26. Compostable waste
CITY OF
CUPEIQ"INO
PUBLIC WORKS DEPARTMENT
SUMMARY
AGENDA ITEM ~
AGENDA DATE AUf!ust 21. 2007
SUBJECT AND ISSUE
Adopt a resolution to establish and approve a rate for a new service for hauling and processing of
compostable waste in compactors from businesses in Cupertino.
BACKGROUND
Apple Inc. has approached City staffwith a request to have cafeteria waste hauled from their site
in a compactor and processed into compost in lieu of landfilling. Last year, the City of Cupertino
approved an Agreement for Processing of Yard waste and Compostable Waste with Zanker Road
Resource Management.
The current agreement provides for waste to be landfilled at $38.34 per ton. A new feature over
the prior agreement provided for a cost per ton to process compostable waste at $74.00 per ton
although a customer rate for this service has not been established.
Therefore, in order to assist Apple and other interested businesses in compo sting this material, a
rate is required to charge companies for hauling and processing. In Apple's case, it is estimated
an l8-yard compactor would be hauled approximately every 10 days and the weight of the
compactor would be 10 tons. The actual cost of hauling and processing one l8-yard compactor
for composting is $993.85. Compared to hauling the same material and disposing of it as trash,
which cost is $553.50, or $440.35 less than for compostable material.
Cupertino has a history of providing recycling services at no additional cost to residents and
businesses. Currently glass, metal, paper, plastics, cardboard and other materials are collected
and processed at no additional costs to customers. It is recommended that a rate be established
equal to the cost of the trash rate, not only as an incentive, but to avoid inadvertently penalizing
those businesses that would recycle their compostable kitchen waste rather than simply sending
it to the landfill. Apple's example would mean providing funds of $440.35 every 10 days or 37
times per year. That cost of the subsidy for that company alone would be $16,293 annually.
The following table compares the current hauling rate with the cost of the compostable hauling
and the incentive subsidy required to put all ratepayers on an even basis.
Printed on Recycled Paper
Service for 18- Disposal/Processing Rate Actual Proposed Subsidy
yard Rate Currently Cost of Rate Per Haul
compactor, Charged Service
approximately to (includes
10 tons Customer processing,
(includes hauling &
disposal, franchise
hauling & fees)
franchise
fees)
Trash $38.34/ton $553.50 $553.50 N/A
Compostable $74.00/ton N/A $993.85 $553.50 $440.35
waste
(commercial:
restaurants,
grocery stores,
etc.)
It is proposed that this rate be established on a pilot basis for one year, and offered to other
interested businesses on a first come, first serve basis.
FISCAL IMPACT
The program level for the 2007-2008 fiscal year is proposed to be $75,000 during the pilot phase.
That amount would provide for the activity of 4 businesses with the same compost load per year
as Apple or an unspecified number of smaller businesses with smaller compostable needs that
Apple.
An appropriation of $45,000 from the Resource Recovery Fund will be required, and the
additional $30,000 can be funded from the current FY 2007-08 operating budget. The balance of
this fund is currently $4.8 million, although a $1,500,000 reserve for unknown environmental
issues/impacts is recommended.
The following is a summary of available resources from the Resource Recovery Fund to finance
this proposal (numbers are estimates):
Estimated End of Year Balance
Reserve set-aside for Unknown Environmental issues/impacts
Set-aside for Cleanup reimbursement to the General Fund
$ 4,800,000*
(1,500,000)
(500,000)
$ 2,800,000
Estimated Uncommitted Balance
* At this end of year balance level, the fund is decreasing at an annual rate of approximately
$100,000, due to costs of new recycling programs.
2
STAFF RECOMMENDATION
Staff recommends that the City Council adopt Resolution No. 07-m, adopting a resolution to
establish and approve a new rate for hauling and processing of compostable waste in compactors
from businesses in Cupertino and appropriate $45,000 from the Resource Recovery Fund
(account # 520-8003-7106) for fiscal year 2007-08.
Submitted by:
Approved for Submission:
'-t2I4LfuuUw
Ralph A. Qualls, Jr. V
Director of Public Works
~
David W. Knapp
City Manager
3
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RESOLUTION NO. 07-147
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
ESTABLISHING AND APPROVING A RATE FOR HAULING AND PROCESSING
COMPOSTABLE WASTE IN COMPACTORS FROM BUSINESSES IN CUPERTINO
WHEREAS, the City Council has been presented a proposal to establish and
approve a rate for hauling and processing compostable waste in compactors from
businesses in Cupertino; and
WHEREAS, the City of Cupertino has a history providing recycling services at no
additional cost to residents and businesses and this program would establish a rate equal
to the cost of the trash rate as a lack of penalty.
WHEREAS, the program proposed is for a one year pilot program and costing up
to $75,000; and
WHEREAS, an appropriation from the Resource Recovery Fund in the amount of
$45,000 is necessary to fund this program.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Cupertino hereby establishes and approves a rate for hauling and processing compostable
waste in compactors from businesses in Cupertino that is equal to the trash rate for
hauling compactors.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Cupertino this 2151 day of August 2007, by the following vote:
Vote Members of the City Council
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
APPROVED:
City Clerk
Mayor, City of Cupertino