HomeMy WebLinkAboutMINUTES - 04071987 - S.8 TO: BOARD OF SUPERVISORS
FROM: Nancy Fanden Contra
Costa
DATE: April 7 , 1987 . County
SUBJECT: Hazardous Waste Tax
SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATION: That the Board of Supervisors compare
the existing method of collecting a hazardous waste tax to
that of collecting 100 of the annual gross.
That the County Administrator and Health Officer analyze
gross receipts for the period of time that the tonnage tax
has been in place, and advise the Board as to the amount of
tax that could have been collected, had the tax been based
on 100 of the gross receipts, comparing that amount to the
tax actually collected.
BACKGROUND: Ordinance No. 83-26 (Ordinance Code
Chapter 64-10) imposes a license tax on the operation of
existing hazardous waste facilities based on tonnage. The
tax originally was set at $2 . 97 a ton. Resolution No. 84/
624 raised the rate to $3 . 47 a ton December 1, 1984 .
This ordinance was imposed pursuant to Health and Safety
Code Section 25149. 5, which allows imposition of a tax of up
to 10% of the annual gross receipts of an existing hazardous
waste disposal facility.
From September 1983 to November 1986 the County collected
$1, 233 , 128 . Solano County has enacted the loo tax and had
projected $2,000, 000 to be collected this fiscal year from
the I .T. , Benicia facility prior to its closure.
Attachment: Memo from Claude Van Marter, Assistant
Administrator, regarding: Hazardous Waste
Tax and Planning Process for Hazardous Waste
Management Plan, Dated: 3/17/87
CONTINUED ON ATTACHMENT: V YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S)
ACTION OF BOARD ON April 7. 1987 APPROVED AS RECOMMENDED _X OTHER
VOTE OF SUPERVISORS
X UNANIMOUS (ABSENT ) I HEREBY CERTIFY THAT THIS IS A TRUE
AYES: NOES: AND CORRECT COPY OF AN ACTION TAKEN
ABSENT: ABSTAIN: AND ENTERED ON THE MINUTES OF THE BOARD
OF SUPERVISORS ON THE DATE SHOWN.
CC: County Administrator ATTESTED 7 /987�
Health Services Director Phil Batchelor,Clerk of the Board of
Supervisors and County Administrasv
M3e2/7-e3 BY DEPUTY
OFFICE OF COUNTY ADMINISTRATOR
CONTRA COSTA COUNTY
Administration Building
Martinez, California
Supervisor Nancy C. Fanden
TO District II Dare: March 17 , 1987
Hazardous Waste Tax and
From: Claude L. Van MarteA i Subject: Planning Process for
Assistant Administra Hazardous Waste Manage-
ment Plan
The following is supplied to you in response to your request for
information on the implementation of the Hazardous Waste Tax in
Contra Costa County and plans to prepare a hazardous waste
management plan pursuant to the "Tanner Bill" , AB 2948.
HAZARDOUS WASTE TAX
On July 12 , 1983 , the Board of Supervisors adopted Ordinance
83/26 . The Ordinance fixed a fee, or tax, on the disposal of
hazardous waste in Contra Costa County. The tax is imposed on
the two Class I sites in the County: IT' s facility near Martinez
and the Richmond Sanitary Service' s Class I facility in Richmond.
Ordinance 83/26 specified that the tax was to be effective
September 1 , 1983 . The tax is due and payable monthly, 90 days
after the end of the calendar month. Initially, the tax was set
at $2 . 25 per ton of untreated hazardous waste disposed of and
$1 .75 per ton of treated hazardous waste disposed of . The tax
was increased by Ordinance 84/624 to $3 . 47 per ton of untreated
hazardous waste and $2 . 97 per ton of treated hazardous waste.
At the time the tax was imposed, this office wrote to IT and
stated, in pertinent part, "The Environmental Health Division of
the Health Services Department is hereby authorized to develop in
cooperation with you ( IT) a method for monitoring your records so
as to be able to assure the Board of Supervisors that the
proceeds from the tax accurately reflect the amount of hazardous
waste disposed of in your ( IT' s) facility. "
Since the Ordinance became operational on September 1, 1983 , the
IT Corporation has paid the County $1, 233 , 128 covering the
39-month period between September 1, 1983 and November 30, 1986 ,
an average of $31 , 618 . 66 per month, or $379 , 423 . 92 per year.
1
Nancy C. Fanden
March 17, 1987
Page 2
The current tax was calculated from the basic charge made by IT
Corporation for liquid hazardous waste which, at the time the tax
was calculated, was 14. 5 cents per gallon. There are
approximately 240 gallons of liquid per ton. Therefore, it was
estimated that IT charged an average of $34 .78 per ton of
hazardous waste. The tax on untreated hazardous waste was,
therefore, fixed at $3 . 47 per ton, or not to exceed 100 of the
amount charged by IT. A discount of 50 cents per ton was given
for treated hazardous waste to encourage its treatment prior to
disposal. The legislation authorizing the hazardous waste tax
( SB 501, Boatwright, Chapter 244, Statutes of 1981) specified
that:
"A general law city or county may impose and enforce, for
revenue purposes, a license tax on the operation of an
existing hazardous waste facility; provided that, the
license tax imposed shall not exceed 10 percent of the
annual gross receipts of the existing hazardous waste
disposal facility" .
"TANNER" HAZARDOUS WASTE MANAGEMENT PLAN
In 1986 the Legislature passed, and the Governor signed, AB 2948
by Assemblywoman Sally Tanner. AB 2948 authorizes a county, as
an alternative to preparing the hazardous waste portion of the
Solid Waste Management Plan, . to prepare a separate Hazardous
Waste Management Plan. The county is required to advise the
State Department of Health Services by March 31, 1987 whether it
intends to prepare and submit such a Plan. On March 3 , 1987 , the
Board of Supervisors voted unanimously to prepare such a plan.
The State and each city in the County have been advised in
writing of this decision.
The County, if it elects to prepare a separate Hazardous Waste
Management Plan, must submit a draft Plan to the State by
December 31, 1987 . Following any amendments required by the
State, the County must hold public hearings on the Plan and
approve it. A majority of the cities in the County representing
a majority of the population in the incorporated area of the
County must also approve the Plan, which must be approved and
submitted to the State by October 1, 1988 . In order to lay out a
work plan for the preparation of such a Plan, our office is
presently negotiating with a consultant to prepare a work plan
1
Nancy C. Fanden
March 17 , 1987
Page 3
which will allow the preparation of a Plan which is consistent
with State guidelines within the timeframe outlined in AB 2948 .
AB 2948 allocates $10 million, subject to actual appropriation by
the Legislature, to carry out the planning process required by. AB
2948 . AB 2948 provides that this money, less administrative
costs for the State, will be allocated in three installments
between July 1, 1987 and July 1, 1988 . As enacted, these
allocations would be determined for each county based on the
amount of hazardous waste produced in the county. It was
estimated that Contra Costa County would have received $120, 000
in the first installment, due July 1, 1987 .
Assemblywoman Tanner has now introduced AB 46 which is moving
swiftly through the Legislature. AB 46 will modify AB 2948 .
Instead of allocating $4 million by July 1, 1987 and $3 million
each by January 1, 1988 and July 1, 1988, AB 46 would appropriate
$5 million as soon after April 1, 1987 as possible and $1,750 , 000
each by January 1, 1988 and July 1, 1988 . Under AB 2948 all of
the funds are to be allocated based on the amount of hazardous
waste generated in the County. Apparently, this data is not
available in reliable form at this time. Therefore, AB 46 would
allocate the initial $5 million on the basis of the amount of
hazardous waste which is shipped offsite by hazardous waste
generators within the County during calendar year 1985 . The
balance of the funds would be allocated on the basis of the
amount of hazardous waste produced in each county. AB 46
contains an urgency clause and would become effective as soon as
it is signed by the Governor. Under AB 46 it is estimated that
Contra Costa County would receive $200, 000 shortly after April 1 ,
1987 rather than $120, 000 on July 1, 1987 .
I trust that this information is responsive to your questions .
If we, or the Health Services Department, can provide additional
information, please do not hesitate to call.
CLVM:clg