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14. Hazardous Waste ~/..:~~...,I W .,.':" ':::::J City Hall 10300 Torre Avenue Cupertino, CA 95014-3255 (408) 777-3354 FAX: (408) 777-3333 CITY OF CUPEIQ1NO PUBLIC WORKS DEPARTMENT SUMMARY Ii AGENDA DATE Mav 2. 2006 AGENDA ITEM SUBJECT AND ISSUE A. Resolution to approve the Agency Agreement for Countywide AB 939 Implementation Fee. B. Resolution to approve the Agency Agreement for Countywide Household Hazardous Waste Collection Program. BACKGROUND In 1989, the California Legislature passed AB 939, which mandated that cities and counties divert ITom landfills, 50% of their solid waste, through source reduction, recycling and compo sting programs. Local agencies could determine their own activities to achieve the waste diversion goals required by the bill. The County has collected ITom landfills and non-disposal facilities within the county the Countywide AB 939 Implementation Fee, imposed on each ton of waste, since July 1992 on behalf of the cities of Santa Clara County. Fee revenues are distributed to cities quarterly for the purpose of funding city-specific programs required for meeting AB 939 waste stream diversion goals. The Agency Agreement for Countywide AB 939 Implementation Fee provides for continued collection of the Fee for a three-year term beginning July 1, 2006, and provides for subsequent three-year extensions upon written agreement of the County and all cities. The Agreement also increases the Fee for FY 06-07, by 37 cents per ton, for a total fee of $3.72 per ton. Of this fee, $2.22 per ton will fund household hazardous waste services; the remaining $1.50 per ton will be paid to cities to fund AB 939 compliance activities. The increase is effective for one year and will fund HHW services due to increases in universal waste collection. In FY 07-08 and 08-09 the fee goes back to $3.35 per ton. 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 landfilled and must be disposed of as hazardous waste. The 37-cent increase represents an estimated $500,000 for HHW services necessary to support the collection of additional Universal Waste. Within the next fiscal year, County HHW staff will engage in high-level negotiations to accomplish cost sharing for HHW Printed on Recycled Paper /'1-1 services among solid waste, waste water treatment plant and stormwater agencies and pursue extended producer responsibility as a long-term solution. Cupertino receives approximately $60,000 annually ITom the AB939 fee which is spent on various source reduction and recycling activities, such as residential and commercial recycling outreach, schools recycling, garage sale, and compost programs. Cupertino's proposed 2006-07 budget provides additional funds of $42,000 to provide service equivalent to 6% of Cupertino's households. This amount increased ITom 5% of households in the past year due to increased participation by Cupertino residents. All fifteen cities must approve an Agency Agreement for Countywide AB939 Implementation Fee by July I, 2006. If one or more cities do not approve this agreemènt, the AB939 Fee will not be collected. As in the past, because the landfills are located in San Jose, the City of San Jose staff have noted that, in the event that the AB939 Fee fails to win local approval, the City of San Jose has the authority and reserves the option to impose an equivalent fee on wastes disposed in landfills located in San Jose, and would retain all revenue ITom that equivalent fee. FISCAL IMPACT There is no fiscal impact to this action. The funding is included in the proposed FY 2006-07 operating budget in the amount of $42,000, funded ITom the Resource Recovery Fund. STAFF RECOMMENDATION Staff recommends that the City Council: 1. Adopt Resolution No. 06-~, approving the Agency Agreement for Countywide AB 939 Implementation Fee. 2. Adopt Resolution No. 06 - m-, approving the Agency Agreement for Countywide Household Hazardous Waste Collection. Submitted by: Approved for Submission: ~ David W. Knapp City Manager /L/-2 RESOLUTION NO. 06-083 DRAFT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AUTHORIZING EXECUTION OF THE AGENCY AGREEMENT FOR COUNTYWIDE AB 939 IMPLEMENTATION FEE WHEREAS, there has been presented to the City Council the "Agency Agreement for the Countywide AB 939 Implementation Fee", between the County of Santa Clara and the City of Cupertino; and WHEREAS, a countywide AB 939 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 $3.72 per ton for fiscal year 2006-07 and $3.35 per ton for fiscal years 2007-08 and 2008-09 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 a three-year term to begin July 1, 2006, and provides for subsequent three-year extensions upon the written agreement of the County and cities; 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 IT RESOLVED, that the City Council of the City of Cupertino hereby approves 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 adjourned meeting of the City Council of the City of Cupertino this 2nd day of May 2006, by the following vote: Vote Members of the Citv Council AYES: NOES: ABSENT: ABSTAIN: ATTEST: APPROVED: City Clerk Mayor, City of Cupertino /£/-3 DRAFT RESOLUTION NO. 06-084 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AUTHORIZING EXECUTION OF THE AGENCY AGREEMENT FOR COUNTYWIDE HOUSEHOLD HAZARDOUS WASTE COLLECTION PROGRAM WHEREAS, there has been presented to the City Council the "Agency 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 program for three fiscal years, until June 30, 2009; 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 IT RESOLVED, that the City Council of the City of Cupertino hereby approves the "Agency Agreement For Countywide Household Hazardous Waste Collection Program" 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 2nd day of May 2006, by the following vote: Vote Members of the City Council AYES: NOES: ABSENT: ABSTAIN: ATTEST: APPROVED: Mayor, City of Cupertino City Clerk /~-t./