03-067 Countywide AB 939 Implementation Fee PUBLT WORKS
JUl 2 § ?003
AGENCY AGREEMENT FOR COUNTY%VIDE
AB 939 IMPLEMENTATION FEE
This Agreement is made by and among the Cities and Towns of Campbell, Cupertino,
Gilroy, Los Altos, Los Altos Hills, Los Gatos, Milpitas, Morgan Hill, Monte Sereno,
Mountain View, Palo Alto, San Jose, Santa Clara, Saratoga and Sunnyvale (CITIES) and
the County of Santa Clara (COUNTY) on the ~O dayof ~JO~..[~ 2003. The
term CITIES may refer to CITIES collectively or individually.
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 Board of Supervisors established the Countywide AB939 Implementation
Fee 'effective July 1, 1992 to fund local costs of preparing, adopting, and implementing
integrated waste management plans and programs; and
WHEREAS, the Recycling and Waste Reduction Commission of Santa Clara County has
determined that a Countywide AB 939 Implementation Fee (Fee) is necessary, pursuant to
Public Resource Code 41901, to assist in funding the costs of preparing, adopting, and
implementing integrated waste management plans and programs in the fit~een cities and the
unincorporated area of the county; and
WHEREAS, the Fee shall be imposed on each ton of waste disposed of at landfills located
within the county or taken to non:disposal facilities located within the county and
subsequently transported for disposal to landfills located outside of Santa Clara County;
and
WHEREAS, state law requires jurisdictions to plan and implement household hazardous
waste (HHW) services; and
WHEREAS, HHW programs provide household hazardous waste management services to
residents of Santa Clara County which services are necessary to enable jurisdictions to
meet the requirements of state law; and
WHEREAS, jurisdictions in Santa Clara County desire to provide safe, convenient, and
economical means for residents to properly dispose of HHW in an environmentally safe
mamier in order to avoid unauthorized or improper disposal in the garbage, sanitary sewer,
storm drain system, or on the ground, in a manner which creates a health or environmental
hazard. These wastes include, but are not limited to, common household products such as
household cleaning products, spot remover, furniture polish, solvents, oven cleaner,
pesticides, oil based paints, motor oil, antifreeze and car batteries; and ~-
AGENCY AGREEMENT FOR COUNTYWIDE AB 939 IMPLEMENTATION FEE
~UPLICAT~ ~R!G!?~L
WHEREAS, the Recycling and Waste Reduction Commission has determined that a
Household Hazardous Waste Fee be collected as prat of the AB939 Implementation Fee to
provide the necessary fimding to operate the household hazardous waste programs in Santa
Clara County; and
WHEREAS, the County will collect the Fee on behalf of the fifteen cities and the
unincorporated area and will apportion the Fee according to the terms of this Agreement.
NOW, THEREFORE, CITIES and COUNTY OF SANTA CLARA AGREE AS
FOLLOWS:
1. PURPOSE
The purpose of this Agreement is to state the terms and conditions under which the
COUNTY will collect and distribute the Fee of $3.35 per ton of waste to be disposed. The
Fee is divided into two parts 1) a Program Fee of $1.50 per ton to assist in funding the costs
of preparing, adopting, and implementing the integrated waste management plan in the
fifteen cities and the unincorporated area of the county; and 2) a HHW Fee of $1.85 per ton
to provide fimding to implement the Countywide HHW Program. The Program Fee will be
allocated among jurisdictions as described in Exhibit B. The HHW Fee will be allocated to
the COUNTY, CITIES, and Countywide HHW Program and Participating Jurisdictions as
described in Exhibit C. The Fee shall be imposed on each ton of waste disposed of at
landfills located within the county or taken to non-disposal facilities located within the
county and subsequently transported for disposal to landfills located outside of Santa Clara
County. Non-disposal facilities are defined as those facilities included in the County of
Santa Clara Non-Disposal Facility Element (and subsequent amendments to that Element).
2. SERVICES PROVIDED BY COUNTY
COUNTY will collect and distribute the Fee. COUNTY will collect the Fee fi:om landfills
and non-disposal facilities listed in Exhibit A, and any landfill or non-disposal facility
subsequently permitted, on a quarterly basis using data fi:om tonnage reports filed by
landfill and non-disposal facility operators with the County Integrated Waste Management
Division. The COUNTY shall require each landfill and non-disposal facility to submit
required payment, documentation of tonnages disposed, and state-mandated Disposal
Reporting System Reports on a quarterly basis, within 45 days of the end of each calendar
quarter. Late submissions and/or payments shall be subject to a late filing penalty and
delinquent penalties. Collected funds and any late filing payments and delinquency
penalties shall be distributed to CITIES and Countywide HHW Program based on the
formula set forth in Exhibits B and C. COUNTY shall not be obligated to distribute funds
that COUNTY has been unable to collect fi:om landfill or non-disposal facility operators.
AGENCY AGREEMENT FOR COUNTYWIDE AB 939 IMPLEMENTATION FEE 2
3. ROLE OF CITIES
CITIES shall review the Disposal Reporting System Reports as prepared and submitted by
the COUNTY and shall report to COUNTY, with appropriate documentation, errors in
waste allocations among jurisdictions within 30 days of receipt.
4. COLLECTION AND USE OF FEE
Each ton of waste will be subject to the Fee at the non-disposal facility or landfill, but not
at both locations. Best efforts will be made to prevent tonnage from being assessed a
double fee (once at a non-disposal facility and again at a landfill within Santa Clara
County). The Program Fee funding share paid to CITIES shall be used to assist in funding
the costs of preparing, adopting, and implementing the integrated waste management plan
in CITIES and the tmincorporated area of the COUNTY. The HHW Fee portion shall
assist in funding the costs of each city's share of HHW operations.
5. INSURANCE
Each party shall maintain its own insurance coverage, through third party insurance, self-
insurance, or a combination thereof, against any claim, expense, cost, damage, or liability
arising out of the performance of its responsibilities pursuant to this Agreement.
6. INDEMNIFICATION
In lieu of and not withstanding the pro rata risk allocation which might otherwise be
imposed between CITIES and COUNTY pursuant to Government Code Section 895.6, the
parties agree that all losses or liabilities incurred by a party shall not be shared pro rata but
instead the parties agree that pursuant to Government Code Section 895.4 each of the
parties hereto shall fully indemnify and hold each of the other parties harmless from any
claim, expense or cost, damage or liability arising out of, or in connection with,
performance of its responsibilities pursuant to this Agreement.
Additionally, 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 the Fee distributed to CITIES. COUNTY
shall indemnify, hold harmless, and defend CITIES, its officers, agents, and employees
with respect to any actions brought by third parties based on COUNTY's negligence in the
collection or distribution of said Fees.
7. DISTRIBUTION OF FEE
COUNTY shall distribute the Fee to CITIES and the Countywide HHW Program pursuant
to the formulas described in Exhibits B and C within 45 days of receipt of landfill and non-
AGENCY AGREEMENT FOR COUNTYWIDE AB 939 IMPLEMENTATION FEE 3
disposal facility payments and disposal documentation required for calculation of Fee
distribution mounts. Distributions shall begin in December 2003, and continue qUarterly
through August 2006.
8. PARTICIPATION IN THE COUNTYVqIDE HHYV PROGRAM
CITIES, at their option, may individually participate in the Countywide HHW Program by
entering into the AGENCY AGREEMENT FOR COUNTYWIDE HOUSEHOLD
HAZARDOUS WASTE COLLECTION PROGRAM. Regardless of whether CITIES enter
into the Agreement, CITIES's share of funds collected for Abandoned Waste Disposal
Costs will be paid directly to the Countywide HHW Program as described in Exhibit C.
9. LATE PAYMENTS
If Fee payments and disposal documentation are not received from landfill or non-disposal
facility operators prior to scheduled distribution of payments to CITIES and the
Countywide HHW Program, payment distribution shall be calculated on a pro rata share of
monies received. Upon collection, late payments and accrued delinquent penalties, if any,
shall be distributed among CITIES and the Countywide HHW Program according to the
formula in Exhibits B and C.
10. ACCOUNTING
COUNTY shall maintain records of all transactions related to collection and distribution of
the Fee for at least five (5) years after the termination date of this Agreement, unless
otherwise required by law to retain such records for a longer period. Such records will be
available for inspection upon written request by CITIES, and will include but not be limited
to tonnage reports submitted by landfills and non-disposal facilities, waste stream
documentation provided by cities, and payments made by the landfills and non-disposal
facilities to the COUNTY and by the COUNTY to CITIES.
11. REQUEST FOR REVIEW
In the event CITIES have a dispute regarding the calculation of its share of the Fee, CITIES
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 of request and results shall be
reported to CITIES in writing.
12. EFFECTIVE DATE OF AGREEMENT
This agreement takes effect only upon approval by all fifteen cities and the COUNTY.
AGENCY AGREEMENT FOR COUNTYWIDE AB 939 IMPLEMENTATION FEE 4
13. AMENDMENT
This Agreement may be amended only by an instrument signed by all the parties.
14. INDEPENDENT CONTRACTOR
Each party shall perform responsibilities and activities described herein as an independent
contractor and not as an officer, agent, servant or employee of any of the parties hereto.
Each party shall be solely responsible for the acts and omissions of its officers, agents,
employees, contractors and subcontractors, if any. Nothing herein shall be considered as
creating a partnership or joint venture between the parties.
15. TERM OF AGREEMENT
The term of this Agreement shall be from July 1, 2003, to August 31, 2006, or until all
funds from the last quarter's Fee payments have been distributed, whichever is later.
COUNTY shall bill the operators of the landfills and non-disposal facilities listed in
Exhibit A for the Fee commencing with the Quarter ending September 30, 2003. Said
landfills and non-disposal facilities will be billed for the Fee through June 30, 2006.
16. EXTENSION OF TERM
This Agreement may be extended in three-year extensions upon written agreement of
COUNTY and CITIES.
17. NOTICES
All notices required by this Agreement must be written and will be deemed given when
delivered personally or deposited in the United States mail, postage prepaid, return receipt
requested, addressed to the other party at the address set forth below or at such address as
the party may designate in writing in accordance with this section. See Attachment F for
list of City Contacts.
City of
Contact:
Title: ~1~ i, q.-O ~3 i-4[ f~.4a,~
Address: [,0~'~00 ' __~1~-~
AGENCY AGREEMENT FOR COUNTYWIDE AB 939 IMPLEMENTATION FEE
5
County of Santa Clara
Contact:
Manager, Integrated Waste Management Division
1735 N. First Street, Suite 275
San Jose, CA 95112
18. CONTROLLING LAW
This Agreement shall be governed and construed in accordance with the lax~s of the State
of California.
19. ENTIRE AGREEMENT
This document embodies the entire Agreement between the parties with respect to the
subject matter hereof. No modification of this Agreement shall be effective tmless and until
modification is evidenced by writing signed by all parities or their assigned designates.
20. COUNTERPARTS
This Agreement may be executed in one or more counterpatls, each of which shall be
deemed to be an original, but all of which together shall constitute one and the same
instrument.
AGENCY AGREEMENT FOR COUNTYWIDE AB 939 IMPLEMENTATION FEE 6
EXHIBIT A
LANDFILLS LOCATED IN SANTA CLARA COUNTY
Guadalupe Rubbish Disposal Site
Kirby Canyon Sanitary Landfill
Newby Island Sanitary Landfill
Owens-Corning Fiberglas Landfill
Palo Alto Refuse Disposal Area
Zanker Road Landfill
Pacheco Pass Sanitary Landfill
NON-DISPOSAL FACILTIES AND TRANSFER STATIONS LOCATED IN SANTA CLAR3
COUNTY
City of Palo Alto Green Composting Facility
Material Recovery Systems Facility
Newby Island Compost Facility
Zanker Materials Processing Facility
The Recyclery at Newby Island
San Martin Transfer Station
Sunnyvale Materials Recovery and Transfer Station (SMART Station)
Z-Best Composting Facility
GreenWaste Recovery Facility
ComCare Farms Composting Facility
Pacheco Pass Landfill Composting Facility
Butterick Enterprises Recyclery
Premier Recycling Facility
EXHIBIT B
FORMULA FOR DISTRIBUTION OF AB939 PROGRAM FEE
Each jurisdiction located in Santa Clara County and signatory to this agreement will
receive $1.50 per ton of solid waste generated within its jurisdiction and disposed of in
landfills or taken to non-disposal facilities located in Santa Clara County for disposal
outside of the County, as documented in quarterly reports submitted by the County to the
State Disposal Reporting System.
Fees collected from undocumented disposed tonnage, or tonnage originating outside of
Santa Clara County, will be distributed according to each jurisdiction's percent of
countywide population, according to the latest available population report issued by the
California Department of Finance.
AGENCY AGREEMENT FOR COUNTYWIDE AB 939 IMPLEMENTATION FEE 9
EXHIBIT C
COUNTYWIDE HOUSEHOLD HAZARDOUS
WASTE PROGRAM HHW FEE (HHW Fee)
1. PROGRAM FUNDING SOURCE
HHW Program services are directly mandated under AB939, which establishes statutory
authority to provide for funding to support planning and implementation of integrated
waste management programs. The HHW Fee of $1.85 per ton collected as part of the
AB939 Implementation Fee will be the primary source of HHW Program funding.
Funds derived fi.om the HHW Fee will be allocated among four types of HHW service
costs as follows:
A. Fixed Program Costs will be apportioned based on the number of households in each
participating jurisdiction. The number of households will be determined at the
beginning of each Fiscal Year by statistics compiled by the Department of Finance,
Demographic Research Unit in their most recent Report E-1, "Population Estimates for
California Cities and Counties."
B. Abandoned Waste Disposal Cost will be apportioned based on the number of
households in all cities and towns in Santa Clara County and in the unincorporated area
of the county.
C. Variable Cost Per Car to provide a base level service to 3% of households in all
jurisdictions participating in the AGENCY AGREEMENT FOR COUNTYWIDE
HOUSEHOLD HAZARDOUS WASTE COLLECTION PROGRAM (Participating
Jurisdictions).
D. Discretionary Funding will be apportioned based on tonnage generated per Participating
Jurisdiction.
2. FIXED PROGRAM COST
Funds will be distributed on a per household basis for fixed program costs. This portion of
the funds shall be distributed directly to the Countywide HHW Program except for
jurisdictions not participating in the program. Fixed program costs funding will be
calculated at $1.22, $1.27, and $1.32 per household for fiscal years 2004 through 2006
respectively. Fixed program costs may include, but are not limited to 4.5 full-time
equivalent staff members, facility leasing costs, vehicle lease costs, office supplies, county
administrative overhead, training costs, equipment and facility maintenance, union
negotiated salary and benefit increases and state mandated facility closure costs.
AGENCY AGREEMENT FOR COUNTYWIDE AB 939 IMPLEMENTATION FEE 10
3. ABANDONED WASTE DISPOSAL COST
Funds shall be distributed on a per household basis for abandoned waste disposal at $0.17
per household. This portion of the funds shall be distributed directly to the Countywide
HHW Program. All jurisdictions throughout the COUNTY contribute to this cost including
jurisdictions not participating in the AGENCY AGREEMENT FOR COUNTYWIDE
HOUSEHOLD HAZARDOUS WASTE COLLECTION PROGRAM. The abandoned
waste disposal cost portion will fund disposal of HHW illegally abandoned at nonprofit
charitable reuse organizations. For the purposes of this agreement, the PUBLIC
RESOURCES CODE SECTION 41904 defines a nonprofit charitable reuse organizations
as follows:
(1) "Nonprofit charitable reuser" means a charitable organization, as defined in Section
501 (c)(3) of the federal Internal Revenue Code, or a distinct operating unit or division
of the charitable organization, that reuses and recycles donated goods or materials and
receives more than 50 percent of its revenues from the handling and sale of those
donated goods or materials.
4. VARIABLE COST PER CAR
The Variable Cost Per Car is the cost associated with actual labor, waste disposal,
t~ansportation and other services provided to the residents at the County HHW Collection
Facilities and Mobile Events. This portion of the funds shall be distributed directly to the
Countywide HHW Program except for jurisdictions not participating in the program. The
Variable Cost Per Car is estimated to be approximately $60 per car for Fiscal Year 2004.
The estimated cost per car will be adjusted annually to reflect actual service costs. After
fixed costs and abandoned waste costs are allocated on a per household basis, the variable
cost per car will be used to calculate the costs to service 3% of households across all
Participating Jurisdictions. If the level of 3% of households is not reached, the Countywide
HHW Program will use the remaining balance of funds, in cooperation with the CITIES, to
increase public outreach and/or provide additional services in that jurisdiction the following
year.
5. DISCRETIONARY FUNDING
The Discretionary Funding portion will be allocated based on the tons of waste generated
within each jurisdiction and after allocation of fixed cost, abandoned waste disposal cost
and variable per car cost. Discretionary Funds will be paid as directed by each jurisdiction.
Discretionary Funds must be used for HHW purposes. Options for how to spend these
funds include, but are not limited to, increasing the number of residents served in the
jurisdiction by the Countywide HHW Program, subsidizing curbside used motor oil
collection, funding HHW public education, or providing special programs such as door-to-
door collection of HHW for the elderly and/or disabled.
AGENCY AGREEMENT FOR COUNTYWIDE AB 939 IMPLEMENTATION FEE 11
6. PROGRAM FUNDING PASS-THROUGH
Annual funding calculations include HHW Fees collected on behalf of all County
jurisdictions. CITIES, at their option, may participate in the Countywide HHW Program by
entering into the AGENCY AGREEMENT FOR COUNTYWIDE HOUSEHOLD
HAZARDOUS WASTE COLLECTION PROGRAM. CITIES NOT participating in the
Agency Agreement will receive their pro-rata share of funding received by the COUNTY
from the HHW Fee, with the exception of funds for the abandoned waste disposal cost,
described above.
If CITIES NOT participating in the AGENCY AGREEMENT FOR COUNTYWIDE
HOUSEHOLD HAZARDOUS WASTE COLLECTION PROGRAM desire to permit
residents to participate in HHW Program services on an emergency basis, then services to
these residents will be provided on a cost recovery basis. A charge equal to the published
rates charged to Conditionally Exempt Small Quantity Generators will be billed to the
CITIES. A CITIES' representative must call the Countywide HHW Program appointment
line to schedule an appointment for the resident. The pro-rata share of liability wilt be
shared as defined in Section 6 of the AGENCY AGREEMENT FOR COUNTYWIDE AB
939 IMPLEMENTATION FEE.
AGENCY AGREEMENT FOR COUNTYWIDE AB 939 IMPLEMENTATION FEE 12