HomeMy WebLinkAbout2007/07/24 Item 3
CITY COUNCIL
AGENDA STATEMENT
~\~ CITY OF
-~ CHUlA VISTA
n
7/24/07, Item2
ITEM TITLE:
PUBLIC HEARING: CONSIDERATION OF A RESOLUTION TO ADOPT
THE AB 939 FEE INCREASE ON THE SOLID WASTE GENERAL
SERVICE RATES FROM 2.5% TO 5% TO FULLY FUND THE STATE
MANDATED WASTE DIVERSION AND RECYCLING PROGRAMS AS
PROVIDED FOR UNDER AB 939, THE WASTE MANAGEMENT ACT
RESOLUTION ADOPT THE AB 939 FEE INCREASE ON
THE SOLID WASTE GENERAL SERVICE RATES FROM 2.5% TO 5%
TO FULLY FUND THE STATE MANDATED WASTE DIVERSION AND
RECYCLING PROGRAMS AS PROVIDED FOR UNDER AB 939, THE
WASTE MANAGEMENT ACT
DIRECTOR OF GENER1L.~ltVICES~
CITY MANAGER /1;f/jJ:.
ACTING ASSIST N{rCITY MANAGER "-:> r)
4/STHS VOTE: YES 0 NO ~
SUBMITTED BY:
REVIEWED BY:
BACKGROUND
AB 939, known as the Waste Management Act of 1989, requires cities and counties to divert 50% of the
waste going to the landfills. AB 939 was an unfunded mandate, which provided for jurisdictions to
charge for the programs and services required to meet this goal.
Public Resources Code 4190: "A city, county [,J or city and county may impose fees in amounts
sufficient to pay the costs of preparing, adopting, and implementing a countywide integrated
waste management plan prepared pursuant to this chapter. The fees shall be based on the types
or amounts of solid waste, and shall be used to pay the actual costs incurred by the city or county
in preparing, adopting, and implementing the plan, as well as in setting and collecting the local
fees. In determining the amounts of the fees, a city or county shall include only those costs
directly related to the preparation, adoption and implementation of the plan and the setting and
collection of the local fees. A city, county, or city and county shall impose the fees pursuant to
Section 66016 of the Government Code."
Public Resources Code 41902: "A local agency may directly collect the fees authorized by this
chapter or may, by agreement, arrange for the fees to be collected by a solid waste hauler
providing solid waste collection for the city or county. "
Events have occurred which have placed substantial strain on the City of Chula Vista's AB 939 funds.
First, State grants no longer allow for Household Hazardous Waste (HHW) disposal costs to be paid for
with State grant funds. The State grants had been covering up to $100,000 in disposal costs at the City's
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7/24/07, Item~
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Household Hazardous Waste Drop-off Facility located at the Public Works Yard, 1800 Maxwell Road,
Chula Vista, 91911.
Then in February 2006, the temporary disposal exemption for residentially generated waste batteries,
fluorescent lamps, and small electronic devices reached its sunset. These items have been identified as
toxic and are banned from disposal in municipal solid waste landfills. They must be specially handled
through collection events, recycling centers and/or at the Household Hazardous Waste Drop-off Facilities.
The disposal/operating costs at the HHW drop-off facility increased 100% as a result of the increased
traffic and corresponding HHW disposal volumes from this change in the law. The Household Hazardous
Waste Program, which is just one (I) of forty-seven (47) programs the Environmental Services Division
of the General Services Department oversees, now requires approximately $240,000 annually.
Finally, the mandated landfill diversion goal of 50% was not met for 2005.
Chula Vista diverted between 46-48% of the waste from the landfill for this
time period. This number has been in steady decline from the high of 54%
in 2001. After discussions with California Integrated Waste Management
Board (CIWMB), Chula Vista staff identified several waste
reduction/diversion and recycling program components, which need to be
implemented, including a Construction and Demolition Debris Recycling
Ordinance. As a result of these discussions with the Waste Board, Chula
Vista has so far been granted a good faith effort "pass" for not achieving 50% in 2005. This pass will last
only as long as we continue to implement and update our waste reduction and diversion plans/programs.
To not do so could subject the City to penalties and fines of up to $10,000 day.
Diversion
Year Percentage
2001 54%
2002 52%
2003 51%
2004 50%
2005 48%
Staff is requesting the fee increase as described above. If not, then the alternative would be to request an
appropriation of $450,000 from the General Fund to the General Services - Environmental Services
budget to fund the State Mandated Waste Diversion and Recycling Programs.
ENVIRONMENTAL REVIEW
The Environmental Review Coordinator has reviewed the proposed activity for compliance with the
California Environmental Quality Act (CEQA) and has determined that there is no possibility that the
activity may have a significant effect on the environment; therefore, pursuant to Section 1506I(b)(3) of
the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is
necessary.
RECOMMENDATION
Council adopt the resolution to increase the AB 939 fee from 2.5% to 5% in order to fully fund the State
mandated waste diversion and recycling programs as provided for under AB 939, the Waste Management
Act.
BOARDS/COMMISSION RECOMMENDATION
Not applicable.
DISCUSSION
The City of Chula Vista first implemented the AB 939 fee in fiscal year 1994-95 as 1% of the gross
receipts collected by the franchise hauler and forwarded to the City on a monthly basis. The AB 939 fee is
equitably distributed across commercial, industrial and residential customers, based on their level of
service. This fee was implemented knowing that as recycling program needs developed, adjustments
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7/24/07, Item~
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could be made. Additionally, staff anticipated supplementing these funds with State and local grant funds
as they were available.
In fiscal year 1998-99 the fee was increased from 1% to 2% to fund Household Hazardous Waste
components of the City's AB 939 plan. San Diego County lost the revenue source it used to support
Regional HHW Programs for all County residents when they sold the landfills to a private company. This
placed more of the funding burden on the local jurisdictions.
In 2003 the City increased the AB 939 fee by one-half percent (up to 2.5%) as a response to regulation
changes that banned Cathode Ray Tubes (CRTs) such as televisions and computer monitors from landfill
disposal, as they had been deemed hazardous. The funding increase also went to cover other AB 939
program enhancements such as commercial and industrial recycling and Space Allocation Ordinance
development, implementation and administration, ensuring that adequate recycling and solid waste
collection and storage space is designated in new projects and/or remodel projects, both public and
private.
Once again events have occurred which have placed more program funding burdens on the local
jurisdictions requiring an increase in funding either from the General Fund or increased AB 939 fee: loss
of grant funding; banning of specific items from landfills; not achieving the State mandated 50% landfill
diversion goal for 2005.
Chula Vista's AB 939 fee is collected on the gross receipts for waste services by the Contracted Hauler
and forwarded to the City monthly. The fee is equitably distributed across commercial, industrial and
residential customers, based upon their level of service. It is a pass-through fee, meaning the Contractor
only collects the fee on behalf of the City and does not receive any portion or percentage of these fees.
For fiscal year 2006-07, the 2.5% AB 939 fee generated approximately $450,000. These funds are
supplemented with various grant funds from the California Integrated Waste Management Board and the
California Department of Conservation - Division of Recycling for AB 939 program specific work tasks
(Used Motor Oil and Filter Recycling, Bottle and Can Recycling, Anti-litter Program, etc.).
An AB 939 fee increase from 2.5% to 5% will generate an additional approximate amount of $450,000,
totaling $900,000 annually and would equate to the following on a monthly invoice:
. 32 gal cart = an increase from $.27 to $.56 per month
. 64 gal cart = an increase from $.35 to $.72 per month
. 96 gal cart = an increase from $.42 to $.85 per month
. 3 cubic yd commercial bin, serviced I time per week = an increase from $1.97 to $4.03 per month
The funding received from the proposed increase would be used to:
. Offset the current funding short fall in the Household Hazardous Waste Program
. Open the HHW facility one additional day during the week (as needed to meet the volume
demands); or
. Provide several, one-day special events to collect batteries, fluorescent lamps and electronics in
different sections of the city
. Development, implementation and administration of the Construction and Demolition Debris
Recycling Ordinance
. Development of special recycling program documentation/reporting requirements and associated
administration
. Backyard composting program composting bins;
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7/24/07, Item~
Page 4 of 4
. Commercial and industrial "Zero Waste - $top Wa$ting Resources" Program technical assistance
and workshops
. Assisting in developing commercial food waste and organics recycling infrastructure to divert
these materials from the landfill.
. Stricter waste reduction and recycling requirements for Special Events including after event
reporting
The City Attorney's office has reviewed this proposed rate increase in light of Proposition 218 and has
determined that refuse service rates have been specifically exempted from the voter approval
requirements. Instead, these fees are subject to the majority protest requirement that includes a written
notice to the recorded property owner of each parcel and a public hearing at least 45 days after the notice
is mailed. The public notice included the amount of the proposed fee, the basis for the calculation, the
reason for the fee, and the time, date and location of the public hearing. The fees cannot exceed the funds
required to provide the service; shall not be used for any purpose other than that for which the fee is
imposed; shall not exceed the proportional cost of the service attributable to the property; and the fee
must be for service that is actually used by or immediately available to the property owner. If approved,
the fee adjustment would take place at the annual rate adjustment date for the respective customer service
segments: Large Quantity Generators (commercial and industrial services) would go into effect
retroactive to July I, 2007; Small Quantity Generators (residential cart services) would go into effect
September I, 2007.
DECISION MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site specific
and consequently the 500 foot rule found in California Code of Regulations section 18704.2(a)(I) is not
applicable to this decision.
FISCAL IMP ACT
The fee increase would potentially generate $450,000 in additional revenue, which would be used to
offset increased program costs thus reducing the impact to the General Fund.
ATTACHMENTS
Copy of the Notice of Public Hearing
Prepared by: Lynn France, Environmental Services Program Manager, General Services Department
M:\General Services\GS Administration\Council Agenda\Environmental\AB 939 Fee Increase PH All3, 7~24-07.doc
3-4
NOTICE OF PUBLIC HEARING
in Conformance with Article XIIID of the California State Constitution and the Proposition 218
Omnibus Implementation Act.
In compliance with Article XI 110 of the California State Constitution and the Proposition 218 Omnibus
Implementation Act, the City of Chula Vista is hereby notifying all affected property owners of the
proposed AS 939 fee increase on all General Service Rates for Solid Waste and the annual rate
adjustment of General Service Rates for Solid Waste Services. 80th rate adjustments are effective July
1, 2007 for Large Quantity Generators (commercial and industrial bin service customers) and September
1,2007 for all Small Quantity Generators (cart service customers).
PUBLIC HEARING INFORMATION
Public Hearings on these two items will be held on July 24,2007, at 6:00 p.m. at 276 Fourth Avenue,
Chula Vista, California 91910 in the City Council Chambers. All protests on these items must be
SU!'tted in writing to the City Clerk's office by 5:00 p.m. on July 24, 2007 and will also be accepted
in Council Chambers at the respective public hearing. All written protests must be signed by the
pr rty owner and contain a description of the property (address and/or Assessor Parcel Number).
At the Public Hearings, City Council will receive all final tabulation of all written protests received by
the City Clerk's Office and will accept additional written protests. The Council will then consider and
may adopt the proposed items,
Please send your written protest to:
City of (hula Vista, Office of the City Clerk
276 Fourth Ave, (hula Vista, CA 91910
arfax to: (619) 585-5774
Protests sent by email will not be considered. All written protests must be signed by the property owner
and contain a description of the property (address and/or Assessor Parcel Number}
FREQUENTLY ASKED QUESTIONS
Why did I get this mailing?
This mailing serves as a notice for the proposed one time rate increase in the AS 939 fee, which is
collected on the solid waste services invoice. Additionally, this mailing also serves as notice for the
annual General Service Rate adjustment for Solid Waste Service Rates provided by a private Contractor
for the term of the Agreement.
Do I have to respond to this notice?
No, you do not have to respond to this notice. If, ho~ever, you feel strongly opposed to the fee increase
or the General Service Rate adjustment, you can file your written protest with the City Clerk's office
as described in the section above,
What if I have more questions?
If you have questions about your waste services you may call 619 691-5122, or email the City at
EnvironmentaIServices@cj.chula-vista.ca,us.
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cmOF
(HULA VISTA
NOTICE OF
PUBLIC HEARINGS
ON PROPOSED AB 939 FEE INCREASE
AND
SOLID WASTE GENERAL SERVICE RATE ADJUSTMENTS
July 24, 2007 · 6 p.m.
Council Chambers
Chula Vista City Hall . 276 Fourth Avenue, Chula Vista, CA 91910
~II?-
am. 16NVIRDNM6NTAL.A,
(HUlA \1STA S6RV1C6S W
1 BOO Maxwell Rood, Chula Vista, CA 91911
EXPLANATION OF PROPOSED AB 939 FEE INCREASE
AS 939, known as the Waste Management Act of 1989, is a State law that requires cities and counties
to divert 50% of the waste going to the landfills. AS 939 was an unfunded State mandate, which
provided for jurisdictions to charge for the costs to develop, implement and administer programs and
services required to meet this goal.
Chula Vista's AB 939 fee is collected on the gross receipts for solid waste services by the contracted
hauler and forwarded to the City monthly. The fee is equitably distributed across commercial, industrial
and residential customers, based upon their level of trash service. An AS 939 fee increase from 2.5%
to 5% will generate an additional approximate amount of $450,000, totaling $900,000 annually and
would equate to the following on a monthly invoice:
. 32 gal cart = an increase from $.27 to $.56 per month
. 64 gal cart = an increase from $.35 to $.72 per month
. 96 gal cart = an increase from $.42 to $.85 per month
.3 cubic yd commercial bin, serviced 1 time per week = an increase from $1.97 to
$4.03 per month
(.oJ
Thelfunding received from the proposed increase would be used to:
0>
. Offset the current funding shortfall in the Household Hazardous Waste Program
. Open the HHW facility one additional day during the week (as needed to meet the
volume demands)
. Provide several, one-day special events to collect batteries, fluorescent lamps and electronics
in different sections of the city
. Development, implementation and administration of the Construction and Demolition
Debris Recycling Ordinance
. Work towards increasing various recycling program documentation/reporting requirements
and associated administration
. Backyard composting program composting bins
. Commercial and industrial "Zero Waste - Stop WaSting Resources" Program technical
assistance and workshops
. Assisting in developing commercial food waste and organics recycling infrastruciure
. Stricter enforcement of waste reduction and recycling requirements for Special Events
including after event reporting
AS 939 fees cannot exceed the funds required to provide the service; shall not be used for any purpose
other than that for which the fee is imposed; shall not exceed the proportional cost of the service attributable
to the property; and the fee must be for service that is actually used by or immediately available to the
property owner. If approved. the fee adjustment would take place at the annual rate adjustment date
for the respective customer service segments: large Quantity Generators (commercial and industrial
services) would go into effect July 1, 2007; Small Quantity Generators (residential cart services) would
go into effect September 1, 2007. This is a one-time fee adjustment, not an annual fee adjustment.
EXPLANATION OF ANNUAL ADJUSTMENT
FOR SOLID WASTE GENERAL SERVICE RATES
General Service Rates for solid waste, recycling, yard waste and disposal are established annually. A
private contractor (Contractor) with an exclusive franchise agreement (Agreement) provides these
services in the City of Chula Vista. Under the terms and conditions of the Agreement, the Contractor
undertakes and agrees to collect, transfer, transport, recycle, process and dispose of all recyclables,
yard waste, and solid waste which is generated and placed for collection by or upon all property located
within Chula Vista.
Per the Amended and Restated Recycling and Solid Waste Franchise Agreement, the Contractor is
entitled to an annual rate increase for General Service Rates within the following prescribed terms and
conditions. The City Manager or designee reviews the rates for compliance with these terms.
. The annual adjustment amount for General Service Rates does not exceed sixty-six and two-thirds
percent (66.66%) of the increase in the San Diego Area Consumer Price Index (CPl) for all Urban
Consumers (all items) published by the u.S. Department of Labor, Bureau of labor Statistics for
the previous twelve-month period (calendar year) for which statistics are available.
CPI X 66.66% :: % of rate adjustment
. Notwithstanding the foregoing, at no time shall the Small Quantity Generator Rates (SQG _ cart
service) exceed ninety percent (90%) of the average for the County of San Diego for the same level
of service - approximately 60-gallon cart rate or standard service rate after subtracting any pass-
through fees or local subsidies. This limitation is to be applied only to d~termine whether the
Contractor is entitled to the full CPI adjustment on SQC rates, as described above.
Mean County Average X 90% = Maximum rate for SQG
Rate adjustments are effective July 1, for large Quantity Generators (commercial and industrial bin
service customers) and September 1, for all Small Quantity Generators (cart service customers), annually.
This mailing serves as notice for the proposed increase for 2007-08 and for subsequent annual rate
increases in the manner described above and in the Agreement with the Contractor for the duration
of the Agreement.
8ASIC MONTHl Y RATES WITH PROPOSED A8 939 FEE AND PROPOSED (PI RATE ADJUSTMENT
PRESENT RATES PROPOSED RATES
32 Gal 64 Gal 96 Gal 3YD Bin 32 Gal 64GaJ 96 Gal 3YD Bin
$10.90 $14.12 $16.60 $78.78 Proposed CPI: 2.27"/" $11.16 $14.46 $16.98 $80.67
(Adj. 66.66%
of3.4%l
Franchise $0.87 $1.13 $1.33 $6.30 Franchise Fee 8.0% $0.89 $1.16 $1.36 $6.45
Fee 8.0%
A8939 $0.27 $0.35 $0.42 $1.97 Proposed AS 939 $0.56 $0.72 $0.85 $4.03
Fee 2.5% Adjustment
. . \""C- Prop 218 Mailing Cost $0.05 $0.05 $0.05 $0.05
Total $12.04 $15.60 $18.35 $87.05 Total $12.66 $16.39 $19.24 $91.21
RESOLUTION NO. 2007-
RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA TO ADOPT THE AB 939 FEE
INCREASE FROM 2.5 PERCENT TO 5 PERCENT,
APPLIED TO THE SOLID WASTE SERVICE RATES,
TO FULLY FUND THE STATE MANDATED WASTE
DIVERSION AND RECYCLING PROGRAMS AS
PROVIDED FOR UNDER THE WASTE
MANAGEMENT ACT (AB 939)
WHEREAS, the Waste Management Act of 1989 (AB 939) authorized cities and counties
to establish a fee to pay for the cost of developing and implementing the programs designed to
meet the state mandate to divert a minimum of 50 percent of their annual waste from landfills;
and
WHEREAS, the City established a one percent fee in 1994-1995 fiscal year, and in 1998-
1999 increased that fee to two percent, to cover household hazardous waste programs when the
County sold the landfills and stopped providing regional household hazardous waste services;
and
WHEREAS, the City increased the fee from two percent (2%) to two and one-half
percent (2.5%) in 2003 to cover the special handling and disposal of televisions and computer
monitors that had been deemed hazardous and banned from landfills; and
WHEREAS, State grant funds will no longer cover household hazardous waste costs in
municipal household hazardous waste programs; and
WHEREAS, waste batteries, fluorescent lamps, and small electronic devices were
deemed toxic and banned from landfill disposal in February 2006, which increased resident
traffic at Chula Vista's Household Hazardous Waste Facility; and
WHEREAS, Chula Vista has not met the 50 percent mandated landfill diversion goal for
2005 and must work to implement new programs and program enhancements to regain the
50 percent mandated diversion goal, including a construction and demolition debris recycling
ordinance.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista does hereby authorize a two and one-half percent (2.5%) increase in the AB 939 fee to five
percent (5%), applied to the solid waste rates, to fund recycling, solid waste and household
hazardous waste recycling and education programs.
Presented by
Approved as to form
Jack Griffin
Director of General Services
L!h-~ tU1(~
Ann Moore
City Attorney
J:\Al\omey\RESOIFINANCE\AB 939 fee incrcasc_07-24-U7 revsu.duc
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Chula Vista. CA 91914
RECEIVEC
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June 5, 2007
CITY OF CHULAVIST:.
CITY CLERK'S OFFIC:
City of Chula Vista
Offlee of the City Clerk
276 Fourth Avenue
Chula Vista, CA 91910
VIA FAX 619-585-5774
RE: Proposed AB 939 Fee Increase and Solid WastJ! General Service Rate Adjustments
To Whom It May Concern:
Please note that I am opposed to any and all fee' and rate increases related to the above mentioned
items.
Sincerely,
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