Item 14 Staff Report Solid Waste Management Settlement RevenuesCOUNCIL AGENDA REPORT
DATE: February 26, 1998
TO: MAYOR AND TO.;,. OUNCI
FROM: TOWN MANAGER
SUBJECT:
MEETING DATE: 3/2/98
ITEM NO. /
SOLID WASTE MANAGEMENT SETTLEMENT REVENUES
A. Authorize revenue budget (210-48500) increases for reimbursement of legal fees by
$26,000 and increase fund balance;
B. Authorize staff to solicit applications for grant funds; and,
C. Consider projects.
RECOMMENDATION:
Solid Waste Management Settlement Revenues
A. Authorize revenue budget (210-48500) increases for reimbursement of legal fees by $26,000 and
increase fund balance;
B. Authorize staff to solicit applications for grant funds; and,
C. Consider projects.
BACKGROUND:
Last summer the Town of Los Gatos was able to settle the lawsuit filed by Green Valley Disposal Company. The
settlement resulted in four-year collection and disposal agreement term extensions, reduced landfill rates, and agreement
to reimburse the Town for legal fees. Rate increases are not anticipated before July 2001. Because of the reduced
landfill rates, the Town should receive additional revenues over the next two years. These revenues represent the positive
difference between the revenues collected by GVDC (from ratepayers) and the revenues owed GVDC for the services
provided. Over $150,000 has been received to date. Recognizing that the Town is required by law to reduce its historic
landfill use by one-half, this report discusses some projects for which these funds could be used.
DISCUSSION:
A. Legal Fee Reimbursement
In our July 1997 report to Council regarding the Settlement Agreement, staff indicated that "Fees received by the Town
as a result of the Settlement Agreement will be deposited in the General Fund Deposit Account 100-26009, except that
portion representing reimbursement for legal expenses which will be returned to the funds that provided them." Last
fiscal year, legal fees totaling $26,000 were charged to the Town's Solid Waste Management Fund. Council is requested
to authorize a $26,000 revenue budget increase in that fund (210-48500) and a corresponding increase to the fund
balance.
PREPARED BY: egina A. Falkner
ity Services Director
csd34A:\cnclrpts\swmopt.rpt
Reviewed by: Attorney 1 1,t Finance Revised: 2/26/98 1:06 pm
Reformatted: 10/23/95
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MAYOR AND TOWN COUNCIL
SUBJECT: SOLID WASTE MANAGEMENT SETTLEMENT REVENUES
February 26, 1998
B. Grant Program
To date, the Town has received over $150,000 in settlement revenues from Green Valley Disposal Company. The
Community Services Commission recommends that $100,000 be included in the Town's FY 1998/99 Proposed Operating
Budget for grants to nonprofit agencies and schools for purchase of:
• products made from recycled materials;
• used products; and,
o products that will help the agency reduce waste or recycle.
Examples include materials purchases at the Resource Area For Teachers where donated office supplies are provided
to teachers at minimal costs; applicants could use grant funds to purchase furniture or other materials made from recycled
products.
If advertised now, the grant program can be incorporated into the Town's Community Grant Program process minimizing
additional effort for applicants and staff. Recommended grant allocations can be specifically included in the Proposed
Operating Budget. Staff will prepare general grant guidelines but is also counting on the applicants for creative grant
proposals that meet the "reduce, reuse, and recycle" objectives.
C. Other Projects
Listed below are projects/purchases recommended by the Community Services Commission for future funding. These
are not recurring revenues and staff suggests spending the funds for one-time expenses as opposed to on -going items.
Purchase "Green Machine" and Trailer
Both Downtown businesses and customers are eager to have the sidewalks cleaned regularly. This objective can be met
as a joint effort with the Downtown businesses. The Town could purchase and maintain the required machine and
businesses could provide the labor, or funding for the labor to operate the machine. Equipment replacement,
maintenance, and fuel costs will be charged to other revenue sources.
Housing Grants
Allocate funds for purchase of materials made from recycled products as part of the Town's housing programs benefiting
low and very low households. Some of these funds could be allocated to an affordable housing development. Grant
funds would not be used for product installation.
Trash Compactors
Purchase two to four trash compactors and construct enclosures to free -up parking spaces and enhance the Downtown.
Expand Recycling Collection Program
GVDC has confirmed its willingness to expand it's Recycling Program. To assure economies of scale, it would be
advantageous to have all four cities expand their programs. Therefore, this option will be presented to the West Valley
Solid Waste Management Authority Board this spring for it's consideration. Potential projects include:
• residential oil filter;
• commercial mixed paper; and,
• used household batteries.
ENVIRONMENTAL ASSESSMENTS:
This project is not a project defined under CEQA, and no further action is required.
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MAYOR AND TOWN COUNCIL
SUBJECT: SOLID WASTE MANAGEMENT SETTLEMENT REVENUES
February 26, 1998
FISCAL IMPACT:
Projects recommended for funding will be included in the Town's proposed FY 1998/99 Operating Budget. Authorize
revenue budget (210-48500) increases for reimbursement of legal fees by $26,000 and increase fund balance.
Distribution:
Community Services Commission
Scott Hobson, Hilton, Famkopf, and Hobson, 2201 Walnut Avenue, Suite 280, Fremont, CA 94538-2334
Town Council Minutes
Redevelopment Agency
March 2, 1998
Los Gatos, California
the complexities of the subject, weigh the alternatives, consider the concessions, and give an informed
opinion. That the forums provide for active participation in the study and evaluation of a subject.
That the facilitator look for informed insights, allow for the intelligent input of the participant, and
the interchange of information and ideas between participants and staff. That the framework prepare
for a productive outcome to the project and a way to measure the importance of the subject as it fits
into the matrix of interlinking neighborhoods and interests.
That the contractor and facilitator design a set of research documents to encourage people to learn
about the subject and each other. This should not be a passive search for opinions but a dynamic
vehicle aiding the participant to become more involved and informed. Part of RFP should include
comments as to why this might be a viable course of action. The consultant should be sensitive to
opinion shifts during these meetings. A suggestion is to provide a preliminary questionnaire, and
then repeat the process after the meetings to determine if opinion has shifted during the interaction
of the various interest groups. The time commitment for this process should be about a year.
GENERAL PLAN AND HILLSIDE SPECIFIC PLAN UPDATE PROCESS/CONT.
That Council strike the reference to the October 1997 survey as a point of reference. That the
recommendations from the Parking Commission be considered as complete at this time and Council
keep the larger question of parking with themselves. That most of the Downtown Specific Plan has
been accomplished accept for phases 2 and 3 of the parking program. That Barton and Ashman be
added to the Traffic Engineering Consultant List and Gerston be added to the Scientific Survey
Consultant List. That the question of adding an Arts Element to the General Plan be an item of
consideration.
Motion by Mr. Attaway, seconded by Mr. Hutchins, that Council authorize staff to: Prepare
resolution establishing General Plan Task Force II with a maximum of 30 ,members; Advertise for
applications to fill vacancies on General Plan Task Force II in accordance with Town Council criteria;
Prepare necessary reports for amending the General Plan to incorporate sections of the Downtown
Specific Plan that have not been completed and repeal the completed sections of the Downtown
Specific Plan; Send requests for proposals to consultants for data collection during the General Plan
and Hillside Specific Plan update process. Carried unanimously.
COMPRESSED NATURAL GAS VEHICLES/RESOLUTION 1998-17 (08A.28)
Returned to Council from Consent to receive a late Desk Item.
Mayor Lubeck returned to Item #8 on the Consent Calendar for a late desk item presented for
Council's review. Action was already taken by Council under consent, but the resolution was
missing from the report. By Council Consensus the resolution was accepted as adopted earlier on
consent.
SOLID WASTE MANAGEMENT SETTLEMENT REVENUES (14.14)
Motion by Mr. Attaway, seconded by Mr. Hutchins, that Council authorize revenue budget (210-
48500) increases for reimbursement of legal fees by $26, 000, increase fund balance and consider
projects for the Solid Waste Management Program. That staff reevaluate the report and return to
Council with the cost of the Green Machine and Trash compactors and to report on what Green
Valley has to say about Commercial Mixed Paper collection. That thought be given to additional
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Town Council Minutes
Redevelopment Agency
March 2, 1998
Los Gatos, California
education concerning the recycling programs and that businesses and offices be included in the
program. Carried unanimously.
COUNCIL COMMITTEE REPORTS
Joanne reported that the station manager of KCAT had resigned, and that 20 resumes were received
for the position. George Samson of Channel 54, a non profit station has been hired. He is excited
about enhancing and expanding coverage of events in town, information for residents, and exploring
fundraising opportunities. He hopes to form a volunteer engineering committee for repairs of
equipment.
ADJOURNMENT
Mayor Lubeck adjourned this evening's meeting at 10:04 p.m.
ATTEST:
Marian V. Cosgrove
Town Clerk
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