 939-related costs. Funding of
non -AB 939 activities could make the fee vulnerable to legal challenge.
As noted above, city council action is required by July 31, 1992. To execute the
Agreement, please send me two signed "originals." It will then be signed by the
Chair of the Board of Supervisors. I will return a fully executed copy to you and will
advise you when all local approval actions have been taken. If you have any
questions, please call me.
Sincere
M: rgaret J. Rands
Solid Waste Program Manager
Attachments
cc: Regina Falkner
Board of Supervisors: Michael M. Honda, Zoe Lofgren, Ron Gonzales, Rod Diridon, Dianne McKenna
County Executive: Sally R. Reed
• AL .......011140.1,..02,...70
• t
Countyof Santa Clara
Department of Planning and Development
Office of Toxics and Solid Waste Management
1735 North First Street, Suite 275
San Jose, California 95112
Toxics (408) 44 1 -1 195
Solid Waste (408) 441-1 198
Prepared by.'%��� L
Paula to ► er
Ma • are ' • nds
Reviewed b
May 18,1992
TO: Sally. R. Reed, County Executive
FROM: - • . e ramclin irec or
Department of Planning and Development
SUBJECT: RESOLUTION APPROVING COLLEC i"ION OF A COUNTYWIDE
AB 939 IMPLEMENTATION FEE
RECOMMENDED ACTION
1. Adopt the attached resolution approving collection of a fee of $1.00 per ton on
solid waste disposed of at landfills located within the county, to be:
• collected on behalf of all participating jurisdictions;
• apportioned among participating jurisdictions according to formula;
• used to assist in funding the costs of preparing, adopting, and
implementing source reduction/recycling and household hazardous
waste elements of the integrated waste management plan.
2. Authorize the Chair to execute an Agency Agreement for the Countywide
AB 939 Fee with each participating city. (See sample copy included as
Attachment A).
Board of Supervisors: Michael M. Honda, Zoe Lofgren, Ron Gonzales, Rod Diridon, Dianne McKenna
County Executive: Sally R. Reed
Sally R, Reed, County Executive - 2 - May 18,1992
3. Authorize the Solid Waste Program Manager to negotiate and approve minor
amendments to individual city agreements, prior to execution of the
agreements.
FISCAL IMPLICATIONS
There are no negative impacts on the General Fund associated with the
recommended actions. The fee will be administered by the County Solid Waste
Program, which is funded by the Solid Waste Planning Fee. Interest to the
General Fund will cover the indirect costs to the County.
Based on disposed -waste tonnages reported by landfills for Calendar Year 1991,
the proposed fee would generate about $1,720,000 annually. Of this,
approximately $1,610,000 would be distributed to other jurisdictions in Santa
Clara County. Revenues to the County for unincorporated area AB 939
implementation are estimated at $110,000 per year. Note that revenues will be
based on actual tonnages disposed in FY93.
For FY93, total revenues would be about $860,000, of which approximately
$55,000 would be available for unincorporated area programs. Under State law,
all proceeds of the fee must be used for preparing, adopting and implementing
the integrated waste management plan.
BACKGROUND/REASONS FOR RECOMMENDATIONS
The Integrated Waste Management Act of 1989 (AB 939), specifically Public
Resources Code Section 41901, grants authority to a city, county, or city and
county, to impose fees in amounts sufficient to pay the costs of preparing,
adopting and implementing an integrated waste management plan.
In March 1991, the then Solid Waste Committee of Santa Clara County (SWC)
directed its Technical Advisory Committee (TAC) to evaluate the feasibility of a
tonnage -based Countywide AB 939 fee, to be assessed on all wastes landfilled in
the County. The purpose of this fee would be to assist all jurisdictions in
funding programs associated with implementing their Source Reduction and
Recycling and.Household Hazardous Waste Elements of the Countywide
Integrated Waste Management Plan.
The major advantage of a fee collected at each landfill is that each landfill user
pays an equivalent share of the cost. Since AB 939 requirements apply to every
portion of every jurisdiction's waste stream, it is appropriate for every waste
Sally R, Reed, County Executive - 3 May 181992
generator to fund a portion of the implementation costs. In addition, fees paid by
landfill users are proportional to the amount of waste which they dispose.
Countywide Issues and Implications
At present, an AB 939 fee of $0.25 per ton is assessed on most waste landfilled in
the county, but revenues benefit only residents of the City of San Jose. The City
imposed a landfill tonnage fee on all waste disposed in the City beginning in July
1991, but has agreed to rescind this fee upon implementation of a countywide fee.
Other jurisdictions strongly object to paying an AB 939 fee which does not benefit
their residents. Elimination of the San Jose fee has provided part of the impetus
for development of a countywide fee.
In the event that a countywide fee is not approved for FY93, the City of San Jose
may increase its fee to $1.00 per ton. As with the current fee, revenues would
benefit only San Jose residents. On April 22, 1992, the City of San Jose
Environment Committee accepted Office of Environmental Management (OEM)
staffs recommendation that the fee not sunset, but be set at $0 per ton if a
countywide fee takes effect July 1, 1992. In the event a countywide fee is not
effective July 1, 1992, OEM staff recommended setting the City's landfill fee at
$1.00 per ton, until a countywide fee takes effect. If approved by the City Council,
and if the Countywide Fee is not implemented, fees at landfills located in San Jose
could increase by $0.75 per ton, as landfill operators pass the costs through, with
all proceeds going to the City of San Jose. The chart included as Attachment B
summarizes each possible AB 939 Fee option for FY93.
Unincorporated Areas Issues and Implications
Unincorporated area solid waste administration became the responsibility of the
Solid Waste Program in August 1990. Responsibility includes rate setting,
franchise management, and AB 939 planning and implementation. This portion
of the Program is funded by franchise fees and a surcharge on unincorporated
area residential collection rates.
The Countywide AB 939 Fee will provide additional funding for AB 939
implementation in the unincorporated area, without raising the administrative
surcharge currently paid by residents. Funds would be allocated as part of the
FY93 budget.
An alternative funding source for AB 939 implementation could be a fee or
surcharge on collection rates. However, since approximately 35% of wastes
Sally R, Reed, County Executive
4 May 18,1992
landfilled in Santa Clara County are not hauled by franchised collectors, not all
landfill users would pay fees assessed only through collection rates.
Collection rates are expected to rise, as landfill operators raise tipping fees and
collectors in turn raise their rates to cover the added cost of landfill disposal.
However, by spreading the fee across the entire waste stream, rates would not
rise as steeply as they would if the surcharge was raised to collect an equivalent
amount of revenue. The actual increase will be less than a fee assessed solely
through rates.
For example, staff estimates that a $1.00 per ton increase in landfill cost will raise
residential rates an average of $.10 per month for the unincorporated area. If the
administrative surcharge were raised $.10, this would generate approximately
$25,500 per year. In comparison, a countywide tonnage fee would generate
approximately $110,000 per year. A $.25 per ton fee is already assessed at landfills
located in San Jose, so the recommended fee will increase fees at those landfills
by only $.75 per ton.
Initial Fee Level
The SWC endorsed a TAC recommendation that County staff develop a
Countywide AB 939 fee, to be set initially at $1.00 per ton, with the understanding
that the City of San Jose would rescind its AB 939 Fee when the countywide fee
became effective. The initial fee level is based on a survey of TAC city and
county representatives, which indicated staff support for a tonnage -based AB 939
fee. Most jurisdictions have identified the types of programs that will be funded,
but have not yet provided detailed information. The $1.00 per ton fee was
supported by a majority of city and county staff, but acceptable fee levels ranged
from $.50 to $8.50 per ton. The SWC requested that all jurisdictions stipulate
programs to be funded with the new fee as early as practicable.
The County will collect and distribute AB 939 fee revenues. The County Solid
Waste Program will bill landfills on a quarterly basis, just as is done for the
current Solid Waste Planning Fee, using data from tonnage reports filed by
landfill operators with the State Board of Equalization and/or the Regional
Water Quality Control Board (RWQCB).
Revenues would then be allocated according to formula, based first on the
amount of franchised or satisfactorily documented wastes reported by each
jurisdiction, with the remaining funds distributed on the basis of population.
"Satisfactorily documented" wastes are primarily franchised, but other auditable
documentation will be accepted by the County, such as weight tags and disposal
receipts. For an example of how the fee will be distributed, see Attachment C.
Sally R. Reed, County Executive - 5 - May 18,1992
Note that actual revenue receipts may differ, depending upon the size of the
FY93 waste stream, and the amount of waste documented by each participating
jurisdiction.
Payments to jurisdictions would begin within 45 days after the first landfill
billing payment due date. No additional administrative fees will be assessed by
the County Solid Waste Program. Indirect costs to the County will be covered by
interest to the County General Fund.
Approval by the Cities
Because the County will collect the fee on behalf of other jurisdictions, each
jurisdiction must contract with the County for the collection and distribution of
the fee. All fifteen cities must approve the Agency Agreement for a Countywide
AB 939 Implementation Fee by July 3, 1992. In the event that one or more
jurisdictions fails to approve, the fee will not be collected.
Once jurisdictions. have approved participation, they must participate until the
contract currently before the Board expires on June 30, 1994. The fee mechanism
will be evaluated in January, 1994, after a full year of revenue to participating
jurisdictions.
The initial landfill billing will take place in October 1992, following the end of
the first quarter of FY93. Initial payments to jurisdictions will be made in late
December, 1992.
To meet legal requirements, each jurisdiction will file information on programs
to be funded by the fee with the County Solid Waste Program.
CONSEQUENCES OF NEGATIVE ACTION
1. Jurisdictions would have to develop an alternative revenue source to fund
AB 939 implementation.
2. Ratepayers from all jurisdictions whose waste is disposed at landfills located
in the City of San Jose will continue to underwrite AB 939 implementation in
that city, because the San Jose fee would not sunset, and may be increased.
3. Costs of AB 939 implementation in the unincorporated areas of the county
would be borne solely by garbage collection and disposal ratepayers receiving
services through County franchise agreements.
Sally Rt Reed, County Executive
6 May 18,1992
4. If alternative funding is not obtained, some jurisdictions may not be able to
comply with AB 939 requirements.
STEPS FOLLOWING APPROVAL
1. The Clerk of the Board will forward approved copies of this transmittal and
resolution to the Department of Planning and Development/Solid Waste
Program, the Department of Revenue, and County Counsel.
2. Staff will send the fee proposal, a copy of the Board of Supervisors' action,
and the contract to the cities for approval.
3. Contracts approved by cities will be presented for signature by the Board
Chair.
4. The new fee will take effect July 1, 1992, provided that all fifteen cities
approve the Agency Agreement for a Countywide AB 939 Fee.
cc: Kathy Kretchmer, Deputy County Counsel
RESOLUTION 1992-126
RESOLUTION OF THE TOWN COUNCIL
OF THE TOWN OF LOS GATOS
AUTHORIZING THE TOWN MANAGER TO EXECUTE AN
AGENCY AGREEMENT FOR A COUNTY -WIDE AB 939 FEE
WHEREAS, pursuant to Public Resources Code Section 41901,
a city, county, or city and county may impose fees in amounts
sufficient to pay the costs of preparing, adopting, and implement-
ing an integrated waste management plan; and
WHEREAS, the Town of Los Gatos, in agreement with the
Solid Waste Commission of Santa Clara County have determined that
a County -wide AB 939 Implementation Fee (Fee) of $1.00 per ton of
waste disposed of at landfills located within the county should be
collected to assist in funding the costs of preparing, adopting,
and implementing the integrated waste management plan in the
fifteen cities and the unincorporated areas of the county; and
WHEREAS, the Town of Los Gatos finds that entering into
an agreement for the implementation of a County -wide AB 939 fee
collection program is in the best interests of the residents and
businesses of the Town of Los Gatos; and
WHEREAS, the Solid Waste Commission of Santa Clara County
has further determined that the County should collect said Fee from
each landfill in the county on behalf of all fifteen cities and the
unincorporated area within the county (participating jurisdic-
tions), and distribute the Fee to said participating jurisdictions
according to the formula in said agreement; and
CSD08:A:\CS070692.126
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WHEREAS, pursuant to Public Resources Code Section 41901,
each participating jurisdiction must approve the collection of the
Fee;
NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
DOES HEREBY RESOLVE AS FOLLOWS: that the Town Manager be authoriz-
ed to execute the Agency Agreement for a County -wide AB 939
Implementation Fee.
PASSED AND ADOPTED at a regular meeting of the Town
Council of the Town of Los Gatos, California, held on the 6th day
of July, 1992, by the following vote:
COUNCIL MEMBERS:
AYES: Randy Attaway, Joanne Benjamin, Steven Blanton
Brent N. Ventura
NAYES: None.
ABSENT: Mayor Eric D. Carlson
ABSTAIN: None.
SIGNED:
ATTEST:
/s/ Joanne Benjamin
VICE -MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
/s/ Marian V. Cosgrove
CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
CSD08:A:\CS070692.126
-2-
AGENCY AGREEMENT FOR A COUNTYWIDE
AB 939 IMPLEMENTATION FEE 9'g 'S/
This Agreement is made by and between the TOWN OF LOS GATOS
(City) and the County of Santa Clara (County) on the 6 t h day of
JULY ,1992.
RECITALS
WHEREAS, pursuant to Public Resources Code Section 41901, a city, county,
or city and county may impose fees in amounts sufficient to pay the costs of
preparing, adopting, and implementing an integrated waste management
plan; and
WHEREAS, the Solid Waste Commission of Santa Clara County has
determined that a Countywide AB 939 Implementation Fee (Fee) for each ton
of wastes disposed of at landfills located within the county should be collected
to assist in funding the costs of preparing, adopting and implementing the
integrated waste management plan in the fifteen cities and the
unincorporated areas of the county; and
WHEREAS, the County of Santa Clara will collect said Fee from each landfill
in the county on behalf of the fifteen cities and the unincorporated area
(participating jurisdictions), and will apportion the Fee according to formula;
NOW, THEREFORE, CITY AND COUNTY AGREE AS FOLLOWS:
1. PURPOSE. The purpose of this Agreement is to state the terms and
conditions under which County will collect a Fee on each ton of wastes
landfilled at permitted disposal sites located within the county, and will
apportion the Fee to City and other participating jurisdictions.
2. SERVICES PROVIDED BY COUNTY. The County will collect and
distribute the Fee revenues. The County will collect the Fee by billing
operators of the landfills listed in Exhibit A, and any disposal site
subsequently permitted, on a quarterly basis using data from tonnage reports
filed by landfill operators with the State Board of Equalization and/or the
Regional Water Quality Control Board. The revenue collected will be
distributed to City and to other participating jurisdictions based on the
formula set out in paragraph 5 below. The County will not be responsible for
uncollected Fee revenues.
3. ROLE OF PARTICIPATING JURISDICTIONS.
(a) Upon execution of this Agreement, each participating jurisdiction will
file information with the County Solid Waste Program of the Office of
Toxics and Solid Waste Management on programs to be funded with
Fee revenues. Information will include but not be limited to brief
summaries of funded programs and listing of the costs of such
programs.
(b) Within 30 days of the end of each quarter, each participating
jurisdiction shall submit a summary claim to the County Solid Waste
Program for the share of Fee revenue to be based on documented
tonnage. Said jurisdictions will maintain detailed records supporting
such claims, including weight tags and disposal receipts, and have
them available for inspection upon written request by County, or any
other participating jurisdiction.
4. AMOUNT OF FEE COLLECTED. The Fee shall be collected in the amount
of $1.00 per ton of wastes disposed of at landfills located within the County.
The revenue share each participating jurisdiction will receive shall be used to
assist in funding the costs of preparing, adopting and implementing the
integrated waste management plan in said participating jurisdiction. City
shall indemnify, hold harmless, and defend County, its officers, agents, and
employees with respect to any loss, damage, liability, cost or expenses,
including attorney fees, arising from misuse of Fee distributed to City.
5. FORMULA FOR DISTRIBUTION OF FEE.
The Fee will be distributed according to the following formula:
S = DT + [(CT - TDT) x PP] x N
S = participating jurisdiction's share of Fee revenue
DT = participating jurisdiction's documented tonnage
CT = countywide tonnage disposed of in landfills
TDT = countywide documented tonnage
PP = participating jurisdiction's population according to the
latest available State Department of Finance Report,
expressed as a percentage of the total county population.
N = Fee amount, currently $1.00 per ton.
6. DISTRIBUTION OF FEE. County shall distribute the Fee to the
participating jurisdictions pursuant to the formula described above within 45
days of the due date of the Fee payment by the operators of the landfills.
Payments shall begin in late December, 1992, and continue quarterly through
August, 1994.
7. LATE PAYMENTS. If Fee payments are not received from landfill
operators prior to scheduled distribution of payments to cities, payments shall
be calculated on a pro rata share of monies received. Upon collection, late Fee
payments and accrued delinquent penalties, if any, shall be distributed among
participating jurisdictions according to the terms of the Agreement.
8. ACCOUNTING. County shall maintain records of all transactions related
to collection and distribution of the Fee, and have them available for
inspection upon written request by City. Such records will include but not be
limited to tonnage reports submitted by landfills, waste stream
documentation provided by participating jurisdictions, and payments made
by the landfills to the County and by the County to the participating
jurisdictions.
9. REQUEST FOR REVIEW. In the event City has a dispute with the
calculation of their share, City may request in writing a review by County
within 10 days of receipt of their Fee allocation. The review shall be
performed within 30 days and results shall be reported in writing.
10. EFF'hCTIVE DATE OF AGREEMENT: This agreement takes effect only
upon approval by all participating jurisdictions. Approval constitutes return
of a fully executed Agreement to County by July 31, 1992.
11. TERM OF AGREEMENT. This term of this Agreement shall be from July
1, 1992, to June 30, 1994, or until all revenue from the last quarter's Fee
payments has been distributed. County will bill the operators of the landfills
listed in Exhibit A for the Fee commencing with the Quarter ending
September 30, 1992. Said landfills will be billed for the Fee through June 30,
1994.
12. EXTENSION OF TERM. This Agreement may be extended from year to
year with no change in terms or conditions if all participating jurisdictions so
agree in writing.
13. NOTICES. All notices and payments shall be made as follows:
OkK k T01VN OF LOS GATOS :
County of Santa Clara:
Solid Waste Program Manager
Santa Clara County Solid Waste Program
1735 North First Street, Suite 275
San Jose, CA 95112
IN WITNESS WHEREOF, the parties have executed this Agreement on the
dates as stated below:
"COUNTY"
COUNTY OF SANTA CLARA,
a political subdivision of the
State of California
by:
Chairperson, Board of Supervisors Date
ATTEST:
Donald M. Rains, Clerk Date
Board of Supervisors
APPROVED AS TO FORM AND LEGALITY:
Kathy Kretchmer Date
Deputy County Counsel
"CITY"
CITY OF
a municipal corporation.
by:
Title: Date
EXHIBIT A
LANDFILLS LOCATED IN SANTA CLARA COUNTY
All Purpose Landfill (Santa Clara)
Guadalupe Rubbish Disposal Site
Kirby Canyon Sanitary Landfill
Mountain View Landfill
Newby Island Sanitary Landfill
Owens-Corning Fiberglas Landfill
Pacheco Pass Sanitary Landfill
Palo Alto Refuse Disposal Area
Sunnyvale Sanitary Landfill
Zanker Road Disposal and Recycling Center
July 6, 1992
Los Gatos, California
COMMENDATION/TOWN EMPLOYEE/JEAN KRCIK/20 YEARS (13.43)
Motion by Mr. Blanton, seconded by Mr. Attaway, that Council adopt Resolution 1992-120
entitled RESOLUTION OF THE TOWN OF LOS GATOS COMMENDING JEAN KRCIK FOR
20 YEARS OF SERVICE. Carried unanimously. Mayor Carlson absent.
COMMENDATION/TOWN EMPLOYEE/HORACE PETE, JR/15 YEARS (13.43)
Motion by Mr. Blanton, seconded by Mr. Attaway, that Council adopt Resolution 1992-121
entitled RESOLUTION OF THE TOWN OF LOS GATOS COMMENDING HORACE PETE,
JR. FOR 15 YEARS OF SERVICE. Carried unanimously. Mayor Carlson absent.
COMMENDATION/TOWN EMPLOYEE/HERBERT CHAVEZ/15 YEARS (13.43)
Motion by Mr. Blanton, seconded by Mr. Attaway, that Council adopt Resolution 1992-122
entitled RESOLUTION OF THE TOWN OF LOS GATOS COMMENDING HERBERT
CHAVEZ FOR 15 YEARS OF SERVICE. Carried unanimously. Mayor Carlson absent.
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)/COMMUNITY GRANT
AGREEMENT/STANDARD FORM/AMEND CDBG/AMEND LETTER OF AGREEMENT (14.19)
Motion by Mr.Blanton, seconded by Mr. Attaway, that Council adopt Resolution 1992-123
entitled RESOLUTION OF THE TOWN OF LOS GATOS APPROVING STANDARD FORMS:
1)COMMUNITY DEVELOPMENT BLOCK (CDBG) AGREEMENT: AND 2)COMMUNITY
GRANT AGREEMENT: AND 3)AMENDMENT OF CDBG AGREEMENT: AND
41AMENDMENT OF COMMUNITY GRANT AGREEMENT: AND 5)LETTER OF
AGREEMENT FOR USE WITH TOWN GRANT RECIPIENTS. Carried unanimously. Mayor
Carlson absent.
SECOND AMENDMENT/AGREEMENT/COUNTY/HOUSEHOLD HAZARDOUS WASTE
COLLECTION PROGRAM (16.07)
Motion by Mr.Blanton, seconded by Mr. Attaway, that Council adopt Resolution 1992-125
entitled RESOLUTION OF THE TOWN OF LOS GATOS AUTHORIZING THE TOWN
MANAGER TO EXECUTE A SECOND AMENDMENT TO THE AGREEMENT WITH THE
COUNTY OF SANTA CLARA FOR PARTICIPATION IN A HOUSEHOLD HAZARDOUS
WASTE COLLECTION PROGRAM Carried unanimously. Mayor Carlson absent.
COUNTY -WIDE AB 939/IMPLEMENTATION FEE/AGREEMENT (17.17)
Motion by Mr. Blanton, seconded by Mr. Attaway, that Council adopt Resolution 1992-126
entitled RESOLUTION OF THE TOWN OF LOS GATOS AUTHORIZING THE TOWN
MANAGER TO EXECUTE AN AGENCY AGREEMENT FOR A COUNTY -WIDE AB 939 FEE
Carried unanimously. Mayor Carlson absent.
LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO.1/ANNUAL REPORT (19.04.30)
Motion by Mr. Blanton, seconded by Mr. Attaway, that Council adopt Resolution 1992 -127
entitled RESOLUTION OF THE TOWN OF LOS GATOS DIRECTING THE FILING OF AN
ANNUAL REPORT FOR LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 1
Carried unanimously. Mayor Carlson absent.
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