REPORT TO COUNCIL
SUBJECT
Title
Countywide AB 939 Fee and Household Hazardous Waste Agreements for FY 2018/19 through 2020/21
Report
BACKGROUND
Household Hazardous Waste (HHW) services are provided to Sunnyvale residents by way of the Countywide HHW Program. Services include quarterly drop-off events held at a Sunnyvale location as well as events held at other permanent and temporary locations in the County.
As a reminder, up until June 2015, the County held a monthly HHW event at 164 Carl Road. Due to the Water Pollution Control Plant (WPCP) expansion project, the Carl Road location was closed, and beginning in July 2015, the County began providing quarterly Sunnyvale events at the City’s Corporation Yard on Commercial Street. Residents continue to be able to dispose of HHW at frequent HHW events held throughout the county at both permanent and temporary locations.
The City’s cost for participation in the HHW program is paid from two sources: (1) revenues from the Countywide AB 939 Fee, a fee charged on every ton of Sunnyvale solid waste disposed, and (2) a direct payment from the City for resident use above a baseline level of four percent participation.
The revenue from the fee must be used to implement programs and services designed to meet the requirements of AB 939, the state mandate that local jurisdictions reduce the amount landfilled by 50% (from the baseline year of 1990) and reduce the amount of household hazardous waste that is improperly disposed. The collection, distribution, and use of the fee are governed by Agency Agreements between the County of Santa Clara and the 15 cities in the county. The current agreement with the County was approved by the City Council on April 28, 2015 (RTC No. 15-0290), and will expire on June 30, 2018.
EXISTING POLICY
General Plan Chapter 7, Goal EM-15: Environmentally-Sound Disposal - Dispose of solid waste in an environmentally sound, dependable and cost-effective manner.
ENVIRONMENTAL REVIEW
The action being considered is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15061 (b) (3) as the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment, where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. The action being considered also does not constitute a "project" with the meaning of the CEQA pursuant to CEQA Guidelines section 15378 (b) (5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
DISCUSSION
The two agreements have specific purposes and funding mechanisms:
AB 939 Fee Agreement
The AB 939 Fee is divided into two parts:
1) A Program Fee of $1.50 per ton. Fee revenues are passed back to each jurisdiction to help pay the cost of preparing, adopting and implementing integrated waste management plans.
2) A Household Hazardous Waste Fee of $2.60 per ton, with revenues used to pay for HHW services.
Policy oversight is provided by the Santa Clara County Recycling and Waste Reduction Commission (RWRC). Councilmember Griffith represents the SMaRT Station® cities (Mountain View, Palo Alto and Sunnyvale) on the RWRC.
The County has collected the AB 939 Fee on behalf of all jurisdictions within the County since July 1992. No change in the amount of the fee is recommended during the next three fiscal years.
Countywide HHW Program Agreement
The HHW portion of the AB 939 Fee pays for program participation at a baseline level of four percent of households. Cost for participation beyond baseline is augmented by each jurisdiction. The need to possibly change the augmentation amount from year to year and even toward the end of each fiscal year of the agreement arises from several variables, including resident participation levels, the amount of garbage generated and disposed (which generates fee revenues for the HHW Program) both within Sunnyvale and countywide, and changes in the HHW Program's costs (e.g., for disposal of wastes collected).
Staff is recommending that Council set the FY 2018/19-2020/21 augmentation amount at $61,200. Prior to FY2015/16, the augmentation amounts were more than $200,000 per year, reflecting seven to nine percent household participation rates. But after the monthly event site at 164 Carl Road closed and the HHW Program moved to quarterly events at the Corp Yard, the participation dropped off substantially. The current augmentation amount reflects the HHW Program’s expectation that 4.6 percent of Sunnyvale households will participate per year, a slight increase from the previous two years’ participation of 3.2 and 3.4 percent. Participation has been slowly increasing as residents become accustomed to the new event locations and dates.
For each year of the agreements, County staff will estimate augmentation amounts for each City based on then-current information on participation, garbage disposal quantities and fee revenues, and program operating expenses. Staff is recommending that Council continue to delegate to the City Manager the authority to approve changes to the augmentation amount and that Council, as in previous years, continues to delegate to the City Manager the authority to approve an increase of up to 20 percent in the augmentation amount.
FISCAL IMPACT
There is no new fiscal impact. The recommended actions meet the current level of service to Sunnyvale residents and are consistent with the funding level appropriated in the Solid Waste Management program budget.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
RECOMMENDATION
Recommendation
1. Authorize the City Manager to execute the Agency Agreement for Countywide AB 939 Fee and the Agency Agreement for Countywide Household Hazardous Waste Collection Program, with an augmentation amount of $61,200.
2. Authorize the City Manager to execute annual amendments to the Countywide HHW Collection Program Agreement and the authority to approve an increase of up to 20 percent in the augmentation amount.
In order to continue to collect the AB 939 fee and distribute its revenues to the cities after June 30, 2018, each city and the County must act to approve the Countywide AB 939 Implementation Fee Agreement (Attachment 1).
Sunnyvale has relied exclusively on the Countywide HHW Program for service to City residents for the past eleven years and customer satisfaction with the service has been high.
Staff
Prepared by: Karen Gissibl, Environmental Programs Manager
Reviewed by: Melody Tovar, Interim Director, Environmental Services Department
Reviewed by: Teri Silva, Assistant City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Agency Agreement for Countywide AB 939 Implementation Fee
2. Agency Agreement for Countywide Household Hazardous Waste Collection Program.