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HomeMy WebLinkAboutMINUTES - 03221994 - 2.2 f Contra TO.. BOARD OF SUPERVISORS Costa - FROM: VALENTIN ALEXEEFF, GMEDA DIRECTOR County DATE: MARCH 22 , 1994 SUBJECT: ACCEPT REPORT ON CONTRA COSTA SOLID WASTE AUTHORITY'S COMPLETION OF TASKS OUTLINED IN COUNTY/AUTHORITY AGREEMENT SPECIFIC REQUEST(S) OR RECOMMENDATION($) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS Accept report from Growth Management and Economic Development Agency Director on completion of tasks outlined in the Memorandum of Agreement between the Contra Costa Solid Waste Authority and the County; Approve the attached report for Task #1--"Roles and Responsibilities for Solid Waste Management" and its recommendations that all agencies having AB 939 responsibilities or solid waste franchising responsibilities voluntarily participate in a Solid Waste Management Coordinating Council to be formed for the purpose of information sharing and education on solid waste management issues; and, Approve the attached report for Task #2--"Model Waste Collection Franchise and Waste Collection Rate Review Model" which presents and analyzes alternative franchise agreements and rate setting methodologies. FISCAL IMPACT None to the County General Fund. Staff and materials costs for participation in cooperative activities between the County and the Contra Costa Solid Waste Authority have been covered by the Resource Recovery Fees. CONTINUED ON ATTACHMENT: xx YES SIGNATURE V RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S) : ACTION OF BOARD ON March 22, 1994 APPROVED AS RECOMMENDED X OTHER X The Board APPROVED the above recommendations, and in addition, EXPRESSED its appreciation to the Community Development Department and County Counsel's staff for their work on the report. VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A X UNANIMOUS (ABSENT TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ON THE ABSENT: ABSTAIN: MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. Contact: Louise Aiello (510/646-1550) ATTESTED March 22, 1994 cc: GMEDA PHIL BATCHELOR, CLERK OF Community Development Department (CDD) THE BOARD OF SUPERVISORS County Counsel, Lillian Fujii AND COUNTY ADMINISTRATOR Avon Wilson, CCSWA (via CDD) BY , DEPUTY VA:LA\ 939u\bo\CCSWA-1a.sks Accept Report On CCSWA's Completion of Tasks Outlined In County/Authority Agreement Continued - Page Two BACKGROUND/REASONS FOR RECOMMENDATIONS In April, 1993 , the Board of Supervisors and the Contra Costa Solid Waste Authority approved a Memorandum of Agreement and Work Plan which addressed three (3) key solid waste management issues-- (1) delineation of roles and responsibilities for solid waste management among agencies within Contra Costa County; (2) analysis of alternative waste collection franchise agreements and rate setting methodologies for consideration by public policy makers; and, (3) development of a method to evaluate the number and costs of proposed transfer stations. Though Task #3 was overtaken by the actual construction of transfer stations, Tasks #1 and #2 were completed. Attachment #1--"Roles and Responsibilities for Solid Waste Management" resulted from the input of elected officials who participated in two Workshops held in July, 1993 and in September, 1993 and whose comments were obtained following presentations to the city councils, regional agency board, and/or other legislative body. The report details the activities, deliberations, and conclusions related to the process by which cities, franchising agencies, regional agencies, the County explored organizational structures for solid waste management in Contra Costa County. Also, the report presents the recommendations resulting from this process. Specifically, the report on "Roles and Responsibilities for Solid Waste Management" recommends that a countywide Solid Waste Coordinating Council be formed and that (1) membership be voluntary and open to all agencies with AB 939 and/or solid waste franchising responsibilities; (2) one elected official from each agency will serve as represented to Solid Waste Coordinating Council; (3) meetings will be held quarterly or at the request of two or more members; (4) members shall elect a Chair and Co-Chair; (5) location and staffing for the quarterly meetings should be rotated among the member jurisdictions; (6) staffing for any additional activities would be provided voluntarily by one of the member jurisdictions; (7) the Coordinating Council shall have no by-laws or formalized organizational agreement among the members; (8) no member assessment will occur except as agreed upon for member identified activities; and, (9) activities of the Coordinating Council will focus generally on those areas discussed in the Workshops including, emphasizing local control; assuring minimal or no cost to participating agencies; coordination of programs and reduction or elimination of duplication of activities. The CCSWA, at its meeting on March 2 , 1994, unanimously voted to accept the report and the above outlined recommendations. Additionally, the CCSWA voted to include in the report the recommendation that the current Chair and Vice Chair of the CCSWA should sponsor and convene the first meeting of the Coordinating Council which would, as its first order of business, select a Chair and Vice Chair and determine a course of action. Accept Report On CCSWA's Completion of Tasks Outlined In County/Authority Agreement Continued - Page Three Attachment #2--"Model Waste Collection Franchise and Waste Collection Rate Review Model" fulfills Task #2 of the Work Plan agreed to between the County and the CCSWA. Part I of the document analyzes the various components of waste collection franchising from a public agency perspective. Part II of the document provides an overview of four (4) different waste collection rate setting methodologies. These analyses are provided for information and consideration of public agency officials and elected officials to assist them with policies within their own jurisdictions. The Work Plan agreed upon between the County and the CCSWA included Task #3 which was to develop a method for evaluating the number and costs of proposed transfer stations. Following consultation with the Steering Committee for the Work Plan and with other solid waste agencies, completion of Task #3 was dropped by the CCSWA Board due to the changing circumstances related to transfer stations. At its meeting on March 3 , 1994 , the CCSWA Board of Directors voted to dissolve the CCSWA effective June 30, 1994 . Consequently, your Board's action on these reports completes the County's role in the Tasks established as part of the Work Plan between the County and the CCSWA. 939u\bo\CCS WA-tn:sks DATE: REQUEST TO SPEAK FORM (THREE (3) MINUTE LIMIT) Complete this form and place it in the box near the speakers' rostrum before adddreesssin Board. ( /�� / PHONE: ,Z" )1813 1610,;� -- _ CITY: •+� I am speaking formyself OR organization: (NAME OF ORGANIZ-V ION) Check one: I wish to speak on Agenda Item it My comments will be: general Y for against I wish to speak on the subject of I do not wish to speak but leave these comments for the Board to consider. v ' Contra Costa Solid Waste Authority March 22, 1994 ' Avon M. Wilson Executive Director 473inez,CImhoff P4553Suite 4 Honorable Chair and Board of Supervisors Martinez,CA 94553 p (510)229-9113 Contra Costa County FAX(510)229-9 1 14 651 Pine Street Antioch Martinez, California 94553 Brentwood Byron Sanitary District Subject: Request Board of Supervisors' Concurrence and Approval Central ryDistric[osta of Roles and Responsibilities for Solid Waste Management. Clayton . the Model Waste Collection Franchise and the Waste Crockett Valona Collection Rate Review Model. - Contra Costa County - Sanitary District Contra Costa Solid Waste Authority Memorandum of Danville AgreemenbWork Plan, Tasks #1 & #2. EI Cerrito Hercules Ladies and Gentlemen: Ironhouse Sanitary District Lafayette The Contra Costa Solid Waste Authority is pleased to present to your Martinez Honorable Body the attached reports which comprise completion of M°raga. Tasks #1 & #2 of,the Contra Costa County - Contra Costa Solid Waste orinda Authority Memorandum of Agreement/Work Plan: Roles and Pinole Responsibilities for Solid Waste Management and the Model Waste Pleasant Hill Collection Franchise and the Waste Collection Rate Review Model. The Richmond Authority Board of Directors approved the model franchise agreement at San Pablo its meeting on January 5, 1994, the rate review model at its meeting on San Ramon February 2, 1994 and the recommendations contained within Roles and Walnut Creek Responsibilities for Solid Waste Management at its meeting on March 2, 1994. All approvals were formalized in the attached Authority Resolutions 94-2 and 94-3. Both reports are now forwarded to your Honorable Body with recommendation for concurrence and approval and for distribution to franchising and other interested entities. Task #1 stipulates a careful process for seeking the widest possible input necessary to developing consensus for a solid waste organizational structure. Every effort was made to seek input through the workshop process and then to test the product of that consensus through a variety of follow-up interviews with council, sanitary district and and JPA members. We believe the recommendation for a countywide coordinating council, meets the consistently articulated criteria of local control, cost effectiveness, lack of duplication and potential for future coordination of planning and programs. Task #2 requires the development of two models: the Model Waste Collection Franchise and the Waste Collection Rate Review Model. These have been so developed and are bound together as one report with the intent that both documents shall be used in tandem. It was the March 22, 1994 Request Supervisors'Concurrence and Approval of Memorandum of Agreement and Work Plan Tasks #1 and #2 Completed Work Products. Page Two goal of the task force which developed these models that they represent the most current thinking on issues/methodologies which any solid waste franchising entity should consider in tailoring a solid waste collection franchise and rate review process to its community's needs and priorities. Development of Task #3 - "development of a method to evaluate the number and costs of proposed transfer stations" was abandoned after it became apparent that the siting and development of transfer stations/ material recovery facilities was rapidly proceeding ahead of the study. This circumstance, in combination with the ongoing transfer station development dynamics in east and central county, renders any attempt at meaningful analysis irrelevant. The Authority would like to acknowledge, with the greatest appreciation, the staff persons from the cities, sanitary districts and JPAs, who assisted the County and Authority staff in developing both Task #1 and #2 work products. In particular, a considerable amount of research, time and commitment are represented in the Task #2 models. When both our bodies have formally approved both documents it would be appropriate to thank these good people for their generous contribution to what we believe will be useful documents. Sinc f tchen Mariotti Chair Attachments cc: Contra Costa Solid Waste Authority Valentin Alexeeff Donald Blubaugh David Rowlands Colette Curtis-Brown Peter Dragovich Arlene Hildebrand Sherry Kelly Janet Schneider Bill Davis Fred Davis z J ► Contra Costa Solid Waste Authority Avon M. Wilson RESOLUTION NO 94-2 Executive Director 47371Suite 4 Martinez,ez,CA 9454553 A RESOLUTION APPROVING MEMORANDUM OF CA (510)229-9113 AGREEMENT/WORK PLAN TASK #2: A MODEL WASTE FAX(510)229-9114 COLLECTION FRANCHISE AND A WASTE COLLECTION Antioch RATE REVIEW MODEL Brentwood Byron Sanitary District Central Contra Costa WHEREAS,Sanitary District a majority of the cities in Contra Costa Clayton County, along with a number of special districts which franchise for Crockett Valona the collection and disposal of solid waste did jointly create the Sanitary District Contra Costa Solid Waste Authority (hereinafter "Authority") and Danville enter into a Joint Exercise of Powers Agreement; and EI Cerrito Hercules WHEREAS, those cities and special districts entered into a o°jhctseSanitary solid waste planning, coordinating and implementing partnership Lafayette with Contra Costa County (hereinafter "County") for the betterment Martinez of cost effective county wide solid waste management; and Moraga orinda WHEREAS, as part of that partnership the Authority and Pinole County formulated .a work plan which specified certain planning Pleasant Hill tasks addressing issues of common concern to both entities; and Richmond San Pablo WHEREAS, one of the planning tasks enumerated in San Ramon subject Work Plan was the development of a model. waste . Walnut Creek collection franchise and a rate review model; and WHEREAS, the following city, sanitary district, Authority and. County staff members were appointed as a task force to develop these models: Colette Curtis Brown - Central Contra Costa Sanitary District; Peter Dragovich - City of Concord; Sherry Kelly - City of Martinez; Arlene Hildebrand and Janet Schneider - City of Walnut Creek; Belinda Smith - Contra Costa County; and Avon Wilson - Contra Costa Solid Waste Authority; and WHEREAS, said Task Force has completed development of subject models and has presented these models for approval and adoption for use by the Authority and the County; and WHEREAS, the Contra Costa Solid Waste Authority approved the Model Waste Collection Franchise on January 5, 1994 and the Waste Collection Rate Review Model on February 2, 1994; Resolution 94-2 Approving a Model Waste Collection Franchise and a Waste Collection Rate Review Model Page Two NOW, THEREFORE, BE IT RESOLVED THAT the Board of Directors of the Contra Costa Solid Waste Authority hereby adopts both the Model Waste Collection Franchise and the Waste Collection Rate Review Model, enumerated in the Contra Costa County - Contra Costa Solid Waste Authority Memorandum of Agreement and Work Plan as Task #2, and attached hereto as Exhibits A and B; and BE IT FURTHER RESOLVED THAT the Contra Costa Solid Waste Authority forwards these model documents to the Contra Costa County Board of Supervisors, with recommendation for concurrence and adoption. PASSED AND ADOPTED this second day of February, 1994, by the Contra Costa Solid Waste Authority, by the following vote: AYES: Antioch, Central Contra Costa Sanitary District, Clayton, Crockett Valona Sanitary District, Danville, EI Cerrito, Hercules, Ironhouse Sanitary District, Lafayette, Martinez, Moraga, Pinole, San Ramon, Walnut Creek NOES: None ABSENT: Byron Sanitary District, Brentwood, Orinda, Pleasant Hill l Chair E eri ExXive� or Z Contra Costa Solid Waste Authority Avon M. Wilson RESOLUTION NO 94-3 Executive Director 473inez,CImhoff Place, 4553Suite 4 APPROVING THE ESTABLISHMENT OF A COUNTYWIDE - Martinez,CA 94553 (510)229-9113 SOLID WASTE COORDINATING COUNCIL FAX(5 10)229-9114 Antioch Brentwood WHEREAS, a majority of the cities in Contra Costa ByyronronSSanitary District District County, along with a number of special districts which franchise for Sanitary District Central Costa the collection and disposal of solid waste did jointly create the Clayton Contra Costa Solid Waste Authority (hereinafter "Authority") and CrockettValona enter into a Joint Exercise of Powers Agreement; and Sanitary District Danville WHEREAS, those cities and special districts entered into a EI Cerrito solid waste planning, coordinating and implementing partnership Hercules with Contra Costa County (hereinafter "County") for the betterment Di tricCseSanitary of cost effective county wide solid waste management; and Lafayette Martinez WHEREAS, as part of that partnership the Authority and M°raga County formulated a work plan which specified certain planning orinda tasks addressing issues of common concern to both entities; and Pinole Pleasant Hill WHEREAS, one of the planning tasks enumerated in Richmond subject Work Plan was to delineate, in cooperation with sub- San Pablo regional solid waste joint powers authorities, roles and San Ramon responsibilities for solid waste management; and Walnut Creek WHEREAS, two informational workshops were held which invited and were widely attended by elected officials and staff from cities, sanitary districts, joint powers authorities and the County; private sector representatives and members of the public-at-large; and WHEREAS, said workshops focussed on a variety of organizational alternatives, staffing levels, financing needs and concerns; and WHEREAS, workshop attendees directed the Authority and County to develop a countywide coordinating council organizational structure with minimal staffing; and WHEREAS, further input on staffing levels was solicited from members of City Councils, Sanitary Districts and joint powers authorities and refined by Authority and County staff; and Resolution 94-3 Approving the Establishment of a Countywide Solid Waste Coordinating Council Page Two WHEREAS, the Authority Board of Directors at its meeting on February 2, 1994 refined the parameters for a countywide solid waste organizational structure; NOW, THEREFORE, BE IT RESOLVED THAT the Board of Directors of the Contra Costa Solid Waste Authority hereby adopts the recommendations contained within its attached report, entitled Roles and Responsibilities for Solid Waste Management, for the establishment of a Countywide Solid Waste Coordinating Council. BE IT FURTHER RESOLVED THAT the Contra Costa Solid Waste Authority forwards this proposal to the Contra Costa County Board of Supervisors, with its recommendation for concurrence and adoption. PASSED AND ADOPTED this second day of March, 1994, by the Contra Costa Solid Waste Authority, by the following vote: AYES: Antioch, Central Contra Costa Sanitary District, Clayton, Danville, Hercules, Ironhouse Sanitary District, Martinez, Moraga, Orinda, Pinole, San Ramon and Walnut Creek. NOES: None ABSENT: Brentwood, Byron Sanitary District, Crockett-Valona Sanitary District, Lafayette and Pleasant Hill, jp { Chair AT ri Exec ui`,�Ve"rb hecto Clerk of the Board Attachment #1 ROLES AND RESPONSIBILITIES FOR SOLID WASTE MANAGEMENT Prepared by THE CONTRA COSTA SOLID WASTE AUTHORITY ' and CONTRA COSTA COUNTY March 1994 ST'4 COUNA Printed on Recycled Paper ROLES AND RESPONSIBILITIES FOR SOLID WASTE MANAGEMENT ' Prepared b P Y ' THE CONTRA COSTA SOLID WASTE AUTHORITY ' and CONTRA COSTA COUNTY March 1994 �a1fr.._ •A,a COOK Printed on Recycled Paper 1 1 1 1 ROLES AND RESPONSIBILITIES FOR SOLID 1 WASTE MANAGEMENT 1 Prepared by 1 THE CONTRA COSTA SOLID WASTE AUTHORITY and 1 CONTRA COSTA COUNTY 1 1 With Assistance from 1 Bill Davis, Executive Director.........West Contra Costa Integrated Waste Management Authority Fred Davis, Executive Director....................................Central Contra Costa Solid Waste Authority Advisory Body Valentin Alexeeff, Director - GMEDA.........................................Contra Costa County Donald Blubaugh, City Manager................................................City of Walnut Creek David Rowlands, City Manager..............................................................City of Antioch 1 1 i 1 Contra Costa Solid Waste Authority 4737 Imhoff Place, Suite 4 Martinez,California 94553 ' (510)229-9113 f: ACKNOWLEDGEMENTS CONTRA COSTA SOLID WASTE AUTHORITY REPRESENTING ' BOARD OF DIRECTORS Gretchen Mariotti, Chair City of Pinole ' Mary Rocha City of Antioch Bill Doheney City of Brentwood Richard Erickson Byron Sanitary District ' Sue McNulty Rainey Central Contra Costa Sanitary District Peter Laurence City of Clayton ' Douglas Tubbs Crockett Valona Sanitary District ' Dick Waldo Town of.Danville Jane Bartke City of EI Cerrito Beth Bartke City of Hercules Ivor Powell Ironhouse Sanitary District ' Ivor Samson City of Lafayette Barbara Woodburn City of Martinez Jim Sweeny(Chair, May, 1992-July, 1993) Town of Moraga Aldo Guidotti City of Orinda Kimberly Brandt City of Pleasant Hill ' Mary Lou Oliver City of San Ramon Gene Wolfe City of Walnut Creek ' CONTRA COSTA BOARD OF SUPERVISORS Tom Powers, District I -Chair Jeffrey V. Smith, District II - Nancy C. Fanden, District II (Retired) ' Gayle Bishop, District III Robert I. Schroder District III (Retired) Sunne Wright McPeak- District IV Tom Torlakson, District V 1 FORMER AUTHORITY BOARD MEMBERS Rosemary Corbin, Chair- December 1991-April 1992 , Avon Wilson, Chair-July- December 1991 Diana Angela , Eduardo Manuel Mary Erbez ' Joseph Gomes Karene Gottfried Cathie Kosel Norman La Force ' Matt Mattson Dwight Meadows Dennis Nunn ' Nancy Parent Russ Perkins , Barbara Price Susanna Schlendorf ' Michael Shimansky CITY COUNCILS City of Antioch Mayor Joel Keller, Mary Rocha, Elizabeth A. Rimbault, Cathryn R. Freitas, Ralph A. Hernandez City of Brentwood Mayor Arthur Gonzales, William Hill, Bill Doheney, Karene Gottfried, Barbara Guise ' City of Clayton Mayor Pete Laurence, Julie Pierce, Robert Kendall, Gregg Manning, Rich Littorno Town of Danville Mayor Don Richey, Mildred Greenberg, Mike Doyle, Michael Shimansky, Dick Waldo City of EI Cerrito Mayor Jane A. Bartke, Norman La Force, Norma Jellison, Cathie Kosel, W. Mae Ritz City of Hercules Mayor Eduardo G. Manuel, Beth Bartke,Alexander C. Sample, III, William Simpson, Darrel"Jay"Tucker City of Lafayette ' Mayor Anne Grodin, Gayle Uilkema,Judy Garvens, Ivor Samson, Don Tatzin City of Martinez Mayor Michael Menesini, Barbara Woodburn, Harriet Burt, Timothy J. Farley,Julian Frazer Town of Moraga Mayor AI Dessayer, James J. Sweeny, Cherie T. Grant, Michael Harris, Susan L. Noe City of Orinda Mayor Bobbie Landers, Aldo Guidotti, Bill Dabel,Joyce Hawkins, Gregg Wheatland City of Pinole Mayor Mary Horton, Peter Murray, Maria Alegria, Gretchen Mariotti, Daniel Purnell ' City of Pleasant Hill Mayor Terri L. Williamson, W.D. "Bill" Landis, Kimberly N. Brandt, Paul L. Cooper, Sherry M. Sterrett City of San Ramon ' Mayor Hermann Welm,Gregory L. Carr, Patricia Boom, Curtis Kinney, Mary Lou Oliver ' City of Walnut Creek Mayor Ron Beagley, Ed Dimmick, Evelyn Munn, Gwen Regalia, Gene Wolfe SANITARY DISTRICTS Byron Sanitary District President Bob Byer, Ken Botte, Alison Clegg, Richard Erickson, Mike Nisen Central Contra Costa Sanitary District President Susan McNulty Rainey, John B. Clausen, William C. Dalton, Barbara Hockett, Mario M. Menesini, Crockett Valona Sanitary District ' President Douglas Tubbs, Rod Butler, Carl Heller, Peter Milcovich, John Wolthuis Ironhouse Sanitary District ' President Lenny Byer, Robert Gromm, Richard IGrkman, Dwight Meadows, David Mickelson, Ivor Powell, William Trice REGIONAL SOLID WASTE JOINT POWERS AUTHORITIES Central Contra Costa Solid Waste Authority President John Clausen, Susan McNulty Rainey, Mary Lou Oliver, Gregory Carr, Evelyn Munn, Gene Wolfe West Contra Costa Integrated Waste Management Authority President Beth Bartke,Jane Bartke, Daniel Purnell, Rosemary Corbin, Richard Griffin, Lonny Washington, Joseph Gomes ' ROLES AND RESPONSIBILITIES FOR SOLID WASTE MANAGEMENT tTABLE OF CONTENTS PAGE ' INTRODUCTION 1 ' RECOMMENDED ACTION 1 FISCAL IMPACT 3 ' BACKGROUND/REASONS FOR RECOMMENDATION 3 ' APPENDIX A - Authority April 13, 1992 Letter to Board of Supervisors APPENDIX B -Contra Costa Solid Waste Management Transition Proposal ' APPENDIX C - Memorandum of Agreement and Work Plan Between the Contra Costa Solid Waste Authority and Contra Costa County IAPPENDIX D - Workshop I Study Materials APPENDIX E - Workshop II Study Materials APPENDIX F - Workshop II Supplementary Materials APPENDIX G - Issues to Consider in Selecting Staffing Options APPENDIX H - Council/JPA Presentation Study Materials APPENDIX I - Presentation Materials ' APPENDIX J - NPDES Model APPENDIX K - February 2, 1994 Staff Report: Task I - Roles and Responsibilities for Solid Waste Management - Progress Report and Preliminary Recommendations ROLES AND RESPONSIBILITIES FOR SOLID WASTE MANAGEMENT INTRODUCTION 1 In March, 1993, the Board of Directors of the Contra Costa Solid Waste Authority (Authority) and Contra Costa County (County) Board of Supervisors agreed to enter into a three year partnership agreement which had as its goal the development of solid waste policies, planning and programs. As a part of that partnership, the two entities also agreed to a six month probationary period during which they would jointly accomplish three tasks: Task #1 Delineate, in cooperation with subregional solid waste joint powers ' authorities, roles and responsibilities for solid waste management; Task #2 1 Develop a model waste collection franchise and a rate review model; and ' Task #3 Develop, in cooperation with the subregional solid waste authorities, a method for evaluating the number and costs of transfer stations proposed and suggest criteria. The purpose of this report is two-fold: to detail the deliberations, findings and conclusions of the County-Authority study on Task #1 and the activities associated with that study, and to present recommendations which have resulted from that study and which support the formation of a countywide solid waste coordinating council. It is the intent of both the Authority and the County that the recommendations which follow be viewed as a starting point; adhering to the guidelines established by the study workshops and follow-up city council /subregional joint powers authority discussions. ' RECOMMENDED ACTION 1. Approve the formation of a countywide solid waste coordinating council which functions within the following organizational parameters: ' a. Membership is voluntary and is open to all agencies with AB 939 and/or solid waste franchising responsibilities in Contra Costa County; b. Representation on the coordinating council will be comprised of one elected official from each participating franchising entity; ' 1 C. The membership meetings are on a quarterly, or as needed basis, , depending on the scope of agreed upon coordinating council activities; d. The members shall elect a chair and a vice chair; ' e. The chair and vice chair shall set the agenda and call meetings; ' f. Any two coordinating council members may also call a meeting of the membership; Meeting locations and staffing for meetings would be rotated among the ' 9 9 9 9 member jurisdictions; h. Staffing for those additional coordinating council activities which have ' been agreed to by the members would be provided voluntarily by a member jurisdiction; ' i. Activities which the coordinating council undertakes will generally adhere to the-general guidelines established by the Task #1 Workshops; ' 1) maximize local control, 2) cause minimal cost to all participants,- 3) avoid duplication of activities within a region or countywide; and ' 4) coordinate local and regional planning and programs when such coordination will produce improved efficiency, cost effectiveness and excellence; j. There will be no bylaws or formalized organizational agreement among the member jurisdictions; and ' k. There will be no member assessment, except as agreed upon for member chosen activities. ' 2. The current countywide solid waste organization, the Contra Costa Solid Waste Authority, shall be dissolved, effective June 30, 1994. Prior to its dissolution, the Authority recommends the following formational process for the new coordinating council: As a last act of the Authority, the Chair and Vice Chair of the Authority should sponsor and convene a meeting of interested entities for the purpose of forming a coordinating council. The group assembled should select a chair and vice chair, decide on.a process for hosting and staffing future meetings and decide on the new coordinating council's next course of action. e 2 4v zt,: ' FISCAL IMPACT Fiscal impact on those jurisdictions which choose to join the coordinating council should be minimal, except for those costs of hosting and staffing the infrequent meetings. With the specific provision that there shall be no bylaws or assessment for the coordinating council support, there is no need for monies at this time to support staff, legal council, etc. Special projects may at some time in the future require member assessment, but for the time being, will be handled on as needed basis. If 1 funding special projects needs more organizational structure than is envisioned for the outset, that will require future consideration of a more formalized organizational structure. ' BACKGROUND/REASONS FOR RECOMMENDATION ' On April 13, 1992, the Contra Costa Solid Waste Authority (Authority) a newly formed solid waste joint powers agency requested formally that the Contra Costa County Board of Supervisors join the Authority. (See Appendix A ) This request came as the ' result of long time efforts by the county's cities and sanitary districts to develop a countywide solid waste forum and/or agency which would change the process by which countywide solid waste decision making was accomplished. The genesis for these efforts came out of the mid 1980's landfill disputes and the lack of shared leadership inherent in the then enabling legislation, SB 5: • County government was responsible for developing the County Solid Waste ' Management Plan (CoSWMP); which was primarily oriented to, related to siting landfills. • Complicating the County's management was the multiplicity of players and division of responsibilities: 22 franchising public agencies and 8 different haulers. • Franchising agencies, guided by SB 5, deferred to the County for siting the necessary landfills, and, based upon practice and lack of consensus among ' agencies for a publicly owned landfill, the County deferred to the private sector to provide landfills. ' While the cities and sanitary districts were developing a joint powers authority structure to provide for their objective of shared leadership, the State Legislature, responding to what it perceived as a state wide crisis in solid waste leadership, enacted into law AB 939, which set forth a prescribed program for source reduction, recycling and composting for each city and county in the state. It identified specific diversion goals for the years 1995 and 2000 with fines of up to $10,000 per day levied against each jurisdiction which failed to comply with the Act and its subsequent ' legislative provisions: • A city or county failed to submit any of the requisite elements: Source Reduction and Recycling Element (SRRE), Household Hazardous Waste Element (HHWE), Siting Element (County only) and Non Disposal Facility Element (NDFE). ' 3 • A city or county failed to implement its elements. • A city or county failed to prepare adequate goals. ' • A city or county flailed to reach its goals. , It was attested by those developing the legislation that the State Waste Management Board would not levy fines until extensive due process has been observed. ' After consideration by the Board of Supervisors' Internal Operations (10) Committee, comprised of Supervisors McPeak and Schroder, of a solid waste transition proposal , submitted by the Authority, (See Appendix 8 ) the Board of Supervisors and the Authority Board of Directors approved commencement of negotiations between the 10 committee and Authority representatives. It was finally agreed to by both entities and ratified by Authority member jurisdictions, that a three year contract, renewable to five years, be entered into by the two entities. This contract was negotiated as a Memorandum of Agreement with a six month probationary Work Plan (See Appendix C ). The Work Plan consisted of three tasks; one of which- was to delineate, in ' conjunction with the regional joint powers authorities, the roles and responsibilities for solid waste management, including consideration of staffing and funding. This determination would be effected through the workshop process. Workshop I: ' would seek to answer the following questions: • Identify ways to streamline the different aspects of solid waste management to , eliminate or reduce overlap/duplication. In what ways could public agencies and private sector work to streamline, reduce costs, work together more ' effectively? • In what ways can independent/individual jurisdiction decision making be , provided for while building an interdependent and cooperative solid waste management organizational structure? Workshop II, building on the direction and organizational alternatives selected by the , workshop I participants, would seek to answer the following questions: • How can cost savings to member agencies and to rate payers result from changes in how and under what organization solid waste management activities are handled? • What is the optimum organizational structure for solid waste activities to obtain efficiency and be responsive to:individual jurisdictions and rate payers? • What staffing and funding levels are necessary for alternative organizational structures and which structure(s) provide the most cost-effective use of staff? . 4 Workshop 1 On July 29, 1993, representatives from Contra Costa County, the various city and sanitary district solid waste franchising agencies, the regional and countywide solid waste joint powers authorities, the AB 939Task Force, private sector representatives and members of the public met to consider alternative structures for assigning roles and responsibilities for solid waste management in Contra Costa County. At this meeting, participants were briefed by Authority and County staff. That briefing 1 consisted of the following elements and materials (See Appendix D ): • A review of State Solid Waste Requirements - AB 939 et al; ' Goals/Objective/Activities of the Various Solid Waste Entities; ' Potential Areas of Opportunities for solid Waste Cooperation and/or Coordination; ' Funding Sources; and • Possible Organizational Structures for Countywide Solid Waste Management. During the last briefing item, five organizational structures were presented: ' I. The Current System County • AB 939 Countywide Plan, Siting Element • Potential Contracting with JPAs, cities for programs and/or planning ' Multi-jurisdictional Organizations • West Contra Costa Integrated Waste Management Authority • Central Contra Costa Solid Waste Authority ' Delta Diablo Global Agreement • (Potentian Pittsburg - Concord JPA Cities ' Source Reduction and Recycling Element (SRRE), Household Hazardous Waste Element (HHWE), Non Disposal Facility Element (NDFE) Mitigation Monitoring • Plan and implement Programs individually or in cooperation with other jurisdictions ' 5 • Potential members of facility-based joint powers authorities. 11. Autonomous Regional Solid Waste Authorities ' Membership • WCCIWMA - West County cities contract with County for AB 939 planning and programs , • CCSWA - San Ramon, Walnut Creek, Central San., representing Lamorinda and Danville (Clayton, Martinez and Pleasant Hill not ' members) • Pittsburg - Concord (Potential Regional Agency) , • Delta Diablo S. D. Global Agreement - Pittsburg, Antioch and County Mission - Responsibilities ' • Facility development; management , • Facility-related program implementation • Regional AB 939 related planning and monitoring ' • Coordination of programs within region III. Regional Agency Coordinating Council , Coordinating Council ' • 2 representatives from each regional agency • Countywide AB 939 planning (If County is a Member) • Addresses countywide solid waste issues Regional Agencies Functions • Facility Development and Management • Regional AB 939 Planning • Regional Program Implementation eg g p 6 i; IV. Countywide Solid Waste Joint Powers Authority ' Membership • Each city, franchising agency and the County has a seated representative. Responsibilities 1 • Policy development • AB 939 Countywide Plan and Siting Element and mitigation monitoring (assumes County membership) • Reporting on diversion to State • Development of model ordinances, i.e. franchising, rate regulation government procurement, etc. • Coordination of SRRE, HHWE, NDFE preparation;Assist regional agencies-cities with implementation Regional Agencies (WCCIWMA, CCSWA, Pittsburg/Concord, Delta Diablo) • Facility development and management ' Facility related program implementation V. Transportation Authority Model Representation ' 2 representatives from each region ' 1 Mayors' Conference representative • 2 Board of Supervisors representatives ' Responsibilities • AB 939 Countywide Plan, Siting Element mitigation and monitoring,. reporting to State • Resolve countywide/inter-regional solid waste issues ' Coordinate countywide programs; implementation 1 Develop model ordinances for rate regulation, franchising, procurement, etc. 1 7 Regional Agencies Responsibilities ' • Facility management ' • Review/comment AB 939 Countywide Plan • Implement regional/facility based programs • Coordinate AB 939 regional plans/programs After much discussion on the merits of each structure, there was a growing consensus to not retain the status quo as represented by the current organizational status, or to support autonomous regional agencies which do not interact with each other. Some interaction was felt necessary. However, a structure which was developed needed to respond to the following fears regarding a countywide organization: • Loss of local control over rates, quality of programs, etc., • Duplication of solid waste meetings; ' • Quality of service to the citizens; • Loss of constituent control; ' • Adding another layer of government; duplication; ' • Loss of unique programs and responsibility; • Potential for inter-regional conflict; , • Loss of local revenue; ' • Potential for over-regulation; over-managing; over-control; • competition between regional JPAs and cities for control; , • May become unwieldy; May plan and never implement; • Concern regarding its impact on the private haulers; • Fear by local government that it would be left out of the loop; and • Lack of trust among all agencies. N After further discussion on what the next workshop should consider, the participants directed that Alternatives III - V (See above ) be refined and scheduled for further consideration as follows: 8 I. A second workshop be held as soon as possible at which participants could evaluate revised solid waste organization alternatives. 2. The minutes of Workshop I and revised alternatives be distributed to all franchising jurisdictions, organizations, private sector members and other Workshop I participants prior to Workshop II. These entities are to discuss the alternatives, come to consensus and provide direction to their representatives ' attending Workshop II. Workshop II ' Workshop II was convened on September 29, 1993, attended by representatives of cities, sanitary districts the County, regional JPAs, industry and the public at large. The attenders had received briefing materials (See Appendix E ) which they were to review I and share with their respective constituencies, as instructed by Workshop I. The attenders then considered the following Agenda items: • Update on State solid Waste Legislation and new requirements (AB 440 - See Appendix F) • Revised Organizational Alternatives for Countywide Solid Waste Management which included cost Implications of each alternative and its staffing needs. ' A round table discussion by Authority members considering the proc and cons of Alternatives III - V. After.much discussion the panel and participants felt that some aspect of Alternative III, the Regional Agency Coordinating Council, should be explored, with the understanding that as experience with this alternative develops, it might make sense to eventually move into an organizational structure as represented by Alternative IV or V. Within this context, the workshop attenders recommended to the Authority and Board of Supervisors that the Coordinating Council alternative be pursued, with ' consideration given to the following staff options - No Staff and Contract Staff: (See Appendix E ) Option B - Contract Staff ' Staffing by contract with cities, regional agencies or County ' Full time solid waste coordinator Full time secretary Contract with County, city or regional agency for legal counsel • Other work by contracts as needed 9 Option C - No Council Staff • No staff would be provided. All staffing needs would be met on an "ad hoc" basis. ' • A city, regional agency or the County would be designated as the Lead Agency for purposes of administration and responsibility for Coordinating Council meetings. , • Work would be identified as the need arises and be accomplished'by contracts with member jurisdictions, other agencies or private sector. , • Responsibility for administration of work contracts would be assigned at time of contract. At the request of Supervisor Bishop, the result of the Workshops were to be also referred to a Board of Supervisors meeting for the Supervisors' direct input. October 6 Authority Board of Directors Meeting At this follow-up meeting discussion to the Workshop II, the Board of Directors agreed ' with the direction provided by the Workshop attenders. Prior to developing the Alternative 111 model with with the Contract Staff/No Staff Options, the staff for the County and Authority developed a list of issues (See Appendix G ) which they felt should be addressed as part of the Regional Agency Coordinating Council model. Staff recommended that it schedule a series of discussions with member jurisdictions _ and subregional JPAs to get their input to the issues raised and the staffing options. It ' was directed that the staff would return at the January Authority Board meeting with the result of those discussions and staff recommendations. Issues to Consider ° Composition of the regional agencies and the role of non-member jurisdictions; ' • Under each option how the proposed coordinating council's activities could be funded; ' • Management and operating procedures between all participating jurisdictions and agencies; • Suggested focus and work plan for the proposed coordinating council; a • Resolving interagency differences; Parameters of contracting and the contractual relationship; • Time needed to get documentation ready for dissolution of the Contra Costa i Solid Waste Authority. 10 1 October 26 1993 Board of Supervisors Meeting iAt this meeting, Supervisor Bishop presented the results of the two workshops and the direction provided by the Workshop attenders and the subsequent Authority meeting. Supervisors present seemed less concerned by the organizational structure for solid waste management as much as the issues which they hoped the two other Work Plan Tasks would address: Solid waste franchising and rate review, control of the wastestream and analysis of the various transfer stations options. Their direction was to develop answers to those issues. Presentations As directed by the Authority Board of Directors, Authority and County staff scheduled a series or presentations to selected councils and one regional JPA. The purpose was ' to verify the direction directed by the Workshops and Authority, assuring that support was firm for the coordinating council concept as well as to ascertain the level of staffing that the elected officials could support for such an organ ization.Presentations ' were made to the following bodies: • City of Pinole • City of Pleasant Hill • City of Antioch • City of Clayton • City of Martinez • City of Brentwood • Central Contra Costa Solid Waste Authority With the exception of the City of Pinole, where staff followed the outline of the materials provided in advance (See Appendix H ). The presentation followed the format of the attached overhead transparencies (See Appendix I ). The change in presentation was ' motivated by the need to get more definitive input. Staff felt that the issues and ,� options appeared to be too complex and confusing and tried this more clearly defined ' sequential approach. While the jurisdictions may have understood the presentation I better, with the exception of one jurisdiction, they did not feel comfortable in providing more definitive direction. With one exception, none addressed the issue of staffing. In general, the issues raised by the subject elected officials were the same raised by the Workshop I & II participants. Council and JPA members were very guarded about the merits of a countywide solid waste organization. If there were to be such an organization, it should • be cost effective - cost the ratepayer as little as possible; • preserve and enhance local control; • provide coordination which doesn't sacrifice local control or programs; and ' avoids duplication. ' 11 Individual remarks included ' • Regional JPAs are sufficient - if countywide solid waste coordination should ' ever be needed, it can be handled over lunch; • There might be loss of local control over the waste stream; ' • Competition should be encouraged. Competition has produced negotiations with Acme Keller regarding the transfer disposal rates; • Having a common voice has been helpful; the organization should focus on solving common concerns; ' • We need to be able to comply with AB 939 effectively; • It is not certain that we can develop a structure which can help us meet the AB , 939 diversion goals...would be willing to work regionally; • We need to keep bureaucracy to a minimum; we must not duplicate the ' example of the Transportation Authority; • We have enough agencies and layers of government already; • We need to find economical ways to promote composting and to develop markets; and ' • Implementing AB 939 by oneself could be expensive. • Autonomy might be lost; One jurisdiction feared that the strides made by their jurisdiction and its active volunteers would be lost if their programs were joined with those of other jurisdictions less aggressive (competent?). They would be ' willing to.join with others if it is proved that there would be economy of scale, but not if local efforts are diminished in the process. • An organizational structure to look at would be that of the Contra Costa Cities - County • District • National Pollutant Discharge Elimination System (NPDES - See Appendix J ) because it provides for local autonomy; payment is based on each jurisdiction's percentage of the population; it provides economy of scale and has ability to capture large scale economics; and it provides a contract staff. • The coordinating council concept should be supported, with the Authority providing the structure and the transition process to get the Council organized. 12 , ' February 2 1994 Authority Board of Directors Meeting ' At the subject Authority Board of Directors meeting, Authority and County staff presented their findings based on discussions with the various member jurisdictions over the previous month of meetings. (See Appendix K ) It was staffs' opinion that the NPDES model could be adapted to meet the general guidelines developed at the Workshops; accommodating the overall desire to have policy makers continue to have a forum for solid waste issues. 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'. � i� I �/� r �� \ 1' `\�t {`� I� rJ rt /�i �\ r � �.f}.• � � - w r, r. {ti r ►�, Contra Costa solid Waste Authority ' Avon M. Wilson Executive Director April 13, 1992 =737 Imhoff Place,Suite 4 '4ortinez.CA 94553 5 10)229-9113 ' =X(5101229-9114 °ch Honorable Sunne Wright McPeak, Chair ,enivxcd Board of Supervisors ron Sa:rta:.DiSMC, Contra Costa County °`ial °""a °S`a 2301 Stanwell Drive ;ani[an•Cistiic: avion Concord, CA 94520 Subject: Contra Costa Solid Waste Authority `anville �;Z,4,_�� ' _Cern° Dear Supervisor eak: evades The Board of the Contra Costa Solid Waste Authority, wishes to �a[i is ayette convey to the Contra Costa Board of Supervisors its continued ' arinez commitment in having all solid waste franchising entities in Contra °raga Costa County become partners in a solid waste joint powers authority. Believing that solid waste management and the interest ' �;nolo of citizens would be better served if all such entities sat down at -'ieasancHiii the same table to plan together,- we would like to begin new inn°rp dialogue with representatives of Contra Costa County, with this ' oaUl° objective in mind. Because escalating economic pressures on all 11 an Ramon levels of local government mandate better coordination and ciefficiencies in planning and program delivery, the Authority JinuL believes the time is right to look at how this proposed partnership can benefit the County, cities, sanitary districts and private sector alike. Within a positive and productive framework, we would like ' to begin discussions anew; looking for areas of commonality rather than differences; opening the door to creative solutions for institutional obstacles; accommodating our respective concerns ' and needs. As you well know, the need to work cooperatively and speak with ' one unified voice was painfully clear when representatives of Contra Costa jurisdictions were forced to negotiate export of Contra Costa garbage to neighboring counties. Our failure to successfully negotiate a plastic collection agreement with a plastic ' processor was due in part to having too many voices. While the formation of a Memorandum of Understanding for export. of garbage sufficed in the short-term, it did not carry the same clout as that wielded by our colleagues on the Alameda Solid Waste Authority. We need that ongoing clout and unity. April 13, 1992 Contra Costa Solid Waste Authority Page 2 ' If you agree that unity and coordination of solid waste activities ' has merit, we request that you define the process by which you would like discussions to begin. We are sensitive to the need for building mutual respect and understanding for each other's , priorities and constraints. We are committed to providing that openness as the.foundation for fruitful dialogue. Sincerely, ' JMv . Wilson Interim Executive Director ' cc: Contra Costa Solid Waste Authority , Contra Costa County Board'of Supervisors Phil Batchelor Louise Aiello ' 1 A- 2 r .��t. �`_ �. � l r r� ,. � r -�, v.; r ✓ y ,. Al ly air is •6 � i� r '1 �` i'.- � �� ��.\( \r� ° ..- y ' � a t._ -�t `t 7��i ll...� �.'v r t 5 �t � r �� � .! urn � r ��•\ r .. .fit ��, ! '-i .9l �� v� '-f+ � \ \ t � , � - t '. .- Yr� V- t-C \, t, j V• 11.E A�`� (,' � > i- r 1 �� tom` - r { ;, a` t � r � �t� 'v �, � � � ��, 1r- � �•� '\ t I ...v� a����\\rAr///� '_,,`�, .y( � .�l .� - r � - -r. :�, •t. 1 I ,\. � �'"` � \,f, ;,� � erhF� - \ 1 rte` } � ��ri i � '. i t �. 1� ',r" ' �•.. \ •` `�`, s. ( 3� � v , r Plt' \ t Y i- ` ` 1 v 6r, }, R �. } 5n•�` i ���, � tx } �^. c�_r (,\,,> �t �"v.. r i. t f � �` `-`.�" � ''" �.t � � "�.. i �v �,.J',�' '� � i lr `,.,A '�•tc.V � ` J I' t t _ � 1 .i',\ry -.�. •�5r• � rr 1 .. - r `' . v s.r - �. � b '�iF r �� r �'". �. i t'r \v1 .,�I i,�, � _-:. ka.�t V -zc• - ( � t' �ti�v ",:. � v�, 1 •e '� ''` t�'�,` � \ 1� < r' 1'`, 1 v V`� '`� t ° �,� � rr � /� f vv ,. v• �; � �Y +?ver( � -� .a -✓ � ,,A , v �''� :�+�� .� y �,� ' �� < ,i, - _ �✓ .r/ �1."� ;s �,' ���.�•. - ��� r��l t., .t �' �. 1 V ;� *.4 �.! )� �f ,(• r � _ A\� .R. 1 X 1{ \ y r { y t � —b - NA r - J: y:�'�i� ' h �iA �.,\kik � rl a' '�+ cr � �:- A r`, F� �- ♦ � ,f 'V...�— .{ �� �� ' r � �. ,; ,. 1 F_ k t t ...}Jf � _ I` ,C�� - �. �,Y, •.4 Ott� � \. � �` � f` '_ �r � �,l•'�, ri �,- ,?� r � -,. ' -``'S\�1 T� "\;�Ld � \ (' ,� ...� -. V � :..A"'r/ y�. ��\�s/ :v 5•�� It "E. { ." �<`'� — � �r >>,� yr l� v. .�t -t �'v' '� r�. � ! \ ii f ' � `rt ! "•t . 1 � - .� r� rr s"': +� � � t' �f �x� �'� � �'� � �,,,,,A ,- 7 ` i�,v � r �,i{,�. �•��Yi 1``�i V _ �t � 4. ✓ x �� � �•r �- �. r \ h- �, � ��_, �l ,�Y x � 1'r' �. .�v\,V ��. ,x�2�t,/ 'r'- f c. �73 Contra Costa Solid Waste Authority Avon M. Wilson November 30, 1992 Execurive Director 4737Imhoff Place,Suite 4 Martinez,CA 94553 (510(229-9i 13 Board of Supervisors' Internal Operations Committee ' FAX(510)229-9 114 Contra Costa County nt;o,n 651 Pine Street - 11 th Floor Bren Martinez, CA 94553 ' Syron Sanuar'_. Senora" Sanicary Dc, 5[nr.` Attention: Supervisor Sunne Wright McPeak Clavzon Supervisors Robert I. Schroder ' CroCReC-Valcr:a San i;aryDts.r:_: Subject: Contra Costa Solid Waste Management Transition Danville Proposal ercules Dear Supervisors McPeak and Schroder: Ircni•'ouse Stv�. .` Discr'cc ' araye[[e As your Committee requested, the report which follows details the Martine, Authority's response to your request for a proposal which Moraga discusses some options for transitioning solid waste activities Or,nda currently being administered by Contra Costa County to the Pinole Contra Costa Solid Waste Authority. This is a follow-up to Pleasant-ill discussions which your Committee has had with members of the R;chmonc Authority pursuant to the Authority's request for the County to join San Pablo the Authority. San P.dn'�C n ' San Pa nonCreIn responding to your request, the Authority has tried to suggest options sufficient to provide a variety of approaches to a partnership between our two bodies. As we have previously stated to your Committee, the Authority is not wedded irrefutably to any one option, although our preference for membership in a joint powers' authority permits all franchising entities to be sitting down at one table and working together in developing policy, ' planning and implementing programs together. We believe such an approach is of immense long term benefit, not just for wise solid waste management, but for cooperation in other ventures. ' Si rely, mes J. S eeny ' Chair JJW:amw Attachment ' B- 1 CONTRA COSTA SOLID WASTE MANAGEMENT , TRANSITION PROPOSAL EXECUTIVE SUMMARY Issue , On April 13, 1992, the Contra Costa Solid Waste Authority (Authority) requested that the Contra Costa County Board of Supervisors join the Authority. After ' consideration by the Board's Internal Operations (10) Committee, the Board declined to join at that time, but referred the matter back to the 10 Committee for further discussion with representatives of the Authority and information ' gathering. Since then, the 10 Committee has met with representatives of the Authority and ' it has been agreed that the Authority will prepare a proposal for the transition of solid waste activities currently managed by the County to the oversight of the Authority. Of primary interest would be the transition of the AB 939 activities- once ctivities once the Draft Countywide Integrated Waste Management Plan is approved by the California Integrated Waste Management Board. Recommended Action 1 In a three stage phased transition program, spanning 3-20 years,. transfer ' appropriate County administered county wide solid waste programs to the oversight of the Authority. Fiscal Impacts The Contra Costa County Board of Supervisors would be asked by the cities and sanitary districts to levy a fee at the landfill/transfer stations necessary to support the agreed upon solid waste activities. It is expected that.the financial impact on the ratepayers would be offset by reduction in the cost of current duplicative programs which can be coordinated by the Authority. Discussion Background The most recent of the proposals for a Contra Costa Solid Waste Authority had its genesis in the 1988 county wide landfill disputes. The landfill crisis came out of the lack of shared leadership inherent in the then enabling legislation, SB 5: • County government was responsible for developing the County Solid Waste Management Plan (CoSWMP); which was primarily oriented to goals/policies/objectives/criteria related to siting landfills. B - 2 ' ' Contra Costa Solid Waste Management Transition Proposal Page Two • Complicating the County'smanagement was the multiplicity of players and division of responsibilities: 22 franchising public agencies and 8 ' different haulers. • All franchising agencies deferred to the County leadership which ' deferred to the haulers to provide necessary landfills. Responding to a need for shared leadership, in August, 1988; the then Solid ' Waste Commission, a County advisory body, initiated a feasibility study of a county wide solid waste joint powers authority; gathering support from a majority of the Board of Supervisors, the cities, sanitary districts and the public ' managers. After an agreement was prepared and agreed upon by 17 cities and 4 sanitary districts, the Contra Costa Solid Waste Authority was formed in July, 1991. With the goal of membership by.all the garbage franchising agencies in the county, its mission was to become the county wide solid waste policy making, administrative, coordinating and implementing body for Contra Costa County. Complicating its effectiveness in fulfilling this charge were an imposing number of duplicative County and sub-regional agencies: ' Contra Costa County Directed Activities ' Contra Costa County Community Development Department • Board of Supervisors' Internal Operations Committee • Board of Supervisors' Environmental Affairs Committee ' Contra Costa County Hazardous Materials Commission • Plastics Recycling Task Force • Contra Costa Integrated Waste Management Task Force (AB 939 ) • AB 939 Market Development Zone Technical Advisory Committee Sub-Regional Agencies ' West Contra Costa Integrated Waste Management Authority • Central Contra Costa Joint Powers Authority ' Delta Diablo Sanitation District/Antioch/Pittsburg/Contra Costa County Joint Powers' Authority ' County wide Contra Costa Solid Waste Authority ' OrcLanizational Alternatives The thrust of the alternatives proffered is to provide some organizational options ' for discussion which can lead to County/Authority consensus for County membership in the Authority and the degree/pace to which County administered solid waste activities get transferred to the Authority: ' B - 3 Contra Costa Solid Waste Management Transition Proposal ' Page Three • Option 1. No Change. ' • Option II Local Task Force Administered Program. • Option III AB 939 Contractual Coordination by County Staff. • Option IV Sub-Regional JPAs Directed Solid Waste Programs. ' • Option V Special District. • Option VI. County/Authority Contractual Equal Partnership for AB 939. • Option VII Phased in County wide Joint Powers Authority. ' Major Considerations Key to success of the proposed shared leadership is understanding the , benefits/obstacles of this partnership. They. include shared responsibility, cost effective programs, reduction of political conflicts; responding to the challenges , of building trust, divergent agendas and organizational barriers. Recommendation ' An incremental process for shared leadership should begin as soon as possible, utilizing a combination of Options VI and VII. ' . 1 B - 4 Contra Costa Solid Waste Management Transition Proposal Page Four ISSUE On April 13, 1992, the Contra Costa Solid Waste Authority, requested that the Contra Costa County Board of Supervisors join the Authority. After referral to ' and consideration by the Board's Internal Operations (10) Committee, the Board of Supervisors declined to join at the present time. However, the Board authorized the 10 Committee, on behalf of the Board, to continue to meet with representatives of the Authority, to discuss the relative advantages and disadvantages of joining the Authority. At present, the matter is to remain on referral to the 10 Committee with the direction to the Committee to report back to ' the Board as events dictate further reports. Accordingly, at its follow up meeting on August 10, 1992, the Authority representatives met with 10 Committee staff and members. After discussing the merits and barriers related to joining the Authority, the 10 Committee requested, and the Authority representatives agreed, to develop a report for the 10 Committee to review. This report would discuss options for the transition of ' certain solid waste activities currently under the aegis of the Contra Costa County to that of the Contra Costa Solid Waste Authority. This transition would assume County membership in the Authority. The report is to include, but not be ' limited to: • A plan for how the role and activities of the AB 939 Task Force could be ' incorporated into the responsibilities of the Authority once the Draft Countywide Integrated Waste Management Plan is completed and approved by the California Integrated Waste Management Board. • A discussion of how the three sub-regional Joint Powers Authorities could interface with the Authority, once all franchising entities are ' members. • A discussion of the role of the non-franchising local jurisdictions in the overall organization of the Authority. It was also understood by both the Committee and the Authority representatives that the transition report would be developed with input from County staff which ' would include the work plan and budget for the County's solid waste activities. This report responds to the Committee's request. ' RECOMMENDED ACTION. In a three stage phased transition program, spanning 3-20 years, transfer ' appropriate County administered county wide solid waste programs to the oversight of the Authority. B- 5 Contra Costa Solid Waste Management Transition Proposal ' Page Five FISCAL IMPACTS , The Contra Costa County Board of Supervisors would beasked by the cities ' and sanitary districts to levy a fee at the landfill/transfer stations necessary to support the agreed upon solid waste activities. It is expected that the financial impact on the ratepayers would be offset by reduction in the cost of current ' city/sanitary district/County programs transferred to the Authority. The Authority is in the process of analyzing budget information requested of the County and the cities. Upon receipt and analysis of all requested data, and presenting it in ' an understandable format, it will be made available for consideration. DISCUSSION ' Background The most recent of the proposals for a county wide solid waste joint powers ' authority had its genesis in the county wide landfill disputes which culminated in the Board of Supervisors' landfill' deadlock;, imperiling the approval of the County Solid Waste Management Plan and necessitating the export of Central ' County's garbage. The disputes came out of a crisis in leadership,related to the lack of shared leadership inherent in the then enabling legislation, SB 5: • Up until the passage of AB 939, SB 5 was the prevailing solid waste legislation. Under its provisions, County government was held responsible for the County Solid Waste Management Plan (CoSWMP). , While the CoSWMP superficially touched-on other aspects of solid waste management, such as recycling, the primary thrust was establishing criteria, goals/policies/objectives which related to the classification, siting and use of landfills. A. frustrating and complicating overlay on this circumstance was the multiplicity of players - both public and private in the Contra Costa solid waste arena: Solid waste facility permits were required from a variety of public agencies. 22 different public agencies in the county franchised garbage collection. Each was independent and autonomous. In their June, 1988 joint letter to the Board of Supervisors, relative to the lack of landfill space left.at Acme Landfill and the need to export Central County's garbage, County Administrator Phil Batchelor ands Community Development Director Harvey Bragdon decried the "lack of one single public agency or private enterprise empowered to have control and authority over solid waste collection and disposal; to be able to unilaterally dictate a solution to the problem". Their recommendation for the short term was for the Board of Supervisors to invite one elected representative plus the B - 6 Contra Costa Solid Waste Mana ement� Transition Proposal 9 P Page Six city manager of each city in the county and one elected representative plus the general manager of each of the eight ' sanitary districts in the county to join a representative of the Board of Supervisors and the County Administrator to form a working group would meet, identify steps needed to insure a solution to the 1 short term problem of depleted landfill space. The haulers, all of whom had a financial interest in at least one of ' the county's three existing and nearly built out landfills, by and large had been granted control of the wastestream in exchange for the assurance that they could and would provide for where they 1 would dispose of all the solid waste which they collected. • With the exception of the West County, most jurisdictions deferred to ' County leadership, trying to stay as uninvolved as possible. Except for those requirements of SB 5, the cities and the County deferred to the haulers as controllers of the various waste streams to provide the necessary landfills. • After two comprehensive landfill studies and recommendation by a county wide landfill siting task force and a succession of landfill ' applications, all of which had opposition from various constituencies, the Board of. Supervisors deadlocked on all potential landfill sites to be included in the CoSWMP; landfills necessary for its approval by the then ' California Waste Management Board. • With no one entity authorized to act on behalf of the various franchising entities, the County and the haulers, it was necessary to develop an MOU among the County, the cities and the franchising sanitary districts to enable a joint jurisdictional negotiating team to negotiate export of ' Contra Costa's solid waste to an out of county site. In August, 1988, urged by its West County representatives and responding to ' the need for some new form of shared leadership authorized to speak with one unified voice, the then Contra Costa County Solid Waste Commission, a County advisory body representing the County, cities, sanitary districts and the public, ' requested the County, the cities and sanitary districts to support the concept of a joint powers agency. With support from the Board of Supervisors, the Mayors' Conference, the Public Managers Association and. the Sanitation and Water Agencies' Association, a draft agreement was developed along the lines of that which governs the Alameda Solid Waste Management Authority. After extensive review, involving ' prolonged negotiation with the County Environmental Affairs Committee and staff, amendments and modifications by all affected agencies, the joint powers authority Agreement (See Appendix A) wasapproved through resolution by ' B - 7 Contra Costa Solid Waste Management Transition Proposal. ' Page Seven- 17 cities and 4 sanitary districts. The Contra Costa Solid Waste Authority ' held its first meeting in July 1991, formulated and approved its Mission Statement (See Appendix B ) in September 1991, its budget and member ' assessments in February 1992, hired its interim staff in March, 1992 and finalized its Goals, Objectives and Action Plan in July 1992 (See Appendix B ).. In order to put the County's consideration of Authority membership in ' perspective a review of current County, subregional and local solid waste committees and their overlapping activities follows: ' Contra Costa Agencies Involved in. Solid Waste Planning and Programs , Contra Costa County Directed Activities Contra Costa County Community Development Department ' This department has traditionally provided county wide solid waste planning- and program implementation. With the advent of AB 939 and its requirement ' that each jurisdiction assumes that responsibility within its boundaries and with the formation of subregional and county wide joint powers authorities, the County's administrative/ policy setting/planning and program development is in , transition. At present, its solid waste activities includes staffing the Local Task.Force and ' responsibility for preparation- of the unincorporated area Source Reduction and Recycling Element (SRRE), its Household Hazardous Waste Element (HHWE), the Siting Element and the Countywide Integrated Waste Management Plan ' (CoIWMP). It also provides the staffing for all other County directed solid waste committees, including the Recycling Market Development Zone Council. Other activities in which the Community Development Department staff is influential include facility siting, facility enforcement, Recycling Hot line, franchising in:the unincorporated area and some elementary school recycling coordination.. Board of Supervisors'Internal Operations Committee Along with the Finance Committee, is one of the two original Board of Q Supervisors' standing committees. Until the formation of the Board's Environmental Affairs Committee in 1990, this two person committee was interfaced on all solid waste issues with the then Solid Waste Commission, an advisory body.comprised of elected officials from cities and sanitary districts.. In tandem with the the Solid Waste Commission,. the Hazardous Materials Commission and other solid waste committees, it made recommendations regarding both solid and hazardous waste management to the whole Board. Currently, solid waste activities are usually restricted to interviewing candidates and recommending appointments to the AB 939 Local Task Force. However, at B - 8 1 Contra Costa Solid Waste Management Transition Proposal Page Eight the Board's referral, or if the Committee is particularly interested in an issue, it may elect to consider an issue outside its ordinary scope of interest or purview. Board of Supervisors' Environmental Affairs Committee Formed as a new committee by the Board in 1990, this two person Board committee assumed all environmental review responsibilities previously held by the Internal Operations Committee and supplanted the Solid Waste ' Commission as the County's primary voice regarding solid waste management. Until the State mandated AB 939 Task Force was formed in April, 1991 , this committee and staff were shaping a majority of the solid waste management ' recommendations affecting the entire county. Until the formation of the Contra Costa Solid Waste Authority in July, 1991, it was the only forum available for those solid waste issues outside the purview of the AB 939 Task Force. ' Despite the broad expertise and perspective on the Task Force, the Committee sometimes functions as another Board of Supervisor review and recommending layer inserted between many of the Task Force' recommendations and the ' Board's decisions. Contra Costa County Hazardous Materials Commission ' In 1983, the Board of Supervisors created the Hazardous Waste Task Force which met for three years to develop policies and recommendations to guide hazardous waste management in Contra Costa County. All of the the recommendations of the Task Force, including that of establishing a County Hazardous Materials Commission, were adopted by the Board. The Commission is comprised of representatives from the Board, the cities, fire ' districts, sanitary districts and representatives from both the public and private sectors. The Commission has been charged with the responsibility of establishing model policies and programs for uniform adoption throughout the ' County dealing with hazardous wastes or with the storage and transportation of hazardous materials. Recognizing that household hazardous waste was more of a solid waste disposal issue, a joint committee comprised of representatives of both the Solid Waste and the Hazardous Materials Commissions met to develop special programs aimed at alleviating this problem. One example of this committee's work was the very popular and successful BOP DROP day when citizens all over the county could drop off used motor oil, latex paint and car batteries. With the requirement that a household hazardous waste element be added to comply with meeting AB 939 planning goals, this function of the Commission has been transferred to the AB 939 Task Force, assisted by the County Department of Health Services staff. Plastics Recycling Task Force ' On August 15 1989 f g , h Board the oa d o Supervisors approved the establishment of a Plastics Recycling Task Force to implement programs and goals recommended. ' B - 9 m , Contra Costa Solid Waste Management Transition Proposal' Page Nine , by the Plastics Committee of the Solid Waste Commission in its report, Reducing Plastics in the Wastestream. These policies support the collection and recycling of mixed waste plastic in the county's wastestream as preferential ' to ultimately banning such materials. The objective of the Task Force is to work with representatives of the plastics industry to achieve the goal of being able to sort and recycle plastic waste in an economical manner and help stimulate a market for recycled plastic products which will make it financially advantageous for industry to recycle such wastes. The Task Force has been comprised of former Plastics Committee members, Board members, resin producers, garbage , haulers, recycling collectors plastics processors, a city invoived-with recycling, environmental organizations and the public. The Task Force has been influential in motivating the industry to provide curbside pickup and collection of a variety of plastic resins, notably, HDPE and PET. The Task Force has been instrumental in the development of a Materials Diversion Ordinance which would mandate time lines by which all jurisdictions must have recycling ' programs for designated materials or they will be prohibited at County controlled landfills and transfer stations. Contra Costa Integrated Waste Management Task Force (AB 939 Local Task ' Force) Formed in April, 1990 per the requirements of AB 939, the. Task Force is t responsible for: • Identifying solid waste management issues of county-wide or regional concern; • Determining the need for solid waste_ collection systems, processing facilities and marketing strategies that can serve more than one jurisdiction within the region; • Facilitating the development of multi-jurisdictional arrangements for the marketing of recyclable materials; • To the extent possible, facilitating a resolution of conflicts and inconsistencies between or among city Source Reduction and Recycling Elements and Household Hazardous Waste Elements; and • Developing goals, policies and procedures to guide the development of the Siting Element. Th Task Force is an arm of the Count and is comprised of members of the The y p following: 2 Supervisors, 2 members of solid waste industry, 2 members of. environmental groups, 3 public members representing the three geographical regions of the county, 1 Central Sanitary representative, 1 Delta Diablo Representative, 1 West County Sanitary District Representative, 1 B - 10 Contra Costa Solid Waste Management Transition Proposal Page Ten representative from the remaining small sanitary districts, 2 council members representing West County cities, 2 representing East County cities, 2 representing Central and South Central cities and 1 representing the City of Concord. Elected officials from cities and sanitary districts are endorsed by the Internal Affairs Committee and appointed by the Board of Supervisors upon ' nomination by their member agencies; all other representatives are appointed by the Board of Supervisors upon their nomination by the Internal Affairs Subcommittee of the Board of Supervisors. ' AB 939 Market Development Zone Council ' The Market Development Zone Council has been formed to oversee and recommend implementation of the provisions of the Recycling Market Development Zone Plan for the shoreline of Contra Costa County. The Plan and its program concentrates of recycling market development within the Zone for ' four materials: plastics tires tin and yard waste. The goal of the program through the development of recycling industries within the Zone - guaranteeing supply of sufficient feedstock to the industries, demand and the supply for end- use products made from the four recyclables. The Council is comprised of representatives of Contra Costa County - which ' will act as lead agency and staff the Council - Delta Diablo Sanitation District, West Contra Costa Integrated Waste Management Authority and the Cities of Antioch, Pittsburg, Brentwood, Martinez, Hercules, Pinole,. San Pablo, Richmond and EI Cerrito. Sub-Regional Agencies ' West Contra Costa Integrated Waste Management Authority Established on April 1991, it was formed by the cities of EI Cerrito, Hercules, Pinole, Richmond, San Pablo and the West Contra Costa Sanitary District. The Authority is currently negotiating with Contra Costa County to join as a member. ' Its objective is to develop an Integrated Resource Recovery Facility (IRRF); key to achieving diversion goals set forth in AB 939. With the exception of the City of EI Cerrito, members of the agency have jointly hired a consultant to prepare common Source Reduction and Recycling Elements and Household Hazardous Waste Elements. A function of the agency will be to coordinate all activities - public information, marketing, etc. - relevant to implementation of the participating entities' SRREs. The Authority reviews closure and post closure ' plans for the current landfill and oversees the West Contra Costa Sanitary Landfill Closure Trust Fund. As part of the Authority's Agreement all entities have agreed to direct their wastestream to the IRRF. Current financing for ' operational activities is provided by a yearly flat fee assessment of $25,000 per vote given to each entity plus any additional assessments necessary for operation until the IRRF is operational. When the IRRF is constructed and B - 11 Contra Costa Solid Waste Management Transition Proposal- Page Eleven operational, capital and operating costs will be financed by tipping fees and, ultimately, grant monies. It hopes to have the IRRF operational in 1994. It may need an interim transfer station at the landfill. Central Contra Costa Joint Powers Authority Formed on August 3, 1990, the Authority has broad exercise of powers which ' gives it purview over transfer stations, resource recovery facilities; recycling facilities, including composting, household hazardous waste facilities and landfills. It allows for public ownership of said facilities and it allows for other joint efforts as regards handling and disposal of the solid wastestream. While membership in the Authority is open.to all jurisdictions in Central County which franchise the collection and disposal. of solid waste, its current membership is , comprised of the Central Contra Costa Sanitary District (which franchises for Danville,. Lafayette,. Moraga, Orinda and the unincorporated areas of Alamo, Blackhawk, Pacheco/Clyde, Roundhill and Walnut Creek), the City of San , Ramon and the City of Walnut Creek. The Central County cities of Concord and Clayton have not joined but the cities of Martinez and Pleasant Hill have recently expressed interest in membership. Prior to the recent sale of the Acme Transfer Station to Browning Ferris Industries, it was negotiating a membership agreement with Contra Costa County in. concert with potentially acquiring the Acme Transfer Station to use as a Materials Recovery Facility. This facility was , intended to facilitate meeting the diversion requirements of AB 939 and AB 2707.. Delta Diablo Sanitation District/Antioch/Pittsburg/Contra Costa County Joint ' Powers' Authority Formed in June 1991 by the above entities, the purpose of the Joint Powers ' Authority is to provide for meeting the recycling goals of AB 939 and AB 2707 as follows: performing all services relatedto disposal of solid waste; to recycle materials that would otherwise be landfilled; to construct and operate a transfer station which may include facilities to receive solid and hazardous wastes; to temporarily store, separate, convert and process materials from solid waste;,and to transfer remaining materials for disposal and/or transformation. In addressing the requirements of AB 939 and AB 2707, the JPA has broad powers which can permit it to become involved in implementation activities such as rate regulation, market development, etc. With the recent signing of a A secondary MOU agreement by the City of Pittsburg, the JPA has begun the environmental process for a planned Materials Recovery Facility, which will serve the member communities in East County . It is expected that the City of Brentwood will be allowed to use the facility under contract. Under the global agreement, jurisdictions retain their franchising rights. All start up costs are being paid by Delta Diablo Sanitation District. B - 12 Contra Costa Solid. Waste Management Transition Proposal Page Twelve County wide Contra Costa Solid Waste Authority Initiated in May 1988 and established in July 1991 , the Contra Costa Solid Waste Authority operates under a joint exercise of powers agreement currently between all Contra Costa cities, excepting the City of Concord and the Mt. View, Rodeo Sanitary Districts and the Kensington Community Services District. Membership is open to all solid waste franchising agencies in the county. It is ' the only solid waste forum in Contra Costa County where all franchising entities are equally represented and have a voice. Formed with the goal of being the county wide solid and household hazardous waste agency for the county, it has i broad and comprehensive powers which encompass every aspect of solid waste management. With one representative from each member agency deliberating at the same table, its objective is to put solid waste planning and ' implementation under one roof, providing a cohesive, coordinated, responsive and unified cost-effective program consistent with the general public good and the protection of the environment. Its scope is as broad or as restricted as the ' members may direct, such as development of facilities, programs in waste reduction, facilitating market development, technical assistance and public education; ultimately encompassing the activities of the Local Task Force into its ' programs by overseeing the development of the Contra Costa County Integrated Waste Management Plan and its implementation. However, its intent is not to preempt any current programs, projects or agreements entered into by ' its current or potential member agencies. Organizational Alternatives ' The thrust of the alternatives proffered is to provide some organizational options for discussion which can lead to County/Authority consensus regarding'.- the egarding:the County's membership in the County wide JPA. • the extent and pace for the potential transition of County administered ' solid/household hazardous waste programs and/or staff to the Authority. In considering these options, a broad based sampling of perspectives was ' sought from County, sanitary district and city elected officials and staff, environmentalists, recyclers, attorneys, Local Task Force members and haulers. The question posed to each of those interviewed was: "!f you had the power to ' create the solid waste picture for Contra Costa County what would it look like? What problems would there be in buying into the program in your region? How would you sell it to the County, the ratepayers?'Their comments and consensus ' on alternatives potentially possible were of significant influence in shaping the options which follow: B - 13 Contra Costa Solid Waste Management Transition Proposal Page Thirteen Option I - No Change • Individual jurisdictions are responsible for meeting all their AB 939 ' requirements which include staffing levels and programs necessary to set those plans in action. • The Local Task Force maintains its advisory role to the sanitary districts, the cities and the Board- of Supervisors, researching, recommending policy and brokering coordination strategies to be considered by the various individual and sub-regional entities. The Local Task Force role will continue to be constrained by the existing statute unless the Board and a majority of a majority of the cities vote to expand its role and title to something more than that prescribed by law. • Members of the Local Task Force will be nominated by their member , constituencies or the Internal Operations Committee and approved by the Board of Supervisors. Option 11 - Local Task Force Administered Solid Waste Management Program ' Under the provisions of AB 939, this type of oversight, or line responsibility would necessitate an agreed upon name and job description change from that ' delineated in the law. It would have to be approved by the Board,and a majority of the cities with a majority of the population. Current organizations/interest groups represented could be retained or altered to respond to the technical ' expertise/broadened political participation necessitated by its expanded super agency role which includes policy making, supervision, administration, implementation, appointments, etc, in all areas of solid waste. Members would ' have to be selected by both the Board of Supervisors and the cities upon recommendation, by the Board 10 Committee, the sub-regional JPAs and the Mayors Conference. Staffing would have to be expanded to provide for ' expanded responsibilities, with the AB 939 tipping fee/Resource Recovery Fee increased accordingly. Option 111 - Contractual Coordination by County Staff , The Authority, with Contra Costa County as a member, would assume oversight , for all AB 939 related responsibilities. Instead of hiring its own planning staff, it could contract with. Contra Costa County Community Development and Health Services Departments to staff the Local Task Force and other AB 939 related activities. The Local Task Force would serve as a subset of the Authority, ' performing those responsibilities ordained by the statutes and regulations. If the Authority members chose, the Local Task Force role could be expanded to provide advice on other solid waste issues of interest to Authority members. ' The Local Task Force expertise/constituency makeup could be altered to replace elected officials with technical experts in various solid waste related 8 - 14 ' ' Contra Costa Solid Waste Management Transition Proposal Page Fourteen ' disciplines. The Authority's role would be to recommend strategies/programs for coordinating multiple jurisdictional efforts and to broker partnerships which ' better utilize various jurisdictions' leadership/expertise to reduce costs. Option IV- Sub-Regional Joint Powers Directed Solid Waste Programs ' Under this option, the Board of Supervisors and the Mayors' Conference would agree to set up three to four geographically oriented districts, which include the ' unincorporated segments. At least one representative of each city and the County should sit on the sub-region's JPA. ' The sub-regional JPA would have autonomy and staffing necessary to handle all sub-regional solid waste matters: administration, preparation and implementation of all AB 939 activities. ' In conjunction with the other JPAs, its representatives would form the membership interface with a county-wide JPA which would ' be comprised of the chair and vice chairs of all sub-regional JPAs. would have staff sufficient to oversee its administrative, financial ' and clerical activities and to implement its programs. deal with coordination of issues/programs, etc., which overlap more than one region. provide coordination which doesn't cost much money. be supported by a tipping fee surcharge/grant monies. ' The sub-regional JPAs could be empowered through the County wide JPA to interface with the Local Task Force as follows: Oversee/administrate the AB 939 advisory functions, hiring staff ' necessary to develop, coordinate AB 939 COIWMP plans, implementation. ' Contract with Contra Costa County for AB 939 staffing as described in Option 111. This would be similar to County personnel who staffed Transportation Measure C in its formative months. ' Option V - Special District ' In conjunction with the cities and franchising sanitary districts, support the formation of a special district which functions much the same way as a public utility commission. It could 1 B - 15 Contra Costa 'Solid Waste Management Transition Proposal ' Page Fifteen • be appointed by the cities, franchising sanitary districts and Board of ' Supervisors much the same way as the Local Task Force; with the individuals professional qualifications, areas of expertise and ' geographical representation voted on. • be directly elected as a separate special district. ' • have power to site facilities, set facility rates, develop- and exact plans and programs. ' • have county wide jurisdiction. • be able to act autonomously within set- parameters. ' • be required to weigh all issues within the regional framework. • regulate solid waste as any other public utility. ' OQtion VI- Authority/County Contractual Partnership for AB 939 ' This option would allow a more gradual transition of administrative oversight from Contra Costa County to a county wide organization, such as the Contra ' Costa Solid Waste Authority, by creating an interim partnership responsible for administering and implementing AB 939. The guiding premise of such an option would be the absolute equality of both bodies working together - The Board of ' Supervisors and the Contra Costa Solid Waste Authority. Created by an appropriate legal agreement, such as a Memorandum of Understanding, it could have some, all or more than the following provisions: , • A steering committee comprised of 2 representatives each from the Board of Supervisors and from the Authority who could be empowered ' to: Determine staffing needs and to select staff - regular and contract - either from existing city/County staff or hire new staff. Provide oversight and direction to staff in the implementation, coordination, and responsibilities necessary in complying with AB939. Provide policy direction and supervision to the Local Task Force 1 within the parameters agreed to by both jurisdictional bodies. Enter into contractual agreements necessary to meet the requirements of AB 939. 1 B - 16 ' Contra Costa Solid Waste Management Transition Proposal Page Sixteen ' Prepare a budget. ' At the behest of the cities and sanitary districts, would request the Board of Supervisors to levy fees at the transfer stations/landfills necessary to financially support the AB 939 activities of the steering committee. ' Option V!l - County Wide Joint Powers Authority ' This option envisions a county wide organization comprised of one representative, each from every city, franchising sanitary district and the County. It would have powers broad enough to allow it, if the members so ' chose, to develop policy, plan and site facilities, regulate rates and control/administer/direct the development/coordination/implementation of AB 939 activities, as follows: ' Full representation by each franchising entity and non franchising city, with weighted vote keyed to population within the franchise area (See Authority Agreement, Appendix A - page 10). ' As an alternate - Use the ABAG voting process by which County wide JPA and County representatives would vote each as separate blocks; ' with a given majority of affirmative votes from each group necessary for passage. As with the current weighted vote provided for in the Authority's Agreement, this bipartite majority vote could be reserved for certain types ' of issues, i.e. approval of the budget, etc. • Its representatives would also serve on sub-regional JPAs, providing ' continuity for overlapping activities. • Sub-regional JPAs could be determined by areas of service, response or ' watershed: * Could administer/set rates for the regional facilities * Could respond to special needs, with assistance by the county , wide JPA staff, as needed within the parameters set by the county- wide JPA. * Could oversee implementation of all subregional AB 939 responsibilities within broad framework of county wide policies, ' goals and objectives. * Could initiate and sponsor development of county wide programs ' which fit within the larger framework. * Would handle sub-regional issues; facilities only. ' B - 17 Contra Costa Solid Waste Management Transition Proposal ' 9 P Page Seventeen • Could direct the wastestream in an organized fashion. , • Could set regular time for rate increases. ' • Could seek economies in handling the franchises and territories through common franchise agreements and/or new hauling areas. ' • Could share fees. • Could consider blending commercial/residential/ industrial franchise fees ' to equalize rates. • Could consider public ownership of all facilities. , • By adoption of recommended policies, could oversee all AB 939 related ' activities, including composition and membership of Local Task Force. • Could realize, on- behalf of its members, where appropriate, efficiencies in plan development by letting one overall contract for studies and ' programs. • Could initiate and award grants for development of programs. ' Major Considerations Benefits ' • Shared responsibility, leadership with no one entity taking the sole ' blame for necessary, but unpopular, decisions. • Coordinated/cost-effective strategies, lower costs for local government ' and ratepayers • Minimization of conflicts generated by distrust, misunderstandings, , misinformation. • Better communication/education with-the public. ' • Opportunity to form other equally beneficial partnerships; i.e. permanent source of funding which doesn't pit cities against the County. • Success at working together. B - 18 Contra Costa Solid Waste Management Transition Proposal Page Eighteen ' Trust ' Critical to the choice of option in county wide solid waste management and certainly other areas needing county wide cooperation and coordination is the building of trust. It is generally conceded among those interviewed that ' concomitant with developing a new process or option for cooperative, shared leadership in solid waste planning is putting all the baggage of past or current animosities and perceived injustices behind us; finding some process or forum ' for success that will allow us all to move forward, together. Central to our being able to move forward is a willingness by all participants to relinquish some degree of individual authority and power; including being out voted from time to time. That willingness must be based on a recognition and agreement that serving the general public good and environment takes precedence over the advantages/disadvantages to one or more jurisdiction/individuals. Even now ' when everyone tries to do the right thing we still step all over each in our efforts with duplicative and costly programs. ' Divergent Agendas The County, sanitary districts, cities, sub-regional JPAs and the private sector each have different agendas, philosophies, land-use policies, regional issues ' and styles; often over and above those of the rate payer. Organizational Barriers ' Between the Authority's sponsorship by the Solid Waste Commission in 1988 and its final formation in July 1991, AB 939 was passed. The comprehensive ' legislation generated the formation of JPAs, planning of facilities, hiring of new staff and contractual agreements oriented to meeting AB 939 goals: ' Many jurisdictions hired staff to oversee the development/implementation of AB 939. • Regional JPAs were formed to facilitate AB 939 requirements through Development of transfer stations/ Material Recovery Facilities. ' Common AB 939 plans and programs. • The Local Task Force was formed and staffed per statutory deadlines. ' The County decided to take over the franchising of garbage collection in the unincorporated part of the county. ' B - 19 Transition Pro , Contra Costa Solid Waste Managementosal p Page Nineteen ' Any process for county wide solid waste management which has as its objective a cooperative, coordinated non-duplicative process must consider how to overcome those institutional barriers of turf, power, money and jobs. ' Private Sector Objectives The private sector, which in the past has sometimes been influential in local elections and pivotal in local decision making and policies needs to be brought more openly into the process in a more positive partnership, which challenges , and- excites their ingenuity, entrepreneurship and ability to get the job done effectively. It should give them recognition for a key role in meeting our solid waste management goals. RECOMMENDATION After weighing the alternatives against the issues and institutions which impact ' each particular alternative, it is our recommendation that an incremental. process of cooperative leadership begin as soon as possible. Given the ' various degrees of partnership represented by the existing subregions, Selection of a combination of Options VI'and VII provides the best opportunity for moving ahead with a phased program. Such a program might be as follows: Short-term - 0 to 3/5 years ' This cycle would represent a transition period between the current ' administration by Contra Costa County of AB 939 related activities to that of a. more centralized county wide organization, such as the Countywide Solid Waste Authority/subregional JPAs.. It would incorporate the provisions of Option ' VI which provides for the creation of an Authority/County AB 939 Steering Committee which is answerable to the Board of Supervisors, the Sanitation.and Water Agencies and to either the Countywide Solid Waste Authority or the Mayors' Conference. The Steering Committee should be empowered to have the authority to assure that all AB 939 requirements are implemented in a cost effective manner. Care must be taken to assure that its activities do not infringe ' on those AB 939 activities which are subregional in nature, but rather to provide the authority and responsibility currently exercised by Contra Costa County in preparing the County wide Integrated Waste Management Plan. It should provide the bridge between the various local/subregional AB 939 activities to assure coordination and non-duplication of efforts. For that reason, its members should represent the three geographical areas of the county and should, at the same time, serve as members of.the three subregional JPAs. As long as sanitary districts continue to franchise solid waste in the unincorporated/incorporated parts of the county, there must be representation by the sanitary districts on the Steering Committee, as well. B - 20 ' Contra Costa Solid Waste Management Transition Proposal 9 P Page Twenty ' Mid-Term - 3/5 to 7/10 Years ' All franchising agencies within Contra Costa County would join together in one common county-wide agency which could, as a beginning, incorporate all or most of the provisions of the Authority's enabling agreements, goals, objectives ' and action plan. (See Appendices A and 8). This would presume that every jurisdiction would be a participant in a subregional JPA, as well, with the same representatives serving on both subregional and county wide JPAs for ' continuity. Every effort would be made to assure that each jurisdiction would be fairly and equally represented. The county wide JPA would assume the implementation of the CoIWMP once it is approved by the California Integrated ' Waste Management Board at the end of the second planning cycle. The JPA would then, as soon as a stable funding source was established through the tipping fee and staff necessary and qualified to manage the new JPA and its AB ' 939 activities was hired, would assume administration, planning, coordination, policy development and implementation of all aspect of the AB 939 responsibilities in concert with the subregional JPAs. As an option to hiring new staff, existing County staff, those of other jurisdictions or the steering committee discussed under Option VI, could be transferred to the Authority. The Local Task Force, its members and membership categories approved by the voting members of the JPA, will be advisory to the JPA on all aspects of AB 939 as allowed by the Statutes. If the JPA wishes to broaden its advisory role, it should so direct, by resolution, reconstituting the Local Task Force under a ' different name. The Local Task Force working through a JPA committee which is charged to provide particular oversight to the Task Force' activities should work with the various jurisdictions to make every effort in facilitating the sharing of staff, expertise, consultants and programs for cost savings. In this regard. it should broker the use of individual jurisdictions' established expertise and programs to enhance cost savings and coordination. The cities, sanitary districts ' and subregional JPAs should continue their AB 939 related activities as autonomously as now with the added charge to size their programs and facilities to complement and be part of a county wide coordinated system. ' Existing programs and projects would remain under the aegis of current jurisdictions unless other arrangements were mutually agreeable. ' Cooperative programs with frequent team building, workshops, joint meetings, etc, should be instituted as a way to get past the barriers to better partnership. Success at small joint planning efforts, such as backyard composting or the ' household hazardous waste mobile collection program can begin to build the attitude of respect and trust necessary to the success of the JPA. ' In this cycle, the monitoring of the Source Reduction and Recycling Elements and the Household Hazardous Waste Elements will continue, with the second revision of the CoIWMP completed. 1 ' B - 21 Contra Costa Solid Waste Management Transition Proposal Page Twenty One ' As trust and success build, more centralized planning and implementation can be phased in with awarding grants for waste reduction projects, public information and education programs or any special facilities. ' Expanded involvement moving toward overall centralized policies, goals and objectives and coordination should be in place in ' • Public Education • School curricula development/refinement and recycling • Legislation development/support ' • Closer interface with the State Integrated Waste.Management Board. • Market Development ' Long term - 10-20 Years ' With coordination of efforts now matured and in place and with experience garnered from planning and implementing at least two cycles of AB 939 , activities, the JPA is now ready-to consider the extent to which it wishes to facilitate county wide activities. For instance, it could • Establish and reconfigure the waste shed areas. ' • Assume county-wide rate regulation • Integrate the subregional JPAs with the county wide Authority sufficient to ' create a county wide system The trick will be to avoid creating another level of indifferent bureaucracy, beset with inertia and indifference to.the , needs of the public we serve. Any system should rest lightly on the shoulders of local and subregional' efforts, facilitating their doing a better job, but not getting in their way. ' • Control rates at transfer stations, landfills. • Permit solid waste facilities in tandem with planning staff of local ' jurisdictions. B - 22 ' JOINT EXERCISE OF POWERS AGREEMENT CONTRA COSTA SOLID WASTE AUTHORITY ' ARTICLE 1 : PURPOSE ' A. Purpose of Agreement: It is the purpose of this Agreement to establish, pursuant to the Joint Exercise of Powers Act, a public ' entity separate from each of the agencies. This public entity is to be known as the Contra Costa Solid Waste Authority, hereinafter referred to as the "Authority." ' B. Purpose of Authority: The purpose of the Authority shall be to exercise certain powers set forth below in a manner which will ' assure the citizens of the agencies that solid waste activities in Contra Costa County will be conducted in a manner most consistent with the general public good and the protection of the environment. ' B - 23 ARTICLE 2: DEFINITIONS , 1 . Contra Costa Waste Management Authority ' The "Contra Costa Waste Management Authority" shall be the name ' of the separate public entity created by this Agreement, which entity may also be hereinafter referred to in this document as the "Authority." ' 2. Hazardous Waste Hazardous waste means a waste or combination of wastes which, ' because of its quality, concentration, or physical, chemical, or infectious characteristics, may do either of the following: ' a. Cause, or significantly contribute to, an increase in mortality or an increase in serious irreversible, or incapacitating , reversible illness. b. Pose a substantial present or potential hazard to human health ' or the environment when improperly treated, stored, transported, or otherwise managed. Unless expressly provided otherwise, hazardous waste includes , extremely hazardous waste and acutely hazardous waste, and any waste defined as hazardous by applicable federal or state statutes and regulations. ' 3. Household Hazardous Waste Household Hazardous Waste includes all chemicals and other ' products commonly used in daily life, and commonly found in domestic households which contain hazardous substances when , such chemicals or other products are disposed of as worthless, whether such substances are disposed of as a part of the normal domestic solid waste or discarded in some other manner. For the ' purposes of this definition, "hazardous substance" means a hazardous substance as defined in Section 25316 of the Health and Safety Code. ' 1 B - 24 ' 4. Member Agency ' A member agency for purposes of this Agreement shall mean each city, county, or special district that is a signatory to this Agreement. ' 5. Recyclables Recyclables include all solid waste, other discarded materials, or ' materials that would otherwise become solid waste which may be recycled. Recyclables, for the purpose of this Joint Power Authority, include, but are not limited to, aluminum and tin cans, plastics, glass, ' green waste, and paper products. 6. Recycle or Recycling "Recycle" or "recycling" means the process of collecting, sorting, cleansing, treating, and reconstituting materials that would otherwise ' become solid waste, and returning them to the economic mainstream in the form of raw material for new, reused, or reconstituted .products which meet the quality standards necessary to be used in the marketplace. "Recycling" does not include transformation, as defined in Section 40201 of the Public Resources Code. ' 7. Regional Facility A regional solid waste facility shall mean a facility that provides solid ' waste handling services, including disposal, and/or composting for the constituents and/or the collector for the constituents of more than one member of the, Authority. 8. Regulation of Rates ' The "regulation of rates" as used herein shall be defined to be the whole of the process of reviewing costs of operation and the fixing of rates to be levied and collected at facilities or by enterprises which ' provide regional solid waste handling services to users within the jurisdictions of the member agencies. Regulation of rates shall be in accordance with Attachment "A" which is appended to this document. The regulation of rates as used herein does not include the regulation of garbage collection rates under franchises held by member agencies unless such individual member agencies specifically ' delegate or assign such responsibility to the Authority. B - 25 9. Solid Waste , a. Except as provided in subdivision "b", "c" and "d" below, solid waste means all putrescible and non-putrescibie solid, semisolid, and liquid wastes, including garbage, trash, refuse, , paper, rubbish, ashes, industrial wastes, demolishing .and construction wastes, abandoned vehicles and" parts thereof, ' discarded home and industrial appliances, dewatered, treated or chemically fixed sewage sludge which is not hazardous waste, manure, vegetable or animal solid and semisolid wastes, and other discarded solid and semisolid wastes. Solid ' waste includes commonly discarded recyclables such as glass, aluminum, paper, and plastic products. b. Solid waste does not include hazardous waste and/or liquid ' petroleum waste products, excepting household hazardous waste as defined elsewhere herein. ' C. Solid .waste does not include low-level radioactive waste regulated under Chapter 6.7 (commencing with Section. ' 25800 of Division 20 of the Health &Safety Code. d. Solid waste does not include medical waste which is regulated ' pursuant to the Medical Waste Management Act (Chapter 6.1 {commencing with Section 25015} of Division-' 20 of the Health & Safety Code),. provided that the medical waste, whether treated or untreated, is not disposed of at a solid waste facility which is subject to the powers invested in this Authority. Medical waste which has been treated and which ' is lawfully deposited into the normal solid waste stream shall be considered solid waste for purpose of this Agreement and shall be regulated. ' B - 26 ' ARTICLE 3: POWERS OF THE AUTHORITY A. General Powers: The Authority shall have the powers common to its member agencies and may: 1 . Advise the member agencies on issues related to regional solid ' waste facilities and programs. 2. Advocate the interests of the member agencies related to ' solid waste facilities and programs with local, state, and federal agencies. 1 3. Maintain comprehensive County Integrated Waste Management Plans by preparing and presenting proposed revisions and amendments to same. ' 4. Plan for regional solid waste facilities and programs. ' 5. Regulate rates of regional solid waste facilities. Member agencies may, by separate agreement,delegate rate regulation for the collection of solid waste within their boundaries to.the ' Authority. 6. Advise member agencies on matters of solid waste rates and charges. 7. Undertake such planning and related activities as may be required of member agencies in order to comply with- the directives of the California Solid Waste Management, Source Reduction, Recycling, Compacting and Market Development Act of 1989 (AB 939), as amended as the members may ' direct. ' S. Develop and implement a financial plan to provide for closure and post-closure of landfills containing wastes generated by residents and businesses whose solid waste is franchised by the member agencies as the members may direct. 9. Perform such other solid waste activities as the members may ' direct. 10. Develop regional solid waste facilities and programs subject to separate agreements with participating agencies. i ' B - 27 i 1 1 . Operate and/or contract for the operation of regional solid waste facilities and programs subject to separate agreements , with participating agencies. 12. Develop a system of standardized franchise agreements and ' uniform procedures governing the franchising of solid waste collection and disposal for consideration by the member agencies. ' 13. Develop rate review procedures applicable to the franchising of solid waste collection and disposal for consideration. by ' member agencies. B. Specific Powers: In carrying out its general powers, the Authority is ' hereby authorized to perform all acts necessary and proper to the exercise of said powers, which. may include, but are not limited to, . the following: , 1 . To make and enter into contracts including contracts of insurance. , 2. To apply for, and accept grants, advances, and contributions. 3. To employ or contract for the services of agents, employees, ' consultants, and such other persons or firms as it deems necessary. ' 4. To conduct studies. 5. To- review the Contra Costa Integrated Solid Waste ' Management Plan, and prepare and propose revisions or amendments thereto, for approval by the appropriate bodies. , 6. To acquire, construct, manage, maintain, operate, and control any disposal sites, solid waste facilities, buildings, works, or , improvements. 7. To acquire, hold, or dispose of property. 8. To incur debts, liabilities, or obligations, subject to limitations herein set forth. 9. To levy and collect fees and charges. 10. To issue bonds, subject to the provisions and limitations of the statutes of the State of California. B - 28 1 1 . To annually adopt, by April 1, a fiscal year budget to commence July 1 and run through June 30, setting forth all administrative, operational, and capital expenses for the Authority, together with the apportionment of such expenses ' by levy against each agency and other entities, to the extent necessary. 12. To develop, construct, operate, and/or regulate regional landfill disposal site(s), regional transfer facility(ies), or other regional solid waste facilities, or to contract with a public ' agency(ies) or private person(s) or corporation(s) to perform such functions. 13. To represent the interests of Contra Costa County and/or the member agencies in discussions and negotiations with other entities outside Contra Costa County on matters of solid waste. ' 14. To take the necessary actions to sponsor, support, or P PP oppose legislation affecting the solid waste interests of member ' agencies and Contra Costa County. C. Limitation on Powers: Notwithstanding the general and specific powers set forth in this Agreement, nothing in this Agreement shall be read to: ' 1 . Prevent member agencies individually, or by agreement with other agencies, from owning or operating solid waste handling facilities for their regional area, or from implementing solid ' waste management programs within their regional area including, but not limited to, programs concerning closure of facilities. 2. Limit a member agency's use of its discretion and authority regarding land use matters. 3. Preclude any member agency from continuing to franchise for the collection and disposal of solid waste or from levying a reasonable franchise fee, or using such other lawful cost recovery methods, as it may deem appropriate within its jurisdictional boundaries. ' B - 29 ARTICLE 4: ORGANIZATION OF AUTHORITY , A. Membership in the Authority: Membership in the Authority shall be ' open to 1) all cities within Contra Costa County; and 2) any special district or sanitary district within Contra Costa County which ' franchises collection of solid waste, providing they agree to enter the Authority under the terms of this Agreement. In addition, the County of Contra Costa shall be entitled to membership. B. Policy Board:.The Authority shall be governed by the Contra Costa Solid Waste Authority Policy Board, hereinafter called "Board," which ' shall exercise all powers and authority on behalf of the Authority. 1 . Duties of the Board: The Board shall perform all acts which it determines to be necessary and proper to the carrying out of the purpose of this Agreement and shall have the authority to exercise all powers provided for in.this Agreement, which may ' include, but are not limited to: a. Preparing. and recommending action on the Contra ' Costa County Solid Waste Management Plan, and revisions or amendments thereto, to the County Board of Supervisors and cities. b. Preparing and recommending joint or cooperative action with regard to compliance of member agencies with , the requirements of the California Solid Waste Management, Source Reduction, Recycling, Compacting and Market Development Act of 1989 (AB- ' 939), as amended. C. Considering, modifying, and approving the annual work ' program and budget. d. Levying fees and charges, as may be provided for in this Agreement. e. Authorizing, reviewing, and accepting reports and studies. f. Regulating rates for regional solid waste facilities and ' programs which provide services to the member agencies.. B - 30 ' g. Accepting agencies as subsequent parties to this Agreement, and members of the Authority, and ' admitting their representatives to the Board. 2. Board Members: The Board shall consist of one member of the ' governing body of each of the member agencies. Upon execution of this Agreement, the governing body of each agency shall, by resolution, appoint one of its members to ' serve as a member of the Board and another individual to serve as an alternate member of the Board, who may be an elected official of the member agency,to serve in the absence of the regular member. The governing body of each member ' agency shall review its appointee to the Board every two years. There shall be no limit on the number of terms of a ' Board member. 3. Subsequent Board Members: Any agency which franchises solid waste collection in Contra Costa County, including agencies formed after the effective date of this Agreement, may become members of the Authority by presenting an ' adopted resolution to the Board requesting membership in the Authority. Membership in the Authority shall be. contingent upon a majority of affirmative votes cast by members of the ' Board accepting the agency, and upon payment of any charges established by the Board as a prerequisite for membership. ' 4. Board Officers: The Board shall elect from its members a Chairperson and a Vice-Chairperson. The Chairperson shall preside over all meetings according to the Rules of Procedure ' adopted by the Board. The Board Chairperson shall represent. the Authority and execute any contracts and other documents, as required by the Rules of Procedure. The Board ' shall designate a Secretary who shall notice all meetings and cause minutes to be taken of all meetings, and serve as custodian of the official records of the Authority. ' 5. Board Rules:. The Board is empowered to establish Rules of Procedure, and may do any and all things necessary to carry ' out the purpose of this Agreement. All actions taken by the Board in carrying out the powers of the Authority may be exercised by a majority vote of all members present, except as to the following, which will require an affirmative vote on behalf of a majority of member agencies, which agencies total weighted vote constitutes a majority of all votes available: B - 31 a. Adopting a Budget Plan and Work Plan. b. Levying fees against member agencies. C. Authorizing the acquisition or construction of a solid waste facility. ' d. Recommending amendments to the Contra Costa County Integrated Waste Management Plan. ' 6. Vo in : The Authority shall cause the number of votes assigned each member agency to be determined each year,so ' as to provide for weighted voting based on the current population of the franchised service area, as more fully set forth below: ' a. Cities where a special district franchises solid waste collection within said city shall have half the votes ' otherwise assigned to the city as determined by the population set forth.below, and the franchising special district shall have the remaining half of the assigned ' vote(s). b. Large cities or agencies having a minimum of 40,001 ' population within the franchised area will receive three votes. C. Medium cities or agencies having between 20,001 and - 40,000 population within the franchised area will. receive two votes. , d. Small cities or agencies having less than a 20,001 population within the franchised area will receive one ' vote. e. The County shall be granted two votes immediately, ' upon membership. However, if the County at any time franchises for an area with a combined population within the franchised area of 40,001 or greater, the , County shall receive three votes. T. Meetings of the Board: ' a. Regular Meetings: The Board shall hold monthly meetings. ' B - 32 ' ' b. Soecial and Emergency Meetings: Special and emergency meetings of the Board may be called in accordance with the provisions of Sections 54956 and 54956.5 of the California Government Code. ' C. Notice of Meetings: All meetings of the Board shall be held subject to the provisions of the Ralph M. Brown Act, Sections 54950 et. seq. of the California ' Government Code, and other applicable laws of the State of California governing the notice requirements applicable to the meetings of public bodies. ' d. Minutes: The Board Chairperson shall cause minutes of all meetings, excepting closed sessions, to be kept and ' shall, as soon as possible after each meeting, cause a copy of the minutes to be forwarded to each member of the Board and each member agency. ' 8. Committees and Staffing a. Technical Advisory Group: A Technical Advisory Group may be created by the Authority. The Technical Advisory Group may be composed of appointed staff from member agencies with approval of the member agencies' board or council and/or consultants, as determined by the Authority, and shall advise the ' Authority as to matters of concern to the Authority. b. Ad hoc Committees and Task Forces: Ad hoc ' Committees and Task Forces may be created by the Authority. Ad hoc Committees and Task Forces may be composed of appointed staff from member agencies, ' with approval of the member agencies' board, and/or council members, consultants, or citizen volunteers, as determined by the Authority, and shall advise the ' Authority as to matters of concern to the Authority. C. Executive Committee: The Authority may appoint an ' Executive Committee among its membership to manage the affairs of the Authority. The composition and authority of the Executive Committee shall be ' determined by the Authority. d. Regional Subcommittees:Regional Subcommittees may ' be created by the Authority. Regional Subcommittees may be composed of elected officials and appointed ' B - 33 staff from member agencies with approval of the member agencies' board and councils. The Regional Subcommittees shall advise the Authority as t appropriate. e. Staffing: During the interim period prior to the ' contracting for or hiring of professional staff, the agencies may provide staff, including County staff, to the Authority as may be necessary for the Authority to ' fulfill its duties. As necessary, the Authority may contract with, or employ firms and/or individuals, to perform such tasks or duties as deemed necessary by ' the Authority, including a General Manager who shall have such duties and authority as the Authority may delegate to such General Manager, subject to the terms ' of this Agreement. B - 34 1 ' ARTICLE 5 TERMS OF AGREEMENT A. Effective Date: This Agreement shall become effective on the date of its execution by one-half (1/2) of all of the eligible entities ' representing a majority of Contra Costa County's population. ' B. Amendments: This Agreement may be amended by the affirmative vote of the governing bodies of not less than two-thirds (2/3) of all member agencies casting votes equaling not less than two-thirds ' (2/3) of all votes available, in accordance with Article 4, Section 6. C. Withdrawal: Any party may withdraw from this Agreement upon one year's notice given prior to June 1 of any year to the Chairperson of ' the Policy Board. The withdrawing agency shall be liable for its share of any operating expenses incurred up to the effective date of its withdrawal, which shall be July 1 of the year following the giving of ' notice. The Notice of Withdrawal shall be in resolution form and approved by a majority vote of the governing board of the withdrawing party. The withdrawal. of a party from the Authority shall not relieve that party from paying its share of any debt incurred. while said party was a member;. nor will such withdrawal affect separate agreements between member agencies pursuant to Section B, Article 6 herein. The withdrawal of such member agency shall not terminate such member agency's responsibility for any liability of such member agency incurred while a member under Title I Division 3.6 of the Government Code, and further provided that the withdrawing agency must pay to the Authority on the effective date of withdrawal, all money which may be owing to the Authority for the withdrawing agency's proportionate share of liability under this Agreement, as set forth in Section-B, Article 8 herein. If the amount of the liability is not yet reasonably fixed on the date of withdrawal, ' the withdrawing agency shall pay its proportionate share of said liability promptly thereafter when such sum can be reasonably fixed. 1 B - 35 ARTICLE 6: AUTHORITY FINANCING A. Financial Accountability: Books of accounts will be maintained by the Authority to enable issuance of financial statements which present , its financial condition and results of operations. The financial statements will be issued to all member agencies quarterly and will be prepared in accordance with generally accepted accounting , principles. An annual audit of the Authority's financial statements will be performed by an independent Certified Public Accountant. B. Separate Agreements: Financing and commitment of waste stream ' for solid waste facilities and programs related to the transfer, disposal, or recovery of resources from solid waste shall be subject to separate agreements between the Authority and agencies. ' Financing of specific capital projects, such as the acquisition, construction, or operation of solid waste facilities by the Authority ' shall be subject to separate contracts between the Authority and member agencies which intend to participate in the specific facility. The contracts shall set forth each agency's responsibility for capital ' expenditures and operating expenses, as well as such other terms as may be appropriate. C. Debt: The Authority may issue or cause to be issued bond and other ' indebtedness, and pledge any property or revenues as security to the extent permitted by law. , D. Operating Income: The Authority shall adopt a budget annually and fix the allocation of operating costs to be borne by each franchising ' member agency. The franchising member agency's allocated share of said costs shall be paid by the franchising member agency. The Authority shall have the right to fix and impose such allocated shares ' of operating costs as a fee or charge against the franchising member agency to the extent permitted by law. The franchising member agency may derive such cost, fee, or charge from any source ' acceptable to the franchising member agency, including the franchise fees associated with the collection operations. It is the intent of the parties to derive operating revenue for the Authority from fees and ' charges at facilities; however, any short fall in Authority operating revenues will be imposed on franchising member agencies as set forth herein. ' 1 . Programs of General Interest: In general, the programs of the Authority shall be for the general benefit of all member B - 36 agencies. To the extent possible, the cost of such programs ' shall be prorated so that the charge per franchised household is uniform among all members. ' 2. Programs of Special Interest: From time to time the Authority may conduct programs, the benefits of which fall dispropor- tionately among the members. If this is the case, such ' programs of special interest, and a decision to undertake or continue such programs, must be made by a two-thirds (2/3) majority vote of all member agencies casting total votes ' equaling not less than two-thirds (2/3) of all votes available. The proration of the cost of such programs must be decided upon prior to making the decision to conduct the program. t 1 1 B - 37 ARTICLE 7: EXERCISE OF AUTHORITY'S POWERS This Agreement is entered into under the provisions of Article 1 of Chapter 5, Division 7, Title One of the California Government Code concerning Joint , Powers Agreements. As to those powers vested in the Authority pursuant to Section 6508 of the Government Code, they shall be exercised in the same manner and subject to the same restrictions as those applicable to a ' sanitary district pursuant to the statutes and laws of the State of California. 8 - 38 ' ARTICLE 8: OBLIGATIONS .OF AUTHORITY A. Other than as set forth below, any and all debts, liabilities, and ' obligations incurred by or imposed upon the Authority shall be the debts, liabilities, and obligations solely of the Authority and no capital or administration debt, liability, or obligation shall thereby be imposed ' upon any party to this Agreement or the collective parties hereto. B. The tort liability of the Authority, all members of the Board, and all ' officers employed and employees of said Authority shall be controlled by the provisions of Division 3.6 of Title I of the Government Code of the State of California. Any tort and contractual liability incurred by or imposed upon the Authority shall remain the sole liability of the Authority, rather than the liability of member agencies, to the full extent such allocation of liability is permitted by law. In the event ' tort liability is required by law to be imposed on the member agencies, the allocation of liability among the member agencies shall be in proportion to each member agency's relative contribution to the waste stream. Each member agency's share shall be in the same proportion as each member agency's allocated share of operating costs for the year out of which the claim arises. ' The provisions of said division relating to the indemnification of public employees, and the defense of actions against them arising out of any act or omission occurring within the scope of their ' employment, shall apply to all Authority directors, officers, and employees. Notwithstanding the specific terms of this section, the Authority and the member agencies shall retain the power to allocate liability between the Authority and the member agencies, or among the ' member agencies, in a manner other than as set forth above,. pursuant to written agreement to do same for specific projects or undertakings of the Authority. ' B - 39 ARTICLE 9: TERMINATION OF AUTHORITY A. Termination or Dissolution of the Authority: This Agreement shall continue in force until rescinded or terminated, as specified by this ' section. This Agreement may be terminated at the end of any Authority fiscal year by a two-thirds (2/3) majority vote of all then- existing members of the Authority. B. Division of Property on Dissolution or Termination: Upon termination or dissolution of the Authority as a legal entity, all debts of, and ' advances to, the Authority shall be paid. Upon payment of all debts and liabilities of the Authority, every then-member of the Authority at the time of said termination shall be entitled to receive such ' property and surplus money of the Authority as may lawfully be distributed in proportion to the most recent apportionment of expenses as described herein among all of the agencies who are parties to this Agreement at the time of its dissolution. In the event ' that liabilities under Division 3.6 of Title I of the Government Code of the State of California exceed or have the potential to exceed the assets of the Authority,, the member agencies shall assume those ' obligations remaining upon termination, as general obligations of the member agencies; provided, however, as between member agencies, said liabilities shall be allocated between said member agencies as ' defined in Section B of Article 8. C. Sale of Assets: At such time that a termination decision is adopted , by the Authority, the Board shall expeditiously sell, or otherwise dispose of, according to applicable law, all of the lands, rights-of- way, easements, equipment, public improvements, works, and ' facilities of the Authority. The monies received by the Board from such sale or disposition, to , the extent they would otherwise be credited to the Capital Reserve Account, together with the monies in the Capital Reserve Account, shall be distributed among the then-members of the Authority in ' proportion to the most recent apportionment of expenses among the then-member agencies, to the extent that such reimbursement has not previously been made. ' D. Successor/No Successor Agency 1 . Successor Agency: In the event of termination of the Authority where there is a successor public entity which will. carry on the activities of the Authority and assume its , B - 40 1 ' obligations, Authority funds, including any interest earned on deposits, remaining upon termination of the Authority and ' after payment of all obligations, and its real and personal property shall be transferred to the successor public entity. ' 2. No Successor Agency: If there is no successor public entity which would carry on any of the activities of the Authority or assume any of its obligations, Authority funds, including any ' interest earned on deposits, remaining upon termination of the Authority and after payment of all obligations, and its real and personal property, shall be returned to the member agencies ' as determined by the Board. 3. Partial Successor Agency: If there is a successor public entity which would undertake some of the functions of the Authority and assume some of its obligations, Authority funds, including any interest earned on deposits, remaining upon termination ' of the Authority and after payment of all obligations and its real and personal property, shall be allocated by the Board between the successor public entity and member agencies. ' E. Board Allocation Final: In the event the Authority is terminated, all decisions of the Board with regard to determinations of property and funds to be transferred to member agencies or any successor made pursuant to the terms of this Agreement shall be final. ' ADS/JPA/0003344.09 ' B - 41 Attachment A RATE REGULATION OF SOLID WASTE FACILITY , The features of rate regulation described below shall be a guide for the , Authority to follow in regulating rates at solid waste facilities. o The initially established landfill disposal or transfer station fee should , be changed no more frequently than annually on the basis of the submission of an application for fee increase. ' o Application for fee increase should be submitted to the regulatory agency three months prior to the effective date of the change. ' 0 Application for fee increase should be submitted on a pre-printed, pro forma rate application designed to elicit the financial, operating, and ' other related information to permit analysis of the bases for the requested fee increase. o The fee increase requested should be supported by actual and ' forecasted operating statements, balance sheets, and statements of retained earnings. 0 Audited financial statements for the landfill or transfer station ' operations, on, a separate entity basis, for the immediate preceding reporting year should be submitted as.a required component of the ' rate application. o Applications for fee increases should be analyzed by the regulatory ' agency and the fee adjustment determined on the basis of the established rate-setting methodology, e.g. Operating Ratio, Return on Equity, Return on Fixed Assets. ' 0 Controls on funds collected for landfill closure and post-closure costs should be established. Such funds should be deposited in a separate ' bank account and made subject to the shared control of the regulatory agency. An annual summary of receipts and disbursements should be audited by the external auditors and , submitted to the regulatory agency with the audited financial statements. ADS/JPA/0003344.09 B - 42 ' ' CONTRA COSTA SOLID WASTE AUTHORITY GOALS, OBJECTIVES AND ACTION PLAN ' MISSION STATEMENT ' The mission of the Contra Costa Solid Waste Authority is to coordinate solid waste activities, to undertake comprehensive long and short term solid waste planning, to be a resource in the area of solid waste, and to represent the solid ' waste interests of member agencies. The Authority shall, on behalf of its member agencies, advocate, advise, develop, oversee, study and analyze solid waste issues, in order that the member agencies interests are best represented. ' I. Goal - Through a joint exercise of power agreement to unify the County and all franchising cities and sanitary districts into one overall county wide ' solid and household hazardous waste agency for Contra Costa County; the purpose of which is to assure responsible, coordinated and cost effective planning and implementation. A. Objective. To recruit the remaining city, sanitarydistricts and the County of Contra Costa to become members. 1 . Action - Negotiate membership with the County of Contra Costa. 2. Action - With promising milestones in negotiations with County representatives, begin negotiations with City of Concord. 3. Action - Following resolution of the sanitary districts' role in franchising solid waste in the unincorporated area of the County, negotiate membership of remaining sanitary districts. B. Objective - Finalize an equitable and agreed upon method of member assessment. 1. Action - (Short term) Develop some formula - possibly keyed to ' population or number of votes assigned to each entity as basis for assessment. ' 2. Action - (long term) With County's membership, provide for permanent funding through tipping fees. " ' 3. Action - Revise Fiscal Year Budget for 1992-1993 in accordance with revised assessment process. B - 43 Goals, Objectives and Action Plan Page Two C. Objective - Act as ombudsman (sentinel), coordinator and resource on county wide issues for cities, sanitary districts, County, business community and citizens. 1. Action - Coordinate and implement activities to enhance the Source Reduction and Recycling Elements (SRREs), Household Hazardous Waste Elements (HHWEs), Siting Element and overall Integrated Waste Management Plan (IWMP) - assuming County membership - goals county wide. * I a. Resource Speakers b. Workshops 1) Composting 2) Household Hazardous Waste/Small Quantity Generators/NPDES 3) Procurement processes * ' 4) Market Development 5) Rate Regulation Issues c. Support for federal or state solid waste legislation which enhances source reduction and recycling efforts. Some examples might include: * , 1) Product bans 2) Product disposal fees 3) Post consumer waste content d. Innovative locally based programs which can be used as a resource or model for similar local, regional or county-wide programs 2. Action - Coordinate and disseminate information for purpose of keeping membership informed. 6 - 44 1 Goals, Objectives, Action Program Page Three a. Action Alert notices ' b. Newsletter 1 c. Structure for keeping links of information continuous 1) Orientation ' 2) Status Reports ' 3) Public Information program 3. Action - Through Authority appointed representatives, on an as needed basis, serve as the sanitary districts' and cities' ' representatives on the county-side MOU export negotiating committee. 4. Action - Serve as the ongoing clearinghouse/forum for communicating/sharing information between franchisors and solid waste industry representatives to enhance quality, ' cost-effectiveness and coordinating of programs.* II. Goal - Using a local community oriented approach to solid waste planning and implementation, develop local, sub-regional and county wide structure and coordination of overall solid- and household hazardous waste activities. * ' A. Objective - With local community-based solid waste activities as its broad foundation, an organizational structure should be ' developed which encompasses local cities/County/ sanitary districts sub-regional and county wide activities. * 1. Action - Where none exists, encourage formation of city ' advisory committees to enhance local planning and implementation. ' 2. Action - Encourage all cities and sanitary districts not currently part of a sub-regional Joint Powers Authority (JPA) to join; broadening and enhancing coordination of programs and ' facilities. * 3. Action - Consider broadening membership on the Local Task Force to include more business and community participation; possibly replacing elected officials. ' B - 45 Goals, Objectives, Action Plan ' Page Four 4. Action - Form a technical advisory committee to the Task Force and the Authority comprised of AB 939 project managers and other agency staff; other interested or corollary public agencies and business/industry solid waste resources. " 5. Action - County wide JPA - Retain membership of elected ' officials .representing each franchising agency. Utilize representatives and alternates as members of standing committees responsible for policy development and/or ' coordination, etc., in the areas of: a. Administration/legislation ' b. Budget/Finance c. Personnel ' d. Planning e. Programs ' f. Misc. ' B. Objective - Develop programs for combining and coordinating facilities and programs.* , 1 . Action - Consider development of sub-regional household hazardous waste, yard waste, etc., facilities which promote , efficiencies; utilizing the most appropriate and qualified agency.* 2. Action - In conjunction with local agencies, develop overall ' coordinating programs for schools, general public and business community; eliminating waste and duplication." * Denotes those items which are long-term objectives or based on Contra ' Costa County participation. B - 46 I l'<..ic�I1. `} � y Ott i/ "• V.1 `y{� r -_.' a' - �' _ vl ,Y Y ti � ! 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A•A�'.' ' ,_ i�C ,�,.'. r �\ '}r\-, ,t.� r \.'. ( _ t j f =,`;' \ 'r ,� r . T?-fr„\� �-_ } �/.�. �.. r•� �. F f --� 1f /�;. 1. l K. 9 t 1 IN THE BOARD OF SUPERVISORS t OF CONTRA COSTA COUNTY, CALIFORNIA ' SUBJECT: A Resolution Ratifying a Memorandum of ) Agreement and Work Plan for a Solid Waste ) Partnership between the Contra Costa Solid T Warta Authority and Co a Costa County ) RESOLUTION NO. M10-3 1 The Board of Supervisors of Contra Costa County RESOLVES THAT: ' WHEREAS, a majority of the cities in Contra Costa County, along with a number of Special Districts which franchise for the collection and disposal of solid waste did jointly create the Contra Costa Solid Waste Authority (hereinafter "Authority") and enter into a Joint Exercise of Powers ' Agreement;and WHEREAS, those cities and special districts desire to enter into a solid waste planning, coordinating and implementing partnership with Contra Costa County(hereinafter"County'),for the betterment of cost effective countywide solid waste management;:and WHEREAS,,the Authority.and County have formulated a partnership agreement and work plan which:specifies the terms.by which the two entities will jointly engage in solid waste planning, coordinating and implementing,activities; and WHEREAS,.it is desirable and appropriate to have that agreement and work plan ratified by all member agencies of the Authority; the Board of Supervisors and'the subregional joint powers ' authorities; THEREFORE, BE IT FURTHER RESOLVED THAT the Contra Costa County Board of ' Supervisors=hereby ratifies the attached Solid Waste Memorandum of Agreement and the Work Plan betweemthe Authority and the County_ ' PASSED AND ADOPTED by the following vote of the Board of Supervisors on the 9th day of March,.1993: ' AYES: Supervisors Smith,,, 3ishop, McPeak,. Torlakson NOES.- .,lone ' ABSENT.-. Supervisor Powers ABSTAIN- 1:one ' 1 hereby certify that the foregoing is a true and correct copy of an order entered on the minutes of the Board.,of Supervisors on the.date aforesaid. ' Contact:-Louise Aiello (510/846-1550) cc: Community Development Department(CDD) Witness my hand and the Seal of the Board of Supervisors affixed on this ' 0th day of '+arch 1993. Phil Batchelor, Clerk of the Board of Supervisors and County Administrator By: Deputy Clerk aaw:�w res RESOLUTION NO. 931—l-08 2 4 ��fp''��� ''' TO: BOARD OF SUPERVISORS Contra FROM: HARVEY E. BRAGDON - Costa ' DIRECTOR OF COMMUNITY DEVELOPMENT C`"" µ7 DATE: MARCH 9, 1993 SUBJECT: APPROVE MEMORANDUM OF AGREEMENT AM WORE PLAN BETWEZT CONTRA COSTA ' COUNTY AND THE CONTRA COSTA SOLID WASTE AUTHORITY SPECIFIC REQUEST(S): OR RECOMMENDATIOB(S). 6 BACEGRODHD AND JUSTIFICATION ' RECOMMENDATIONS Accept report from Community Development Director on memorandum of Agreement with the Contra Costa Solid Waste Authority and , 1. Approve, and authorize Chair to execute, attached Memorandum of Agreement and Work Plan between Contra Costa County and the Contra Costa Solid Waste Authority; ' 2. Approve attached Resolution ratifying Memorandum of Agreement and Work Plan for a Solid Waste partnership between the County and the Contra Costa Solid Waste Authority; and, ' 3. Designate Supervisors McPeak and Bishop, as the 1993 County representatives to the AB 939 Local Task Force, as the County0s representatives to the meet with the Contra Costa Solid Waste Authority. ' FISCAL I"ACT As part of Task 11 in the Work Plan, the County, and Authority will ' address staffing and funding- At this time, staff costs will be funded by current County share of the AB 939 Tipping Fee and by Resource Recovery Fee funds. BACRGROMM/REASONS FOR RECOMMENDATIONS , On December 22, 1992, the Board approved twelve conceptual points to serve as the basis for a formal agreement between: the County and ' the Contra Costa Solid Waste Authority for a partnership in solid waste management. At that time,. Supervisors McPeak and Bishop were authorized to negotiate this agreement. The attached Memorandum of. Agreement and Work Plan represent the successful completion of those• negotiations_ ' CONTINUED ON ATTACEMENr: YES SI®TURE ACTION OF BOARD OX .f' "PROVED AS ED V OTHER 1 VOTE OF SUPERQISCM X I HEREBY CERTIFY TEAT THIS IS A ' U aM MOUS (32a P!v 7 TRUE AND CORRECT COPY OF AN AYES: NOES- ACTION TRJ39N ARD ENTERED Off THB ABSENT: ABSTA=: M33FUTM OF TIM BOARD OF SUPZRVISORSL Olt THE DATE SHOWN. ' Contact: Louise Aiello (510/646-1530) ATTESTIM cc: Community Development Department (CDD) PHIL BATCHELOR, CLERK. OF THE BOARD OF SUPERVISORS ' AM COUNTY ADMINISTRATOR C - 2 DEPUTY BY 'A41M memorandum of Agreement and Work Plan ' between County and the Contra Costa SWA Continued -- Page Two The Agreement and Work Plan call for cooperation on solid waste management issues on the part of the County,. cities, and other franchising agencies_ Additionally, the Agreement and Work Plan seek to build the trust necessary for a viable solid. waste ' management organization representing all parties. LA=S 1 " C - 3 1 ' MEMORANDUM OF AGREEMENT BETWEEN THE CONTRA COSTA SOLID WASTE AUTHORITY ' AND CONTRA COSTA COUNTY FOR THE ESTABLISHMENT OF AN INTERIM PARTNERSHIP IN THE ' PLANNING, DEVELOPMENT AND IMPLEMENTATION OF SOLID WASTE MANAGEMENT POLICIES AND PROGRAMS This Memorandum of Agreement ("Agreement") is entered into on, S- q 1993, by and between the CONTRA COSTA SOLID WASTE AtFTHORITY (hereinafter ' -Authorky"). a public entity Joint Powers Authority and the COUNTY OF CONTRA ' COSTA (hereinafter "County"), a political subdivision of the State of California. It establishes an interim partnership for the planning, development and implementation of solid waste management policies and programs. ' RECITALS WHEREAS, the. California Integrated Waste Management Act of. 1989 ("Act") ' requires each city and each county in the State to divert solid waste from landfills and ' specifies diversion goals of 25% by January 1, 1995 and 50% by January 1 , 2000- or 000or face administrative penalties of up to- $10,000 per day; and C - 4 WHEREAS, the planning, development and implementation of policies and , programs aimed at achieving the State mandated diversion goals may have high short-term costs to local governments and to ratepayers; and 3 WHEREAS cooperative efforts by cities and counties in the planning, development and implementation of solid waste management policies and programs ' may assist in reducing. costs for and increasing the efficiency of such solid waste ' management efforts and consequently accommodate the undertaking of more aggressive waste diversion programs; and ' WHEREAS, the Authority was formed on July 31, 1991, pursuant to the laws of the State of California by the cities of Antioch, Brentwood, Clayton, El Cerrito, Hercules, Lafayette. Martinez, Orinda, Pinole, Pittsburg, Pleasant Hill, Richmond,San ' ' Pablo, San Ramon and Walnut Creek, the Towns of Danville and Moraga, and. the Byron, Central Contra Costa, Crockett-Vaiona and Ironhouse Sanitary Districts for the purpose planning, coordinating and implementing solid waste activities county-wide; and WHEREAS, the County,.as part of its General:Plan, has committed to assuring ' the development of waste transfer, processing and disposal facilities which meet the highest established environmental standards and providing for cost effective solid waste management practices; and ' C - 5 WHEREAS,the Authority and County seek cooperative approaches to both solid waste management activities and the costs of such activities, resulting in wise and cost effective solid waste management, responsive to solid waste diversion goals and the welfare of the environment; and ' WHEREAS, representatives of the County and Authority have met and ' developed conceptual points of agreement for cooperative activities between the County and the Authority, attached as Exhibit A; and ' WHEREAS, the Board of Supervisors of the County and the Board of Directors of the Authority have concurred by vote with the conceptual points; and ' WHEREAS, the Authority and the County intend this Agreement to be the framework for solid waste management planning and implementation between the County and the Authority,. ' AGREEMENT NOW, THEREFORE, BE IT RESOLVED that the County and the Authority do hereby agree as follows:- C - 6 SECTION 1_ COUNTYWIDE INTEGRATED WASTE MANAGEMENT PLAN ' 1.1 The County and Authority-agree that the Countywide Integrated Waste , �Y 9 tYw g Management Pian (CoiWMP) will include provisions ' (a). for export of solid waste (b). for mechanisms within any solid waste export agreements to (1) monitor the location and costs of disposal, and ' (2)_ pass onto the ratepayers any cost savings resufifng from ' lower export rates for disposal_ ' 1.2 County and Authority recognize and agree that if franchising agencies ' within Contra Costa County export solid waste,agencies outside of Contra Costa may ' be allowed to dispose of solid waste at Keller Canyon Landfilt, and that as a result the County shalt have no obligation to provide capacity for jurisdictions which have ' entered into such export agreements. Any importing entity-shall gay landfill rates at , least as higfy as those charged Contra Costa users and abide by all the landfill requirements imposed upon Contra Costa users. County and Authority will comply , with all applicable laws, including the Interstate Commerce Clause of the U.S. ' C - 7 ' Constitution, the Land Use Permit #2020-$9, Conditions of Approval #5.2 and #9.3, and the daily tonnage limitations in the applicable Solid Waste Facilities Permit. ' 1 .3 The County will respond to all comments on the CoIWMP from the cities and will include modifications in the ColWMP on issues where ' a). concurrence between the County and cities has been reached,and ' b) the requested modification(s) will not jeopardize State approval of ' the ColWMP. 1-4 The County will,complete the CWWMP and seek final approval by the ' Califomia Integrated Waste Management Board SECTION 2 SOLID WASTE MANAGEMENT PLANNING 2.1 Within six months from enactment of this Agreement by the County and ' by the Authority, the County and Authority, together with the subregional solid waste ' joint powers authorities, will (a) delineate their respective roles, functions and responsibilities for ' solid waste management, and C - s e (b) develop a method for evaluating the number and cost of transfer , stations and suggest criteria to assure the most cost effective and efficient system for agencies as well as for ratepayers. , 2.2 Within six months from enactment of this Agreement by the County and by the Authority, the County and the Authority will develop a model solid waste ' collection franchise agreement and a rate review model. ' SECTION 3. COUNTY MATERIALS DIVERSION ORDINANCE ' 3.1 The Authority, and its member agencies acknowledge the right of the County to enact the Materials Diversion- Ordinance and the County will review ' comments from the cities regarding the Ordinance and use these comments to modify , or amend the Ordinance with six months of enactment of this Agreement by the County and by the Authority. ' SECTION 4. STAFF RESOURCES AND RNANC1NG 4.1 During the six months following enactinent of this Agreement by the , County and by the Authority, the County and the Authority will discuss staff resources and financing. ' C - 9 1 4.2 The County and the Authority agree that funding for the Authority shall continue to be based on population and paid by each member agency either directly or via a tipping fee which may be levied, pursuant to the Act, by the County or other appropriate entity at transfer station(s) or landfiil(s). The levying of a tipping fee to fund the Authority shall require the request of a majority of the public franchising agencies using the transfer station or landfill and shall apply only to those agencies which are members of the Authority. SECTION 5. SU6REGIONAL SOLID WASTE .JOINT POWERS AUTHORITIES 5.1- Nothing herein is intended to be in conflict with. any agreement currently being negotiated by the County, any subregional joint powers authority, or any individual franchising agency. Furthermore,subregional joint powers authorities will be consulted on a regular basis during the course of negotiations between the Authority and the County. SECTION 6- TERM OF AGREEMENT 6.1 The County and Authority agree to work together on solid waste management issues for a period of three (3) years, renewable for five (5) years following review and affirmation at the end of six (6) months by the County, the ' Authority and its member agencies, and the subregional solid waste joint powers authorities_ 1 C - 10 1 SIGNATURES. THESE SIGNATURES ATTEST THE PARTIES' AGREEMENT HERETO. COUNTY OF CONTRA COSTA. CALIFORNIA , By: Date: Tom Torlakson, Chair ' Contra Costa County Board'of Supervisors FORM APPROVED: VICTOR J. WESTMAN, County Counsel ' By: 1_iilian Fujii, Deputy Vounty Counsel" ' ATTEST: Phil Batchelor, Clerk of the Board of ' Supervisors and County,Administrator By. 'Deputy Clerk C - 11 CONTRA COSTA SOLID WASTE AUTHORITY MEMBERS BY: Date: ~- s - 93 City of Antioch 1 Date: 1-24--13 ' City of Brentwood V' ' 1 Date: Z - ( _ / 3 Byron Sanitary District Date: - entral Contra Costa Sanitary Distriai- Date: ' City of Clayton Date: &247 /1N ' Crockett-Valona Sanitary District Date: ` 4 T wn.of Danville Date: J ' f El Cerrito Date: S S 93 City of Hercules Date: y�� T7 lronhouse Sanitary District ' C - 12 Date: 1 , City of Lafayette BatibCtno- J . WOCOL ,-,,,, Date: s 0s �3 ' City of Martinez �7 Date: wn oraga Date: City of Orinda of Pinoie Date: ^' Date: 2 Clijlof Please-ht Hill ' 'City of Richmond Date: Date: ' City of San Pablo 4- -y-� Date: -�1-7�S' City `an Ramon , 17 �� - 7- t3 Date: , City of Walnut dreek A , C - 13 CONCURRENCE PURSUANT TO RESOLUTION NO. 93-2 WEST CONTRA COSTA INTEGRATED WASTE MANAGEMENT AUTHORITY 8Y: Date: Title ATTEST: C - 14 CENTRAL CONTRA COSTA SOLID WASTE MANAGEMENT JOINT POWERS ' AUTHORITY gy, Date: i Tale ATTEST. 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'� x re-, �E� ;., l�� �' � ��} moi" ! ���./ �-r�_� r'. ..��1 � /i Yrs✓.' ���' -- � 1 �ri.` )x`/� r '�'.x �V r, � �-`'`e . E ._�,` � !y_ r � `�T '•� .� s ��,�.Y � r % �,v �, / r � �k ,�� l 11 / � r.. � I , A �. Al'•_)i „0.`..�i'r• �'` ` t V/ ='r - j-� r ��� _`e t ^,-� kf: r " / x' 4 ".' \ F�`. - may/ /^ \ I/� r `' ` �� `Y � y `,^') � ;x r r�-• `,` _ T 1 I /,/ � xy .' -^' ( /.h\ , �,,.,V l �A� r ✓ -�- 1 - / r'•yr -' \� •� - � v / �� 1 \// `k 1,' ,t } :*, � - ,� / `�• ^ �.', � 'i 1 ,� \ , ( '_ fi. � \ �- �'�1.-�t 1 t.:�-+- .�.� ,� �`'r r. r '�i V '•i�9 tix y. '��� �rr -/, �_ , ' "r..,.� ��;' �, J> .rj fi -\' .i f J ,� ,j 'Ifr - `- * � ` � j� y\ y r `{ !• - � ~ ��iL_ t � rw l �r, '- � r 1 ,: t1-� r �rY✓'l i 'tr� .( � t � f: t�/ i 1. � J \ �1 �. ,'!i'� -1- S c �r .� •/ \ f / � F 7.tx r/ '1 t�` r \ =4} r.x', �, s.�- .e .,gid` V,, .� x t `,1 '_ , v 1 \ , .� - l.. ,,� .�,t`r. •,� - r ,. / < <,.- aro, - t .C� .��_. - %sta rasta Solid Waste Authoritgy Contra Co Vurty July 14, 1993 r TO: HONORABLE BOARD MEMBERS ' • Contra Costa County Board of Supervisors • Contra Costa Solid Waste Authority ' • Central Contra Costa Solid Waste Authority • West Contra Costa Integrated Waste Management Authority ' FROM: GRETCHEN MARIOTTI, Chair Contra Costa Solid Waste Authority SUBJECT: WORKSHOP STUDY MATERIALS For - ' ROLES AND RESPONSIBILITIES FOR SOLID WASTE MANAGEMENT ' Thursday, July 29, 1993 4:00 p.m. - 7:00 p.m. ' Golden Gate Room George Gordon Center ' Martinez, CA 94553 ***PLEASE BRING STUDY MATERIALS*** ' TO WORKSHOP ' Attached for your review and consideration are study materials for the Joint Contra Costa County/Contra Costa Solid Waste Authority/Central' Contra Costa Solid Waste Authority/West Contra Costa Integrated Waste ' Management Authority Workshop on July 29, 1993. July 14, 1993 Solid Waste Workshop Study Materials ' Page Two These attached materials are intended to be reviewed prior to the ' Workshop and used for referral during the Workshop. They contain background information as well as current solid waste issues which pertain to the Workshop Topic: t "Roles and Responsibilities for Solid Waste Management in Contra Costa County" t • Background Information I. State Solid Waste Requirements ' H. Goals/Objectives/Activities of the Various Solid Waste , Entities. -Solid Waste Issues and Opportunities for Consideration III. Potential Areas of Opportunities For Solid Waste ' Cooperation and/or Coordination. IV. Funding Sources. ' V. Possible Organizational Structures for County-wide Solid ' Waste Management. Please pian to attend this key solid waste planning meeting. ' Please remember to bring your study materials to the Workshop on July 29 ! ' If you cannot attend, please make sure your Alternate is present to represent your Board; and be sure your. Alternate ' receives the study materials in advance of the meeting. 1 D - 2 1 � Section I ' State Solid Waste Requirements (AB 939 et al) 1 1 1 1 1 1 1 1 STATE SOLD WASTE REQLTRIEMIENTS AB 939 ' • Requires each city and each county to reduce disposal of waste by 25% by 1995 � ty and 50% by 2000. ' • Requires each city and county to and implement Source Reduction and eq ty ty Pie Recycling Elements and Household Hazardous Waste Elements as part of the ' efforts to reduce waste and waste disposal • Requires County and a majority of cities having a majority of population to prepare, approve, submit Countywide Integrated Waste Management Plans and Solid Waste Facilities Siting Element ' AB 3001 • Added requirement that each city and each county prepare a Non Disposal Facilities Element, removed such facilities from the Countywide Siting Element and granted autonomy to each city and each county in approving NDFE's AB 2494 • Altered diversion requirements from "amount of diversion" to "amount of reduction of disposal" • Provided for formation of solid waste JPA's and rural regional solid waste agencies ' AB 440 (Pending in Legislation) • Expands provisions for formation of regional solid waste agencies by allowing for ' formation of such agencies in any area and through either joint powers agreements or Memoranda of Agreement. ' • Specifies methods for counting reduction in disposal • Directs Emergency Regulations to be established by December, 1993 • Delays submission deadlines of SRRE's, HHWE's and NDFE's until April, 1994 ' • Appears to allow early submission of SRRE's, HHWE's, NDFE's and Countywide Integrated Waste Management Plans ' • Lifts imposition of fines for two years D - 3 � Section II � Goals, Objectives, Activities 1 1 1 1 1 1 1 1 II. GOALS, OBJECTIVES AND ACTIONS In considering opportunities for multi-jurisdictional/countywide organizational structures, a review of the goals, objectives and programs advanced by the county's various entities is helpful. ' The information which follows was excerpted from Part IV of the Draft Countywide . Integrated Waste Management Plan, "A Summary of County/Cities Source Reduction and Recycling Elements and Household Hazardous Waste Elements". As such,it represents a snapshot in time of the various entities solid waste plans for waste reduction,diversion and disposal of solid and household hazardous waste. It is not intended to be the definitive, current source document, but,rather, to reflect those areas where commonality exists and ' which, therefore, suggest opportunities for cost effective coordination consolidation. If key components of any jurisdiction's elements have been omitted, it has been done inadvertently and corrections will be included in the next workshop materials. ' Because of the vast array of information to be compared,the various goals,objectives and programs have been consolidated into chart form. These charts are as follows: ' Table 1: Summary of Solid Waste Goals • Table 2: Summary of Source Reduction Objectives • Table 3: Summary of Recycling Objectives ' Table 4: Summary of Composting Objectives • Table 5: Summary of Special Waste Objectives • Table 6: Summary of Education/Public Information Objectives ' Table 7: Summary of Household Hazardous Waste Objectives • Table 8: Summary of Source Reduction Programs • Table 9: Summary of Recycling Programs • Table 10: Summary of Composting Programs • Table 11: Summary of Special Waste Programs • Table 12: Summary of Education/Public Information Programs • Table 13: Summary of Household Hazardous Waste Programs Areas which a large number of entities have selected for implementation are as follows: Source Reduction • Variable Can Rate • Government Programs including procurement standards ' Waste Audits • Backyard Composting • Precycling Rggycling • Single Family/Multi-Family Residential Collection Programs • Commercial Collection • Buy back/Drop off Programs • School Recycling/Curricula Programs • Mixed Waste Processing ' Zoning to Facilitate Recycling 1 D - 4 C— m osting • Curbside Collection of Yazd Debris , • Collection and Processing of Food Wastes • Centralized Processing of Yard Debris,Wood and Other Organics • Co-Composting With Sewage Sludge Special Wastes • Bulky Goods;Salvaging • BZ Goads;Pickup EducationfPublic Information • School Programs • Print Media • Newsletters • Festivals&Booths ' • Direct Mail Notices Household Hazardous Wastes ' County Mobile Collection • Hub Storage for Mobile Collection . 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I > ' � a I W O ' s 0 T3 j z o x I j a LL x X 0 Q a a = � ! I a m � cn xXIX x x i a e SIX Xlx x x X x G x � � I ' g x x x x x x 'y Q c 3a� saci � I = a I ly a Im I ' - 15 a# } u x x x x x x x 1 z x x X xxxxxx x iAoc o! XXXxx xx x , > v x x x x x x{ XI X x w x� xxxx xx ►- � � Q , d. x x x x x x x x w O a Q m � •� a3i xj� eo o " X x X x x x x x x x x x X x x x x x x a � v y c a x x x x x x x X x x X x x az .4cc� U 5 tca D - 16 1 c 1 x x . m N LU w LLI O Lf{}2 j auo o`�o d tom!) qq m U w' 0 1 } u Ute, CD "Q c� CG � a x x x � m a� x x i a y s o w iL jurs to � U �I1 of sl E �I m x x x x x x x x x x x x x x x x x x x x x x x x x x x x W VLU 53 s x x x x x x x Z o E� Q ti O ' h °I N� x x x x U in a. � Q W TU. p c Al O 306 ' x x cc O Q c .o a C , x x x x x m c uC C � O O x x x x x x x x x x x x x x x ' x x W U J •� 3 0 � � g c � s 3 - °' � � Q � o ° � 3 � U U � a � c c � W m U � ;r o � a 3 •� � _g � v� � ^ a 3CUx � 3 D - 18 m: vi v >1= i l I � v XXX rn uj �4 w m X X Z X ui l � ' > U. 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O 5 m I S 1 m � r xxxxxxxx I a •E I U e ,� I � co oN x x x x x x x x x xIx x x x x x i x x x x x xxxx xxxco x x x a v a rR cu W 1 � i I c 3 u _°' cl o V G• O U C H I •> T m a •O (F' 3 ti r^ ' � O U U !"j '�S C O q m � V m► 'm^ O � � C G C � "� U 3 c U y x a ti h U U U Al m m a a v - a 3 a. "' 3 1 a LLI > I \| \ / I-- LU k x x x x x x x x x x x x x x x . � \| /' � ` � LU cn . 0 « | LL 9x X x 0 cr < PL x x 3 \ _| 2 \ap x x 2 | . \ . � 22k � � 04 � � / � � \ \ � e � � � � ) / $ \ D - 22 i Vc-Variable can rate; GS -Garage sales and swap meds;GT-Government; SV Salvage yards; . . Disposable library-.JM-Junk mail; PR-Precycling;PL-Plans of large generators;TF-Tipping -- - t - - studied. Jurisdiction t CS AP CM BB DO HO SC YP Int tN OP U. Cr BZ M Zo ' west county . El Caritas X X E X X X E X E X X ' Hiles X X . X F X X E X Pinole X X X F X X E X ' Richmond X X X F X X E X San Pablo X X X F X X X , Unincorporated X X X X X X X X X X E X X Cabal.Nortlt - mX rd X X E E X E E E X Martinez X X X E E E X X E X , Pleasant Hill I X I X X E E E X X E E X Unincorporated X X X X X X X X X E X Cantrai.: outh . <: Clayton X X E E E Danville X X X E E X E X E X ' LJAyeUC X X X E I E X E X E X Monags X X X E E E X X X X X , Oma X X X E E X X X X X San Ramon X X X X X X F. E X F X ' Walnut Crock X X I X X X X X F X X X X.. Unincorporated X X X X X X X X X E X East mooch X X E X E E X E X X F X F Btaqtwood X X X E X X X X X Pittsburg X X X X X X X X X X ' UnincorporatedX X X X X X X X X X E X KEY: CS-Curbside;AP-Apartments;CM-Commercial fianehise;BB-Buy-back;DO-Drop-off-,BG-Plastic bags and other plastic drop-off; SC-Schools;PP-Public places;MX-Mixed waste processing;IN -Inerts;OP-Office paper,LZ- ' Lais=faire commercial; GT-Government;RZ-Market Development Zone; SH-Self4mul; ZO-Zoning. . X- Program selected;E-Existing program,not further developed; F-Feasibility to be studied. Table 9 SUMMARY OF RECYCUNG PROGRAMS May 1993 Contra Cass Cowuy Cowaywide AW system D - 24 Cotouywide 1wM Plan . i F Jurisdiction WW CS DO FW WR I IV VM CO MR f�'ouary West :. El Cerrito X X X X X X ' Hercules X X X F X X Pinole X X X X X ' Richmond X X X F X F X San Pablo X X X X F X Unincorporated X X X X X F X .Le�ntrdl hlorth: ' Concord X X X Marti,= X X X X Pleasant Hill X X X X Unincorporated XX X X X F X Centrsli South.. i ' Clayton X X X Danville X X X X X ' Lafayette X X X X X Moraga X X X X X ' Orinda X X X X X San Ramon X X X F X F ' Walnut Creek X X X X X F Unincorporated X X X X X F X East Antioch X X X X X F ' Brentwood X X X X X F Pittsburg X X X X F Unincorporated X X X X X F X ' Key: WW-Wood waste;CS-Curbside collection; DO-Drop-oM FW-Food Waste; WR-Windrow; IV-In-vessel;VM-Vcrmicomposting;CO-Co-composting; MR-Materials Recovery at u=fer station. X- Program selected;E Existing program,not further developed; F-Feasibility to be studied. ' Table 10 SUMMARY OF COMPOSTING PROGRAMS ' Coram Cana Corney D - 25 May 1993 Cowuywids IW Plan Cowuywide AM 4item 1 JurisdictionBS BP i so LsL mD .Lso I Av .a Lm.....Ln JIN Im I AG In West County El C=rito E E E E I E E Hercules E E E E E Pinola EE E E E ' Richmond E E E E San Pablo E E E E Unincorporated .......... .......... ......... ........... . .... ......... ... . OEM1 F X Concord x I I E Martinez X' x I- I Pleasant Hill x x Unincorporated F I x y V F X .......... .... ... .... Clayton x X, Danville x x LA&YCW x x Momp x x Orinda. x I x F San Ramon x I x F x 'Walnut Crock x x F F x Unincorporated F x E x F ....... ...... East .. .... --- Antioch x F E E E x E Brentwood x F E x E Pittsburg X X F E E E x x Unincorporated F x J E X F x KEY: BS-Bulky.goods,salvage;BP-Bulky goods,pick-up;SD-Foundry and sandblast sand;SL-Sludge co-- composting;MD-Medical waste; SO-Contaminated soil;AV-Abandoned vehicles;AS-Asbestos;GI-Grease impeller pumpinp;71-7'nw;IN-Inerts;AH-Ash;AG-Agricultural wastes;SB-Shipboard and port was=. X-Program selected;E-Existing program,sit further developed;F-Feasibility to be studied. Table 11 SUMMARY OF SPECIAL WASTE PROGRAMS May 1993 conva co= cowuy Cowirywide AVM 4sum D - 26 Coiuuy%4d*[W Pim 1 ix ix ix ix Ix 1 IxIxI I I ix Ix 19 1 >%I ix X1 xjxj I I 1XI ix ix Ix x.,I 1 1 1 1 1 1 1 14. xjxI ix x I 1 Ixlx XIX I 1XI I I 1 1 1 1XI I I I I C- m cn 1I1 2 IxIx x(x 1X XX Xa x I x x1x1 Ix I I I I I I I I I I I a i—= E 2 0 � :12 XIXOx, X1 11 1 1 1 1 1 1 1 1 k—!. I , — a. ' OU4 Ix Ix Mi z itziM 0 cc 0 lix I -H 1 1 1 1 1 1 1 i T�;� �. a. — I I 0 1 1 1 1XIX X1 Ix I Ix x i�%.I a ;S a 0LL xlxI z x lx Ix Tx I I I a 1IE3 -6 1 H 1 1 z 0 Won.- Ix, &- X U1 1 0 #x .=Ix Ix 11 Ix Ix ICc xII ;x x Xx EI I I 1A > e. Ix,x x1XI Ix x x1Xx v wl� - 9 — n Ix Ix I ixi I i I I > xlxxx I = A I xx jx1xjx x!xI 1XI I x x 101 . To !x,X x X, xl>< xxlxl II Ix ix I I I I I Ix x xI I I O& M 'X II I I Ix x lu 4—HXXX xxXx x! x,calzom, ! 1! VE. > C: ,U(!= o —0 12 0 = >1 >1 J! S.4- O .r 0 0 -9cc 2 .120 C: i a Igo 1 D - 27 c , x lye�x x!?t x ix`x I 1 i � 's; 4 t w � ?4rn , x x x:fix�x a4 m 4k o aC ` x x w cl cc ` �w r t, { I oa pt _ Ix x;>t! C�� 'i�- a x � ' ° ''" =,ole z Fi. p'd»iy LU [ F3 d x >1 x cn x m U xxXIX x x'XI ix � jyi x ` a�ca31C'� i xxx y�Q 1- a x xxxxx x x x x ora (zCN Isz,,i � X4 x�x 1 xxx�x �e 1 p - 28 ' PROCESSING FACILITIES ' Processing facilities include Transfer/MRFs, transfer stations, IPCs, and composting facilities. Solid Waste Facilities Permits (SWFP) would be required from the CIWMB for all Transfer/MRFs, transfer stations, and composting facilities. The SWFP is not presently required for an IPC, although this type of facility may be subject to new regulations in the future. ' Existing Facilities ' Richmond Sanitary Service is an IPC operated by Richmond Sanitary Service (RSS) and located on its corporation yard on Garden Tract Road in Richmond. This facility receives materials collected in curbside recyclables collection programs serviced by RSS in West County and ' prepares them for secondary materials markets (see discussions in Section 3.3 on recycling centers and materials recovery). This is a temporary facility which will be closed upon implementation of the West County Integrated Resource Recovery Facility (see below). El Cerrito Recycling,Center is an IPC located in El Cerrito that also accepts the drop-off of materials by area residents. Approximately 2,400 tons of recyclable materials were received at this center in 1990.. El Cerrito indicated in its SRRE that it plans to expand this facility by adding a baling system and loading dock. The City of El Cerrito also intends to add a variety of plastic polymers to the materials accepted as markets for these materials become available:' The impacts of the expansion of the El Cerrito Recycling Center are addressed in this EIR at ' a programmatic level. Pleasant Hill Bayshore Disposal (PHBD) operates an IPC on its corporation yard in the* unincorporated community of Pacheco. The facility is located on North Buchanan Circle,. approximately one-quarter mile southwest of the intersection of Interstate 680 and State Highway 4. The PHBD facility receives and processes recyclables from PHBD's curbside collection programs in Central County. This facility is open to the public for drop-off of recyclables and automotive batteries, used motor oil, and latex paint. The cities of Martinez and Pleasant Hill have proposed in their HHWEs for the expansion of this facility to accept a full range of HHW. The generic impacts of this proposed expansion are addressed in this EIR. Additional project- specific rojectspecific environmental documentation may be required by the County prior to implementation of the expansion. ' Mt. Diablo Paper Stock is an IPC owned and operated by Concord Disposal Service (CDS). Located on CDS's 10-acre corporation yard on Mallard Drive in Concord, the facility receives collected and dropped off recyclables from Central County. ' D - 29 Pacific Rim Recycling is an IPC owned and operated by Pacific Rim Recycling, Inc. Located on a medium-sized site in the Benicia Industrial Park, the facility receives source separated recyclables from the cities of Clayton and Walnut Creek. 1!a=sed Facilities Erickson Hazardous Waste Transfer—/Treatment Facility is in the unincorporated North Richmond area of the County. This facility, primarily a small-quantity industrial generator facility, will also accept for processing HHW collected in drop-off and collection programs at various locations in the County. Erickson is presently approved and awaiting operating permits from the California Environmental Protection Agency. The project-specific impacts of the Erickson f3cility.have been assessed in the Erickson Hazardous Waste TreatmentlTransfer Facility EIR, which was certified by the County Board of Supervisors in October 1990 (State Clearinghouse (SCH)# 89021421). West County Integrated Resource Recovery Facility (WCIRRF) is a proposed facility that would establish a multi-purpose solid waste processing center, including materials recovery, composting, wood chipping, transfer, HHW processing, and buy-back operations partially in the City of Richmond and partially in the unincorporated North Richmond area of the County. IT would have a capacity of 1,200 TPD of solid waste. Residuals. from the facility would be- transferred to Keller and/or Marsh Canyon for landfill,disposal- Expected to.be on line in 1993, this facility will receive and process waste currently being disposed of at the West Contra Costa Sanitary Landfill, which will be closed in late 1993 or early 1994. A project EIR was prepared on this facility and certified by the County Board of Supervisors is anticipated in June 1993 (SCH# 90030940). Acme Fill Waste R = and Transfer Station is situated on a 22-acreparcel within the boundary of the Acme Fill Landfill, located in an unincorporated area, within the City of Martinez sphere of influence. The permanent Acme facility, currently under construction and expected to supplant the nearby existing Interim Transfer Station in the Fall of 1993, will have a maximum daily throughput of 1,900 TPD. Waste diversion programs proposed for this facility include load sorting for recovery of cardboard, paper, metals, plastic; and glass; composting on an adjacent portion of the former Acme Fill Landfill (currently, a composting demonstration project is under way at this site); and a permanent HHW collection station. Residuals will be hauled from this site to the Keller and/or Marsh Canyon landfills. The Acme Interim Transfer Station is on the 97-acre east parcel of the Acme Landfill site. Solid waste from Central County and portions of East County is processed daily (based on a 7-day week) and transferred to Keller Canyon Landfill or Potrero,Hills Landfill in Solano County. A limited amount of waste is disposed at the Acme Landfill. D - 30 ro ' The potential environmental impacts resulting from the construction and operation of the permanent Acme facility are examined in the Acme Fill Waste Recovery and Transfer Station ' EIR, which was certified by the County Board of Supervisors in December 1987 (SCH# 86090906). ' Central Contra Costa Solid Waste Authority (CCCSWA) Regional Household Hazardous Waste Facility is a combination mobilelpermanent facility proposed by the CCCSWA to serve Central ' County. The CCCSWA is a joint powers authority of the Central Contra Costa Sanitary District (CCCSD) and the cities of San Ramon and Walnut Creek. A mobile trailer would collect HHW several times per year at temporary sites in each jurisdiction that is a member of CCCSD, which ' includes, in addition to the member cities of the CCCSWA, the cities of Lafayette and Orinda and the towns of Danville and Moraga. Collected material would be delivered to a building for ' consolidation, storage, and transfer to an appropriate disposal or recycling facility. The location and size of the proposed HHW facility has not yet been determined. The program-level impacts associated with this facility are addresser) in the CCCSWA's Program EIR on the SRREs and ' HHWEs of CCCSD's member agencies; that EIR was certified by CCCSWA's board of directors in April 1992 (SCH# 91123014). East County Community Collection Center (ECCCC) is proposed to be located just east of Antioch near Highway 160 and Wilbur Avenue and to serve as a Transfer/MRF for East County twastes previously taken to the Contra Costa Sanitary Landfill. This facility, which would be operated by the Delta Diablo Sanitation District(DDSD), would perform the same functions as the WCIRRF, described above. A project EIR is currently being prepared on this facility; the program-level impact analysis is included in this EIR. ' CCCSWA Regional Comvost Facility is a proposed compost facility to serve the member agencies of the CCCSWA. The facility would probably receive source-separated leaves, brush ' trimmings, and lawn clippings delivered for composting. Although the location and size of the facility have not yet been determined, a site in a portion of the unincorporated county east of the City of San Ramon (known as Highland Ranch has been considered as a specific potential site. Another potential composting site is at the Acme Landfill in Martinez. The program-level impacts of this project are addressed in CCCSWA's program EIR, discussed above. Contra Costa Station for Materials RecQY= and Transfer (SMR- 7) is a proposed facility that would establish a transfer station and material recovery facility. This would be located on a 17.5-acre site on Loveridge Road in the City of Pittsburg. The facility would accept up to 1,800 TPD of mixed commercial and residential use; C&D debris, non-hazardous industrial waste, self-hauled waste, and separately-collected yard waste. t D - 31 t CCCSWA Transfer Station and Materials Recover is a proposed facility that would establish a transfer station and material recovery facility to serve the member agencies of the CCCSWA. The location and size of the facility have not yet been determined. The facility may include the CCCSWA Regional Household Hazardous Waste Facility previously described. A composting facility may also be included at the facility. ' City of Martinez Transfer Station/Material Recovery and Compost Facility is a proposed facility that would establish a transfer station/materWs recovery facility and composting facility that ' could accommodate a minimum of 750 TPD. The location and size of the facility have not yet been determined. ' 939v:E=crpL EM D - 32 � Section III � Potential Areas for Cooperation/Coordination 1 1 1 1 1 1 1 1 1 AREAS OF POTENTIAL COOPERATION/COORDINATION In addition to the items depicted in the charts in Section II, there are three basic area in which ' all jurisdicitons share interests and efforts: planning, program implemenation, and facilities. ' Planning. All jurisdictions must prepare Source Reduction and Recycling Elements, Household Hazardous Waste Elements, and Non-Disposal Facilities Elements. Additionally, all jurisdictions must ' conduct waste characterization analyses and reports on diversion amounts resulting from program implementation. Also, all jurisdictions are involved in planning for various types of facilities which will assist in further diversion of materials from the wastestream and transfer of waste for ' disposal. Lastly, all jurisdicitions must plan for at least 15 years disposal capacity--whether such capacity is provided locally or by export out-of-county. ' Cooperation/coordination of such planning efforts could assist in reducing costs for consultants, staffing, brochures and other program-related supplies/materials. ' Program Implementation. Two areas of program implementation must be considered; first, individual jurisdictions have ' proposed various programs such as curbside collection of recyclables or backyard composting as means to reduce and divert solid waste; second, facility-based programs have been proposed,' or are being considered, to assure further diversion of materials and to reach the mandated 50 ' diversion requirements of the State. Cooperation/coordination in implementing programs has already begun among a number of ' jurisdicitons. Continuing such efforts can further reduce implementation costs. Facilities. ' Presently, a number of materials recovery/transfer facilities are planned under the authority of multijurisdictional agencies-- ' • the West Contra Costa Integrated Waste Management Authority will be managing the West County Integrated Resource Recovery Facility (IRRF); ' • the Central Contra Costa Solid Waste Authority is exploring the siting and managing of an integrated resource recovery system which would provide for material recovery, composting, household hazardous waste holding, and waste transfer; • the Delta-Diablo Sanitation District is proceeding with plans for an East Contra Costa Community Collection Center (EC4); ' • the Cities of Pittsburg and Concord are proceeding with activities in support of the Contra Costa S.M.R.T. ' D - 33 • the County y is currently reviewing final plans for the permanent Acme transfer and , material recovery facility; • the Ci of Martinez is exploring the feasibility of a material recovery/transfer facility. ' City P g tY The costs, sizing, and administration of these facilities remains an issue which must be ' addressed. , 1 D - 34 t t � sectNOn � 1 Sp°Yces ��naiog 1 1 1 1 1 Waste Collection Franchise Fees ' (Information was obtained in 1992 and needs updating by each agency) FRANCHISE AGENCY 1989 1991 FORMULA Antioch $100,000 $126,580 flat rate ' Brentwood 21,293 30,000 5% of receipts Clayton 11,197 13,500 flat rate ' Concord* 361,033 606,568 5% of receipts El Cerrito N/A 116,880 6.5%of receipts ' Hercules 21,120 30,000 flat rate Martinez 60,000 70,000 5% of residential ' Pinole 25,692 30,000 flax rate Pittsburg 55,032 84,178 5% of receipts Pleasant Hill 200,000 309,000 7% of receipts Richmond 126,000 262,555 flat rate San Pablo 36,408 33,000 flat rate ' San Ramon 189,116 560,000 10% of receipts Walnut Creek 349,503 350,000 5% of receipts iMt. View Sanitary N/A 15,000 N/A Oakley Sanitary 10,000 21,702 2% of receipts. ' West CC Sanitary 45,336 48,240 N/A Kensington Comm 2,000 2,000 flat rate Central Sanitary* 31,949 199,000 (Oanda Marj 80,450 535,000 (Valley Waste) 1.990 1.990 # (PHBD) ESTIMATED TOTAL $1,728,119 $3,443,649 *In 1992, Concord charged 6.4% on residential receipts, 1.4% of which is dedicated to solid waste planning. Central Sanitary dedicates all of its monies to solid waste management. #These figures were not available but were assumed to be the same as 1989 to provide an estimated total. FACILITIES FEES ' Agena Facility F rmul County Keller Canyon Landfill 10% of Base Fee Acme Interim TSF Station Resource Recovery Fee WCCIMA IRRF Per Contracts Delta-Diablo S.D. EC4 Unknown ' (Global Agreement) Pittsburg/Concord S.M.R.TD - 35 Unknown ' 939v:W&*cCd.Fw AB 939 TIPPING FEE AND DISTRIBUTION (Based on Agreed Upon Formula) ' FY 91/92FY 91/'92 % 3rd Qtr. 4th Otr. TOTAL ' 96.620.80 92.481.60 AN,nCCH 13% 12.850.56 12300.05 25.150.61 ' CONCORD 23.80% 1 22.995.75 22.010.62 45.006.37 DANVILLE 6.70% 1 6,473.59 6.196.27 12669.86 LAFAYETTE 5.00'/. 4.831.04 4,624.08 9.455.12 ' MARnNEZ 6.80% 6.570.21 6.288.75 12858.96 MORACA 3.40010 3.285.10 3.144.37 6.429.47 ORNDA 3.60% 3.478.34 3.329.34 6.807.68 F417SBUF G 10.20% 9.855.32 9.433.12 19.288.44 ' PLEASANT HILL f.BQ'1'i &,��.2! .,2w.?_ '2..°:�°.� SWAN RAMON 7.W% 7,240.90 0,990.12 14,10&00 WALNUT CRS( 1290% 12.464.12 11,930.13 24.394.25 , BRENTyyCOQ 2500.00 2500.00 5.000.00 CLAYTON 2500.00 2500.00 5.000.00 Total Distributed To Cities 101.620.81 97.461.60 199,10241 , cotmy Share(30.15/Ton)- 29.361.00 28855.95 58216.95 TOTALS FOR QTRS. 130.981.81 126.337.55 257.319.36 ' CY 1992 CY 1992 CY W23.60Z363 1992 % 1 st Qtr. Znd Qtr. 3rd Ah Qtr. TOTAL 98,604.00 105,456.00 88,908.00 ANTIOCH 130/6 13:114.33 14,025.65 11,824.76 52,184.30 CONCORD 23.80'/6 23.467.75 25.098.53 21.160.10 93.328.75 , DANVILLE d.70y6 6,606.47 7.065.55 6.644.36 5,956.84 25.273.22 LAFAYEI•TE 5.00% 4.930.20 5,27280 4.956.48 4.445.40 19.606.86 MARTINEZ 6.800/6 6.705.07 7.171.01 6.743.53 6,045.74 26,665.36 , MORAGA 3.400/6 3.35254 3.585.50 3.371.77 3.022.87 13.332.68 NDA 160% 3.549.74 3,796.42 3.570.11 3.200.69 14.116.95 PITTSBURG 10.20% 10.057.61 10.756.51 10:115.30 9,068.62 39.998.04 PLEASANT HILL 6.80% 6,705.07 7,171.01 6.743.53 6,046.74 26,665.36 SAN RAMON 7.500/6 7.395.30 7.909.20 7.437.72 6.668.10 29.410.521 1 WALNUT CREEK 12906/6 12719.92 13,603.82 12,79288 11.469.13 50,585.75 BRENTWOOD 2500.00 2500.00 2.500.00 2,500.00 10.000.00 , CLAYTON 2500.00 2.500.00 2500.00 2500.00 10,000.00 Tatal Distributed to Cities 103.604.00 110.456.00 104.169.60 93,908.00 412137.60 County Share 30.1S(Tan) 27,700.05 29,523.90 28.625.85 25.385.25 111.235.05 , TCTAL.SFOR CTRS. 131,304.05 139.979.90 132,795.45 119.293.25 523.372.65 I� D - 36 MINE i CY 93 CY 93 ' 1st Ctr. 2nd Qw. ACME FILL 11&19235 0.00 CCWS 0.00 0.00 Total 11&192.35 0.00 County Portion-Acmo 18,661.95 16% 0.00 0% VNCC 7,635.15 0.00 Tota!County Share SYVMF 26297.10 0.00 i i 1 1 1 1 D - 38 � Section V 1 Possible Organization Structures , � for Count . wide Solid Waste Management 1 1 1 1 1 1 1 This Page Leff Intentionally Blank i I. CURRENT SYSTEM County • AB 939 Integrated Waste Management Plan Preparation and Mitigation Monitoring ' • Contractual agreements with solid waste authorities/individual cities for programs and/or planning 1 ' Multi-Jurisdictional Authorities • West Contra Costa Integrated Waste Management Authority • Central Contra Costa Solid Waste Authority ' • Delta-Diablo Global Agreement • (Potential) Pittsburg-Concord JPA i i s 1 • SRRE, HHWE • Implement action of programs individually or in cooperation with other jurisdictions 1 • Potential members of facility-based joint powers authorities 1 D - 39 yT, "' �O r G w• vp% ta G• rr le Q -ri A I I 3"1 C o . 3 Ow � w m 44 'a �po t11 � �' T ✓ �% O $ O U a ✓�+ ✓ 050 v G s rtri 3 w • • Q � � 44 �d r o. o» 1 � Ca � -y,•� c. r w . 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(. �/ ti.] ` �� x .7 1 :,j I'� \ �r...�P.t,."�`'� / ]1.A /. '`.� r �_ 1-1 �, 1� Z t �r .� ( a t y. z� `:T�,. �.� '�' �" ) ,'��`%f t( ✓� �-'k, -�}l"�. }.� :.� , ) i.'� F \(t t , r r �/ a. �� A q 1" A 1, �I), .. \ "� ,� \s y. e i], v Z f \11 - - ' h 1 4 r t .j� I �, 1v1. ]. /. ,. , f 4..r'.•P !. A� tb t i, k\ 7 a /- t /,^ �, -Fi.,_ 4.,'r f �1 ] P o- ..1 V r \}.-✓ lr�'/-f t "r" A" I ' �, , \ .',"k 1� 1 •_i/- ]/ �( r ' a,�'� V �'/ -x 4 /�<->. l r � r, t�ti ,•. '\t ,I v - ,A f i r l t t r /, / - .�,,� i ,,,.) t.rF tAt yf, ", , Vt/ , 4 ,). A', Y _ / Al /, 11 'y ,`y f Vj , r� _rte. A ��l .� —'. ; Ua*a UA�; Contra Costa Solid Waste Authority„ 1*4W _ tember 10,1993 TO: HONORABLE BOARD AND COUNCIL MEMBERS ' Contra Costa County Board of. Supervisors • Contra Costa Cities and Sanitary Districts • Contra' Costa Solid Waste Authority ' Central Contra Costa Solid Waste Authority • West ContraCosta Integrated Waste Management Authority • Delta Diablo Sanitation District. ' WORKSHOP I Participants FROM: GRETCHEN MARIOTTI, Chair Contra Costa Solid Waste Authority. ' SUBJECT:. SOLID WASTE WORKSHOP STUDY MATERIALS and Request. for Your Review of. Organizational Alternatives and. Consensus For ' ROLES AND RESPONSIBILITIES FOR SOLID WASTE MANAGEMENT WORKSHOP Il Wednesday, September 29, 1993 4:00 p.m. • 7:00, p.m. ' Golden Gate Room George Gordon! Center 500 Court Street, Martinez Attached for review and discussion with your council/boardforganization are study materials for the Roles and Responsibilities Workshop 11 sponsored by Contra Costa County and the Contra Costa Solid Waste ' Authority. At the July 29, 1993 Workshop 1,,the participants directed each participant to solicit 1 his/her governing, body's,consensus as to which alternative organizational structure best responds to the criteria listed in the summary report/minutes and the concerns of that governing body. Representatives are expected to report their findings at the 1 September 29, 1993 Workshop 11. PLEASE SCHEDULE YOUR GOVERNING BODY'S REVIEW PRIOR TO ,;SEPTEMBER 29. 1993 L i e CONTRA COSTA COUNTY - CONTRA COSTA SOLID WASTE AUTHORITY WORKSHOP 11: Roles and Responsibilities a for Solid Waste Management On July 29, 1993, representatives from Contra Costa County, the various city and sanitary district solid waste franchising agencies, the regional and countywide solid waste joint powers authorities,.the AB 939 Task Force, private sector representatives and members of the public met to consider alternative structures for assigning roles and responsibilities for solid waste management in Contra Costa County. After much a discussion, the participants directed that the alternatives be refined and scheduled for further consideration as follows: 1. A second workshop be held as soon as possibleat which participants could a evaluate revised solid waste organization alternatives. The workshop has been- scheduled eenscheduled for Wednesday, September 29, 1993 at 4:00 p.m. It will be held at the Golden Gate Room at the George Gordon Center - 500 Court Street, Martinez 2. The minutes of Workshop l and revised alternatives be distributed to all- franchising ilfranchising jurisdictions, organizations, private sector members- and other Workshop I participants prior to Workshop 11. These entities,are to discuss the alternatives, come to consensus and provide direction to their representatives attending Workshop 11. These study materials, as well as applicable materials . from Workshop 1, are attached. RECOMMENDATION Prior to September 29.1993 Workshop 11: 8 1. Review the attached minutes of July 29, 1993 Workshop I. 2. Analyze the revised alternative structures within:the context of State Law and the following criteria, developed from goalsiconcerns expressed by Workshop f participants. D What are the characteristics or what would the. structure have to look like in order to best address the issues raised at Workshop-I? a. The most cost-effective solid waste body possible-c oordinated/cost- effective strategies, lower costs for local government and ratepayers b. Avoids duplication of meetings, services, programs. C. Retains local controVrate control/local accountability E - 2 September 29, 1993 ' Roles and Responsibilities for Solid Waste Management - Workshop II Page Two ' d. Promotes cooperative and shared leadership ' e. Avoids another layer of government f. Retains flexibility for customizing local programs ' g. Retains local control over franchise revenues h. Minimizes unwieldy and excessive regulation, management, control ' i. Addresses private sector concerns; entitlements ' j. Responds to local concerns; avoiding disproportionate impact on any one jurisdiction/neighborhood. ' k. Promotes cooperation and trust I. Responds to short term/local needslissues while providing for global issues and long term objectives or vision. t Considerations ' In narrowing down the various alternative structures, the following "givens" must be considered: ' The current system is not satisfactory. • The alternative structure must be able to function even if all franchising entities ' are not members or participants. • Unless the participating entities request and the governing entity(s) agrees to ' levy an additional tipping fee at the transfer station(s) / landfill for financial support of the chosen alternative, there will be no new money to- support the alternative's solid waste planning and programs. Existing funds will have to be ' pooled and/or redistributed from AB 939 Tipping Fees Garbage Franchise Fees ' General Fund Assessments E - 3 e September 29, 1993 Roles and Responsibilities for Solid Waste Management - Workshop II a Page Three • Regardless of the alternative selected, each city and the county will, individually and/or in concert with other jurisdictions, be held responsible for meeting its AB 939 diversion goals. FISCAL IMPACT Several entities have not yet submitted cost figures for their solid waste activities. Therefore, cost analysis of the various alternatives, including the current system, is unavailable at this writing. It is our intent to provide those figures upon submittal by the cities and/or selection of a preferred alternative by Workshop II participants. BACKGROUND/REASON FOR RECOMMENDATION On April 13, 1992, the Contra Costa Solid Waste Authority (Authority) requested formally that the Contra Costa County Board of Supervisors join the Authority. This request came as the result of long time efforts by the cities and sanitary districts to a change the process by which countywide solid waste decision making was accomplished. The genesis for these efforts came out of the mid 1980's landfill disputes and the lack of shared leadership inherent in the then enabling legislation, a SB 5: • County government was responsible for developing the County Solid Waste a Management Plan (CoSWMP); which was primarily oriented to goals/policies/objectivestcriteria related to siting landfills. • Complicating the County's management was the multiplicity of players and a division of responsibilities: 22 franchising public agencies and 8 different haulers. • All franchising agencies deferred to the County leadership which deferred to the e haulers to provide necessary landfills. While the cities and sanitary districts were developing a joint powers authority a structure to provide for their objective of shared leadership, the State Legislature, responding to what it perceived as a statewide crisis in solid waste leadership, a enacted into law AB 939, which set forth a prescribed program for source reduction, recycling and composting for each city and county in the state. It identified specific diversion goals for the years 1995 and 2000 with fines of up to $10,000 per day levied against each jurisdiction which failed to comply with the Law and its subsequent legislative provisions: • A city or county failed to submit any of the requisite elements: Source Reduction and Recycling Element (SRRE), Household Hazardous Waste a E - 4 D September 29, 1993 Rotes and Responsibilities for Solid Waste Management - Workshop 11 Page Four Element (HHWE), Siting Element (County only) and Non Disposal Facility Element (NDFE). • A city,or county failed to implement its elements. • A city or county failed to prepare adequate goals. • A city or county failed to reach its goals. ' It should be pointed out the the State Waste Management Board would not levy fines until extensive due process has been observed. ' After consideration by the Board of Supervisor's Internal Operations (10) Committee and approval by the Board and Authority of negotiations between the 10 committee and Authority representatives, it was finally agreed that a three year contract, 1 renewable to five years, be entered into by the two entities. This contract was negotiated as a Memorandum of Agreement with a six month probationary Work Plan. The Work Plan consisted of three tasks; one of which was to delineate, in conjunction with the regional joint powers authorities, the roles and responsibilities for solid waste management, including consideration of staffing and funding. This determination would be effected through the Workshop process. Workshop I ' would seek to answer the following questions: • Identify ways to streamline the different aspects of solid waste management to ' eliminate or reduce overlap/duplication. In what ways could public agencies and private sector work to streamline, reduce costs, work together more effectively? • In what ways can independent/individual jurisdiction decision making be provided for while building an interdependent and cooperative solid waste management organizational structure? Workshop 11, building on the direction and organizational alternatives selected by the workshop I participants, would seek to answer the following questions: • How can cost savings to member agencies and to rate payers result from ' changes in how and under what organization solid waste management activities are handled? • What is the optimum organizational structure for solid waste activities to obtain ' efficiency and be responsive to individual jurisdictions and rate payers? • What staffing and funding levels are necessary for alternative organizational structures and which structure(s) provide the most cost-effective use of staff? E - 5 September 29, 1993 ' Roles and Responsibilities for Solid Waste Management - Workshop II Page Five , MATERIALS ATTACHED ' • Minutes of July 29, 1993 Workshop I. • Work Plan Task #1 Outline ' • State Solid Waste Requirements • Revised Solid Waste Organizational Alternatives , . 1 _ 1 1 E - 6 1 CONTRA COSTA COUNTY and CONTRA COSTA SOLID WASTE AUTHORITY X I N U T E S July 29, 1993 A Special Workshop presented by Contra Costa County and the Contra Costa Solid Waste Authority was held on Thursday, July 29, 1993 , at the George Gordon Center, 500 Court Street, Martinez. Due notice had been mailed and published. 1 1. WELCOME Chair Mariotti welcomed everyone in attendance to the workshop and called the meeting to order at 4:08 p.m. 2. INTRODUCTIONS Introductions were made and attendance was as follows: Contra Costa County: County Supervisor Sunne McPeak Val Alexeeff, Director of Growth Management & Economic Development Louise Aiello, County Solid Waste Program Manager Belinda Smith, County Integrated WasteProgram Specialist Lillian Fujii, Deputy County Counsel Contra Costa Solid Waste Authority: Mary Rocha, Antioch John Clausen, Central Contra Costa Sanitary District Mike Shimansky, Danville Beth Bartke, Hercules Ivor Powell, Ironhouse Sanitary District Ivor Samson, Lafayette Jim Sweeny, Moraga Cherie Grant, Moraga Sherry Kelly, Martinez Aldo Guidotti, Orinda Gretchen Mariotti, Pinole Dan Purnell, Pinole Kim Brandt, Pleasant Hill Mary Lou Oliver, San Ramon Gene Wolfe, Walnut Creek Avon Wilson, Executive Director Alan Waltner, CCSWA Counsel E - 7 Contra Costa Solid Waste Workshop July 29, 1993 Central Contra Costa Solid Waste Authority: Gene Wolfe, Walnut Creek Mary Lou Oliver, San Ramon John Clausen, Central Contra Costa Sanitary District Don Blubaugh, City of Walnut 'reek Herb Moniz, City of San Ramon Fred Davis, Executive Director Kent Alm, CCCSWA Counsel West Contra Costa Integrated Waste Management Authority: Beth Bartke, Hercules Dan Purnell, Pinole Gretchen Mariotti, Pinole Bill Davis, Executive Director Kent Alm, WCCIWMA Counsel others in Attendance: Elaine Jacobs, Central Contra Costa Sanitary District George Schmidt, AB 939 Task Force, West Contra Costa Wastewater District Roy Swearingen, AB 939 Task Force Harriette Heibel, Valley Waste Management Susan Kattchee, AB 939 Task Force, City of El Cerrito Peter Dragovich, City of Concord Don Bradley, City of Pinole The Rev. Curtis A. Timmons, Pittsburg Glen Williams, West Pittsburg Municipal Advisory Council Kevin Carunchio, City of Pittsburg Dorothy Sakazaki, Mt. View Sanitary District Jane Bartke, Mayor Pro 'Tem, El Cerrito City Council Bart Carr, Central Contra Costa Sanitary District Barbara Hockett, Central Contra Costa Sanitary District Rachel McDonald, East Bay Regional Park District Neil Cutler, Pacific Rim Recycling Greg Baatrup, Delta Diablo Sanitary District Paul Causey, Delta Diablo Sanitary District Joel Corona, Richmond Sanitary Service Patty Mehaouchi, BFI-Pleasant Hill Bayshore Roger Dolan, Central Contra Costa Sanitary District Mark Armstrong, Attorney, for Contra Costa Waste Services Marilyn Leuck, City of Hercules Ron Proto, Valley Waste Management Deborah Mason, West Pittsburg Municipal Advisory Council Mario Menesini, Central Contra Costa Sanitary District E - 8 94 F G Yr 1t S Contra Costa Solid Waste Workshop July 29, 1993 3. DISCUSSION OF WORKSHOP OBJECTIVES AND PROCESS Chair Mariotti, acting as Workshop Chair, expressed enthusiasm about everyone joining together in today's workshop. She encouraged everyone to stay positive, noting this is an important step in moving forward. She referred to the Workshop Study Materials which were distributed in advance of the meeting, noting today's workshop would focus on items I and II, and items III, IV and V would be addressed in the second workshop. She also encouraged people to write down questions and suggestions about things they feel should be included in the workbook for the next workshop. ' I . State Solid Waste Requirements (AS 9.39, etc. ) . Ms. Aiello reviewed the State's solid waste requirements as outlined in the workbook materials in relation to AB 939, AB 3001, AB 2494 and AB 440. Ms. Kelly asked for clarification regarding the imposition of fines, and whether this relates to ( 1 ) implementing the programs, or (2) meeting goals. She felt this was an important distinction, noting she is seeking a legal interpretation of this issue. Mr. Bill Davis understood if AB 440 passes the way it ' currently is written that the fine essentially applies to failure to submit an SRRE, and a jurisdiction would not be subject to fines by operation of the bill for implementing against the '95 goal. In other words, the bill requires reporting what is being done in relation to SRRE's and HHWE 's by October of 194; however, that report is not to be used for any enforcement purposes. Ms. Aiello agreed with Ms. Kelly that this issue has not yet been resolved by the State. She understood the fines relate to compliance with submitting the documents and reaching the diversion or reduction and disposal goals. Ms. Kelly felt the fact this is unclear signals a need to be aware of this issue. II. Goals/Objectives/Activities of the Various Solid Waste Entities. Ms. Wilson referred to this section in the workbooks, noting the enclosed charts provide reference information about the program. She highlighted some of the source reduction program activities which most of the regions and indeed Countywide people have selected as the programs that they want to institute, e.g. , variable can rates, government programs, waste audits, backyard composting and ' E - 9 i Contra Costa Solid Waste Workshop July 29, 1993 , recycling. She also referred to recycling programs, noting two or more regions and the County have selected programs to i address recycling such as curbside collection, buyback/ dropoff programs, etc. It was noted the information on the charts was obtained from the SRRE and HHWE summary in the ' Countywide Integrated Waste Management Plan which provides summaries of all the goals, objectives and programs selected by cities and the regional and countywide JPA's. III. Potential Areas of opportunities for Solid ' Waste Cooperation and/or Coordination. Ms. Wilson referred to the programs in the workbook, . noting one of the issues before this group to discuss are things which have commonality and make good sense to i consider doing together in relation to source reduction, recycling, composting, etc. For. example, the Central County JPA is now coordinating a backyard composting program. It was noted that education and public information programs i afford a significant opportunity for people to talk about commonality in relation to some kind of print media programs, e.g. , newsletters., developing curricula for school grades R to 12 , etc. Regarding household hazardous waste, it was noted that integrated pest management is a high priority by the County's health department as an alternative to using pesticides and some of the products now being , collected in the mobile collection program. For example, using ladybugs, praying mantis, marigolds or soap instead of strong pesticides. , Ms. Wilson referred to processing facilities, noting four different kinds of facilities which are in people's plans: IPC's (intermediate processing centers) ; Transfer/ , MRF's; transfer stations; and composting facilities. She discussed the existing facilities as noted in the workbook. It was noted that an IPC is an intermediate center where , recyclables can be brought, source separated, and then shipped off to a market. Ms. Wilson discussed the various proposed facilities as ' outlined in the workbook and estimated time lines. It was noted there are several possibilities for cooperation for programswhich are suggested in the SRRE's and the HHWE's in i which people could collaborate administratively in terms of planning, implementation, etc. Ms. Wilson pointed out one of the issues that the County ' and the Countywide JPA are looking at is the development of guidelines to make sure that we are thinking in terms of cost effectiveness in the development of facilities, e.g. , 1 are they being sized reasonably as. opposed to being oversized. E - 10 i Contra Costa Solid Waste Workshop July 29, 1993 Mr. Purnell asked if any studies have been undertaken to determine whether facilities are being sized properly and what is being done in that area. Ms. Wilson stated that is Task 3 between the County and the Authority, and they will be developing this material as well as some guidelines . IV. Funding Sources. Ms. Aiello presented charts and reviewed the information in Section IV in the Workbook regarding Waste Collection Franchise Fees (by franchise agency) as well as AB 939 Tipping Fee and Distribution. She noted three areas of funding: ( 1) waste collection franchise fees, although the County does not have those at the moment (this data is somewhat old, and if incorrect information is noted, it was requested to contact either Ms. Wilson or Ms. Aiello to update the information) ; (2) facilities fees ( some of which are known, some of which are in the process of development and some of which are unknown) ; and ( 3) AB 939 tipping fees (percentage based on population) . V. Possible Organizational Structures for Countywide Solid Waste Management. Ms. Aiello pointed out the primary question of how to organize everyone to pay the least for the most. She referred to five organizational charts displayed ,around the room, noting this information is also outlined in Section V. in the workbook. She pointed out this information is not cast in concrete, and the components can be modified or carried over from one chart to another. Ms. Aiello reviewed the five organizational charts: Model 1 basically describes the current structure; Model 2 provides for autonomous regional solid waste authorities, whereby regional agencies may have nothing to do with each other and just go their own way; Model 3 provides for regional solid waste authorities and a coordinating council, with two representatives from each regional authority, whereby groups could communicate with each other and work on AB 939 planning and address Countywide solid waste issues; Model 4 provides for a Countywide solid waste joint powers authority with representation by all cities and the County as well as other franchising agencies to address policy development, AB 939 planning and mitigation monitoring, coordination of SRRE, HHWE, NDFE, etc. ; and Model 5 provides for a similar organizational structure as the current Transportation Authority model with two representatives from each subregion, one Mayors' Conference representative and two Board of Supervisors' representatives, with responsibilities for AB 939 planning and mitigation E - 11 Contra Costa Solid Waste Workshop July 29, 1993 monitoring, development of model ordinances, coordination of Countywide program implementation, etc. 5. DISCUSSION AND DIRECTION BY PARTICIPANTS Mr. Blubaugh referred to Model 2 and asked if it was possible under AB 939 to have subregional plans without a Countywide integrated waste management plan. It was noted that would be possible under AB 440 but not under AB 939 . Mr. Bill Davis noted that assumes the landfill is within that jurisdiction. Ms. Aiello stated it was necessary to demonstrate 15 years, disposal, but it does not say where. For example, waste could be exported via a contract to Potrero, Keller or Altamont with verification that they have the capacity to take an additional, 15 years ' disposal. Chair Mariotti asked if AB 440 overrules AB 939 . Mr. Bill Davis stated it amends it and changes those sections. Mr. Dragovich asked once a regional agency demonstrates 15 years' of disposal capacity whether that would relieve the County from needing to provide 15 years' disposal capacity for those jurisdictions in that regional agency. Ms. Aiello stated that would require a legal opinion, noting she was not sure the County was obligated except to provide for 15 years. Ms. Kelly felt it should be clarified that not . all cities in the County and not all franchising agencies are members presently of these organizations. Ms. Wilson noted that Model 4 was slightly different from the Alameda model in that they don't have regional JPA's, and this acknowledges the existence of regional JPA's whereby they would have the same responsibility for facility management, and their activities would be facility related with program implementation for their region for regionally oriented issues. Supervisor McPeak asked about the difference between Models 4 and 5 except for the composition of the representatives. Ms. Wilson referred to Model 5, noting this does not have franchising agencies other than the cities, and it restricts the number of representatives. Model 4 is the only model that has one person from every franchising agency. Supervisor 'McPeak inferred in terms of responsibilities under Models 4 and 5 that they would be essentially the same. Ms. Wilson stated that was correct, noting there was concern expressed by -some of the smaller entities that they would not have a permanent seat at the table, and that is why both options are presented. E - 12 Contra Costa Solid Waste Workshop July 29, 1993 Mr. Bill Davis asked about the process in terms of SRRE, HHWE and NDFE preparation, where the decision-making is made at the city level. In other words, will the cities decide what they will do with each of those documents, and how does each of these organizational models relate. Mr. Blubaugh ' stated it doesn't force an individual city to work with a local regional JPA, but if there is a natural affinity this provides for that regional JPA to work with the cities. Mr. Bill Davis referred to the Coordinating Council, and he asked about its role and duties in relation to this process which is a bottoms-up process. He also referred to ' Model 4 and expressed concern about the term "policy development, " asking if that means a bottoms-up process is going to hit a top-down policy. Ms. Wilson stated this was ' similar to other regional JPA agreements where they have the potential to do as much as the members decide they want to do or not to do. For example, the Central County JPA and the Countywide JPA have almost the same words, whereby they have the potential to get into facility development and oversight, etc. She presumed that the coordination in Models 3, 4 and 5 would all be done by the centralized body, but to the extent it is allowed by the regional JPA's. Mr. Samson felt Models 4 and 5 were very much top-down models. He noted a need for staffing for Models 4 and 5 , whereas there may not be for any of the others. Ms. Wilson noted Model 3 could be done by borrowed staff from the various entities. Mr. Samson presumed Models 4 and 5 would ' require a staff where they are centralized. Mr. Clausen noted the possibility for a contract. Ms. Wilson noted all of the models have the potential to contract. Mr. Causey referred to Model 4 and the assumption regarding other franchising agencies, noting there are some people who are handling direct collection with the franchisor. He pointed out that Delta Diablo has a global agreement. Ms. Wilson noted that Delta Diablo would be related through the two cities which represent their interest. Ms. Aiello noted an assumption on all of the charts of going a little beyond the global, agreement at some point if the facility is done, whereby Delta Diablo would be an operating entity in running the facility. Mr. Causey clarified an agency that began franchising of some form of solid waste would then be represented in Model ' 4 , He noted a limitation on Model 5 in obtaining input only from cities and the County, but not other agencies that may have responsibility, Supervisor McPeak asked what happens to the Countywide Solid Waste Authority under Models 1 through 3 . Ms. Wilson E - 13 Contra Costa Solid Waste Workshop July 29, 1993 noted it wouldn't exist. Mr. Blubaugh pointed out the attempt to work on a system which didn't have duplication. He felt there was a coordinating role and system which could be acceptable to the group. Mr. Clausen noted it could become 4, but with the addition of other people. Supervisor McPeak referred to Models 1, 2, and 3, noting there is no specific reference to this organization. Ms. Aiello stated that was a conscious decision so that people could take a look at what other alternatives might be. Chair Mariotti stated the intent was not to create a model to keep this group in business, noting she understood the intent was to find a way of handling solid waste to avoid duplication of effort and to control costs for ratepayers. Mr. Sweeny concurred. Chair Mariotti stated the Authority agreed with that concept, and that is how this workshop came together. Supervisor McPeak noted that is why the work program for the first six months includes looking at how best to carry out the function, not just what the shape of the table is. She felt there is a lot more work to be done to fulfill the commitment which everyone entered into than just looking at . organizational structure. Ms. Jane Bartke noted reference is made to subregional authorities in models 1, 2 3, and 5, but only Model 4 takes in all the cities. She noted there are some cities which do not belong to any subregional group, and she asked what would happen with them. Ms: Wilson stated they would have the option to stay out, noting they don't have to be a member, which was true for all of these. Ms. Jane Bartke asked about the makeup of the representation in Model 4. Ms. Wilson noted the assumption it would one be representative for every city and one representative for every franchising agency, and that would include Contra Costa County as well. Glen Williams of the West Pittsburg Municipal Advisory Council asked about representation for the unincorporated areas. Ms. Wilson noted this should be clarified to indicate this is the County. Roger Dolan of Central San pointed out the alternatives being discussed are alternatives to the status quo which is this body. He felt there was an implied consensus that there are deficiencies in the present system, and since we're looking at ways to solve the problems, he suggested trying to identify the problems specifically. He asked Ms. Wilson's opinion about which one of these solutions would best fit this problem. E - 14 ' Contra Costa Solid Waste Workshop July 29, 1993 Ms. Wilson did not express support for one alternative over another. She cited a problem of duplication of effort, noting a number of entities doing the same things through their SRRE 's. She felt there could be economies of scale, either through the administrative structure or administering a program, e.g. , Martinez overseeing a backyard composting program because they have considerable expertise in this ' regard. She noted a question of whether or not to have commonality of approach relative to policy. Is there an advantage to having the same overall approach to solid waste ' management rather than three different approaches? She stated those are considerations to be decided; however, as Chair Mariotti noted earlier, the ratepayer doesn't care how it's done as long as it costs them less and it works well. Ms. Wilson noted the ongoing plethora of legislation that keeps changing, where everyone is trying to respond to ' it. It might be helpful if there was a forum, such as the project managers which the County has been administering, and the County could continue to do that. She felt with ' better coordination there could be less duplication of effort, resulting in a more effective program, spreading the dollar further and doing a better job. Supervisor McPeak noted all of the models presuppose the existing regional JPA's, noting there may be duplication because of that very fact. She asked about eliminating ' duplication and possible consolidation. Ms. Aiello noted most of the JPA's are facility-based, and she suggested possible consolidation of facility administration, leaving policy development to a different arena as one way to ' approach it. Mr. Bill Davis referred to the bottoms-up process, ' noting ultimately each city is free to choose, and AB 440 is going to leave that in place. He noted potential decisions at the regional level, e.g. , backyard composting which is done out of one location by utilizing a trailer to take it around the County. Ms. Rocha referred to the voting process in relation to ' each of the models, how it is weighted, etc. Ms. Wilson noted Model 3 would be similar to the Transportation Authority with two representatives from each region, and, generally speaking, the two representatives from each region ' vote similarly. Mr. Alexeeff felt the question comes down to how much ' control each jurisdiction is comfortable with, noting each city is different. E - 15 Contra Costa Solid Waste Workshop July 29, 1993 Mr. - Blubaugh felt Models 3, 4 and 5 appear to be more top-down. He cited Mr. Bill Davis' comments about AB 939 focusing this so that nobody is in charge except individual agencies; therefore,. the success of whichever model is chosen will be in whatever it does to satisfy its members. He pointed out the reason everyone is sitting here today talking is because some people did not join the body, so some key components are missing. He noted the organization cannot be absolutely effective unless everyone is part of it, so the key is to find organizational arrangements which provide appropriate comfort levels. He felt there was not a lot of difference between Models 3 and 4 other than how it is organized and who sits on the governing board; Model 2 is acknowledgement that one does not need to talk to the various regions; and Model 5 is ' the Transportation Authority model which is a variant of Model 3. Ms. Aiello felt there was a real essential difference between Models 3 and 4, noting there is a big difference between a top-down and bottoms-up approach. Mr. Bill Davis referred to Model 5 and asked if makes sense for a different group of people to try to resolve problems as opposed to having those five board of directors trying to resolve such problems. Mario Menesini of the Central San Board of Directors did not favor any of the proposed models, noting he felt a combination of some of those models might be more appropriate. He pointed out that a lot of people are uncomfortable about rates going up, and he felt decision-makers need to investigate where they can make the best possible inroads into a system where there are multiple layers of government and no one knows who's in charge or what's happening. He supported some kind of system where the people -- the ratepayers, the voters, the constituents -- have an opportunity for input and not where there's a layer of government which they no longer can penetrate. Chair Mariotti reiterated if anyone has an alternative to suggest they are encouraged to write it down so it can be incorporated for consideration at the next workshop. She felt if there are deficiencies it was important to actively work towards solving them. Supervisor McPeak felt one piece of information that might be helpful for the next workshop would be to have an assessment of what is now being spent by everyone ( 1) in AB 939 or AB 440 compliance, and (2) in facility-related efforts. She noted some differentiation between JPA's that started out facility-based to operate a facility which might E - 16 Contra Costa Solid Waste Workshop July 29, 1993 end up also being responsible in part for source reduction and assisting in AB 939, but they did not form as a policy body or for the purpose of complying with AB 939 . Ms. Aiello noted this information may be difficult to obtain. Ms. Wilson noted a considerable amount of money in this County alone is being spent on AB 939 compliance as well as a considerable amount of money on facilities that are to facilitate compliance with AB 939. Ms. Oliver pointed out the proposed alternatives presented on the charts are not the only alternatives. It was hoped that the Countywide JPA would become the forum for solid waste issues throughout the County. If the question is coming up with a method to reduce duplication, obtain AB 939 compliance and keep rates down for ratepayers, and another organization takes over and this body disappears, then we have done our job. She emphasized that self- perpetuation was not the goal of any of the JPA's, and she felt that should not color anyone's thinking in this regard. Mr. Dolan felt Ms. Oliver makes an excellent point. He acknowledged the need for increased efficiency which leads to compiling figures and facts about how much is being spent. He felt this process could be more efficient if more centralized, but he agreed with Mr. Blubaugh that the problem is that everybody isn't on the team and isn't playing with the same rules. However, there are people who perceive that the body is already potentially too strong and may interfere with whatever plans they might have on their own, and they prefer decentralization and keeping things spread out with a loose coordinating body. In other words, there are two sets of agendas here: one in support of high efficiency .or centralizing everything; and another saying "don't mess with my project, " in support of decentralization and just having a coordinating body. Mr. Dolan felt there are already some sustained teams that are able to work in the various small JPA's. He stated he had been a proponent of the big JPA before its inception; however, he now believes it probably is the second best plan. He felt the best future would be for the small JPA's to maximize whatever efficiency they can within the teams that are currently cooperating and displacing the large JPA with a coordinating committee. He suggested perhaps the function of the AB 939 plan is a big enough job in itself, and for the coordinating committee to work on that would be quite an accomplishment. Mr. Purnell concurred with Mr. Dolan about the various roles between the various JPA's. Upon listening to the discussion, he would argue that this is prima facie evidence E - 17 Contra Costa Solid Waste Workshop July 29, 1993 of efficiency, noting no one joins a JPA unless it was felt there was efficiency and benefit which would accrue by joining together as opposed to working independently. He felt the question is not whether the JPA's are working efficiently as to each other, but are those JPA's working efficiently as to the next level of government which is the County. He felt the County needs to decide how it wants to deal with the JPA's because they are not going to go away, and they are independently working on plans within their geographic area. Mr. Purnell noted the possibility of the County going with a regional approach if it wants to divest and turn this over to the regional JPA's. He also noted if AB 440 passes as currently written, it divests a lot of this planning power to the JPA's; therefore, it would seem that a coordinating council is a more appropriate vehicle because the JPA's would be vested with more regional authority. However, he noted some of this may be premature until it is known what the State is going to do. Mr. Alexeeff noted one of the issues before the County is that it has multiple roles, e.g. , the County has ratepayers and franchises, and the County began with AB 939 responsibilities. So, the County winds up being a different level player depending on the rules of the game in various parts of the County. Mr. Purnell as a member of WCCIWMA was not so concerned about what kind of arrangement the County may have with another JPA, so long as the relationship with the West County JPA was mutually acceptable. He felt it was in the County's lap as to how it wants to deal with JPA's. Supervisor McPeak did not agree this was entirely in the County's lap, noting in looking at the four JPA's that most of them are pursuing facilities. She questioned whether that was the best- and most efficient way to use ratepayers , money, noting the duplication of cost for capital development. Supervisor McPeak noted the second issue whereby the cities and the County are assigning to the JPA's responsibility for AB 939 or it successor, and she asked about integration and whether coordinating and streamlining of that would occur. Mr. Purnell stated that decision has not yet been reached by the West County board. Mr. Purnell felt the JPA model was effective. For example, they are contemplating a facility in West County, and it might be the choice of those agencies as a result of various environmental mitigation factors to build a facility which is acceptable to the residents of the area, possibly making extra expenditures to make it more environmentally E - 18 ~ f Contra Costa Solid Waste Workshop July 29, 1993 ' and socially acceptable to the area. However, another JPA. might want to go with the slab approach. He pointed out the fact that money may be spent on a more environmentally acceptable facility is not necessarily an argument that it is being spent inefficiently or contrary to the desires of the ratepayers. ' Mr. Bill Davis noted since the inception of AB 939 in 1991 that AB 939 plans were already going through the process of being developed and going down their individual paths. There was the landfill closure and need to get a transfer station, so the focus of individual cities has been on getting a facility in because of the landfill closure. SRRE's were written saying, "Yes, there's going to be something out there in Richmond. " He felt once that facility is established, the individual cities will realize they need to do something, and the natural_ evolution may be ' at the authority level. Mr. Samson noted in listening to the discussion about ' the role of the different jurisdictions, he got the impression the tail is wagging the dog. He felt it was fairly self-evident from the makeup of Model 3 what the different regional organizations would do, noting that would ' be subsumed by a Countywide organization under Model 4. He was focusing on the regional planning program implementation, noting whatever happens with the .Legislature ' those are the things to focus on in the long haul. He felt for representatives of city government and different agencies it was important to figure out over the long period what is the best way to implement programs and what is the ' best way to plan programs, and whether or not to do it in a way that recognizes the diversity in the County, whereby there are different needs in different sectors of the County. He felt this led him towards going to something along the lines of preserving more of a regional entity. . If, on the other hand, it is assumed the way the Legislature ' is going that it is going to require more of a program of consistency, and that the differences and needs between geographic regions in the County are not going to matter so much any more, then it mitigates going to something like a ' centralized model. However, he felt it was important to focus on what are we going to be doing and how do we want to be doing it as opposed to looking at the role of different ' organizational structures. Mr. Samson felt planning to address the long-term problem is where to focus first, rather than worrying about the structure. He felt more of a philosophical underpinning was needed about what the direction was going to be on a region-by-region basis. Are we going to allow more diversity in planning, recognizing there may be some E - 19 Contra Costa Solid Waste Workshop July 29, 1993 inconsistency, which may not be the worst thing in the world, or do we want to be looking at a more consistent centralized approach? Chair Mariotti felt this workshop was a start to getting to that broader viewpoint. Mr. Bill Davis concurred with Mr. Samson's comments, noting it was important to think of these as evolutionary concepts which may start as one thing and wind up as something else down the road. Chair Mariotti noted if the right thing is done for the ratepayer, it can change its shape any way we want it to. She reiterated the serious concern expressed by constituents about raising rates. Ms. Wilson echoed the above comments, noting philosophically everybody involved in this issue has to decide what will meet their local needs as well as Countywide .-needsIt was noted the Countywide JPA came into being out of frustration over the landfills and how the decision-making took place and a dissatisfaction that there was not unanimity. Maybe or maybe not that issue can be laid to rest. She felt it was important to look at what it is everyone is trying to accomplish, and what are our objectives. She noted these models were arbitrarily chosen and were not intended to be definitive. As Mr. Menesini has indicated, these could result in something that 'was a blend which philosophically and logistically met what isneededin order to get the job done better. In response to Mr. Purnell's comments, Ms. Wilson pointed out what might be appropriate in terms of expenditures for one region might not be for another. She suggested that residents in both regions perhaps would want to pay the least amount of money to get the job done, and whether a region pursues a slab approach versus a Class A project should be done with the knowledge and support of the ratepayers of that region. Mr. Blubaugh suggested something for consideration between now and the next meeting in regards to the County's role in relation to Model 3 . He felt the County sees itself as an entity of the whole more than just a part of four different groups, which is not addressed in Model 3. In response to earlier comments, Mr. Blubaugh stated he did not anticipate from a practical reality that there is going to be a lot of facility duplication. He doubted there would be four, five or six transfer stations around, just as we wound up with one landfill, not two. He saw a real role for subregional JPA's. He struggled with the concept that everything is at the bottom, and, hopefully, this will come E - 20 Contra Costa Solid Waste Workshop July 29, 1993 together in terms of local orientation. He suggested that the entire solid waste issue is more than the sum total of three or four regions, and that was his fear about the bottoms-up approach; however, as a political reality he understood that was probably how it is going to be to start. He felt the whole system was dependent on everybody wanting to be at the table. ' Chair Mariotti emphasized the importance for everybody to be at the table talking in spite of their differences . Ms . Beth Bartke agreed that everyone should be at the table, but that's not happening, and that is a very real concern. Unless all the cities are represented, we are not achieving our goal in that area. ' Mr. Dolan pointed out the vast majority of the money is in collection of solid waste, then transfer and disposal. He noted that planning is probably the smallest component of all, the components. He recalled a joint study undertaken by the County and Central San back in 1984 in relation to collection and disposal, noting the recommendation that there be three separate transfer stations and that there probably would be only one landfill. He- felt this was a practical way to think about the jurisdictions based on a ' service area for these transfer stations in the three areas. He cautioned against having an extra transfer station, noting the charts refer to four lobes. He questioned whether Concord and Pittsburg would be part of Central County or East County; however, he felt between Acme and . Delta Diablo there probably is not room for all three of them. He felt that Model 3 should shrink down to three separate entities, whereby Concord and Pittsburg and the Central JPA and Delta Diablo would get together and figure out what to do. Barbara Hockett of the Central San Board asked if this group has ever really listed their fears. She questioned even talking about change in a new entity until everyone as ' an individual and/or agency lists their fears so that everyone in this room knows what those are. She noted everyone has their own agenda and some level of anxiety about things which are near and dear and which may be relinquished to an unknown. Mr. Causey responded to earlier comments by Mr. Dolan, noting the construction of facilities is a significant cost .item. He suggested the possibility of a planning structure whereby the building of those facilities is turned over to a ' uniform group that is responsible for developing and constructing those facilities and developing expertise for development of facilities to ensure they are cost effective. E - 21 Contra Costa Solid Waste Workshop July 29, 1993 This could also help in the rate process in relation to facility development costs. Supervisor McPeak referred to the 1984 study and asked Mr. Dolan now knowing the location of the landfill site in the County whether there is anything that would need to be changed about the analysis that was done, e.g. , is there a break-even point between direct hauling with packer trucks and using transfer trucks in terms of distance. Mr. Dolan noted, if anything, , the tendency would be to say instead of needing two for Central and East Counties, it might be done with one. He also pointed out that a significant thing has happened since the study was done in the mid- 180 's when there was a virtual barrier around every County, and they had to solve every problem within that County. He noted as a result of SB 5 that barrier has been broken down, thus providing for free competition for anyone who has solid waste to dispose of. He felt it was important to support the planting efforts with fees that are not dependent on accepting all the garbage and recreating a monopoly. Ms. Wilson sought direction from the group in relation to proceeding to the next workshop, e.g. , having a committee work on a specific issue or exploring further one of the alternatives. Mr. Clausen did not support breaking up into, committees yet. He felt this group should continue working -through even if it's tedious or boring in order to identify what it. wants to accomplish. Do we want to just implement State law, or do we want to get into the actual creation or operation of facilities or leave that to someone else? He felt these are things to sort out in order to know what kind of organization is wanted. Chair Mariotti summarized items discussed above. She cited Ms. Hockett's suggestion to list everyone's fears, ' noting she felt this is a ,valuable exercise that needs to be done. She felt there was consensus in support of considering the bottoms-up approach. She also noted Ms . Kelly's suggestion to look at the issue of fines, noting that appears to be a gray area. How do landfills get locked in, and how does that get incorporated into this whole scenario? It was noted that some other agencies are not listed on the charts, and how can these be addressed in the proposed models. Chair Mariotti asked for the group's preference in having a second workshop. She noted the Mayors' Conference is going to have a one-hour study session on solid waste issues before its October meeting, and the workshop could E - 22 Contra Costa Solid Waste Workshop July 29, 1993 possibly be folded into that process. There was majority agreement there should be another workshop. Mr. Menesini felt that input was needed from the Mayors and city governments. Mr. Blubaugh agreed input is needed from the cities; however, it was felt that the Mayors ' Conference was not the appropriate forum for getting this kind of work done at this time. The Reverend Timmons from Pittsburg reiterated Ms . Hockett's suggestion about listing fears, noting he felt there are some clear-cut fears and apprehensions among the various cities and specialized concerns within those regions. He felt some of those fears are the very reason why some cities are not participating as they probably should be. He felt those fears should be put out there and dealt with, noting the bottom line is having something that is workable. He acknowledged that some of the fears might be a little difficult to deal with, but they need to be dealt with. Mr. Menesini felt it was important for the minutes of this meeting to be utilized to assess where we're going with the next meeting and to prepare the agenda on that basis. Chair Mariotti recalled the focus of today's workshop was to address items I and II on work plan, and to try to address items III, IV and V at the next workshop, folding in what has been discussed here today. Ms. Jane Bartke stated before deciding on what to look at in the second workshop that she needed to go back to her City Council and discuss some of these issues with fellow Councilmembers in order to reach a consensus in making a decision. She reported they have discussed variations of Models 3, 4 and 5; however, she felt it would not hurt to have a few more ideas for consideration. She expressed concern about Model 4 in relation to representation and 'how the vote breaks down, noting that is a big concern in her city. Ms. Aiello noted three questions left to be answered in the next workshop in relation to funding, looking at ways to reduce duplication, and a potential organizational structure. She suggested going back to respective governing bodies to discuss this further, and then getting back to either her or Ms. Wilson in the next month or so, and they could go from there with what the majority indicated. Ms. Wilson stated the minutes from today's meeting would be transmitted to every governing body which has an interest in solid waste issues. Questions could be formulated for individual governing bodies to answer relative to E - 23 Contra Costa Solid Waste Workshop July 29, 1993 organizational structure, how can cost savings be realized, etc. This information could then be compiled for the next meeting. Ms. Brandt was not prepared to give an answer on any of the models today. She anticipated. her fellow Councilmembers asking about respective cost, noting the idea is to keep the cost down; therefore, it would be helpful if each of the models were assigned a quantitative number for consideration. She also noted there are some real political issues about the formulation of any coordinating council or something similar to the Transpac model. She noted the County and the Authority staff may have some opinions, and she would like some kind of comparative analysis as to which of the models works best for the constituency they are working for today. She felt the voting issue is a serious one, although she acknowledged potential advantages for managability with the Transpac model versus having so many voices speaking for all of the cities and the County. . Ms. Oliver felt breaking into subcommittees at this time is premature. However, she felt it was important before the next workshop for the JPA's and other groups to be discussing these issues as bodies and bringing their thoughts forward. Ms. Rocha asked for clarification about voting, noting this was a key issue. Roy Swearingen of the AB 939 Task Force stated he has seen various issues at various meetings, but he has not seen them all grouped together before like this. He felt something definitely needs to happen to reduce government cost which means right now there is more government cost in this area than there should be. He pointed out that as elected officials it was important to take action. He hoped at the next meeting to see positive action, not necessarily meaning a decision has to be made, but building on the groundwork established today. He felt this should be progressive in doing something about the layers of government, noting if something can be done to reduce the tax dollar cost then everyone will be heroes. Mr. Samson strongly recommended that the next workshop be scheduled in the near future while this discussion is fairly fresh in mind. Secondly, to the extent there's a feeling that the fears or concerns may be the parameters within which to work, he felt it would be helpful to know what the pitfalls and deficiencies are of the present system in order to work towards an improved system. He suggested taking a few minutes to share major concerns so that people E • 24 Contra Costa Solid Waste Workshop July 29, 1993 can be thinking about them in relation to the various models and planning efforts in advance of the next workshop. Ms . Brandt stated her major concern was rates, rates, rates. She felt garbage rates were the biggest fear, noting a goal should be to establish the most efficient solid waste body possible. Using that as a criterion, she felt Model 2 could be eliminated right now. She pointed out Model 1 is not working now, so that leaves Models 3, 4 and 5. She also expressed concern about duplication of meetings. Mr. Sweeny expressed concern about quality of service. Ms. Hockett expressed concern about loss of agency control . Mr. Bill Davis expressed concern about being held accountable for rates without being able to decide what those rates will be. Ms. Rocha expressed concern about duplication of service. Ms. Beth Bartke expressed concern about being able to justify the rates to ratepayers and constituents, noting they would be willing to pay if they understand what it is for. Ms. Jane Bartke expressed concern about adding another layer of government. Ms. Hockett stated Central San has allocated time, materials and money in relation to composting programs, noting educational materials have been duplicated and plans have been made with organizations to provide composting courses; and she expressed concern that all that effort may be lost and somebody else may be delegated to take that on. It was noted that some unique programs could be lost. Mr. Wolfe expressed concern about city staff time in relation to preparation and work for three different solid waste bodies. He felt that duplication of work and layers of government should be reduced. Mr. Samson noted a potential for both intra- and inter-regional conflicts, depending on how this is ultimately structured in relation to facility siting, etc. Mr. Alexeeff expressed concern about loss of revenue. Mr. Dolan noted at Central San he deals with a natural monopoly which is the sewer system as well as an unnatural E - 25 r Contra Costa Solid Waste Workshop July 29, 1993 r 7 . ADJOURNMENT There being no further business, Chair Mari.otti adjourned the meeting at 6:30 p.m. to the next CCSWA Board meeting which is scheduled for Wednesday, September 8th. Gretchen Mariotti, Chair ' Contra Costa Solid Waste Authority ~''minty of Contra Costa State of California ATTEST: Karen A. Sanders Hearing Reporter 1 1 . r r r r . r r r r E - 26 r WORKPLAN ' TASK #1 - CONCEPTUAL POINTS #6 AND #9 A. (#6) Delineate, in cooperation with sub-regional solid ' waste joint powers authorities, roles and responsibilities for solid waste management. ' B. (#9) Discuss staff resources and financing. STEERING ' COMMITTEE: Don Blubaugh (Central); Dave Rowlands (East); Bill Davis (West); Val Alexeeff (County) with Avon Wilson and Louise Aiello ' STAFF: Avon Wilson and Louise Aiello PROCESS: Two workshops using staff preparatory work to focus on key ' policy/organizational/financing.matters First workshop would be held in late June ' Final workshop would be held in September Workshops would include Authority Board Members, Board of ' Supervisors, members/staff from subregional jpa's, and other key staff/policy makers as appropriate. DELIVERABLE PRODUCT: Recommendation(s) for one or more organizational structure(s) and financing/staffing delineating roles, authority, responsibilities STAFF PREPARATORY ' WORK: 1. What are the current requirements of State law? How does current law delineate roles, responsibilities, authority? ' 2. What are the defined purposes, goals, activities related to solid waste for the County, cities, subregional jpa's, Contra ' Costa Solid Waste Authority, Countywide AB 939 Task Force, Public Managers Solid Waste Committee, and AS 939 Project Managers? E - 27 IM 938w:DOU-Wrk.Pep 3. Identify the areas of overlap and/or duplication including areas where overlap may be needed. , Key areas to be addressed should include — IWMP Monitoring ' (a) Co g and Revision (b) SRREs and HHWEs update, revision, implementation (c) NDFEs and facilities development and operations , 4. What are current funding sources and levels for the ' organizations and programs identified in #2 above? 5. What mechanisms are available for funding? ' WORKSHOP FOCUS: Review #1, 2, 3, 4, and 5 , Answer the following: 1 . Identify ways to streamline the different aspects of solid , waste management to eliminate or reduce overlap/ duplication. in what ways could public agencies and private sector work to streamline, reduce costs, work ' together more effectively? 2. In what ways can independent/individual jurisdiction ' decisions making be provided for while building an interdependent and cooperative solid waste management ' organizational structure? 3. How can cost savings to member agencies or to rate payers result from restructuring how activities are handled and/or , under what organization activities are handled? 4. What is the best structure to organize solid waste activities in an efficient, responsive manner in Contra Costa County? 5. Based upon #4, what staffing and funding levels are , necessary? i 1 _ 2 - E - 28 939w:DMOU-Wrk ft STATE SOLD? WASTE REQIT IE.NfENTS AB 939 • Requires each city and each county to reduce disposal of waste by 25% by 1995 eq and 50% by 2000. • Requires each city and county to prepare and implement Source Reduction and Recycling Elements and Household Hazardous Waste Elements as part of the ' efforts to reduce waste and waste disposal + Requires County and a majority of cities having a majority of population to t -prepare, approve, submit Countywide Integrated Waste Management Plans and Solid Waste Facilities Siting Element AB 3001 + Added requirement that each city and each county prepare a Non Disposal Facilities Element, removed such facilities from the Countywide Siting Element and granted autonomy to each city and each county in approving NDFE's AB 2494 + Altered diversion requirements from "amount of diversion" to "amount of reduction of disposal" + Provided for formation of solid waste JPA's and rural regional solid waste ' agencies AB 440 (Pending in Legislation) • Expands provisions for formation of regional solid waste agencies by allowing for formation of such agencies in any area and through either joint powers agreements or Memoranda of Agreement. + Specifies methods for counting reduction in disposal + Directs Emergency g en Regulations to be established b December, 1993 '� Y i + Delays submission deadlines of SRRE's, HHWE's and NDFE's until April, 1994 + Appears to allow early submission of SRRE's, HHWE's, NDFE's and Countywide Integrated Waste Management Plans + Lifts imposition of fines for two years E - 29 v z 1 0 1 � z ' a W 0 momZ awo -' gig 0 U � a 1 0 swoW 1 i 1 1 1 • m m ? 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Q m Eo p n ¢ H O 3 O CL zV e d+ AlQ E L tf, C O W m p m o r• + 1 o C W 1= O. ¢ CID i:i4r �:v�fy z +� CL a V a e n C Z O o a = o ao. a C p 5 I-O C7 T qsaL o - 1 o • p V d O s z 1 i DISCUSSION PAPER 1 This Discussion Paper was prepared at the request of the Contra Costa Solid Waste 1 Authority to provide additional detail regarding the Options for administration of solid waste management activities in Contra Costa County which were originally presented at the Workshop in July, 1993. The concepts described do not necessarily reflect the views of any City, the County nor any joint powers authority. The Discussion Paper is organized into the following sections: ' o Background ' o Regional Co-ordinating Council Structure o Goal 1 o Discussion of Organizational Structure & Staffing 1 o General Discussion 1 o Countywide Solid Waste Authority o Goal o Discussion of Organization Structure & Staffing g i i 1 1 1 i 1 E - 39 BACKGROUND 1 Discussion of roles and responsibilities for solid waste management needs to recognize the structure established by State law. ' 1. Revisions to State Law made by AB 440 provide that cities and counties may , create regional agencies to develop and implement SRRE's, HHWE's, NDFE's for those jurisdictions which are members of the regional agency. (a) Countywide Siting Element requirement continues to be the responsibility of the County and to need approval of the County and a majority of the cities having a majority of the population. (b) Countywide Integrated Waste Management Plan continues to be required , and must have approval of the County and a majority of the cities having a majority of the population. individual cities and , 2. State law assigns responsibility for solid waste management to i county for unincorporated area: , (a) Development and Implementation of SRRE's which define: (1) Programs to be implemented to divert waste from landfills ' (2) Needed disposal capacity . I (b) Development and Implementation of NDFE's which define non-disposal facilities consistent with implementation of SRRE's i (c) Development and Implementation of HHWE's which define programs to be implemented for reduction, collection, recycling, treatment and disposal of ' HHW. (d) Review and revision as necessary not less than every 5-years ' 3. State law assigns responsibility to County for: ' (a) Development of a Countywide Solid Waste Disposal Facilities Siting Element which identifies areas for landfill, transformation facility sites, , i E - 40 and/or export of waste for disposal and total available disposal capacity and ' needed capacity. (1) Based upon disposal capacity identified in each SRRE (2) Areas must be consistent with City h'and County General Plans ' (3) Approval by County and majority of cities containing majority of incorporated area population ' (4) Review and revision as necessary not less than every 5-years (b) Processing Amendments to Countywide Solid Waste Disposal Facilities Siting Element: ' (1) Persons or agencies proposing amendments to Siting Elements must submit site identification and information to County Board of Supervisors (2) County to submit site identification and information to cities within 20-days of receipt (3) Approval of amendment by County and a majority of cities ' containing majority of incorporated area population. (c) Development of a Countywide Integrated Waste Management Plan which ' includes: (1) All SRRE's ' 2 All HHWE's ' (3) Countywide Siting Element ' (4) Summary of significant solid waste management problems facing the county ' (5) Overview of specific steps to be taken by local agencies, acting independently and in concert, to reduce, recycle and reuse solid waste E - 41 (6) Statement of the goals and objectives of the Local Task Force (7) County and majority of cities containing majority of incorporated ' area population must approve except a Individual SRRE's, HHWE's and NDFE's are not subject to approval of the County or a majority of the cities containing a majority of the population within the incorporated area. ' (8) Review and revision as necessary not less than every 5-years t E - 42 LSSION PAPER REGIONAL CO-ORDINAM40 COUNCM OMON rM, 1993 ' REGIONAL CO-ORDINATING COUNCIL. GOAL establishment of a process which: 1. Provides maximum local control of decision making. �. Assigns responsibility for decisions regarding planning and implementation of the various features of the solid waste management system (e.g. solid .waste collection, transfer, disposal, source reduction, recycling and composting) to the level of government closest to the ratepayers. '. Recognizes the jurisdictional rights and responsibilities of each unit of government. Provides a means for resolution of differences in a timely and cost effective manner. 5. Avoids and eliminates redundant activities. �. Ensures co-ordination of programs so that opportunities for elimination of duplication are seized and resulting cost savings realized. �. Enables compliance with State law and regulations in a timely ma p gu e y neer with the lowest ' possible cost. E - 43 DISCUSSION PAPER REGIONAL CO-ORDINATING COUNCIL OPnON ANBUM 20, 1993 REGIONAL AGENCY STRUCTURE,, FUNCTIONS AND RESP ONSEBILITIES FIGURE 1 1 Figure I outlines the structure, functions and responsibilities for Regional Agencies FOR PURPOSES OF DISCUSSION ONLY. 2. Assumptions underlying Figure I are as follows: (a) Pending legislation�(AB 440) will be enacted an allow regional agencies to prepare regional SRRE's, HHWE's, and NDFE's instead of individual plans by Members and thereby reduce duplication and achieve cost savings. (b) Members of the Regional Agencies will delegate to the Regional Agencies responsibility for preparation of SRRE's, HHWE's and NDFE's. (c) Pittsburg and Concord form a Regional Agency and Pittsburg does not participate in the Delta Diablo Global Agreement. (d) Cities which are not now members of a Regional Agency would become members of the Regional Agency as indicated in Figure 1. (e) County, Cities and Regional Agencies will determine if the County is to be a member of the respective regional agencies or contract with the regional agency(ies). (1) Matters related to Regional Non-Disposal Facilities and Disposal Arrangements are assumed to be addressed as part of these discussions. (2) This has been determined for the West County Regional Agency. The County and the West Contra Costa Integrated Waste Management Authority have entered into a contract. E - 44 LISCUSSION PAPER REGIONAL COORDINATING COUNCIL OPTION 20. 1993 '2. The concepts described in Figure 1: (a) Envisions joint powers agreements which would provide Regional Agencies with ' authority to: (1) Prepare and implement single Regional SRRE's, HHWE's and NDFE's. (a) Those portions of Regional SRRE's, HHWE's and NDFE's ' applicable to each Member of the joint powers authority would be subject to the approval of the respective Members prior to approval by the Regional Agency. (b) Approval of Regional SRRE's, BHWE s and NDFE's needed to ' reflect provisions of current state law which requires the provisions of AB 939 to be binding and enforceable against individual Members of a Regional Agency. ' (2) Develop and implement Regional Non-Disposal Facilities and Non-Disposal. . Facilities for individual Members or groups of Members. ' (a) Rates at Regional Non-Disposal Facilities regulated by the Regional ' Agency (b) Rate Regulation at Non-Disposal Facilities for individual Members or groups of Members as provided in the joint powers agreement. 1 (3) Arrange for disposal of solid waste for all members of the Regional ' Agency. (4) Authorizes the Regional Agency to review and approve the Countywide Integrated Waste Management Plan and Countywide Siting Element on behalf of the Members. E - 45 DISCUSSION PAM REGIONAL CO-ORDINATING COUNCIL OPTION A8909 20, 1993 (b) Reserves to each City and the County responsibility for the following within their respective jurisdictions: (1) The terms and conditions contained in their respective collection franchise agreements, (2) Regulation of collection rates, (3) Land Use regulation and control, (4) Permitting which is the responsibility of the respective cities and the county, and (5) Where applicable, the freedom to delegate any or all of the above. (c) Reserves to future decisions County participation in Regional Agencies and, where agreed to, shared Facilities. (d) Places primary responsibility for co-ordination of activities with the Regional Agencies. (e) Provides for review and approval of the Countywide Integrated Waste Management Plan and Countywide Siting Element by Members. (1) Current State lawrequires approval by cities and counties. E - 46 1 1 DLSCUSSION PAPER kEGIONAL CO-ORDINAMNG COUNCIL OPTION 20, 1993 1 REGIONAL CO-ORDINATING COUNCIL 1 FIGURE 2 Figure 2 outlines the structure and responsibilities of the Regional Co-ordinating Council FOR PURPOSES OF DISCUSSION ONLY. Figure 2 is envisions: 1 (a) An agreement among the Cities, Regional Agencies and the County establishing the Regional Co-ordinating Council. The agreement would: 1 (1) Provide for the establishment of the "Management Advisory Committee" and "Technical Advisory Committee" shown in Figure 2. 1 (2) Assign to the Regional Co-ordinating Council the responsibility for: 1 (a) Preparation of the Countywide Integrated Waste Management Plan and Countywide Siting Element. 1 (b) Administration of the Contra Costa Industrial Shoreline Recycling Markets Development Zone. (c) Co-ordination of interaction with the State (3) Authorize the Regional Co-Ordinating Council to make recommendations regarding: ' (a) Co-ordination of Regional Programs (b) Co-ordination of Disposal Arrangements ' (c) County proposals regarding Disposal Facilities 1 1 1 E - 47 DISCUSSION PAPER REGIONAL COORDINATING COUNCIL.OPTION August 20. 1943 , STAFFING OPTIONS ' FOR REGIONAL CO-ORDINATING COUNCII. ' FIGURE 3 tions for staffing the Regional Co-ordinating Council FOR ' 1. Figure 3 outlines four op g gl g DISCUSSION PURPOSES ONLY. would be employees of the Regional Co-ordinatin ' Option A: All staff wougi g Council Option B: Staffing would be provided by means of a contract between. the ' Regional Co-ordinating Council and the County. The agreement creating the Co-ordinating Council could include such provisions. ' Option C: No permanent staff would be provided. The agreement creating the Co-ordinating Council would designate a Lead Agency. The Lead , Agency would provide administrative services for the Co-ordinating Council, arrange for Co-ordinating Council meetings, execute contracts approved by the Co-ordinating Council on behalf of the ' Council and other functions which would be enumerated in the agreement creating the Co-ordinating Council. Option D: One full time staff person employed by Regional Co-ordinating Council with a Lead Agency designated to provide administrative ' support. The Co-ordinating Council would approve and let all contracts and the full-time employee would administer the contracts. 2. OtherOp tions, or a combination of the options presented, may evolve as discussion progresses. - E - 48 LCUSSION PAPER REGIONAL CO-ORDINATING COUNCIL OPTION rg=20, 1993 1 DISCUSSION 1. The Regional Co-ordinating Council concept focuses on Regional Agencies for co- ' ordination and administration of solid waste management activities. Regional Agencies would provide the means for cities to co-ordinate activities with respect to: ' (a) Development and implementation of: (1) Source Reduction, Recycling,Composting and Household Hazardous Waste Programs for the region. (2) Development and implementation of Non-Disposal Facilities needed to ' implement the regional programs. (b) Regulation of rates at Regional Non-Disposal Facilities and other Non-Disposal ' Facilities if authorized in the joint powers agreement creating the regional agency. ' (c) Input and determination of acceptability of the Countywide Integrated Waste Management Plan and Countywide Siting Element and other Countywide issues. ' (d) Development and implementation of arrangements for disposal of waste, whether in-County or out-of-County. ' (e) Actions by individual Member Agencies to implement Program Features unique to each Member Agency. (f) Actions within the region with other regional agencies and the County. 3, The concepts described earlier reserves to the Cities and the County their rights and responsibilities with respect to: ' (a) Land Use Regulation E - 49 DISCUSSION PAPER ' REGIONAL CO-ORDINATING COUNCII.OPTION A"=20, 1993 , (b) Local Permitting ' (c) Collection Franchising and collection rate regulation 4. "Balkanization" of the County is avoided by the Regional Co-Ordinating Council" which , brings regions together to address inter-regional and Countywide issues and resolution of differences in a timely and cost effective manner. ' 5. The Regional Co-Ordinating Council would provide the means to: (a) Discuss opportunities for sharing.of programs to eliminate duplication and develop ' arrangements for implementation of shared programs. . I I (b) Co-ordinate development and implementation of disposal arrangements. c Provide co-ordinated recommendations to the County regarding the development , and implementation of disposal facilities located within the unincorporated area and the establishment of rates at such facilities. , (d) Resolve issues necessary to the preparation of the Countywide Integrated Waste Management Plan and Countywide Siting Element: , (1) Countywide Plan is expected to be a compilation of the individual Regional Plans and County Plans for,the unincorporated area if the County is not a participant in the regional agency plans. (a) Interregional issues (e.g. movement of waste or recyclable materials ' across the boundary of a region) will need to be identified and resolved. ' (b) Goals and Objectives of the Local Task Force will need to be reviewed for acceptability. ' (c) Recommended policies will need to be reviewed for acceptability. E - 50 DISCUSSION PAPER REGIONAL CO-ORDINATING COUNCIL.OPTION August 20. 1993 (2) Countywide Siting Element would address disposal facilities only and be a compilation of information (i.e. quantities requiring disposal and planned disposal facilities) identified in the individual regional plans. (a) Interregional issues (e.g. use of common disposal facilities) will need to be identified and resolved. (b) Land Use control and local permitting would be preserved. (3) Amendments to Plan and Siting Element would be reviewed and recommendations regarding approval provided. 5. The Regional Co-ordinating Council avoids and eliminates redundant activities. (a) Membership would be representatives from each of the Board Directors of Regional Agencies and County Board of Supervisors. These are the same ' individuals who will be malting decisions regarding the respective regions. (b) Quarterly meetings would be scheduled but meetings would be held only as needed. (c) A structure for management and technical staff input is provided which should ' eliminate need for meetings and focus staff efforts. (d) Duplication of staff efforts and resource expenditures should be limited. 7. The.concepts described above are consistent with State law which assigns responsibility ' to cities and counties and would allow for formation of regional agencies to achieve cost savings. 1 E - 51 DISCUSSION PAPER REGIONAL CO-ORDINATING COUNCIL OP77ON Aura&20, 1993 COLTNTYWEDE SOLID WASTE AUTHORITY GOAL Establishment of a process which: 1. Provides maximum local control of decision making while ensuring integrating and coordination of countywide solid waste activities and programs. 2. Assures consistency for ratepayers throughout the county by bringing all franchising entities and countywide issues into one organization. 3. Recognizes the jurisdictional rights and responsibilities of each unit of government. 4. Provides a means for resolution of differences in a timely and cost effective manner. 5. Avoids and eliminates redundant activities by delineating local responsibilities for facilities and countywide responsibility for solid waste policies and planning. 6. Ensures co-ordination of programs so that opportunities for elimination of duplication are seized and resulting cost savings realized. 7. Recognizes the continuing State requirement for a Countywide Solid Waste Facilities Siting Element and a Countywide Solid Waste Management Plan and enables compliance with State law with the least possible cost to jurisdictions and ratepayers. E - 52 LISC IJSSION PAPER ONAL CO-ORDINAnNG COUNCIL OP71ON August 20, 1993 COUNTYWEDE SOLID WASTE AUTHORITY (ORG STRUCTURE IV AND V) ' FIGURE 1 Figure 1 outlines the structure, functions and responsibilities for Org Structures IV and V-- Countywide Solid Waste Authority for discussion purposes only. �. Assumptions underlying Figure 1 are as follows: P yl g � ' (a) AB 440 will be enacted allowing regional agencies to prepare regional SRRE's, HHWE's, and NDFE's instead of individual plans by Members and thereby reduce ' duplication and achieve cost savings. (b) Members of the Regional Agencies will delegate to the Regional Agencies ' responsibility for preparation of SRRE's, HHWE's and NDFE's. (c) Pittsburg and Concord form a Regional Agency and Pittsburg does not participate in the Delta Diablo GIobal Agreement. (d) Cities which are not now members of a Regional Agency would become members of the Regional Agency as indicated in Figure 1. (e) County, Cities and Regional Agencies will determine if the County is to be a member of the respective regional agencies or contract with the regional agency(ies). (1) Matters related to Regional Non-Disposal Facilities and Disposal Arrangements are assumed to be addressed as part of these discussions. E - 53 DISCUSSION PAPER REGIONAL CO-ORDINATING COUNCIL OPTION Anguli 1A, 1993 (2) This has been determined for the West County Regional Agency. The County and the West Contra Costa Integrated Waste Management Authority , have entered into a contract. (f) All franchising entities will want to have a voice and a vote in countywide solid waste , planning and policy development (Org Structure IV) (g) Consolidation of solid waste staffing into regional agencies and countywide authority , 2. The concepts described in Figure 1: ' (a) Envision joint powers agreements which would provide Regional Agencies with authority to: , (1) Prepare and implement single Regional SRRE's, HHWE's and NDFE's. ' (a) Those portions of Regional SRRE's, HHWE's and NDFE's applicable to each Member of the joint powers authority would be , subject to the approval of the respective Members prior to approval by the Regional Agency. (b) Approval of Regional SRRE's, HHWE's and NDFE's needed to ' reflect provisions of current state law which requires the provisions of AB 939 to be binding and enforceable against individual Members of a Regional Agency. (2) Develop and implement Regional Non-Disposal Facilities and Non-Disposal , Facilities for individual Members or groups of Members. (a) Rates at Regional Non-Disposal Facilities regulated by the Regional , Agency Rate Regulation at Non-Disposal Facilities for individual Members ' or groups of Members as provided in the joint powers agreement. E - 54 LISCUSSION PAPER REGIONAL CO-ORDINATING COUNCIL OPTION 20. 1993 (3) Reserves to each City and the County responsibility for the following within their respective jurisdictions: ' (1) The terms and conditions contained in their respective collection franchise agreements, (2) Regulation of collection rates, (3) Land Use regulation and control, ' (4) Permitting which is the responsibility tyof the respective a cities and the county, and (5) Where applicable, the freedom to delegate any or all of the above. ' (c) Reserves to future decisions County participation in Regional Agencies and, where agreed to, shared Facilities. ' (d) Provides for review and approval of the Countywide . Integrated Waste Management Plan and Countywide Siting Element by Members. ' (1) Current State law requires approval by cities and counties. (e) Provides for policy development and planning for countywide solid waste issues ' and required countywide plans ' FIGURE 2 ,1. Figure 2 outlines the structure and responsibilities of the COUNTYWIDE SOLID WASTE AUTHORITY FOR PURPOSES OF DISCUSSION ONLY. figure 2 is envisions: E - 55 DISCUSSION PAPER , REGIONAL CO.ORDINAMNO COUNC L OP nON Aupst m. 1993 (a) An agreement among the Cities, Regional Agencies and the County establishing , the Countywide Solid Waste Authority. The agreement would: (1) Provide for the establishment of the "Management Advisory Committee" , and "Technical Advisory Committees" shown in Figure 2. (2) Assigns to the Authority the responsibility for: ' (a) Preparation .of the Countywide Integrated Waste Management Plan and Countywide Siting Element. ' (b) Administration of the Contra Costa Industrial Shoreline Recycling Markets Development Zone. (c) Co-ordination of interaction with the State , (d) Development of policies/programs which have implications countywide such as procurement policies, franchise model , agreements, rates (3) Authorize the Regional Agencies: ' (a) Co-ordination of Regional Programs ' (b) Co-ordination of Disposal Arrangements ( )c Consider proposals regarding Disposal Facilities STAFFING OP'T'IONS ' 1 1. Figure 2 shows staffing for a Countywide Solid Waste Authority. E - 56 h� : < 1" V 's �/ .t f/ , 4 `L� , s �,11 � < /` v v r } it / tF, �T Y �' �, ) k `3' - , � . >v J r � �� t 1 , . � a �� '.t � PI, �'.� I' �f �f , = (Y P�C � �,� A X A Gt. I _ (- t "Y .x �/4 \ z r. )�) Ott * - � '\ r t� I � ) 1A- -f t 3. r r1 1f,I 1 r,, - �= J v) �., , _ _ Jr ( ',�{� V:, t� - ,- ,, � 4 / �F. A la ""+ � L t(''" \c- . 64 ;l qt ,ut. (r -� -{t,1 '\ r < <� ( t }' \ } \,' til ". �� �� t^t -� �j , :. 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Ji I t 1V -� 1 4 _ �� �� �t�t 1;�. �/� :YF � .�i�', ( r�,\ ,rye._ r }v, , - k u -.\/ 4 \ )s.,r .� `�J-5\t y :, i,1,' / 1 ,_ `•3_ . 4 A +t /l i A t 1 r ice `S 1 A .. :) t X t / t � } '\)\ ` �, / 4 ` r ' l t I:tib,` \ t k -f ( �' �, 1_ ' . \'Y -/1 �r'� 4- _- —t - t' f .'km / .I t. f� { � 1 t� J /.'" �' ,. ;� /' ( ` �( ': f 'tet ,4,- ), ,/�.4 er }� f,I.\\ �7,..t . 4 :r 'i- r- J �,� !\r , .V,''. _! f -7- ,, , ^? w t/ �l _, F ,, t ` , l ' SEP-28-103 TLE 22:41 ID:A65r7'®I.YMAN S'HER-' TEL hO:916 324 6974 #249 P01 _ i ft' •► • �2��t���it� ��t��2��1Y�� • ��,TaT� ' BYRON O. RHER "sawrwuatwoir�r+.is►oa*wet � Q ' STATE CAPITOL, ROOM 2136 SACRAMENTO, CA 95814 9161445-7632 FAX: 916/324-6974 as A39 440 (Sher) - As Amendeds Septaaber S, 1993 ABBMMT VOTE 73-0 sane I& SZNATf TM ' Original committee Inferences 3'.s, IM JaQZST ' Urgency statute. 2/3 vote requIxedo istia4 JILV, Under the California Zategrated Waste Nonagesunt Act: 1) requires the California Integrated Taste Nanagessent Board (clams) to adopt emergency regulations for the adoption of countywide and regional agency siting elements and integrated waste- mans ement plane, 2) Does not expressly authorize local agencies to enter into umoraada of understanding or joint powers agreements to establish regional agencies ' for the Compliance with the Act.. i) Requires local agencies to adopt and implement plans which show that the City or county will divert, through source reduction, recycling or composting, 23Z of solid vast* disposed by 1003 and 3oZ by the-year 2000. 4) Requires count7vide integrated waste sanogement pians, and the elements contained in those plans, to be submitted to the CIMM for r*viev'and Approval or disapproval within 12 or la months after the adoption of specified regulations, depending upon the amount of remaining landfill ' capacity of the county submitting the plan. ipassed JZ ? o Asselabl2s, this bills 1) On or before August 31, 1903, required the CIMM to adopt emergency regulations for the preparation and submission of various elements of Integrated waste management plans. The bill also provides that the emergency regulations shall be in effect until the board revises thea. 2? Authorised local agencies to eater into memoranda of understanding to forst joint powers agencies to implement the planning and implementation requirements of the Act. 3) Authorised local ag,aacies to revise at any time specified elem sts of integrated waste management pLaas to Incorporate now .data or information an source reduction. recycling or composting programs. 4) specified a schedule under which local agencies shall submit souses reduction and recycling elements to the CIM for review and approval or disapproval. 3) Required local aganciss, at the, time they submit their sources rsducttaa and recycling element to the bosrd, to also submit a report sammarisiag the jurisdiction's progress in achieving their diversion roquireonts of the Act. �' ate due t l� Duke technical changes to provisions of solid taste plaswi S requireoents In current laz. 21 make c,onforring ;changes nscsssary ,ta bring California law into compliance with federal landfill standards. nsCAL U Absorbable state costs for CIM to report an statewide progress in waste diversion. Unknown local costs to most certain reporting requirements. ?hese costs ars offset b7 existing fee revsnuss.. According to the author's office, this. measure is intended to re-orient dw Satsgratsd Taste seaagement Act to ensure that the 1993 data for compliaaoe with the 232 diversion requirements is ast. This measure seeks to ensure that regulations necessary for local jurisdictions to complete their glans, schedules for submittal of pians and elements, and informatim on which the board may judge whether or not plans Are in compliancy with the law, all' ars is place, !N 006149 F 2 Lmw Q V '41 U Y CA a C > as 3 (D (D co (X) CO h ty c0 M M M CID v h M O G to d N ol N h M TJ O } Ln r N r (� r r r M C31 h 0 +� <O X Lo Ln h h h r Un 4& 40 � M Lo r f h Lq N0 N N CO) M sq" 4A —t ..I no- as U. rA N 44. J HD" 6A 1 r ! a ` Ly F" M h ' O O w M O to h M O r- r CD O cO CID 0 LO M h M O c0 .— Ln r N + O r h cO '- O O cal OI c0 N M Up 'Zi 00 r r M Lo CV O O 0 co Lo h Ln M r r d r M Cal N OL? 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C)i Ln 1 In Ln 1 Ln i=1 LL){cn O LLL l LLL!t1 l Q{ }•- F - 5 REGIONAL JOINT POWERS AGENCY COST FIGURES ALL COORDINATING COUNCIL ALTERNATIVES PROPOSED TASKS • Plan Regional SRRE, HHWE,NDFE • Approve ColWMP and Siting Element • Implement, Manage and Rate Regulate Regional NDFE's and Diversion Programs • Plan, Implement and Manage all Disposal Arrangements • Coordinate with Other Regional .Agencies and Contra Costa County • Franchises and Regulates Rates for Garbage Collection • Prepares and Approves Regional Plans: SRRE's, HHWE's, NDFE's • Implement Diversion Programs identified in SRREs, HHWE's NDFE's • Regulate Land Use and Issue Permits Regarding Non-Disposal Facilities Within Region POTENTIAL COSTS Staff Executive Director $75,000 Administrative Secretary 35.99 $1107000 Benefits @ 35% 38,500 $148,500 Professional Services Legal Counsel 45,000 Facility Consultants 250,000 AB 939 Planning-(Every five Years - Amount to be determined based on Lead Agency) Audit 3.00 $298,000 Interagency Costs 25,000 General' Expenses 60,000 Programs (amount to be determined based on programs selected Cagital Outlay: Computers, Copier, Fax, Furnitureetc. 18,000 Total $549,500 Re erve @ 100 54,950 Estimated Cost $604,450 F - 6 REGIONAL COORDINATING COUNCIL STAFF OPTION A ' COORDINATING COMMITTEE PROPOSED TASKS (Same for ail Options) • Coordination of Regional Plans & Programs ' • Coordination of Disposal Arrangements • Preparation of Countywide Siting Element (Presumes County Membership) • Preparation of Countywide Plan (Presumes County Membership) ' • Recycling Markets Development Zone Administration • Coordinate interaction with State • Recommendations Regarding Disposal Sites ' POTENTIAL COSTS ' Staff Solid Waste Coordinator $ 55,000 Secretary 35.000 $ 90,000 Benefits @ 35% 31.500 $121,500 Professional Services ' Legal Counsel 25,000 AB 939 Planning (Amount based on Lead Agency Seiected) Audit 3.000 ' $28,004' General Expense 60,000 Interagency Suggort 25,000 Provrams (to be determined based on programs selectedt Capital Outlay Computers, Copier, Fax, Fumiture,etc. 16,000 ' Total $250,000 Reserve @ 10% 25.050 ' Estimated Cost $275,050 F - 7 REGIONAL COORDINATING COUNCIL STAFF OPTION S - CONTRACT STAFF COORDINATING COMMITTEE PROPOSED TASKS (Same for all t)pfons) • Coordination of Regional Plans & Programs , • Coordination of Disposal Arrangements • Preparation of Countywide Siting Element (Presumes County Membership) • Preparation of Countywide Plan (Presumes County Membership) ' • Recycling Markets Development Zone Administration • Coordinate Interaction with State • Recommendations Regarding Disposal Sites POTENTIAL COSTS County Staff , Full time Coordinator $55,000 Full time Secretary 35,000 , County Counsel 22.000 $112,000 Benefits @ 35% 39.00 $ 151,000 G & A Overhead @ 75% 85,000E Contract Fee @ 10% 23.620 Total Contract Cost � 259,62t , Subcontractors Planning Services (to be determined) Audit 3. $262,620' Programs (amount unknown; to be determined) Reserve @ 10% ' $26,262 Estimated Cost $288,882 , F - 8 REGIONAL COORDINATING COUNCIL STAFF OPTION C - NO STAFF COORDINATING COMMITTEE PROPOSED TASKS (Same for aH Qg#ions} • Coordination of Regional Plans & Programs • Coordination of Disposal Arrangements • Preparation of Countywide Siting Element (Presumes County Membership) ' • Preparation of Countywide Plan (Presumes County Membership) • Recycling Markets Development Zone Administration • Coordinate Interaction with State • Recommendations Regarding Disposal Sites POTENTIAL CSS ' Setting Goals • Coordinating Council decides the level of activity of the organization: Do nothing. Coordinating Council meets on an as desired basis. Coordinatiory identical to OPTION It. ' Commits to accomplishing some or all of the above tasks. Acknowledges that staffing will be provided as follows: Lead Agency Staff ® Lead Agency is appointed by Coordinating Council. ■ Lead Agency assumes administrative responsibility for assigning tasks. • Coordinating Council evaluates Lead Agency staff capability to achieve tasks. • City ManagerlRegional Executive Director utilizes existing support staff, absorbs ' additional staff demands. Staff time donated; similar to formative period of Regional JPA's. ' Bills Coordinating Council for staff time, G & A overhead, supplies, etc. Hires additional staff as needed; bills Coordinating Council. ' Contract Staff • Contract Staff (Contra Costa County) is hired to perform Coordinating Council tasks as above. (See Staff Option B). Lead Agency Coordinates. F - 9 REGIONAL COORDINATING COUNCIL STAFF OPTION D - MINIMAL STAFF COORDINATING COMMITTEE PROPOSED TASKS (Same for all Oations� ' • Coordination of Regional Plans & Programs • Coordination of Disposal Arrangements ' • Preparation of Countywide Siting Element (Presumes County Membership) • Preparation of Countywide Plan (Presumes County Membership) • Recycling Markets Development Zone Administration ' • Coordinate Interaction with State • Recommendations Regarding Disposal Sites POTENTIAL COSTS ' Staff ' Full time Solid Waste Coordinator/Clerk $55,000 Benefits @ 35% 19.250 ' $74,250 Professional Services , Legal Services $1.5,.000 AB 939 Planning (to be determined) Audit 3.0 $18,000 Interagency Sugport (Secretarial, Bookkeeping, Controller Rent, Utilities, etc.) 20,000 General Expense 30,,000 Programs (to be determined) Capital Outlay Computer, Printer, Copier, Fax, Furniture, etc. 10,000 Total $152,250 Reserve @ 10% 15,225 Estimated Cost $167,475 F - 10 REGIONAL JOINT POWERS AGENCY COST FIGURES OPTIONS IV & V PROPOSED TASKS ' Collection Franchises • Collection Rates • Land Use Regulations ' Member Permits • Approve Regional Plans • Approve Siting Element ' Approve CoNVMP POTENTIAL COSTS ' Staff Manager: Variable - Level of Activity in each Region $70,000 - 85,000 ' Secretarial Support: In house or Interagency 5,000 - 35,000 Benefits @ 35% 24,500-- 42,000 $94,500— 162,000 ' Professional Services Legal Services (as needed) 15,000 AB 939 Planning (to be determined) ' Interagency Costs 20,000 General Expenses 30,000 Programs (to be determined) Capital Outlay ( Computers, Copier, Fax, Furniture, etc) 10,000 $169,500 - 237,000 ' Reserve @ 10% 16,950 - 23,700 ' Estimated Cost $186,450 - 260,700 F - 11 COUNTYWIDE SOLID WASTE AUTHORITY OPTIONS IV & V PROPOSED TASKS • Preparation of Countywide Plan, Countywide HHWE (Presumes County,_ , Membership). - • Preparation of Countywide Siting Element (Presumes County Membership) • Coordination & Reporting to CIWMB/State ' • Recycling Markets development Zone Administration • Development of Solid Waste Policies: I. Franchise Agreement Policies: , 2. Rate Review Models a) Collection b) Facilities , 3. Procurement Policies 4. Facilities development & Siting 5. Diversion Programs & Goals • Resolve Countywide & Inter-regional Solid Waste issues ' POTENTIAL COSTS Staff Executive Director $85,004 Secretary 35,OOG Recycling/Market Development Coordinator 55.000 $175,000 Benefits @ 350% 61.250 $236,250 Professional Services ' Legal Counsel 50,000 Facility Consultants 250,000 AB 939 Planning (Every five years, to be determined} Audit 3.000 ' $303,000 Interagency Contracts (Controller, Purchasing, Rent, etc.) 25,000 General Expenses 60,000 , Programs (to be determined) Caoitai Outlay 18.000 Total $642,250 ' Reserve @ 10% 64.225 Estimated Cost 706,475 ' F - 12 CONTRA COSTA COUNTY and CONTRA COSTA SOLID WASTE AUTHORITY M I N U T E S September 29, 1993 A Special Workshop presented by Contra Costa County and the Contra Costa Solid Waste Authority was held on Wednesday, September 29 , 1993, at the George Gordon Center, 500Court Street, Martinez. Due notice had been mailed and published. 1. WELCOME AND INTRODUCTIONS Chair Mariotti welcomed everyone in attendance to the workshop and called the meeting to order at 4: 10 p.m. Introductions were made and attendance was as follows: Contra Costa County: County Supervisor Gayle Bishop Louise Aiello, County Solid Waste Program Manager Belinda Smith, County Integrated Waste Program Specialist Contra Costa Solid Waste Authority: Mary Rocha, Antioch John Clausen, Central Contra Costa Sanitary District Sue Rainey, Central Contra Costa Sanitary District Peter Laurence, Clayton Douglas Tubb, Crockett-Valona Sanitary District Beth Bartke, Hercules Ivor Powell, Ironhouse Sanitary District Ivor Samson, Lafayette Jim Sweeny, Moraga Cherie Grant, Moraga Gretchen Mariotti, Pinole Dan Purnell, Pinole Kim Brandt, Pleasant Hill Mary Lou Oliver, San Ramon Gene Wolfe, Walnut Creek Avon Wilson, Executive Director Marice Ashe representing Alan Waltner, CCSWA Counsel F - 13 Contra Costa Solid Waste Workshop September 29, 1993 , Central Contra Costa Solid Waste Authority: Gene Wolfe, Walnut Creek ' Mary Lou Oliver, San Ramon John Clausen, Central Contra Costa Sanitary District Don Blubaugh, City of Walnut Creek ' Herb Moniz, City of San Ramon Fred Davis, Executive Director West Contra Costa Integrated Waste Management Authority: ' Beth Bartke, Hercules Gretchen MariottiI Pinole Dan Purnell, Pinole ' Gretchen Mariotti, Pinole Others in Attendance: ' Elaine Jacobs, Central Contra Costa Sanitary District Peter Dragovich, City of Concord Kevin Carunchio, City of Pittsburg ' Dorothy Sakazaki, Mt. View Sanitary District Jane Bartke, Mayor Pro Tem, E1 Cerrito City Council Barbara Hockett, Central Contra Costa Sanitary , District Rachel McDonald, East Bay Regional Park District Greg Baatrup, Delta Diablo Sanitary District Paul Causey, Delta Diablo Sanitary District , Patty Mehaouchi, BFI-Pleasant Hill Bayshore Mario Menesini, Central Contra Costa Sanitary District Kent Peterson, Crockett-Valona Sanitary District April Gray, City of San Ramon Kelly Sills, City of Orinda ' Karen Stein, City of Lafayette Dennis Mesick, City of Pleasant Hill Jim Pezzaglia, Law Offices of Gordon, DeFraga, Watrous & Pezzaglia ' Gregory Rueb, Law Offices of Gordon, DeFraga, Watrous & Pezzaglia Paul Morsen, Central Contra Costa Sanitary District ' Wendy Belvedere, City of Clayton Ren Graunstadt, Delta Scrap & Salvage Don Bradley, City of Pinole Kathleen Nimr, Martinez resident ' 2. PUBLIC COMMENT None. ' F - 14 rr ' Contra Costa Solid Waste Workshop September 29, 1993 3. DISCUSSION OF WORKSHOP OBJECTIVES AND PROCESS ' Chair Mariotti announced that today's workshop would be addressing roles and responsibilities for solid waste ' management. 4. WORKSHOP MATERIALS AND ISSUES ' A. Update on State Solid Waste Requirements (AB 440) Ms. Aiello referred to a handout summarizing AB 440 ' which was received from Assemblyman Sher's office. It was noted that AB 440 is still on the Governor's desk, and he has until October 11th to sign it. As an urgency measure, ' it would go into effect when signed. Ms. Aiello briefly discussed AB 440, noting what it provides for at this point is still somewhat confusing. It ' was noted this provides for the formation of a regional agency, but it is not clear whether a regional agency can be one jurisdiction simply by declaring itself a regional ' agency. Implied in the law is that a regional agency consists of multiple jurisdictions, but it doesn't necessarily preclude only one jurisdiction. This provides for delegation of authority by franchising jurisdictions to ' a regional agency for planning, essentially to do a regional agency plan for a regional source reduction and recycling element. Where the law becomes unclear is if entities . ' within a County's boundaries are not members of regional agencies, then what do we do? Ms. Aiello pointed out on the other hand that there is still required a Countywide siting element, and it is not clear who is responsible for the Countywide siting element. She felt there needs to be more consistency between regional agency plans, Countywide regional agency plans, and Countywide siting elements. ' Ms. Aiello noted when the State legislature last year did the cleanup of 2494, they dropped the language about special districts that do franchising. AB 440 adds that back in and provides for memorandums of agreement with ' special districts. She noted this was a concern to a number of people in attendance today. F - 15 Contra Costa Solid Waste Workshop September 29, 1993 ' B. Organizational Alternatives for Countywide Solid Waste Management ' 1) III -- Regional JPA's with Coordinating Council and Staffing Alternatives , Ms. Wilson referred to Model III and discussed this alternative which refers to the regional coordinating council. She acknowledged considerable assistance. from Bill ' Davis in preparing this information. She referred to a , handout entitled "Discussion Paper" which discusses the different alternatives outlined. ' Ms. .Wilson recalled the direction from the last workshop was that whatever is developed should be able to stand on its own feet and not be dependent upon every single agency , being a member. She also pointed out that these alternatives are recommended models only, and nothing is cast in concrete. This provides 'a good shopping list of ' responsibilities, and how it is implemented depends on the amount of staff this organization would have. 2) IV and V -- Countywide Solid Waste Authority ' with Regional JPA's; Transportation Authority Model for Countywide Solid Waste .Authority with Regional JPA's ' Ms. Aiello referred to the charts on display around the room, noting copies of these charts were included in the ' packets. She recalled that five options were laid out at the first workshop, and based on the discussion from the last workshop this has been narrowed down to three. It was noted there had previously been. Option 1, basically , continuing to do as currently being done (everyone doing their own thing essentially; and Option 2 was autonomous regional agencies that had no linkage in any way (which ' apparently would be allowed under one interpretation of AB 440) . Ms. Aiello stated as a result of the first workshop that ' staff has concentrated on the three organizational structures presented. She emphasized these are staff's attempts to develop alternatives based on comments from the ' last meeting; they are not cast in concrete by any means, and the group can pick and choose any organizational structure. Ms. Aiello felt Options 4 and 5 are quite similar with a ' top-down or more centralized structure, whereas Option 3 seemed to be a bottom-up structure. She noted Option 5 is ' similar to the Transportation Authority model, and 4 is one-voice, one-vote for everyone because everybody's at the F- 16 Contra Costa Solid Waste Workshop September 29, 1993 table, which was one of the things discussed at the last ' meeting. Chair Mariotti asked whether or not the County would be ' joining as a full member of the JPA. Supervisor Bishop stated that is a policy issue, noting on the West County contract there were some divergent points of view. She acknowledged there may be some of the Board that would like ' to be members, noting as one Board member that would be her preference. Ms. Rainey asked about 939 planning, noting the 939 committee had consisted of a very active and helpful group of individuals providing assistance, and she suggested this continuing on in a technical advisory capacity. Ms. Wilson ' stated a Countywide JPA or regional coordinating committee would assume responsibility for respective plans, and a task force comprised of people from a broad spectrum of ' interests would be advisory to the elected officials. 3) Cost Implications Ms. Wilson presented the information with a disclaimer. In response to strong interest expressed about which approach is the least costly, it was noted there was not a ' good cost/benefit analysis available, which is really beyond the scope of staff. Therefore, a request was made of City staff, sanitary district staff and County staff to provide a ' snapshot in time of their respective cost figures for solid waste. The year 1991-92 was picked because that year generated possibly the greatest degree of solid waste activity except for West County which did their SRRE and HHW Iwork in 1990-91. Ms. Wilson reviewed the cost figure information as outlined in the cost figures handout. With the information provided, it was noted that even in these narrow categories (this doesn't represent overhead or other costs) , there is a significant amount of cost involved in complying with State ' law. In looking at the different options in terms of cost, she noted it was important to understand that in program costs and planning costs -- regardless of whether a regional ' agency does it or a coordinating committee does it or a Countywide committee does it -- there will be a cost benefit. Therefore, the more people join a plan, the more potential for savings. For example, Alameda County (with the exception of two cities) hired the same consultants to do their SRRE's and their HHWE's, noting under such an arrangement it's going to be more cost effective. Mr. Causey asked if the costs shown include program and planning and rate-making costs. It was noted that only F - 17 Contra Costa Solid Waste Workshop September 29, 1993 , Pleasant Hill provided rate-making costs. With the short period of time available for figuring costs, staff attempted ' to zero in on AB 939 planning. Mr. Blubaugh questioned the costs cited for Walnut ' Creek's program implementation. It was noted that cost information was reported for Walnut Creek's recycling and composting program as solid waste costs. Mr. Blubaugh stated that was not City money which was spent, noting this ' was an apples-and-oranges situation. Ms. Wilson noted there was no indication this was City money, only how much was spent by the -ratepayers. It was acknowledged this appeared ' to be an anomaly. Mr. Wolfe suggested eliminating that column because it was irrelevant. Ms. Wilson reiterated the earlier disclaimer, noting ' this information is based on what data was available in trying to ascertain what the reasonable costs for these various activities would be. Furthermore, the level of ' costs really depends on what the agencies decide their tasks will be. Ms. Wilson referred to the next page in the handout , which addressed proposed tasks and potential cost figures for the different options. She discussed the projected budgets, noting some of the figures are based on ' speculation. For instance, capital outlay for setting up an office on a one-time basis could come to $18,000' for the first year; however, this could be significantly reduced by ' using donated services. She pointed out these are the nuts-and-bolts costs, and what is not included is planning and program costs. If one were to have regular ongoing programs, those would have to be selected, and then those cost figures would have to be inserted. Mr. Tubbs asked about G & A costs. Ms. Wilson stated ' this is for general and administrative costs, noting if one enters into a contract it . pays G & A overhead, and also a contract fee. ' Ms. Wilson noted the costs are really not too much different except for programs and planning. Going full scale in meeting AB 939 requirements those costs are going , to be pretty much the same depending on how much those activities are combined and coordinated -- the real issue is the organizational framework which meets one's needs as an ' entity. She recalled at the last meeting there was discussion about concerns that different people felt should be met, and those are shown in a variety of different ways. Each of these options has a positive spin to it in terms of meeting local needs and meeting Countywide needs. F - 18 Contra Costa Solid Waste Workshop September 29, 1993 Kathleen Nimr asked about the relationship between these 1 costs and the ones that the local jurisdictions are already incurring -- are these complementary to or in place of those? Ms. Wilson stated with the minimal amount of information obtained in such a short time, staff was not able to correlate the relationship between such costs. Ms. Nimr asked if the local jurisdictions would actually be delegating to the region and not doing the local kinds of things they're now doing. Ms. Wilson noted if there is a strong regional agency that assumes such responsibilities, it could be assumed that the local agency would not have the need for the support services or the staff. However, whether or not they choose to do so is their own local decision. Ms. Brandt questioned whether full implementation could be done under Option D. Ms. Wilson felt it could, but it would be difficult. She felt it was likely this would have to be contracted out. Ms. Rainey referred to the first page of costs, noting the reference to facility consultants at $205,000, and she asked if that wouldn't be in the same category as planning and programming, noting if this is a bare bones budget it would depend on that is being done. Ms. Wilson noted if there is going to be a MRF there are going to b,ethose kinds of costs. She assumed that each regional JPA is p'robably going to be facility-oriented with facility contracts, etc. Ms. Brandt noted the facility costs are not included in all of the options for comparison purposes. Ms. Wilson stated this would be included and noted this would raise costs. Mario Menesini pointed out the job description isn't really apparent, and he questioned where we are in terms of looking at what the consultants are going to do and how much they're going to get paid. Ms. Wilson agreed, noting everyone in making a decision needs to approach these costs after deciding the frame work within which to operate. This provides a very bare bones kind of idea about some of the costs. Mr. Samson expressed concern about evaluating the organizational structure. He felt the differences, pros and cons of the structure, were not clear. He noted there are different program elements that would fit in depending on how the program is structured, and there are too many variables. F - 19 Contra Costa Solid Waste Workshop September 29, 1993 ' Kathleen Nimr asked about the relationship between these costs and the ones that the local jurisdictions are already ' incurring -- are these complementary to or in place of those? Ms. Wilson stated with the minimal amount of information obtained in such a short time, staff was not ' able to correlate the relationship between such costs. Ms. Nimr asked if the local jurisdictions would actually be delegating to the region and not doing the local kinds of ' things they're now doing. Ms. Wilson noted if there is a strong regional agency that assumes such responsibilities, it could be assumed that the local agency would not have the t , need for the support services or the staff. However, whether or not they choose to do so is their own local decision. Ms. Brandt questioned whether full implementation could ' be done under Option D. Ms. Wilson felt.,it could, but it would be difficult. She felt it was likely this would have ' to be contracted out. Ms. .Rainey referred to the first page of costs, noting ' the reference to facility consultants at $205,000, and she asked if that wouldn't be in the same category as planning and programming, noting if this is a bare bones budget it would depend on that is being done. Ms. Wilson noted if ' there is going to be a MRF there are going to be. those kinds of costs. She assumed that each regional JPA is probably going to be facility-oriented with facility contracts, etc. ' Ms. Brandt noted the facility costs are not included in all of the options for comparison purposes. Ms. Wilson stated this would be included and noted this would raise costs. Mario Menesini pointed out the job description isn't ' really apparent, and he questioned where we are in terms of looking at what the consultants are going to do and how much they're going to get paid. Ms. Wilson agreed, noting everyone in making a decision ' needs to approach these costs .after deciding the frame work within which to operate. . This provides a very bare bones ' kind of idea about some of the costs. Mr. Samson expressed concern about evaluating the ' organizational structure. He felt the differences, pros and cons of the structure, were not clear. He noted there are different program elements that would fit in depending on how the program is structured, and there are too many ' variables. F - 20 Contra Costa Solid Waste Workshop September 29, 1993 Chair Mariotti stated she took a nuts-and-bolts approach ' to the future in relation to the County's solid waste issues . She felt this helps in leading this group to where it wants to go as an organization. 4) Pros and Cons of the Organizational Alternatives ' Ms. Oliver felt one of the problems the group is experiencing is exemplary of some people's worst fears when AB 939 was first passed. She pointed out there are ' different jurisdictions in the County that have grouped together because of their respective special needs. What this is an attempt to do- is to look at everything to see what can be fit together for better coordination. ' Ms. Oliver discussed the background of the Countywide JPA, noting that envisioned all jurisdictions working ' together on equal footing with the County to try to solve, solid waste problems. She recalled after the JPA was formed that jurisdictions began to perceive if the County did not belong to the JPA that it would have no real future. So there was great focus in trying to get the Board of Supervisors to come on board. She felt this brought West County together in an attempt to find something that would ' work for them, and then Central County, etc. Whether or not this can be tied together with coordination among the regions remains to be seen; however, she pointed out that, ' frankly, much of this depends on whether or not the County will come in. County Supervisor Gayle Bishop stated she was one of the new members on the Board of Supervisors. She noted the Board is rather diverse; however, from one person's point of view, she felt the County has to be a player. She stated she needed more information to take back to the Board of ' Supervisors in order to obtain more feedback. She stated . she was here today to listen and learn. Mr. Menesini felt there was considerable commonality between the garbage issues in one area of the County and another area of the County. He felt it was important to define what we're all about in terms of our approach to garbage, and to develop a unified approach in looking at the garbage stream as an entity rather than as diverse kinds of characteristics coming from each part of the County. So, ' No. 1, it was important to look at the commonality of all our interests rather than the diversity of interests. And No. 2 , it was important to seek solutions to solid waste ' problems not as a diverse body, but as a unified body. F - 21 Contra Costa Solid Waste Workshop September 29, 1993 Supervisor Bishop pointed out today's discussion was about structure, goals, and how to achieve those goals. She expressed frustration in relation to the surcharge and mitigation fees. Ms. Oliver concurred with Mr. Menesini that our goals are the same, noting a somewhat more local approach to solving some problems which are not necessarily in conflict with other areas. From the perspective of San Ramon, she stated one important issue is continued control of the waste stream. Secondly, they seek minimal bureaucracy which is needed to involve the AB 939 people and get everyone working together, such as a . regional approach with Countywide coordination for legislative purposes in resolving the issues involved with AB 939. She also felt no member or region should be able to profit from the rate structure of other regions, as alluded to by Supervisor Bishop above regarding mitigation fees. Ms. Rainey provided additional historical background of the JPA, noting this was started approximately five years ago; however, they couldn't get the County to participate. Perhaps they should have just gone ahead and had the structure in place because then there would have been a more coordinated Countywide organization in place to do the 939 planning and possibly some other functions before a lot of subregional agencies were set up. Subsequently, the West County formed a successful and workable JPA; Central County has been doing the same thing; and East County is still deciding which way it is going to go, e.g. , Delta Diablo or Pittsburg or Concord. In discussing pros and cons, there may be people who are not ready to now give up their powers to a large agency. Ms. Rainey referred to Model 3, noting this provides for a coordinating body which can exchange information and explore ways of working together. Furthermore, she felt No. 3 was a positive in allowing for local control and being the least costly, and at least providing for some coordination. Ms. Aiello did not want to dredge up ancient history, but she felt it was important for the record to reflect that in the mid-1980's the Board of Supervisors did make an offer to the cities about forming a joint powers authority, and for a variety of reasons that did not work out. She felt there has been considerable effort during the last two or three years to try and work together to give and take. She noted that different regions are doing different things to address their specific concerns, and there are still strong differences of opinion, e.g. , the issues of power and the financing that goes with all of this. F - 22 Contra Costa Solid Waste Workshop September 29, 1993 Chair Mariotti reported she recently attended a Local ' Government/Commissions Conference, and she was asked to speak regarding JPA's. She expressed surprise that this group within Contra Costa County is further along than many other areas up and down the State where they are just learning how to come together to cut their costs. Ms. Wilson underscored Ms. Aiello's comments, noting ' when the offer was made by the Board of Supervisors in the 1980 's to the cities to form a JPA, they were turned down royally by the cities. One of the reasons for that was that State law at that time put the responsibility of solid waste management in the hands of the County, and a lot of the cities took the attitude, "It's your responsibility. Why should we get involved?" Unfortunately, that "why get ' involved" attitude still pervades with some people, not necessarily so much public officials, but that it's still someone else's problem. ' Ms. Brandt acknowledged Ms. Rainey's comments about why Option 3 would work;. however, she was also considering Ms. Oliver's comment that there should be no financial advantage to one region over another. She asked if that might make an argument for Option 5 in resolving Countywide solid waste issues. She felt these two options almost compete. Ms. Rainey noted the Alameda JPA analyzes rates within. the individual jurisdictions that set them, and she ' questioned whether any agency is going to want to give up rate-setting. Ms. Brandt stated she was not just talking about rates, but also MRF's, transfer stations, etc. , that : could affect rates. Ms. Oliver felt this could be done with either Option 3 or 5 . She felt 3 would give more control to a local entity in relation to what best fits its own customer needs which are different throughout the County, e.g. , development areas versus residential areas. Ms. Aiello pointed out that different items can be added or deleted from any of these proposed structures. ' Mr. Laurence acknowledged Mr. Menesini's comments about everybody looking at the total picture; however, the reality is that there are different powers and different contractual arrangements that have to be considered. He felt we have come a long ways in getting everybody here around the table to this point. He felt this is an opportunity to go on to the next step, and whether or not we can go to Model 4 or 5 was down the road in the future. F - 23 Contra Costa Solid Waste Workshop September 29, 1993 ' Mr. Laurence felt this entity needs to do what it can in terms of regional cooperation and proving itself to the , various entities. He pointed out that AB 939 has been mandated upon everyone, and if we can do a good job with a structure like that then we can evolve to something bigger. ' But Model 3 is the only one that has a bottoms-up approach, noting the other two are top-down. He stated his Council was concerned about not emulating the Transpac version with a large overhead attached to it. So, from Clayton's ' perspective it appears that Model 3 would be the one it would prefer to work with. Mr. Laurence felt the ratepayers' first goal was to make i it affordable, so it was important to effect a cost savings and to maintain local control over important local issues. ' He acknowledged there are some areas with significant industrial issues to deal with and others such as Clayton which are strictly residential. : He felt it was important to,__ look for ways to save money and still retain local control , and work together, then maybe a year or so from now we can take the next step. But at this point, he favored starting at the bottom of the ladder. Ms. Oliver noted one of the hardest things for staff to grapple with in relation to financing was what to do about programs. On closer analysis, she noted that some of the , small JPA's will probably want to implement programs on their own. Once those are up and running and successful, then it becomes far less expensive for other JPA's to pick ' up similar programs; therefore, she felt the small JPA's should not be limited from being innovative. So, no matter how the numbers for programs are massaged, they will not be based on reality until we know what our direction is. Ms. Rainey referred to Model 3 which the majority seems to be leaning towards, and she noted the most important ' thing to do, whichever form is picked, is to have good work programs. So if this group picks No. 3 it has to have some sort of a purpose, and there has to be a work program. Otherwise, people are not going to pay money to be a part of it, and they're not going to feel their time is worth it. Therefore, with No. 3 a program has to be established, not simply a coordinating council meeting on a quarterly basis. Chair Mariotti noted there appears to be general consensus leaning in the direction of Model 3, although ' perhaps the program isn't well enough defined 5. DISCUSSION AND QUESTIONS BY PARTICIPANTS Mr. Menesini stated there is a whole spectrum of fragmentation -- from each individual city doing their own F- 24 i Contra Costa Solid Waste Workshop September 29 , 1993 thing, all the way to a Countywide program. However, before ' giving up a Countywide plan, he recommended doing a systems analysis of what it would take at each level. Mr. Samson was not sure what all a system analysis might entail, but he was not sure he wanted to give up on a Countywide approach either until he had some understanding operationally of what it means to his jurisdiction and all the others. He wanted clarification in terms of implementing programs and how this is going to work vis-a-vis the more top-down models. iMs. Rainey cited the formation of the local JPA's. Therefore, she questioned spending the kind of money and having the kind of meetings it would take to be able to coordinate all of the solid waste activities within the County, noting, politically, this may not be feasible any more. However, she stated she would be very pleased if this group eventually got to Models 4 or 5 from Model 3 . Mr. Laurence questioned the practicality of hassling over the voting, etc. , in relation to Models 4 or 5, whereas something like Model 3 could incorporate some elements of autonomy over here or some elements for future control over there. He felt something needs to be done that will take ' advantage of regional cooperation in relation to garbage issues, noting Model 3 provides a more pragmatic approach upon which to build. iMs. Oliver acknowledged Nos. 4 or 5 may be the eventual goal, but she felt they were a bit premature at this time because of what else is happening. She agreed it was important to find what the common interests are and where the different groups can work together as a goal. She felt the individual entities may be more resistant to stepping into a top-down situation with the amount of work they have done thus far than they would be in stepping into Model 3 . Ms. Oliver felt the group was moving forward in taking the different elements and bringing everything together, noting there had been Options 1 and 2 before, and the previous information has now been distilled into three ' options. Mr. Sweeny pointed out the fact that most entities are getting involved or have been involved regionally, noting it makes sense to continue down that road. Therefore, he felt some aspect of No. 3 is the logical way to start off. Regarding earlier comments about having a work plan for this coordinating council or committee, he felt initially it should be limited to those things that legally are required to be done on a joint basis and those which logically fall F - 25 Contra Costa Solid Waste Workshop September 29, 1993 ' into a Countywide or regional type of approach, then let the coordinating group work on those aspects and any kind of , cost savings they need to come up with. As other events actually evolve, then it would make sense to go into one of broader models. , Ms. Beth Bartke referred to page 18 of the discussion paper, citing four very good reasons to go with No. 3. She noted membership would be representatives from each of the ' boards of directors of the regional agencies and the County Board of Supervisors, with quarterly meetings scheduled only as needed. She felt this approach addresses duplication of staff and resources. Therefore, she felt No. 3 would be a good approach. Ms. Rocha concurred in support of No. 3. Ren Graunstadt represented Delta Salvage, and he felt this was drifting away from AB 939 and creating a diversion ' to it. He felt this was breaking away from the elements that were created, and he didn't know how that was going to reflect on 939. Ms. Aiello noted one of the pending issues was to deal with an overall organizational structure, so actually this would be a step forward in addressing that. Ms. Wilson referred to the draft .regs and Countywide plan which underscore doing everything to encourage people 'to find a framework to work together and meet AB 939 goals. She did not see this discussion in relation to finding alternative structures as inimical to that process. She felt people understand they have to comply and they have to meet the spirit and intent of AB 939; it's whatever process makes them most comfortable and which they feel is most responsive. Ms. Rocha noted in dealing with AB 939 there were quite i a few people at the table. She noted the possibility of eliminating certain avenues of input, e.g. , from Ironhouse. It was noted the frame work could possibly be structured in such a way that would allow input from the franchising sanitary districts. Ms. Aiello noted the charts are depicted as shown because Ironhouse is not a member of a regional agency; however, were they to become one, they would be up there. Chair Mariotti relayed a concern from Kensington because they don't belong to a JPA and they have no representation. ' It was noted this would also affect Crockett-Valona. Motion by Ms. Brandt that staff fully develop the i concept behind Model 3, reviewing the options for local F - 26 ' Contra Costa Solid Waste Workshop September 29, 1993 control issues (that may not be included here) as well as the regional coordinating elements (which are not included here and which might be in the other ones) leading to a staff report for review which can ultimately be sent on to ' respective councils and boards; second by Ms. Jane Bartke. Ms. Aiello asked about staffing level options. ' Ms. Brandt felt there was general agreement for minimal staffing, noting possible exploration of Option B or D. Mr. Laurence suggested voting on the motion, then dealing with staffing alternatives. He agreed it should be minimal, but enough to be effective. If it's not more than quarterly meetings and more than a meet-and-greet, he felt it could unravel and not accomplish anything. So he felt it should be approached with a staff of sorts, and even though ' it would be a bare bones staff it has to be the kind that can get something done. Ms. Oliver suggested one perspective: to begin getting ' together the staffs of the existing bodies to see how that works -- the staff for each JPA, perhaps the County and perhaps Delta Diablo, etc. -- so that they could look at what they feel would be the minimum coordinating body. She suggested that every potential entity be involved, but not necessarily with a paid staff off the top. Mr. Purnell, on the motion, noted in preparing something like this that the issue of staffing support needs to be determined -- not now, but later down the road. He pointed ' out in the West County regional agency's case it is a separate governmental entity, and this issue has not come before that board. He felt as to each of the regional agencies there would have to be a vote whether or not to participate. Until that decision has been made, he felt the discussion of staffing levels was premature. Ms. Aiello requested a direction as far as preference in developing Options A, B, C or D further, or was there some other preference on staffing level. She emphasized this was ' not casting anything in concrete, simply requesting staff to develop some information for further review. Mr. Purnell pointed out that will also be a factor in determining which of these four options to do. Mr. Laurence also felt it was important in analyzing ' various things to know if it's going to be a Chevy or a Buick with respective costs, etc. He also noted if one or two entities don't come in, it was still important to go as far as we can. F - 27 1 Contra Costa Solid Waste Workshop September 29, 1993 Ms. Rainey noted this is aiming at some sort of a Countywide body and basing it on existing regional agencies. While the Central County agency is talking to Clayton, Martinez, and Pleasant Hill, they have not yet joined, and they are grouped in there. She noted the sanitary districts are a concern, and that will have to be worked outwith the County. Furthermore, we still do not know what is happening with Concord and Pittsburg. She suggested when staff is looking at this that there should be some sort of mechanism or thought as to what is happening to those entities that don't belong or an alternative. Ms. Wilson noted this goes back to some of the things that were being discussed earlier, that in developing further information, whether it is Option B, C, D or whateverr, the frame work has got to stand alone and not dependent on a given entity being a member. Ms. Rainey assumed from the above discussion that staff would not be looking at Option A, but at this point Options B, C and D would be the ones to begin with. Ms. Aiello suggested probably B or C. She noted in talking about B in discussions with Ms. Wilson and Mr. Bill Davis that it was envisioned as perhaps rotating. Ms. Brandt amended the motion to include exploring staff Options B and C, and this was acceptable to the seconder of the motion. County Supervisor Bishop pointed out the agenda refers to Contra Costa County and the County Costa Solid Waste Authority, and she pointed out she is only one Supervisor. She stated there should be at least the exercise of bringing these alternatives and options before the full Board of Supervisors. Chair Mariotti noted that Supervisor Bishop also sits at the Countywide JPA as this is being discussed in a workshop between the County and the Big JPA. Ms. Aiello clarified this was only giving direction to staff to pursue further as opposed to taking an official action. In this context she would not be voting for the County, it would be further direction for staff to explore these issues. Ms. Wilson noted as we move toward these refinements and things are being eliminated, as well as being asked to come back with options B and C, that at some point in time everybody should understand before getting too far down the road they may need to check back with their respective entities which they represent to see that we are on the F - 28 Contra Costa Solid Waste Workshop September 29, 1993 right track so we haven't spent a lot of time on something that the majority may not support. Ms. Brandt stated the aforementioned was intended as part of the motion, and this was concurred in by the seconder. The motion as amended was passed unanimously with the exception of Mr. Samson who voted against. Mr. Samson stated he heard operationally why the County model is going to be cumbersome, but he was still not sure if he heard operationally the advantages of one over the other; however, he understood we have to move forward. 6. DIRECTION AND SUMMATION Ms. Wilson noted this matter would be going to the JPA, and she presumed those members of the JPA would convey to their respective agencies what the consensus here was. It was noted the above direction to staff would be coming before the JPA at its November meeting. Supervisor Bishop requested Ms. Aiello to agendize discussion regarding the above for consideration by the full Board of Supervisors. Chair Mariotti thanked everyone for coming and participating. She commended the efforts of the County and JPA staff in working together so cooperatively. 7 . ADJOURNMENT There being no further business, Chair Mariotti adjourned the meeting at 6: 15 p.m. to the next CCSWA Board meeting whit h duled for Wednesday, October 6th. Greechetr,-,Mariotti,' Chair Contra Costa Solid Waste Authority County of Contra Costa State of California ATTEST: Karen A. 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In order to accomplish this, we are proposing to come back to you in December or January with a report which would include, but not be limited to, the following information: • Composition of the regional agencies and the role of non-member jurisdictions; • Under each option how the proposed coordinating council's activities could be ' funded; • Management and operating procedures between all participating jurisdictions ' and agencies; • Suggested focus and work plan for the proposed coordinating council; ' • Resolving interagency intera enc differences; ' • Parameters of contracting and the contractual relationship; ' • Time needed to get documentation ready for dissolution of the Contra Costa Solid Waste Authority. G - 1 . '! � - :�q , A_ ,� / ;f , " � � n: t, � f'1 � I _ -. / � i ''t. v_ � t, f `� , I n r � 1\ �; �, r ,a r y It> v �' �-j T , I ,' � I, V k. 1� t I, f +,, x, / . 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"I ,`, �!� 1� (� ,A -p' ;;" V}'fes rr- fir` \r i� ' �,.ta h� "A 1��lt:.:�f( r,(.`- /I 1 E;� \ ' -r ,Y v .l' I r, t:f1,r `� i � , �'- r-.�'' a« p r`I l� ..k'��'�r r' t I l r k v :: I -" t- -\ K�- y `�y �/ - �\ ti�•�- t t)ld,. f ..� \ ��Z. r. Jr l:,. ! f. :.n A 'y r f A t t /.a ` '� h \- C t� ls-a \k�ki n r �„a r, t _ c „-. 'l 1 3 �' v `Sy \ 5 ` T, r \ } y ..\ t r . A 1L1 ,\�;; \ \ l g r ll k t Ll i 4` ~ ti a i' r .7Y. f, t 7 j l^1� % i. \ n ,- t r�`t f , ^ N ,� k r's f^ - ,1 , !-,''r V, (,t ,.l1 A r r r V11 ��{ >4' �` vti i-r t`\� �`' !l �� f n-� y� ��' }P,�� r {�, �'. ( .�fry, a tr r� a2. �} Y _ (:., /V.}. y f,l \ V"" Tti ,ti /,,„A�",,, r i �,-,,-i 7?. F I➢ ,, Y � f ti� 7 s.A �;.� . , ° r t-, z.-� 1. _ `t<-�' I � \ .,F'T .r 'Y` 1( l ... / _A �Ir. _h. - r r �f r V; t- "'�' J V<.� t( e. eta` � v r v� A e'" �✓ -"i'J'' r f i�•A`� 'l� -t' . ` . 'I .�-' S V( r -I � / , �- CS l t' �, 6 ,�_ i ! -�,, f. b - ,�} 1 r �A �- �n�" ,) ��: f 1� f `�,2v. \ '' t 'k L r -� ,� ►� Contra Costa Solid Waste Authority Avon M. Wilson January 19, 1994 ' Executive Director 4737 Imhoff Place.Suite 4 Martinez,CA 94553 FAX(510)22i3 Honorable President and Board of Directors ' FAX(5101229-91?4 Central Contra Costa Solid Waste Authority 4737 Imhoff Place, Suite 4 Martinez, CA 94553 Ce-':r a costa Attention: Joyce Murphy ' °` "vi );S-,v Subject: PRESENTATION BY LOUISE AIELLO AND AVON WILSON Dan,,,;. TO THE CENTRAL CONTRA COSTA SOLID WASTE ,. . AUTHORITY ON JANUARY 27, 1994 - SOLID WASTE REGIONAL COORDINATING COUNCIL STAFF OPTIONS Say,_ Ladies and Gentlemen: On January 27, 1994, your Honorable Body will consider staffing options for a solid waste regional coordinating council. Your consideration and ' input will provide direction to the Contra Costa Solid Waste Authority and Contra Costa County as they formulate their recommendations for how easE,17 solid waste planning and programs shall be managed and funded in Contra Costa County. - As you will recall, both entities, as part of a Memorandum of Agreement -a'k and Work Plan, agreed to delineate, in cooperation with the sub-regional ' solid waste joint powers authorities, roles and responsibilities for solid waste management. To facilitate this discussion and study, two workshops were held in July and September, which included citizens, ' policy makers and staff from cities, sanitary districts, the Board of Supervisors and the Authority. Participants from both workshops considered a variety of county wide solid waste concerns and ' organizational structures which would best respond to those issues. The first sheet of the attached materials describes the structure which the ' workshop participants believe best provides for local control as well as county wide coordination and cooperation in solid waste management. In their recommendations to the Authority and Board of Supervisors, workshop participants also recommended that two staffing options be considered in greater depth: Contract Staff and No Staff. Out of its follow-up to the workshops, the Authority Board of Directors has directed that County and Authority staff develop additional information on these options and solicit input from Authority member jurisdictions and regional JPAs as part of their final report to the Authority. H - 1 January 19,1994 , Presentation for January 24, 1994 Council Meeting - Solid Waste Coordinating Council Staff Options ' Page Two The attached packet of information is intended to facilitate dialogue with ' your Body on these options and the issues which they raise; further refining the development of an organizational structure for county wide ' solid waste management. We look forward to your input. , 4eAon ly, vM. Wilson Interim Executive Director ' Attachments cc: Fred Davis, CCCSWA Executive Director ' Central Contra Costa Sanitary District Town of Danville City of Lafayette City of Orinda Town of Moraga ' City of San Ramon City of Walnut Creek. Contra Costa Solid Waste Authority ' Louise Aiello, County Solid Waste Programs Manager H - 2 , c vm cc Q-m d� m<t a a cts Eos O rma Ct �i m 1 r • , l � 1 t It t < l l � f 3 • y, 4 f ~ t i S t i1 y 0 a I y ` uj U r � c Z 3j .U Y � a „ c � a „ L o U C � H BASiC ORGANIZATIONAL UNIT WITHIN COUNTYWIDE SOLID WASTE ' MANAGEMENT STRUCTURES ' R4n •i n i Jp6s/Regional Agency RA ' Under AB 440, enacted in 1993, two or more jurisdictions may form a Regional , Agency for the purpose of, solid waste management planning and program ion- the Regional Agency may be formed as an official joint-powers implementation; g 9 Y J authority, or by using a memoranda of agreement or contractual agreement. The , members of the Regional Agency must identify exactly what solid waste management respo n i ilities have been delegated by the individual jurisdictions to the Regional ' s b 9 Agency, how the waste generation/disposaildiversion amounts are split among the , members of the Regional Agency. The Regional Agency must be officially recognized by the California Integrated Waste Management Board. The Regional Agency may ' prepare one SRRE, one NDFE, one HHWE which fulfill both the individual member's requirements for these plans and comprise the Regional Agency's Integrated Waste Management Plan. AB 440 continues to require a Countywide Plan and a Countywide Solid Waste Facilities Siting Element which, apparently, may be based on both Regional Agency Plans and individual jurisdiction documents. ' A. Geographically prescribed , B. Does not have to be formal JPA but can be contractual constituted body. ' C. All should have some common thrust, mission objectives, action related to the goals of AB 939. , H - 4 ' D. AB 440 responsibility. 1) Regional Agency SRRE, NDFE, HHWE; 2) County - a) Countywide Plan based upon SRRE's, NDFE's, HHWE's of ' Regional Agency and/or individual jurisdictions; b) Countywide Solid ' Waste Facility Siting Element based upon 15 year disposal capacity identified by each Regional Agency and/or each individual jurisdiction; and ' 3) Individual jurisdictions - Non Regional Agency members - responsible for own jurisdiction. SRRE, NDFE, HHWE. ' E. enc Regional Agency/Non-Member Relationships. 9 9 Y ' 1) Operate and plan.separately; 2) Identify mutually beneficial.activities for programs and cost savings; 3 Developa forum, for discussion of regional solid waste issues which 9 involves Regional Agency and non-member jurisdictions; and 4) Provide opportunities for non-member jurisdictions to participate in. selected programs on,a pay=as-you-go basis- I� OPTIONS FOR STAFFING COUNTYWIDE SOLID WASTE MANAGEMENT STRUCTURE - NO STAFF A. No Staff - Lead agency provides: t1) Secretary/minutes; 2) Financial staffing (budget; finances);. i 3) Administrative direction by agency executive director, city or district ' manager; 4) Contract for special work; and/or F+-5 1 5) Rotate among Regional Agency. B. Activities 1) Limited by lead agency ability to staff; 2) Meets quarterly to monthly; i 3) Special projects divided among elected officials and staff from member , jurisdictions (i.e., backyard composting); 4) AB 939 activities coordination dependent on number of members; 5). Could contract total AB 939 work to consultant using AB 939.staff as ' advisory council; 6) Couid utilize AB.939 staff as support staff/review body,.to coordinate ' common programs - devised by policy makers. Lacks continuity for ' overall AB 939 implementation. C. Non-agency oarticioation. 1) Same as Regional Agency; 2) Encourage to join Regional Agency; 3) invite to participate on specific activities - staff level - policy maker level; 4) Invite as ex officio to participate in discussion; and 51 Would be provided limited information materials, as Coordinating Council budget permits. D- R n in 1) Assessment from franchise fees to pay for activities; 2) When transfer station built, can use tipping fee; H - 6 ' 3) Lead agency paid by member jurisdictions for addition support; and 4) individual agencies pay for specific projects/program, ' administration. ' contract Staff - Coordinating Council/JPA A. Coordinating Council contracts with agency to provide staff/administration to ' accomplish desired work project; an RFP process could be used. RFP or ' contract should specify parameters of what Coordinating Council wants to accomplish. ' B. Contract staff may do ail administration; program developments or ' C. Contractor may under specified provisions of contract,subcontract part of work such as: ' a) waste generation studies; ' b) mitigation monitoring; c) annual reports to C1WMB; ' d) program deveiopment/diversion programs; and ' e) depending on membership, i.e., County — could do Siting/CoIWMP -- ' contract out. 3l. FOCUS/WORK PLAN ' Discussions in the two workshops resulted in no clear-curt decisions on the role/responsibiiities of the Coordinating Council.. - Differences of opinion remained t regarding rdin the degree to which local autonomy, dispute resolution between individual g ' jurisdictions or Regional Agencies, and/or coordinated planning and program timplementation should -be provided in the organizational structure. AB 440, as H - 7 enacted, provides significant autonomy to both Regional Agencies and individual jurisdictions resulting in direct responsibility and linkage between the State and ' Regional Agencies or between the State and individual jurisdictions. The degree of coordination desired may be, as a result of AB 440, strictly a question of local preference. Thus, further discussion among cities, Regional Agencies, and the ' County seems necessary to focus the role/responsibiiity of a Regional Coordinating Council. ' The roie/responsibilities outlined for the Regional Coordinating Council require your ' further consideration, input, discussion are: • Coordination of Regional Plans & Programs ' • Coordination of Disposal Arrangements , • Preparation of Countywide Siting Element (Presumes County Membership) ' • Preparation of Countywide Plan (Presumes County Membership) ' • Recycling Markets Development Zone Administration (Presumes membership of all Recycling Market Development Zone Jurisdictions) ' • Coordinate Interaction with State ' • Recommendations Regarding Disposal Sites • Resolution of Disputes , IV. PARAMETERS OF CONTRACT AND/OR ROTATION OF STAFFING ' In establishing a Regional Coordinating Council, the first step for all entities to take seems to be the determination of the role/responsibilities of the Coordinating Council. Based upon decisions, the parameters for either contract staff or rotation of existing , staff will, in large part, result from the work that needs to be done. General H - 8 ' ' "operating" guidelines or parameters do seem to be appropriate for consideration at ' this point. The following "operating" parameters are suggested for consideration (your input and additional ideas are needed): 1) The degree to which AB 440 responsibilities are assigned to a specific ' entity; 2) The staff expertise and time available; ' 3) The ability to provide the staff on an in-kind basis rather than at an ' additional cost to other agencies; 4) The degree to which the contractual/Lead Agency role is consistent with ' (or nct in conflict with) a coordinating role. 938u:JPA.RA H - 9 t r � \✓"• 114- _�. x a ,- .� +- , 1 r+ `�' 1 t \ ; � '` \�„kt t "'ir �� � i �1 � � �,' 1 r ,�-,� a< k .t j ,v � •, i i \ J r, � ,} '.1 r t�: / - V F••a - �y It`i'� �� , i \ �. .� �`K '. '� r ' 'z i f fti� W \ At � Iv ` r r� t ,'-� ` i = 3 j �\t .; r tai � � \ ; } t� f{ 0�` \ ,�'`• S af.�.r ,1`- � t�. � "•�'r .•�a,r.\\ r�+,L. ��'""�'� q_' �r ) � t�.� r� '`. �.:�ja ht�-t°. 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' �; 1: �. _ t " d r I � �, ✓ .�" ,J � r, 1 /� 'v:, t ++�t � f 1 .� f ��r ����, r4 •t' t + 7 � t ta. .1_� i. � ��� �� ti( I'r� Y � `1 #�� � ,�' ti'� -� rr �'� a ✓, _. t r A ,( y � l,Ar �t� A � I �.��-t ..,�y� \ �wi'i.t - is .l A l . � � '1 t\t .a I ��. r t • . r A\ .a. ...; � l,tt /f �r l rt � �. 1 � 't � ' � � � \ z1•, t� {, t .... fYt t r , �. .� E. .�/. � t� � t . it n P � ALTERNATIVE ORGANIZATIONAL � STRUCTURES FOR COUNTYWIDE ' SOLID WASTE MANAGEMENT CONSIDERED BY WORKSHOP I ' I . CURRENT SYSTEM � II. AUTONOMOUS REGIONAL SOLID � WASTE AUTHORITIES III. REGIONAL SOLID WASTE AUTHORITIES COORDINATING . � COUNCIL V. COUNTYWIDE SOLID WASTE � JOINT POWERS AUTHORITY � V. TRANSPORTATION AUTHORITY TYPE SOLID WASTE AUTHORITY I . CURRENT SYSTEM � County' • AB 939 Countywide Plan, Siting Element, , • Potential Contracting with JPAs, cities for programs and/or planning � Multi jurisdictional Organizations � • West Contra Costa Integrated Waste � Management Authority � • Central Contra Costa Solid Waste Authority � • Delta Diablo Global Agreement ' • (Potential) Pittsburg - Concord JPA Cities � • Source Reduction and Recycling Element t (SRRE), Household Hazardous Waste Element (HHWE), Non Disposal Facility , Element (NDFE) Mitigation Monitoring • Plan and implement Programs individually � or in cooperation with other jurisdictions • Potential members of facility-based joint � powers authorities. ' i 2 , � II . AUTONOMOUS REGIONAL � SOLID WASTE AUTHORITIES � Membership � 0 WCCIWMA - West County cities � contract with County � 0 CCSWA - San Ramon, Walnut Creek, ' Central San., representing Lamorinda and Danville � 0 Pittsburg - Concord (Potential) • Delta Diablo S. D. Global Agreement - � Pittsburg, Antioch and County � Mission - Responsibilities ' 9 Facility development; management ' 0 Facility-related program implementation � 0 Regional AB 939 related planning and monitoring • Coordination of programs within region ' I - 3 III. REGIONAL SOLID WASTE � AGENCY COORDINATING � COUNCIL ' Coordinating Council ' • 2 representatives from each regional � agency • Countywide AB 939 planning (If ' County is a Member) • Addresses countywide solid waste ' Issues � Regional Agencies � • Facility Development and Management � • Regional AB 939 Planning ' • Regional Program Implementation , � IV . COUNTYWIDE SOLID WASTE � JOINT POWERS AUTHORITY � Each city, franchising agency and the ' County has a seated representative � Responsible for: � o Policy development ' o AB 939 Countywide Plan and Siting Element and mitigation monitoring � (assumes County membership) o Reporting on diversion to State � o Development of model ordinances, ' i.e., franchising, rate regulation government procurement, etc. � o Coordination of SRRE, HHWE, NDFE preparation;Assist regional � agencies-cities with implementation � Regional Agencies. (WCCTWMA, CCSWEI, Pittsburg/Concord, Delta Diablo) � Facility development and management � 0 Facility related program implementation V . TRANSPORTATION AUTHORITY � MODEL � Representation � • 2 representatives from each region � • 1 Mayors' Conference representative � • 2 Board of Supervisors representatives Responsibilities , • AB 939 Countywide Plan, Siting Element � mitigation and monitoring, reporting to State • Resolve countywide/inter-regional solid � waste issues ' • Coordinate countywide programs; implementation ' • Develop model ordinances for rate regulation, franchising, procurement, etc. � Regional Agencies � • Facility management � • Review/comment AB 939 Countywide Plan � • Implement regional/facility based programs • Coordinate AB 939 regional plans/programs � WORKSHOP I CRITERIA FOR ORGANIZATIONAL STRUCTURE � Cost effective � Non-duplicative- not another layer of govt. • High quality of service to rate payers � Local control ' Local constituent involvement; control • Retains unique local programs ' Resolves intra/inter-regional conflict • Retains local control of revenues � Avoid excessive rmanagement, control, regulation; top heavy or unwieldy_ � organization ' promotes cooperation- not competition - between regions/cities for control � Efficient - Not top heavy or unwieldy • Assures Countywide/Local Plans will be � implemented ' Avoids impact on local haulers • Assures that no entity will be left out of the � loop • Provides a system which builds trust. � Addresses current lack of trust of other ' agencies. ORGANIZATIONAL STRUCTURE ' SELECTED BY WORKSHOP II III. REGIONAL SOLID WASTE AGENCY � COORDINATING COUNCIL � Coordinating Council � • 2 representatives from each regional � agency ' • Countywide AB 939 planning (If � County is a Member) • Addresses countywide solid waste , Issues Regional Agencies om_ , • Facility Development and Management ' • Regional AB 939 Planning � • Regional Program Implementation � i -s ' � STAFFING OPTIONS SELECTED BY � WORKSHOP II � Option B - Contract Staff � Staffing by contract with cities, regional � agencies or County o Full time solid waste coordinator � o Full time secretary o Contract with County, city or regional , agency for legal counsel � Other work by contracts as needed � Option C - No Council Staff � No staff would be provided. All staffing ' needs would be met on an "ad hoc" basis. • A city, regional agency or the County would � be designated as the Lead Agency for purposes of administration and responsibility � for Coordinating Council meetings. t Work would be identified as the need arises and be accomplished by contracts with � member jurisdictions, other agencies or private sector. � Responsibility for administration of work contracts assigned at time of contract. ISSUES TO CONSIDER IN � SELECTING STAFFING OPTIONS � • Composition of the regional agencies and � the role of non-member jurisdictions; � • Under each option how the proposed � coordinating council's activities could be ' funded; • Management and operating procedures ' between. all participating jurisdictions and � agencies; ' • Suggested focus and work plan for the ' proposed coordinating council; • Resolving interagency differences; and ' • Parameters of contracting and the ' 1 relationship. .p O O c N O W CL o LU .o ca ' c 0 r C1 � tr CO CD cc c c N O_ 1 D Lt) LO LU U- t3 0 Q LU M cc C ❑- cts O ...1 c -0 LO 1 W N C E - w co O #= on (n a) LL cc o CO min —_ �.} cC O 0 a3 1co (n � cc CLM U— cc o 0 cnw- i c. M (j c c +O'' p. C +w-' E c -p cn ni W M O V C7 i p LO cov C3 F— 2 U co 0 .0 luzca! U— Lid1 ++.aO cc LO -0 -0U- N ~ z c ?. 3.3 0 d} u3 o a c c n cr- cn v > o (n U-1 0 Lu W d �C U— .. > o U c c z ° CO �#" o c CII U O t1. 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L t \ _.,V y, t 7F� { F it z � �� �.�`� -f"), , ,5 / f yeti } ;t-- -/r �` �", t •. \��' � �� �. /� \� 7�s rlr , ', , _�% �. �.,.�ti t`_;; t� ,-_ 1 j �'p �R\/ �� i` ��' .'�1f � :+ �1/.tr` {� y \ 1 C I t i 1 \ tet' �f ��. r �Z \ '4y C c r i V �)� ., /� ,) V )i `-, a ,t( _i, 1 v I J )- -\I� `„ i : , i .: ;,` ,• t Sr` -3" ,,,: ;\rte V.T , i �.� , ij / '� - "t 1. I1" , t, ttf�t% , % ,.,'�� -- � � ' 1� ; ! CONTRA COSTA SOLID WASTE AUTHORITY February 2, 1994 TO: HONORABLE BOARD OF DIRECTORS ' FROM: AVON M. WILSON, INTERIM EXECUTIVE DIRE R SUBJECT: TASK I ROLES AND RESPONSIBLIITIES FOR SOLID WASTE MANAGEMENT - PROGRESS REPORT AND PRELIMINARY RECOMMENDATIONS The purpose of this report is twofold: to report on the presentations made by County ' and Authority staff to selected cities and regional JPAs and to present our preliminary recommendations for a solid waste organizational framework. The recommended framework is one which staff believes has the potential to address the criteria which . came out of the two workshops and the input provided at the subsequent x. presentations. If the organizational framework which staff proposes is generally ,. acceptable to the Board, staff will refine its components further as directed, with the ' final Task I product - report and attachments - to be presented to the Board for approval and transmittal on March 2, 1994. It was our intent to have the final product ready for the February 2 Board meeting., However, a majority of the jurisdictions contacted wished to delay providing specific input, pending a staff report from their managers. These should be available this month. More detailed information regarding the recommended organizational structure will also be available.. ' RECOMMENDATION • Consider the staff report on presentations and input received from contacted jurisdictions. • Review the staffs' preliminary organizational recommendation that the NPDES model be developed, responding to the organizational and policy issues raised ' at Workshops I & II and the city/JPA presentations; indicating if this overall direction is acceptable and what additional information should be included. • Direct staff to return with a compete organizational structure which can be recommended to County jurisdictions and which provides for a formation process which is not dependent upon current Authority participation. At the March meeting the Board will be making its final recommendation to member jurisdictions and the Board of Supervisors on the preferred organizational structure and staffing, Authority dissolution requirements and post Authority organizational strategies for the recommended organizational structure. K- 1 February 2, 1994 ' Task i - Preliminary Recommendations Page Two , PRESENTATIONS As of February 2, presentations will have been made before the following bodies: • City of Pinole ' • City of Pleasant Hill • City of Antioch • City of Clayton • City of Martinez • City of Brentwood • Central Contra Costa Solid Waste Authority , With the exception of the City of Pinole, where staff followed the outline of the materials provided in advance (see Attachment A). The presentation followed the format of the attached overhead transparencies (See Attachment 8). The change in presentation was motivated by the need to get more definitive input. Staff felt that the issues and options appeared to be too complex and confusing and tried this more clearly defined sequential approach. While the jurisdictions may have 'understood the presentation better, with the exception of one jurisdiction, did not feel comfortable in providing more definitive direction. With one exception, none addressed the issue of staffing. There is one more scheduled presentation: on February 10 before the West Contra Costa Integrated Waste Management Authority. The input which follows includes comments made by all. above jurisdictions except the two JPAs. In general, the issues raised by the subject councilmembers were the same raised by ' the Workshop I & Il participants. Councilmembers were very guarded about the merits of a countywide solid waste organization. If there were to be such an organization, it should • be cost effective - cost the ratepayer as little as possible; • preserve and enhance local control; • provide coordination which doesn't sacrifice local control or programs; and • avoids duplication. , Other comments included • Regional JPAs are sufficient - if coordination should ever be needed it can be handled over lunch; • There might be loss of local control over the waste stream; • Competition should be encouraged. Competition has produced negotiations with Acme Keller regarding the transfer disposal rates. • Having a common voice has been helpful; the organization should focus on solving common concerns. • We need to be able to comply with AB 939 effectively. i K- 2 ' February 2, 1994 Task I - Preliminary Recommendation ' Page Three ' It is not certain that we can develop a structure which can help us meet the AB 939 diversion goals...would be willing to work regionally. • We need to keep bureaucracy to a minimum; we must not duplicate the example of the Transportation Authority. • We have enough agencies and layers of government already. • We need to find economical ways to promote composting and to develop markets. • Implementing AB 939 by oneself could be expensive. • Autonomy might be lost; One jurisdiction feared that the strides made by their jurisdiction and its active volunteers would be lost if their programs were ' joined with those of other jurisdictions less aggressive (competent?). They would be willing to join with others if it is proved that there would be economy of scale, but not if local efforts are diminished in the process. ' An organizational structure to look at would be that of the Contra Costa Cities - County • District • National Pollutant Discharge Elimination System r (NPDES) because ' it provides for local autonomy; payment is based on each jurisdiction's percentage of the population; it provides economy of scale and has ability to capture large scale ' economics; and it provides a contract staff. USING THE NPDES MODEL Summary ' Staff has preliminarily investigated the NPDES model (See Appendix C) and believes that it is a viable alternative to the five models considered at the two workshops; in that ' with some modifications or in combination with the Regional Agency Coordinating Council (See Appendix D), it can accommodate most of the aforementioned issues or concerns which have been raised. For instance: ' It provides one representative for each member jurisdiction • Programs are divided into both local programs and group programs which are. iof countywide interest and can be conducted on a countywide basis with economies of scale. ' Each fiscal year a budget is approved by all participating jurisdictions which includes monies for staff, administration and countywide programs with additional monies designated to fund each individual jurisdiction's local 1 programs. K- 3 February 2, 1994 t Task I - Preliminary Recommendations Page Four • Non-participating jurisdictions can apply for a stormwater permit individually, ' and be responsible for meeting the law's requirements individually, but most have chosen to work cooperatively because the ease of administration and economies of scale. , • Each parcel is assessed according to both the cost of the locally approved local programs as well as its percentage of the costs for the countywide programs. • Assessment of individual jurisdiction's for therou administrative costs and 9 P programs is based on each jurisdiction's percentage of the total population of the participants. The funding is through a special assessment levied by the county tax collector. • The principal staff - program manager and assistant, are employees of the , consortium of`jurisdictions. Office space, supplies, administrative support are provided by one of the agencies which bills the consortium for its costs. After the programs organization was formed, the staff was hired by members of the ' program's steering committee. Discussion ' Because goals and programs associated with the NPDES program are technically driven, the staff members who originally set it up specifically provided that all members ' would be technical staff- either city engineers or public works directors. If this type of structure interests the Authority, provision would. have to be made to ensure participation of elected officials. One, could have a coordinating council or steering committee comprised of elected officials with a technical advisory committee comprised.of staff to provide guidance on the technical issues; perhaps AB 939 project managers, city/district/County managers, or a combination of both. The Regional Coordinating Council- model provides for this option. ' Because the Authority Board at its last meeting expressed concern that policy makers continue to be directly involved in countywide solid waste policy development, some , thought needs to be given to this issue. Most staff members would generally prefer to make both policy and implementation decisions unencumbered by the participation of elected officials. Unless policy makers specifically make an effort to be involved in the , myriad and sometimes very complex solid waste issues, creating some type of countywide organization which provides for policy maker direction, solid waste policy issues, by default, will be decided by staff in the future. The recent negotiation ' process for the reduction of transfer and disposal rates is a case in point. i K- 4 1 Clerk of the Board Attachment #2 1 ' MODEL WASTE COLLECTION FRANCHISE AND WASTE COLLECTION RATE REVIEW MODEL Prepared by THE CONTRA COSTA SOLID WASTE AUTHORITY AND CONTRA COSTA COUNTY February 1994 r. sr'9 COU Printed on Recycled Paper -Alo�v f,P,�,7 ) MODEL WASTE COLLECTION FRANCHISE AND ' T . WASTE COLLECTION RATE REVIEW MODEL Prepared by ' THE CONTRA COSTA SOLID WASTE AUTHORITY AND CONTRA COSTA COUNTY February 1994 .s CLQ y� sr'1.COUt1'�� Printed on Recycled Paper MODEL WASTE COLLECTION FRANCHISE AND ' WASTE COLLECTION RATE REVIEW MODEL Prepared by THE CONTRA COSTA SOLID WASTE AUTHORITY ' and CONTRA COSTA COUNTY With Assistance from Colette Curtis-Brown..........................Central Contra Costa Sanitary District ' Peter Dragovich..........................................................................City of Concord Arlene Hildebrand............................................................. City of Walnut Creek SherryKelly.................................................................................City of Martinez ' Janet Schneider.................................................................City of Walnut Creek Advisory Body ' Valentin Alexeeff, Director - GMEDA.............................Contra Costa County Donald Blubaugh, City Manager.....................................City of Walnut Creek David Rowlands, City Manager..................................................City of Antioch Contra Costa Solid Waste Authority 4737 Imhoff Place. Suite 4 Martinez,CA 94553 (510)229-9113 ACKNOWLEDGEMENTS CONTRA COSTA SOLID WASTE AUTHORITY REPRESENTING BOARD OF DIRECTORS Gretchen Mariotti, Chair City of Pinole Mary Rocha City of Antioch Bill Doheney City of Brentwood Richard Erickson Byron Sanitary District Sue McNulty Rainey Central Contra Costa Sanitary District Peter Laurence City of Clayton Crockett Valona Douglas Tubbs Sanitary District Dick Waldo Town of Danville Jane Bartke City of El Cerrito Beth Bartke City of Hercules Ivor Powell lronhouse Sanitary District Ivor Samson City of Lafayette Barbara Woodburn City of Martinez Jim Sweeny(Chair, May, 1992-July, 1993) Town of Moraga Aldo Guidotti City of Orinda Kimberly Brandt City of Pleasant Hill Mary Lou Oliver City of San Ramon Gene Wolfe City of Walnut Creek CONTRA COSTA BOARD OF SUPERVISORS Tom Powers, District I-Chair Jeffrey V.Smith, District 11- Nancy C. Fanden, District 11 (Retired) Gayle Bishop,District III Robert I. Schroder District III(Retired) Sunne Wright McPeak-District IV Tom Torlakson, District V FORMER AUTHORITY BOARD MEMBERS t Rosemary Corbin, Chair- December 1991-April 1992 Avon Wilson, Chair-July- December 1991 ' Diana Angela Eduardo Manuel ' Mary Erbez Joseph Gomes , Karene Gottfried Cathie Kosel ' Norman La Force Matt Mattson Dwight Meadows , Dennis Nunn Nancy Parent r Russ Perkins Barbara Price , Susanna Schlendorf Michael Shimansky ' CITY COUNCILS City of Antioch ' Mayor Joel Keller, Mary Rocha, Elizabeth A. Rimbault, Cathryn R. Freitas, Ralph A. Hernandez City of Brentwood Mayor Arthur Gonzales,William Hill, Bill Doheney, Karene Gottfried, Barbara Guise , City of Clayton ' Mayor Pete Laurence, Julie Pierce, Robert Kendall, Gregg Manning, Rich Littorno Town of Danville , Mayor Don Richey, Mildred Greenberg, Mike Doyle, Michael Shimansky, Dick Waldo City of EI Cerrito Mayor Jane A. Bartke, Norman La Force, Norma Jellison, Cathie Kosel,W. Mae Ritz , ' City of Hercules Mayor Eduardo G. Manuel, Beth Bartke,Alexander C. Sample, III,William Simpson, Darrel "Jay"Tucker City of Lafayette ' Mayor Anne Grodin, Gayle Uilkema,Judy Garvens, Ivor Samson, Don Tatzin ' City of Martinez Mayor Michael Menesini, Barbara Woodburn, Harriet Burt,Timothy J. Farley, Julian Frazer ' Town of Moraga Mayor Al Dessayer,James J. Sweeny, Cherie T.Grant, Michael Harris, Susan L. Noe City of Orinda Mayor Bobbie Landers, Aldo Guidotti, Bill Dabel,Joyce Hawkins, Gregg Wheatland City of Pinole Mayor Mary Horton, Peter Murray, Maria Alegria, Gretchen Mariotti, Daniel Purnell ' City of Pleasant Hill Mayor Terri L. Williamson,W.D. 'Bill' Landis, Kimberly N. Brandt, Paul L. Cooper, Sherry M. Sterrett City of San Ramon Mayor Hermann Welm, Gregory L. Carr, Patricia Boom, Curtis Kinney, Mary Lou Oliver City of Walnut Creek Mayor Ron Beagley, Ed Dimmick, Evelyn Munn, Gwen Regalia, Gene Wolfe ' SANITARY DISTRICTS Byron Sanitary District ' President Bob Byer, Ken Botte, Alison Clegg, Richard Erickson, Mike Nisen Central Contra Costa Sanitary District President Susan McNulty Rainey, John B. Clausen, William C. Dalton, Barbara Hockett, Mario M. Menesini, 1 Crockett Valona Sanitary District. 1 President Douglas Tubbs, Rod Butler, Carl Heller, Peter Milcovich, John Wolthuis use Sanitary ' Ironho y District President Lenny Byer, Robert Gromin, Richard Kirkman, Dwight Meadows, David Mickelson, Ivor Powell , 1 1 1 i 1 1 1 1 1 1 1 � PART 1 � MODEL WASTE COLLECTION � FRANCHISE 1 1 1 1 1 1 1 1 February 1994 MODEL WASTE COLLECTION FRANCHISE TABLE OF CONTENTS SECTION PAGE EXECUTIVE SUMMARY 1 SECTION 1. DEFINITIONS 3 SECTION 2. SCOPE 13 ' 2.1 Term, Options, Whose Option 13 2.2 Exclusive, Non-Exclusive, Exceptions 13 ' 2.3 Residential, Commercial, Multi-family, Industrial 14 2.4 Solid Waste, Recycling 14 2.5 Franchise Service Area 14 2.6 Annexation 14 2.7 Waste Stream Control, Ownership, Flow 15 2.8 Sale of Recyclable Material, Salvage Rights, Ownership 15 SECTION 3. SERVICE PROVISIONS 16 3.1 General Provisions 16 3.2 Implementation Plan 16 3.3 Franchise Area and Service Types 16 3.4 Recycling 17 3.5 Yard/Green Waste 18 3.6 Aid to the Elderly and Handicapped 19 3.7 Special Materials Campaigns 19 3.8 Franchisor Facilities/Events 19 3.9 Holidays 19 3.10 Missed Pickup or Failure to Provide Service 19 3.11 Transportation of Solid Waste 20 3.12 Household Hazardous Waste Program 20 3.13 Removal of Hazardous Waste 20 3.14 Illegally Dumped Bulky Waste 20 3.15 Removal of Dead Animals 20 SECTION 4. OTHER COLLECTION SERVICES 21 4.1 Customer Service 21 4.2 Billing and Payment 21 4.3 Public Access 22 4.4 Nondiscrimination Clause 22 ' 4.5 Changes in Schedule 22 4.6 Emergency Procedures 22 4.7 Rights of Franchisor to Perform During Emergency 22 i SECTION 5. PERFORMANCE STANDARDS 23 ' 5.1 Systems and Services Review 23 ' 5.2 Maintenance of Collection and Processing Equipment 24 5.3 Sanitary Operations 25 SECTION 6. RATES 26 6.1 Franchise Fees 26 6.2 Compensation/Rates 26 6.3 Reviews 26 6.4 Affiliated Entities 37 SECTION 7. RECORDS/REPORTS 28 , 7.1 Financial Reports 28 , 7.2 Operational 28 7.3 Confidentiality/Customer Privacy 28 7.4 Customer Notification 29 7.5 Adverse Information 29 SECTION 8. LEGAL 30 8.1 Intent to Regulate 30 8.2 Compliance 30 8.3 Insurance 30 8.4 Faithful Performance Bond 31 8.5 Indemnity (Legal Liability) 32 8.6 Independent Contractor 32 8.7 Termination (Default) 33 8.8 Notices 34 8.9 Permits 34 8.10 Penalties 34 8.11 Attorney Fees 34 8.12 Severability 35 8.13 Assignment 35 8.14 California Integrated Waste Management Act Requirements 35 8.15 Miscellaneous or General Provisions 36 8.16 Franchisor Responsibility 37 SECTION 9. REFERENCES 38 , 9.1 Solid Waste Franchises 38 9.2 Periodicals 39 , 9.3 Unpublished Works 39 9.4 Miscellaneous 40 ii I MODEL WASTE COLLECTION FRANCHISE ' EXECUTIVE SUMMARY In April, 1993, Contra Costa County and the Contra Costa Solid Waste Authority approved a Memorandum of Agreement and Work Plan which had as its goal a partnership which could address the challenges and high costs of complying ' with the California Integrated Waste Management Act of 1989 (AB 939). As part of that work plan the two entities agreed to develop a model solid waste collection franchise agreement; recognizing that a collection and/or recycling ' franchise is one of the single most important contracts which an entity can award - representing the potential for significant profit to the contractor over the life of the agreement. The model development would be staffed by both entities assisted by staff from franchising entities representing cities and sanitary districts; each having hadsome experience in developing and negotiating solid waste and recycling franchises. Drawing also upon a wide variety of existing franchises and studies, the committee has developed an extensive list of topics, which are divided into subject categories. While the model document is not all inclusive, it offers a tfranchising entity a menu of provisions from which to choose in tailoring a franchise agreement to its own particular concerns and interests. 1. Definitions Recognizing that solid waste nomenclature is becoming more complex and extensive, a list of definitions commonly used in more recently drafted franchises is included. Definitions are not always generic, but are sometimes presented verbatim as they might appear in a collection or recycling franchise. Where there is more than one definition available, both are included. 2. Scope The scope of a franchise deals with the parameters, or breadth, of the franchise. It generally covers such issues as the term or length of the franchise, exceptions, what wastestreams are to be collected, geographical boundaries of the area to be serviced, who controls the wastestream and any other special rights which are reserved by the franchisor. 3. Service Provisions The primary customer services and services to the franchising agency which are required of the contractor are discussed in this section. Service provisions should address basic services: residential, commercial and industrial, provisions for collection, processing and marketing of recyclables and green waste, special material/events campaigns, such as phone book pickup and festivals, hours and frequency of pickup, holidays and hazardous waste collection. 1 4. Other Collection Services This section deals with those services which relate to customer service, ' education, and public information. It also provides for non-routine types of services or situations to which the contractor is expected to respond positively: emergencies, aid to the elderly and handicapped, etc. , 5. Performance Standards This section is divided into three areas by which the performance of the ' contractor can be regularly measured: Systems and Services Review, Maintenance of Collection and Processing Equipment and Sanitary Operations. Properly developed, the provisions in this section should offer incentives for innovation and high 'performance. Performance is then evaluated through studies, reports and programs prepared by the contractor, and a regular customer feedback process through surveys, public hearings and technical evaluation. 6. Rates Recognizing the interrelationship of the franchise and rate regulation, this section sets guidelines for those areas which affect rates: franchise fees, compensation, rate review process and handling of contractor affiliated entities. 7. Records/Reports ' This section outlines records which may. be required by the franchisor and which are to be provided by the contractor. They may include financial and operational reports, AB 939 reporting requirements and provisions for confidentiality or reporting of adverse information regarding the contractor. 8. Legal This section reviews the legal issues which should be considered by the franchisor and the contractor. These types of provisions are intended to protect the legal and economic interests of the customer and franchising agency, assuring that services will be provided as stated. Some of this section's , provisions include: definition of the authority and responsibility of the franchisor, rules which govern the contractor, provisions for assuring performance, indemnification, termination, timely notification, penalties, conflict of interest and purchase of equipment. i 2 ' SECTION 1. DEFINITIONS ' A majority of the definitions within this section were taken verbatim from existing franchise agreements within Contra Costa County. As such, they are not always generic definitions, but are sometimes specific to the agreements from which they have been excerpted. Previously, the majority of agreements did not include a section for definitions. Instead, terminology was defined within the language of the agreement. Franchise agreements developed within the last five years tend to have an explicit definition section. In this document, more than one definition has sometimes been included for the same term to show the range and differences between definitions as presented in different franchise agreements. The definitions listed below are not intended to be all inclusive. Definitions are grouped into two areas: general terminology and waste types. ' General 1 .1 "Affiliated Entity" is any entity which provides products or services to a contractor and in which the contractor owns a ten percent (10 %) or greater interest. 1 .2 "Agreement" means an agreement by and between the franchisor and the contractor for the collection, removal, and disposal of solid waste and the recycling of material. ' "Agreement" This agreement for the collection, removal , recycling and disposal of garbage by and between the and the Contractor entered into as of the date first written below. 1 .3 "Allowable Expense" means those expenses which under the terms of the agreement are permissible and stipulated in the Rate Regulation Methodology, except and until the franchisor and the contractor agree to adopt some other Rate Regulation Methodology. Should the franchisor and the contractor adopt such another Rate Regulation methodology, "Allowable Expense" shall have the meaning accorded it in the new methodology. 1 .4 Allowable Revenue" means those revenues as deemed allowable and as set forth in the Rate Regulation Methodology, unless and until the franchisor and contractor agree to adopt some other Rate Regulation Methodology. Should the franchisor and contractor adopt such another Rate Regulation Methodology, "Allowable Revenue" shall have the meaning accorded it in the tnew methodology. 1 .5 "Authorized Recycling Collection Program" A recycling collection program operated by an authorized recycler under contact, franchise agreement, or license with the franchising entity. - 3 1 .6 "California Integrated Waste Management Act of 1989 (AB 939)" ' means Sections 40000 et seq. of the California Public Resources Code and all rules and regulations adopted under any of those sections, as such sections, ' rules and regulations may be amended from time to time in the future. 1 .7 "CERCLA" means the Federal Comprehensive Environmental Response, Compensation and Liability Act and the rules and regulations adopted under that legislation by the EPA, as that legislation and those rules and regulations have been and in the future may be amended from time to time. "CERCLA" (Su erfund) Provides the primary federal legal structure for the cleanup and remediation of contaminated sites. It imposes liability for and permits private parties, including government entities such as cities and , redevelopment agencies; to bring civil action for the recovery of their expenses in cleaning up contaminated property. 1 .8 "City Limits" shall mean the boundaries of the City together with all amendments and changes thereto, which current boundaries are shown by maps incorporated herein by reference and which are on file in the office of the , Clerk off the City Council. 1 .9 "Closure Surcharge" means the surcharge established for closure, post- , closure and additional regulatory costs for a Class II/III Site, as approved and as may be amended from time to time, by the franchising agency and any successor, and which may subsequently be adopted by any member ' jurisdiction of the franchising agency. 1 .10 "Collection" means the collection of recyclables and the collection and I disposal of garbage and rubbish. 1 .11 "Compost" means the product resulting from the controlled biological decomposition of organic wastes that are source separated from the municipal solid waste stream, or which are separated at a centralized facility. "Compost" includes vegetable, yard, and wood wastes which are not hazardous waste. 1 .12 "Compost Operation" A process whereby the biological decomposition of organic wastes is controlled so as to yield a safe and nuisance free product. ' 1 .13 "Compostables or Compostable Materials" shall have the same meaning as "compost". 1 .14 "Contractor" means the entity which has been granted an exclusive franchise pursuant to the terms and conditions set forth in the franchise agreement. (In franchise agreements, the terms "franchisee" or "grantee" are also used to mean the same as "contractor".) "Contractor" shall mean the entity granted the Franchise to arrange for the t collection of solid wastes pursuant to this Franchise Agreement. r 4 1 .15 "Curbside Recycling Collection Program" The franchisor's curbside recycling program by which recyclables are picked up from single-family ' residences without payment of any redemption value to the property owner. 1 .16 "Customers" means those who have contracted with the contractor for the collection, removal, recycling, or disposal of garbage as provided herein, or who may be required to accept and pay for said service by local ordinance. "Customers" means those who have contracted with the contractor for the collection of materials for recycling and/or for the collection, removal, or disposal of discarded materials, pursuant to this Agreement and applicable ordinances, including mandatory subscription ordinances. 1 .17 "Development Project" means a project for which a building permit will be required for a commercial, industrial, or institutional building, marina, or residential building having five or more living units, where solid waste is collected and loaded and any residential project where solid waste is collected and loaded in a location serving five or more units. "Development Project" means any new public facility where solid waste is collected and loaded and any improvements for areas of a public facility used for collecting and loading solid waste. 1 .18 "Disposal Facility" means any facility or location where disposal of solid waste occurs. 1 .19 "Disposal Site" includes the place, location, tract of land, area, or premises in use, intended to be used, or which has been used for the landfill disposal of solid wastes. "Disposal site" includes solid waste landfill. 1 .20 "Franchise Agreement" means this franchise agreement between the contractor and the franchisee. ' 1 .21 "Franchise area" means the geographic area generally described and depicted in graphic exhibits to an agreement, which exhibits are attached and incorporated by reference, and more particularly are set forth in six hundred (600) scale maps maintained and available for inspection at the franchisor's offices. Said six hundred (600) scale maps shall reflect changes of boundaries of the franchise area in such a manner as to identify each alteration to the franchise area and the effective date thereof. 1 .22 "Franchisee" (See Contractor) 1.23 "Franchise Fee" means the fee or assessment imposed by the City on Grantee solely because of its status as party to this Franchise Agreement, and which, inter alia, is intended to compensate City for its expenses in administering this Franchise Agreement and for damages to its roads, curbs, sidewalks and other parts of the City's infrastructure. 5 1 .24 "Franchisor" the entity, agency or jurisdiction which grants, through a contractual agreement, the right or privilege to exercise the duties and perform the functions related to the collection, processing, marketing and disposal of ' recyclables and other solid waste. 1 .25 "Grantee" (See Contractor ) 1 .26 "Gross Rev ' enues means any and all revenue or compensation m any form derived directly or indirectly by Grantee, its affiliates, subsidiaries, parents or any other person or entity in which Grantee has a financial interest, in collecting, transporting, arranging, selling, recycling, handling and/or diverting recyclables generated in the Franchise Area. 1 .27 "Hazard" includes any condition, practice, or procedure which is or may be dangerous, harmful, or perilous to employees, property, neighbors, or the general public. 1 .28 "HDPE" means High Density Polyethylene. 1 .29 "Landfill" means a disposal site employing a method of disposing of solid wastes on land without creating nuisances or hazards to public health or safety, by utilizing principles of engineering to confine the wastes to the smallest practical area, to reduce them to the smallest practical volumes, and to cover them with a layer of suitable cover material at specific designated intervals. 1 .30 "Local Legislation" means any code, ordinance, resolution, or other formal enactment of the governing body of the franchising agency which now exists or which may hereafter be adopted which constitutes law or regulation governing the operations of the contractor within or about the political boundaries of the franchise area. 1 .31 "Multi-Family Unit" A dwelling which includes two or more individual living units with common walls and which receives communal refuse and/or recycling services. 1 .32 "Nondisposal Facility" means any solid waste facility which is neither a landfill or transformation facility. 1 .33 PETE" means Polyethylene Terephthalate (PET). 1 .34 "Prospective Funding Mechanism" means a mechanism for funding costs of closure or post-closure of a Class II/III Site of surcharges which may be assessed for solid waste disposal at the land fill, or a Transfer facility or other solid waste disposal facility. r . 6 � 1 .35 "Rate Regulation Methodology" means the methodology agreed upon by the franchisor and contractor for calculating, setting and adjusting collection rates. Unless and until the franchisor and contractor agree to adopt some other methodology, Rate Regulation Methodology shall mean the methodology set forth regarding financial disclosure requirements, including requirements for audited financial information and documentation of intercompany transactions, and rate regulation for collection of recyclables, yard waste and solid waste collection and disposal operations. 1 .36 "Residential Unit" includes any occupied premises having bathroom or toilet, and kitchen plumbing facilities, suitable for residential occupancy by a number of persons living together as a single family, including single family dwellings, and each group of occupied rooms constituting living quarters for a single family duplex, triplex, flat, court or other common wall multiple dwelling structure, but excluding any living or sleeping quarters in hotels, rooming houses, motels, or auto courts where kitchen facilities are not provided. 1 .37 "Recycle" or "Recycling" means the process of collecting, sorting, cleaning, treating, and reconstituting materials that would otherwise become solid waste, and recovering them so that they may be used in the form of raw material for new, reused, or reconstituted products. "Recycle or Recycling" The process of separating and collection of used materials which would otherwise become solid waste, for the purpose of reprocessing them to create new materials to be returned to the economic mainstream. 1 .38 "Recyclable Material" includes all waste materials which may be commercially reprocessed for beneficial use which are disposed of for recycling purposes. These include, but are not limited to cardboard, metals, plastics, paper-based materials, glass and oils. "Recyclable Material" means discarded material generated or collected at ' place or premises, and in a condition such that it can be re-manufactured or reprocessed into usable materials or new products. "Recyclable or Recyclable Material" shall have the same meaning as provided in the City's municipal Code and includes material which can be reused or processed into a form suitable for reuse through reprocessing or remanufacture, consistent with the requirements of the California Integrated Waste Management Act. The term "Recyclable or Recyclable Materials" includes paper, newsprint, printed matter, paste-board, paper containers, cardboard, glass, aluminum, PET and other plastics, beverage containers, compostable materials, used motor oil, automotive batteries, anti-freeze, latex paint, brick and stone in reusable size and condition, and such other materials designated by the California Integrated Waste Management Board, or other agency with jurisdiction. 7 1 .39 "Salvage" means the removal of material from the waste stream following collection and refurbishing such material so that it may be reused. 1 .40 "Single Family Unit" means a dwelling which receives individual refuse r and/or curbside recycling service. Waste Types Definitions of "solid waste" varyfrom very general definitions encompassing the whole rY 9 P 9 waste stream to very specific identification of waste types. 1 .41 "Bulky Material or Waste" means large items of solid waste such as appliances, furniture, large auto parts, trees, branches, stumps and other oversize wastes whose large size precludes or complicates their handling by normal collection, processing or disposal methods. 1 .42 "Commercial Solid Waste" means solid waste routinely originating from 1 stores, business offices, commerciai warehouses, hospitals, educational, health care, military and correctional institutions, non-profit research organizations, and non-exempt government offices. Commercial solid waste does not include construction or demolition waste,industrial waste or septage. "Commercial Solid Waste" includes all types of solid wastes generated by commercial, industrial, governmental and other sources which have been placed in an authorized solid waste container used for the temporary storage of solid waste awaiting .pickup. The term "Commercial Solid Waste" does not include hazardous wastes generated by commercial, industrial, governmental and other sources and which are placed in separate containers and which are covered by hazardous waste manifests. 1 .43 Construction and Demolition Wastes includes the waste building materials, packaging and rubble resulting from construction, remodeling, repair ' and demolition operations on pavements, houses, commercial building and other structures. They are removed from a site during the razing or renovation of a structure as part of a total service offered by a duly licensed demolition contractor (C-21 license). 1 .44 "Dead Animals" include those animals whose carcasses require removal. 8 , 1 .45 "Designated Waste" shall mean any designated wastes as defined in 23 CCR, No. 2522, and special handling waste generated by industrial facilities or ' processes, but shall not include "hazardous waste" as defined herein. Special wastes shall also include those wastes which are bulky or difficult to transport. Special wastes shall include sewage sludge, water treatment sludge, infectious wastes, dead animals, medical wastes, geothermal waste, demolition debris, drilling muds, contaminated soils, shredder waste, agricultural wastes, filter cake/dewatered sludge, spent catalyst fines, refinery ash and byproducts; except where any such waste are deemed to be hazardous. (In franchise agreements the term "special wastes" has the same meaning as "designated wastes".) 1 .46 "Garbage" includes all animal and vegetable refuse and household waste resulting form the preparation of food, and all animal and vegetable refuse from places where foodstuffs intended for human consumption are handled commercially, and all cans, bottles, or other receptacles used as food containers, not disposed of for recycling purposes. "Garbage": (1) animal, fruit and vegetable refuse; (2) offal; (3) leaves and cuttings, trimmings from trees, shrubs and grass; (4) inorganic refuse and rubbish; (5) anything thrown away as worthless; provided, however, that garbage shall not be defined as or include Hazardous Waste, Demolition Debris or abandoned automobiles. 1 .47 "Hazardous Waste" means a waste, or combination of wastes, which i because of its quantity, concentration, or physical, chemical, or infectious characteristics may either: ' a. cause, or significantly contribute to an increase in mortality or an increase in serious.irreversible, or incapacitating reversible, illness; or b. pose a substantial present or potential hazard to human health or the environment when improperly treated, stored, transported, or disposed of, or otherwise managed.' The term hazardous waste" is intended to include all waste which is defined as being a hazardous waste pursuant to any federal, state or county laws, statutes, ordinances or other regulation currently in effect or as may be enacted or amended in the future. 9 "Hazardous Waste or Materials" means any waste materials or mixture of wastes defined as such pursuant to the Resource Conservation and Recovery Act, 42 U.S.C. 6901 et seq., or the Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA"), 42 U.S.C. §9601 et seq., and all future amendments to either of them, or as defined by the California Environmental Protection Agency or the, California Integrated Waste Management Board, or either of them. Where there is conflict in the definitions employed by two or more agencies having jurisdiction over hazardous or solid waste, the term "Hazardous Waste" shall be construed to have the broader, more encompassing definition. 1 .48 "Industrial Solid Waste" means all solid waste and semi-solid waste which results from industrial processes and manufacturing operations, excluding , recyclables. "Industrial Waste" Non-sewered liquid waste and solid waste produced as by-product of industrial processes, or other refuse produced or accumulated as a result of industrial processes, or other refuse produced or accumulated as a result of industrial processes, including waste produced by the District and other public entities as a result of treatment or other processes .undertaken in providing public utility services. "Industrial Waste" means solid waste originating from mechanized manufacturing facilities, factories, refineries, and publicly operated treatment works. 1 .49 "Infectious Wastes" include: a. Equipment, instruments, utensils and other fomites (any substance that , may harbor or transmit pathogenic organisms) of a disposable nature from the rooms of patients who are suspected to have or have been diagnosed as having a communicable disease and must, therefore, be t. isolated as required by public health agencies; b. laboratory wastes, including pathological specimens (i.e., all tissues, specimens of blood elements, excreta and secretions obtained from patients or laboratory animals) and disposable fomites attendant thereto; C. surgical operating room pathologic specimens - including recognizable anatomical parts, human tissue, anatomical human remains and disposable materials from hospitals, clinics, outpatient areas and emergency rooms, as is also defined in Section 314(d) of the California Administrative Code, Title 17. 1 .50 "Litter" means all improperly discarded waste material, including, but not limited to, convenience food, beverage, and other product packages or containers constructed of steel, aluminum, glass, paper, plastic, and other natural and synthetic materials, thrown or deposited on the lands and waters of the state, but not including the properly discarded waste of the primary processing of agriculture, mining, logging, sawmilling, or manufacturing. 10 1 .51 "Municipal Solid Waste" means all solid waste generated within a city which is designated for collection under a franchise agreement. ' 1 .52 "Putrescible Wastes" includes wastes that are capable of being decomposed by micro-organisms with sufficient rapidity as to cause nuisances because of odors, gases or other offensive conditions, and include materials such as food wastes, offal and dead animals. 1 .53 "RCRA" means Resource Conservation and Recovery Act - Federal legislation tto improve solid waste disposal methods and environmentally sound management practices. 1 .54 "Refuse" means garbage and rubbish. 1 .55 "Residential Solid Waste" means solid waste routinely originating from single-family or multiple family dwellings. Residential solid waste includes household hazardous waste, but does not include septage. 1 .56 "Rubbish" includes all refuse other than garbage, including' paper, rags, leaves, grass, vines, sawdust, cans, ashes, and tree trimmings, but does not include rocks, bricks, dirt, concrete, and similar solid materials, not disposed of for recycling purposes. 1 .57 "Septage" means non-sewered liquid or semi-liquid waste which may be trucked to treatment facilities for disposal, to include, but not be limited to, waste from residential septic tanks, commercial grease cleanouts, and industrial waste holding facilities. 1 .58 "Solid waste" means all putrescible and nonputrescible solid, semisolid, and liquid wastes, including garbage, trash, refuse, paper, rubbish, ashes, demolition and construction wastes, abandoned vehicles and parts thereof, discarded home and industrial appliances, dewatered, treated, or chemically fixed sewage sludge which is not hazardous waste, manure, vegetable or animal solid and semi-solid wastes, and other discarded solid and semisolid wastes. Solid waste does not include infectious, designated, and hazardous waste, except household hazardous waste. ' Solid W _ Waste" means putresable and non-putrescible solid and semi-solid material. The term "solid waste" includes garbage; refuse; trash; rubbish; kitchen or table wastes, animal or vegetable wastes; tree, shrub or brush trimmings; newspapers or magazines; ashes; paper or cardboard; tin or aluminum cans; yard clippings; wood; glass; bedding; crockery; plastics or rubber by-products; litter; animal excrements; disposable diapers; vegetable or animal sewage; industrial wastes; demolition and construction wastes; and discarded home and industrial appliances. 11 "Solid Waste" shall have the same meaning as provided in the City's Municipal Code, and shall exclude recyclables placed in an approved recycling container. Solid Waste under the municipal code is defined as follows: , a. "Solid waste" means all putrescible and nonputrescible solid, semisolid, and liquid wastes, including garbage, trash, paper, rubbish, ashes, industrial wastes, demolition and construction wastes, abandoned vehicles and parts thereof, discarded home and industrial appliances, dewatered, treated, or chemically fixed sewage sludge which is not hazardous waste, manure, vegetable or animal solid and semisolid ' wastes and other discarded solid and semisolid wastes, provided, however, that solid waste does not include recyclable materials. b. "Solid waste" does not include hazardous waste low-level radioactive waste regulated under Chapter 7.6 (commencing with Section 25800) of Division 20 of the California Health and Safety Code. C. "Solid waste" does not include medical waste which is regulated pursuant to the Medical Waste Management Act Chapter 6.1 (commencing with Section 25015) of Division 20 of the California Health and Safety Code, provided that the medical waste, whether treated or untreated, is not disposed of at a solid waste facility. Medical waste which has been treated and which is deemed to be solid waste shall be regulated pursuant to this chapter. 1 .59 "Special Wastes" (See Designated Wastes) 1 .60 "Waste stream" means the solid waste to be collected under this Agreement from the time of its collection by the Contractor to its disposal at a landfill or delivery to a transfer facility or other.facility by Contractor. 1 .61 "Yard Waste" Organic material from trees, shrubs, grass and similar t, vegetation. Yard waste may also be designated as recyclable by the City. i 1 12 SECTION 2. SCOPE 2.1 Term, Options, Whose Option The term of a franchise agreement should be of sufficient length to warrant and protect significant capital expenditure by the refuse collection and/or recycling company (i.e., 10+ years). The length of the term, however, should not be excessively long so that the contractor becomes complacent or too few opportunities become available to amend the agreement to account for significant changes such as new legislation or changing public priorities (i.e., 20+ years). Franchise agreements generally compromise on these extremes and it is not uncommon for agreements to be made for 15 years with several 5 year options, either at the franchisee or franchisor's election. Within this structure there exist numerous options for addressing the special needs of the parties. For example, in an agreement between the City of Hercules and Pinole Garbage Service (a division of Richmond Sanitary Service), the contractor is granted an exclusive franchise for garbage collection for a 15-year term. If at any time during the 15-year term, the contractor is required to refinance for capital improvements or participate in a bond issue for capital improvements in which the total funds involved exceed $4,000,000, the City of Hercules agrees to extend the term of the agreement for an additional 10 years with a cap to any extension of 25 years from the commencement date of the franchise. In general, it is recommended the initial term of the agreement be relatively short (i.e. 10 years or less), that renewal options be tied to measurable performance standards to be met by the contractor, and that discretion for granting renewal options be retained by the jurisdiction issuing the franchise. 2.2 Exclusive, Non-exclusive Exceptions IBy definition, an exclusive franchise implies the contractor has acquired the sole right to collect, remove and dispose of all garbage (residential, commercial, industrial and/or recyclables) as defined within the agreement. Exceptions to exclusivity may be granted, as indicated by the following example: "the generator is able to collect, remove, and dispose of their own garbage in a sanitary manner and in conformance with applicable laws." This would appear to be a significant exception that could defeat the use and value of the franchise. This exception promotes competition within a franchise arrangement, i.e. contractor is constantly pressured to provide as good or better service than the generator is able to perform for themselves. Monitoring and responding to issues arising from such an exception can draw significant resources from the jurisdiction. 13 2.3 Residential, Commercial, Multi-family, Industrial As an alternative to stating "all garbage generated within the City" is included by the franchise agreement, specific service within each land use, as desired and approved by the franchisor, may be defined. For example, residential service may provide for backyard, sideyard, or curbside collection, recycling service, and annual clean-up events. The service interval (State law requires at least once a week - 14 CCR, Article 5, No. 17331) should be specified. Commercial and industrial garbage collection may allow extended intervals for pick-up if the waste is non-putrescible. Commercial, multi-family, and industrial recycling ' programs may specify goals for tonnages to be collected and a reporting system with verification. may also wish to explore excluding hazardous wastes as a waste Jurisdictionsy p 9 covered by the franchise agreement. 2.4 Solid Waste, Recycling Solid waste and recycling franchise agreements may be combined in the same document or treated as separate agreements. In general, if the contractor, term of the agreement and service area are identical for each, there is adequate justification to combine the agreements into one document. Variation in one or more of these areas would appear to be best handled through separate agreements which could be revisited, amended, or extended without disturbing ` or opening up the terms of the other. 2.5 Franchise Service Area. Unless the jurisdiction grants multiple service area franchises within its geographic boundaries, it is recommended the definition of service area be described as the incorporated limits of the jurisdiction as they exist on the effective date of the agreement and as they may "hereafter be changed by reason of annexation, de-annexation or rezoning" (March 1986 Franchise Agreement Between the Central Contra Costa Sanitary District and Valley Disposal, Inc.). It is useful, as included in the Martinez - Pleasant Hill Bayshore Agreement, to include an exhibit showing these boundaries as of the effective date of the agreement. While these boundaries may change, the extent of the initial service area is made clear. 2.6 Annexation There should be a provision in the franchise agreement for future annexations of land by the franchisor to the franchise area. This provision would include a hold harmless statement indemnifying the franchisor against any claims by another franchise holder which attests that the former franchise holder continues to have any right to service the area so annexed. 14 , 2.7 Waste Stream Control, Ownership, Flow Waste stream ownership and control is a critical issue to be negotiated in a tfranchise agreement. The need to meet waste division mandates, control direction of the waste stream to desired transfer station(s) and to market and process recyclables requires waste stream control. Indeed, designating environmentally safe disposal option(s) at a comfort level required by a jurisdiction necessitates this control. Indemnification from environmental liability is an elusive goal which can be argued is not achievable. The ' advantages of waste stream control are great and this control should be included in the franchise agreement. While franchising entities currently have the right to include waste stream control within their franchise agreement, rdevelopments in federal law should be watched closely over the next several years. Federal legislation may affect a jurisdiction's rights to specify waste stream ownership and flow control. Current RCRA/CERCLA liability considerations suggest that a jurisdiction might want to relinquish control of the waste stream to the contractor as a part of a larger strategy to arrange �+ indemnification for environmental responsibility. ■ 2.8 Sale of Recyclable Material, Salvage Rights, Ownership The sale of source separated materials by the generator is generally recognized as a right occurring to the generator. Salvage refers to removing and refurbishing materials once they have entered the waste stream; following collection. Salvage rights and the sale of recyclable material are subject to change. In late 1993, the .California Supreme Court is expected to hear the Rancho Mirage case. SB 450 (Dills) - a two year bill - may also affect rights in this area. r 15 211 SECTION 3. SERVICE PROVISIONS f3.1 General Provisions There should be a general statement that all provisions and any changes are ' subject to revision and approval by the franchising agency. This section should further state that except for those sections which indicate otherwise, the contractor shall provide the specifically enumerated services as requested. It should contain a provision which states that if the contractor is unable to provide the enumerated services that the franchisor can seek service elsewhere. It should also articulate franchisor's policy regarding the subcontracting of certain ' contractor responsibilities to consultants. 3.2 Implementation Plan If the franchise is with a new contractor, a provision requiring a curbside solid q 9 waste implementation plan for Residential/ Commercial-Ind ustrial/Recyclables/ Green waste to be submitted by the contractor should be required within a given time frame. 3.3 Service Types This section should specify the service types: Residential - single family, multi- family; Commercial/Industrial; to be serviced. There should then follow a detailed description of duties for each service type: a. Residential The franchisor has the right to dictate the type of residential service to be provided. This section should include a statement indicating whether the collection is curbside or backyard or both, depending on terrain or agreed upon collection type, such as automated pickup. It should indicate the type and size of container and who provides the container(s). It should include frequency of pickups beyond the State required minimum of one pickup per week, routing and limits on hours/days of collection. It should specify any other residential solid waste collection events and number per year; indicating any special provisions which relate to those events. It should indicate whether the contractor is required to recycle any materials picked up at those events. b. Commercial/Industrial Solid Waste Collection This section should include general guidelines which relate to pickup, hours of collection, frequency of pickup (particularly, in picking up of putrescible waste). It should specify appropriate receptacles and locations where materials may be disposed other than landfills. i 16 3.4 Recycling This section articulates the franchisor's requirements and the contractor's plan , for collection, processing and marketing of recyclables. Whether recycling is included in the same document with solid waste collection, or as a separate franchise, with different provisions and/or with a different collector/recycler, the following information should be included: ' a. Single Family Residential Recycling 1 The franchisor's AB 939 diversion9 oals and the contractor's reporting requirements in meeting those goals. 2) The size, number, color (if applicable) of containers for the ' collection of recyclables. Provision for replacement of stolen or destroyed containers should be included. It should specify the ownership of the containers during and at end of contract term. 3) Materials to be collected and provision for adding materials in the future. 4) Contractor's responsibility for dissemination of education/public information regarding all aspects of the recycling programs. 5) Hours and days of pickup and regulations specifying appropriate transport to processing facility and disposition of materials. Permission to landfill or other waivers should be discussed. If the franchisor participates as a partner/JPA member in a non-disposal facility development, specific direction to utilize the facility should be included. b. Multi-Family Residential Recycling 1) AB 939 diversion goals and the contractor's responsibility in meeting these goals. 2) Collection containers, enclosures and replacement provisions. 3) Materials to be collected and provisions for adding materials. 4) Education of complex managers and resident regarding the program; enumerating services to be provided to the complex. C. Commercial/Industrial 1) The contractor's programs for collection, processing and marketing of all recyclables. 17 2) The franchisor's AB 939 diversion goals and the contractor's responsibility in meeting those goals. Reporting requirements, as detailed in the AB 939 Reporting Section should be referred to. 3) The materials to be targeted. 4) The franchisor's or approved contractor's plans for recycling should be detailed in this section. It should include provisions for collection methodology, equipment, labor requirements, containers to be used, publicity, education, marketing, financial forecasts and diversion projections. If this is a contractor- developed plan the franchisor should retain approval/modification ability to ensure program can meet goals. Provisions for utilizing/paying consultants to assist in the plan development should be included. 5) The contractor's responsibility to conduct bi-annual waste audits of all commercial/industrial customers for the purpose of identifying the volume and characteristics of commercial solid waste generated; providing the basis for diversion programs provided to the franchise area. 3.5 Yard/Green Waste This section should include the AB 939 goals and the contractors' responsibility in meeting those goals. Reporting requirements as specified in Section 7, should be referred to. a. This section should present either the franchisor's requirements or the contractor's plan for the collection, processing of green waste. The franchisor should retain approval/modification powers to assure that �. goals are being met. ' b. The plan should include equipment, labor requirements, type of containers - rigid, bagged or loose, ownership and placement of containers, frequency of collection, exact type of materials allowed to be collected, composting facilities, restrictions; publicity, education and/or marketing, financial forecasts and diversion projections. C. The franchisor should also reserve the right to direct the yard/green waste to a given facility or to one in the future, if appropriate. 18 3.6 Aid to the Elderly and Handicapped Most franchises include a provision for assisting residents with pickup, particularly where there is curbside pickup of solid waste, recyclables and/or green waste. This provision would require the contractor to make separate arrangements with any resident who claims special treatment, due to age or physical handicap. The provision can specify a certificate from a licensed physician or proof of date of birth. 3.7 Special Materials Campaigns One or more sections should be devoted to special materials collected on a once a year basis, such as telephone book recycling, cleanup days and Christmas tree pick-up. It should include any special details for planning and implementing these events as well as the disposition of materials. 3.8 Franchisor Facilities/Events ' This section should specify those franchisor-sponsored events and facilities, locations and materials to be collected which the contractor is to service free of charge to the franchisor. It is generally the practice that the cost of these "free of charge" services are passed onto the ratepayers. It should specify the collection hours/frequency and location and types of collection containers. If many facilities and containers are to serviced, that list should be provided in an exhibit attached to the franchise. Special events collection general guidelines should also be attached. 3.9 Holidays This section should identify those holidays on which waste and recyclables are not be collected; with provision for alternate days when usual collections days fall on a holiday. 3.10 Missed Pickup or Failure to Provide Service This provision sets the process by which the franchisor provides service if the contractor defaults. It sets the fees which the franchisor may collect from the contractor in such circumstances. 19 3.1 1 Transportation of Solid Waste If not included in another section, this section usually contains a statement requiring the contractor to provide for the transportation of all solid waste transported to a disposal site, transfer station and/or materials recovery facility (MRF). It further requires that the contractor shall maintain records of all ' materials disposed and cooperate in any audit or investigation of such records, consistent with the reporting requirements for AB 939 or other franchisor record keeping. It can require the contractor to cooperate with the operators of transfer station s/MRFs/disposal sites in unloading materials in designated areas. It requires the contractor to cooperate and provides compensation for only extraordinary transportation costs, such as hauls outside the service area. 3.12 Household Hazardous Waste Program The franchisor may wish to include a provision for collection of household quantities of those household hazardous waste products which are recyclable, such as used motor oil, latex paint and lead acid auto batteries. The provision can include curbside collection or establishment of a drop off center which is centrally located within the franchise area. It should provide for adding other items in the future as circumstances and facilities permit. 3.13 Removal of Hazardous Waste The contractor should be empowered to conduct inspections to discover any waste which is defined by State or Federal laws as hazardous and/or to refuse any hazardous waste which is placed in any collection container or is delivered to the contractor's facility. It details the process by which the contractor refuses the material; alternately disposing of the materials; notifying the franchisor and/or other agencies having jurisdiction. It provides for reimbursement of any contractor disposal costs. 3.14 Illegally Dumped Bully Waste There should be a requirement for the contractor to provide on-demand pickup of illegally dumped bulky waste, such as refrigerators, chairs, abandoned auto parts, etc. The provision should specify notification and response time requirements. 3.15. Removal of Dead Animals This type of provision Y specifies conditions b which the contractor will remove P all dead small domestic and wild animals found on the right-of-way within the ffranchise area. It should provide notification and response times for removal. M 20 SECTION 4. OTHER COLLECTION SERVICES ' 4.1 Customer Service Customer service requirements are a necessary part of the solid waste franchise. Within this section should be included provisions for public information which relates to rates, fees, charges, service options, payment options, discounts (if any), days of collections, the amount and manner of refuse to be collected, service level, and inquiry/ complaint procedures; including the name, address and local telephone of the contractor. In concert with Section 5. Performance Standards, it should a. set standards for level of service, efficiency and customer satisfaction; b. provide mechanisms for determining performance: surveys, customer complaint log, specific reports, time and motion studies; C. establish procedures for receiving, processing and tracking complaints, including an arbitration and/or appeal process. The contractor may be required to keep records of all complaints, submit records to the franchisor and provide records of the contractor's response. There should be time limits set for the contractor's response and the franchisor should require that all complaints should be reasonably resolved; id. designate a liaison between the franchisor and contractor and establish a standard meeting time; ' e. specify the contractor's responsibilities to provide, with franchisor approval, consumer information regarding various programs and the preparation of materials for recycling and green waste; and f. direct the contractor to prepare and distribute information to insert with billings as well as provide direct-mail information letters. 4.2 Billing and Payment This section should require the contractor to provide regular billing of all customers. It should also indicate the method of billing. This billing should provide an itemized list of all services. It should specify the frequency of billing as well as any other special provisions required by the franchisor for billing inserts and refunds. ' 21 4.3 Public Access This provision should require the establishment of a local office and telephone ' response service within the franchise area for the purpose of meeting customer obligations. It should further specify the establishment of regular office hours for the public; where the public can pay bills and have access to the contractor's representatives, such as a customer liaison. 4.4 Nondiscrimination Clause This rovision should require that the contractor will not discriminate in the P provision of services or the employment of persons based on race, color, religion, sex, age, physical handicap or medical condition or any other conditions as specified by State or Federal law. The contract should detail how the contractor will respond to any special needs represented by these circumstances. 4.5 Changes in Schedule There should be a provision for public notification of customers prior to any change in service. It should provide for specific number of days advance notification. 4.6 Emergency Procedures The franchise should provide for emergency call out procedures due to man 1 made or natural disasters or labor strike. This agreement should also provide for any necessary suspension of services or other emergency measures for the 1 duration of the emergency. 4.7 Rights of Franchisor to Perform During Emergency This provision would set the parameters by which the franchisor assumes responsibility to collect, transport and dispose of all solid waste controlled by the contract. In the event the contractor is unable or unwilling to perform, it would set the notification process, time limits, health, safety and welfare justification and reimbursement of costs to the franchisor. 1 1 22 1 1 ' SECTION 5. PERFORMANCE STANDARDS ' With the goal of a cost effective collection system, responsive to customer needs, responsive to the ever changing Federal and State mandates, and technological changes, franchisor and contractor should negotiate collection performance standards which also respond to health, safety and environmental responsibilities. ' 5.1 Systems and Services Review ' a. Efficiencies in Operation Under this process a contractor would be expected to develop a routing/service plan, including implementation which must have a regular ' evaluation by the franchisor which considers alternatives for improving efficiencies and cutting costs. The franchisor might want to include a clause which reserves the right to perform an independent inspection or review. It might also stipulate the conditions by which the routing plan/times might be altered. For instance, such a plan and review might consider ' 1) the number of stops per truck and/or operator(s); 2) the cost per stop; per truck; per disposed ton; 3) the total community cost for collection, transportation; for transfer; ' for disposal; 4) Waste projections, using waste audits or professional projections; ' 5) the impact of union contracts/labor relations; ' 6) complaints; 7) customer satisfaction survey results; and ' 8) recycling and yard waste collection participation rate. b. Comparison With Comparable Communities To provide for periodic technological and economic changes, the ' franchisor may require a periodic report from the contractor which compares operational standards with those in similar communities. Central Contra Costa Sanitary District does this through a quarterly forum of elected officials, contractors and community representatives. ' 23 C. Capital and Equipment Purchasing and Improvement Plan ' The contractor is required to submit a purchasing and improvement plan for a specific time period - 2-5 years - the nature of the capital and equipment to be acquired and an estimate of the costs and impact of the rates. , 1) The franchise may require the contractor to initially provide one container to each participating household. The contractor is then t permitted to sell additional containers to residents upon request. There should be a provision for who owns them when the franchise is terminated. ' 2) The franchisor may reserve the right to include in the rate base the reasonable cost of equipment and review the expenses of major purchases. , 3) The franchisor may require use of the franchisor's jurisdiction as PTI the point of sale with the franchisor's sales tax number. d. :Inspection The franchise stipulates the right of the franchisor to inspect facilities, , equipment, daily operation and records upon reasonable notice. 5.2 Maintenance of Collection and Processing Equipment This category establishes requirements for a collection system which is sufficient to regularly - in a safe and sanitary manner - collect, process and dispose of the franchise area's solid wastes; consistent with all applicable ordinances, laws and regulations. It can include ' a. reports on type, mileage, expected life, value and use of the equipment; b. establishment of standards for types of equipment utilized and ' purchased, maintenance of equipment, including proper licensing, registration, noise levels and other health and safety issues and reports ' and inspection; C. standards for methods of collection, processing, transporting; and ' d. equipment inventory list, including backup vehicles in the event of breakdowns. 1 24 , ' 5.3 Sanitary Operations ' This provision details requirements for healthy and safe collection and processing of solid waste. It may include a. personnel standards for behavior, customer relations and competence; b. standards for employees relating to wellness, drugs, alcohol, cleanliness, ' training and supervision; C. required reports related to citations and other adverse reports; ' d. financial responsibility of the contractor to ensure safe, clean and proper operation and maintenance of all facilities and equipment; and ' e. inspection schedule and process. ' 25 SECTION 6. RATES 6.1 Franchise Fees ' The franchise should set guidelines for establishing the franchise fee. Many agencies set a specific percent of revenue the contractor will pay to the franchising entity. Example: "Contractor shall pay to City ten percent (10%)of gross revenue..." One agency sets the franchise fee based on reimbursement of actual expenses incurred to regulate/manage the franchise. A non-public utility type model would be a contractual agreement which could simply indicate that future rate changes would be made by an amendment to the agreement that was mutually agreed to by both parties. 6.2 Compensation/Rates ' This section should discuss allowable profit. Some agencies spell this out in detail, setting a method of calculation and an allowable ratio. Example: "The City shall select an operating ratio for collection operations after reviewing the information required from the hauler. The operating ratio shall be no less than 86 percent and no more than 90 percent." ' This specific definition does not allow the regulator to adopt better methods of regulation if desired. One regulator was able to replace the operating ratio calculation with an equivalent unit calculation because of the less specific wording in the franchise agreement. Example: "Approval off the rate increase, or other action by the Board on the application; shall occur only after the District ' has had sufficient time to review the application and financial statement, and in no event will a rate increase take effect before of the year in question." No mention is made of how rate increases will be determined. Other approaches would be to specify allowable compensation in the Request for Proposal (RFP) or simply to be determined during the contract negotiations. 6.3 Reviews a. Rate Request and Review ' 1) Number and.frequency of reviews should be stated. 2) The franchisor should be able to specify the format the rate application will take. 3) The document should state if audited financials are required. ' 4) There may be a need for some type of appeal process, such arbitration. 26 b. Performance ' Performance is sometimes used in rate setting. The franchisor may want , to provide a mechanism by which good/excellent performance will positively affect contractor's profitability. C. Systems and Services , This section should specify the procedure for reviewing systems and services for the purpose of "providing technological, economic, and ' regulatory changes in solid waste collection, to facilitate renewal producers, to promote competition in the solid waste industry, and to achieve a continuing, advanced solid waste collection system." d. Operating Efficiencies This section of the agreement might discuss incentives for the hauler to ' operate more efficiently. Would a larger percent of profit go to the hauler for new innovations? Again, it is probably advantageous to keep this wording non-specific so the regulator has flexibility. 6.4 Affiliated Entities , This section should discuss the handling of entities affiliated with the waste hauler. Sample wording follows: "The Contractor shall provide information ' necessary to satisfy the City that the charges made by an affiliated entity are reasonable. 'Affiliated entity' shall be defined as any entity which provides products or services to the Contractor and in which the Contractor owns a ten , percent (10 percent) or greater interest. The City shall have the right to inspect the financial records of any affiliated entity." The contractor can sell recyclable materials to any company wholly or partially ' owned by contractor but at a price not less than fair market value. Its relationship must be known to the franchisor. 27 , SECTION 7. RECORDS/REPORTS In general, this section should outline all records that are required by the regulator to be provided by the hauler. 7.1 Financial Reports a. Books and Records Sample wording might be: "Contractor shall maintain a proper set of books and records in accordance with generally accepted accounting ' principles, accurately reflecting the business done by it under this Agreement." b. Audits This section should discuss the type of audited financial statement ' required. It might also discuss the need for audits that will be performed by the franchisor and the frequency by which they will be conducted. ' 7.2 Operational a. AB 939 Requirements This topic may also be covered in more depth in Section 9 - Legal. The franchise will need to state the format, content and frequency required for reporting tonnages of material handled by the hauler such as material type, origin of waste, waste source and tonnages. Other information may be requested in order to comply with AB 939. b. Other Reports Necessary for Rate Review It might be appropriate to state that reports of tonnages deposited in the landfills, recycling tonnages, detail revenue statements, etc. are required for rate review and should be supplied willingly by the hauler. This same ' date must be provided for compliance with AB 939 requirements 7.3 Confidentiality/Customer Privacy ' This section should discuss privacy issues as they relate to the hauler's customers. Example: "... Information identifying individual customers, or the composition or contents of a customer's refuse shall not be revealed to any ' person, private agency or company ..." While the hauler should protect their customers' privacy, privacy should not preclude them from preparing waste characterization studies or waste stream analyses which may be required by AB 939. i 1 28 . 7.4 Customer Notification ' The contractor should be required to notify customers, within a defined time ' frame, of the date and time of the public hearing for its rate increase request. 7.5 Adverse Information ' Sample wording: "Contractor shall provide City two copies of all reports, or other material adversely reflecting on the Contractor's performance under this Franchise Agreement, submitted by the Contractor to the California or U.S. EPA, ' the California Integrated Waste Management Board or any other federal, state or county agency." r 29 , SECTION 8. LEGAL ' 8.1 Intent to Regulate a. Both parties agree that the City has jurisdiction to regulate the collection, removal and disposal of all garbage and/or the recycling of all material within the franchise area. b. A statement should be made as to what is not regulated by this agreement, i.e. recyclable material, removal and disposal of industrial waste, hazardous waste, infectious material, etc. ' C. Deciding whether a particular solid waste activity is covered or regulated by the agreement should be within the sole determination of the ' franchisor. A dispute resolution section of the agreement may be referred to in the event that the contractor disagrees with the franchisor's determination. 8.2 Compliance ' The franchise should include a provision which states that the "Contractor shall comply with all applicable laws, rules and regulations that are now in effect or may be promulgated or amended from time to time by the Government of the ' United States, the State of California, the County of Contra Costa and any other agency now authorized or which may be authorized in the future to regulate the services to be performed herein regarding the collection, removal and disposal ' and/or recycling of solid waste." This section could also include a provision which states those issues over which the franchisor's authority extends, i.e. size of garbage cans, use of plastic trash bags, etc. 8.3 Insurance ' a. The contractor should maintain and continue in force during the term of the agreement, public liability insurance, property damage insurance, automobile liability and workers' compensation and employee liability ' insurance in amounts as determined by the franchisor. (recommended amounts of liability insurance range from $1 to $5 million per occurrence; Workers Compensation: $1 million; other contracts give the franchisor the right to set insurance limits on an annual basis) b. The franchisor should require that insurance be obtained from a company admitted to do business in the State of California and ' acceptable to the franchisor. C. The franchisor should reserve the right to examine all policies to ensure ' appropriate conformity to prevailing practices and standards of the insurance industry. 30 d. The franchisor should require that the insurer on any type of policy , cannot cancel or decrease the insurance coverage without first giving thirty day notice in writing to the franchisor. ' e. The franchisor should require that a certificate of insurance be provided to the franchisor any time the contractor alters .a policy or changes carriers. f. The franchisor should require that a copy of the certificate for each policy, be provided to the franchisor by a date certain of each year. ' g. The franchisor should require that the franchisor be named as an additional insured on the public liability and property damage policies. , 8.4 Faithful Performance Bond a. Simultaneously with the execution of the agreement, the contractor ' should be required to submit to the franchisor a corporate surety bond. (in the contracts reviewed, the amount of the bond varies from $10,000 to 1 $100,000.) b. A statement may be added, but was not found in all contracts, that allows the amount of the bond to be increased periodically (3-5 years) based on ' an agreed upon index. C. The bond should be executed by a surety company licensed to do , business in the State of California and acceptable to the franchisor. d. The bond should be payable to the franchisor. e. The condition of the bond should be that the contractor will faithfully perform the duties imposed by ordinance, the agreement and, if ' applicable, the rules and regulations of the franchisor. f. A statement allowing that any action by the franchisor to proceed against , the bond should not limit or affect the right of the franchisor to use other remedies available to the franchisor under the agreement, or in courts of law or equity. , g. In lieu of a corporate surety bond, but not withstanding the foregoing provisions, the contractor may provide a letter of credit, cash bond or ' other security in a form acceptable to the franchisor. h. The franchisor may want to consider other provisions under which it can , redeem the bond. 31 8.5 Indemnity (Legal Liability) In this section the contractor accepts all risk associated with the work and performance covered by the agreement and agrees to hold the franchisor harmless from any liability. ' a. Sample statement (Each franchisor's attorney will certainly have a recommended version). Contractor agrees to defend, indemnify and hold harmless the City, its officers, employees, agents and assigns against any and all liability, claims, judgments, or demands, including demands arising from injuries or deaths of persons and damage to property, arising directly or indirectly out of the obligations here undertaken or out of the operations conducted by the Contractor, save and except claims or litigation arising through the sole negligence or willful misconduct of the City." ' b The franchisor may want a provision whereby the contractor reimburses Y P Y the franchising jurisdiction for legal expenses incurred in taking action against people who do not have service, or who are violating the exclusive right of the contractor to haul garbage. ' C. The franchisor should require a provision whereby upon request of the franchisor, the contractor shall defend the franchisor in any action which challenges the validity or procedures of the franchise agreement, the procedures by which the agreement was entered into, or any ordinance authorizing the agreement. Defense of the franchisor shall be provided by counsel satisfactory to the franchisor. Costs for litigation should be borne by the contractor. The franchisor shall determine if costs associated with such litigation can be charged as an operating expense of the contractor or against the contractor's profits. td. If a challenge to the conditions listed above is successful, the contractor should have no course of action for damages or any other relief against ' the franchisor. 8.6 Independent Contractor This provision should state that a. the contractor is an independent contractor and not an officer, agent, servant or employee of the franchisor. The contractor will at all times remain an independent contractor in the relationship with the franchisor, and b. the contractor shall not represent himself s n p a a agent or employee of the franchisor and has no authority, express or implied, to act on behalf of the tfranchisor or to bind the franchisor to any obligation whatsoever. 32 r 8.7 Termination (Default) r This section sets out the conditions under which the franchisor may seek r remedies for a breach of the agreement by the contractor. The items below should be considered for inclusion. a. Establish which franchising entity official (suggestion is city/district r manager or his or her designee) has the authority to determine whether a breach of any provisions of the franchise agreement has occurred. b. Determine the procedure for advising the contractor that an action or , P g ( deficiency ) is not in conformity with the provisions of the agreement. This is generally done in writing. In some contracts reference is made to r specific items that must be contained in the written notice (time frame within which correction of all deficiencies is to be made, statement of the performance requested, right of appeal). Other contracts simply state that ' written notice must be provided; C. State a specific time frame in which to remedy deficiencies (not to exceed 60 days was commonly used); d. The contractor should be required to respond to notice of deficiency ' within a specified time period (not to exceed 10 days was commonly used). e. If the designated franchising entity official determines that the contractor ' has failed to satisfactorily cure the breach or deficiency within the allotted time frame, the default may be considered to be material and subject to , termination of the franchise agreement. f. In the event that a material breach of the franchise agreement has been determined to have occurred, an appeal process may be established. ' The governing body of the franchising entity is generally the body hearing the appeal. g. Some contracts have language that allows the franchisor, at the expense r of the contractor, to take or cause actions necessary to cure the breach or default. This is common when the breach or default is one which , interferes with the health or well-being of the franchising entity's residents, and/or disrupts the normal operations of the franchising entity or its residents. ' h. In the event of a termination prior to the natural expiration of the term of the agreement, the franchisor shall have the right to temporarily assume S the obligations of the contractor. This is a lengthy section and should address the following: possession and value of trucks and other equipment, distribution of gross revenue during this period, , indemnification of contractor from liability claims, employment of persons who were employed by the contractor. r 33 r:3 i. Some contracts specifically list actions that would be considered a material breach of the agreement. j. State that upon the occurrence of a material breach and the declaration of such that termination of the agreement shall be considered; that the agreement and the franchise granted thereunder shall be of no further force and effect, excepting those provisions concerning franchisor's right to temporarily assume contractor's obligations and to use contractor's facilities upon early termination as provided in the agreement. k. In the event of default or material breach b the contractor, the franchisor or should have the right to terminate upon 10 days notice. 8.8 Notices ' Notices should be in writing; personally delivered or by certified mail. There should be proper addresses and a named person to receive correspondence. 8.9 Permits The contractor must secure all permits necessary to operate and dispose or ' divert materials at facilities which have all required permits. 8.10 Penalties Penalties may be imposed under the following conditions: a. the establishment of performance standards and liquidated damages for failure to perform; ' b. if the franchise fee is late; C. if the contractor is found to underreport gross receipts; and d. if there are costs included in the rate base in excess of acceptable percentage. ' 8.11 Attorney Fees Attorneys' fees may be awarded depending on who is likely to breach or prevail in a law suit. a. In the event of litigation, the prevailing party should recover its ' reasonable costs of litigation, including attorneys' fees and costs as determined by the Court; or b. Each party should pay its own litigation expenses, including attorney fees. 34 8.12 Severability , a. If legal action brought by others who are not party to the franchise , agreement challenges any provision, each section and paragraph of agreement is severable from the remaining terms, conditions, sections, etc. b. If a non-materialp rovision of thea9._ reement is deemed to be invalid or unenforceable, it does not affect other provisions of the agreement. 8.13 Assi nment Assignment means the transfer, sale or exchange of assets related to the ' service of the franchise agreement. Common provisions relating to assignment follow. a. Neither party shall assign its rights or delegate or transfer obligations , without written consent of other party. b. The franchisor may assign or transfer this agreement to another legally authorized public entity. C. This section may include "consent will not be unreasonably held". d. Criteria must be delineated for the proposed transferee. e. A payment of a transfer fee is required. f. The franchise should address changes in control or ownership. g. An involuntary assignment shall constitute a material breach of this ' agreement and the franchisor shall have the right to terminate. 8.14 California Integrated Waste Management Act (AB 939) Requirements These are necessarythe franchisor against to protect ga penalties imposed by the California Integrated Waste Management Board. a. The contractor is required to maintain accounting and statistical records ' q 9 necessary to provide reports requested by the franchisor. b. The contractor must record on a daily basis materials diverted, materials disposed, yard waste collected, and report to the franchisor on a monthly basis in a form acceptable to to the franchisor. C. The franchisor may require the contractor to achieve a specified percent reduction in the waste stream by 1995, and a specified percent reduction , in the waste stream by 2000. 35 d. The contractor may be required to submit data on computer discs. e. The franchisor may require the contractor to perform waste audits of commercial customers annually and identify volume and waste characteristics and require the contractor to provide information and offer incentives for source reduction or ways to divert commercial waste. f. Failure to report or provide requested information is deemed a material breach. g. The contractor should hold the franchisor harmless from any fines, penalties, and assessments levied against the franchisor for the franchisor's failure to meet AB 939 requirements 8.15 Miscellaneous or General Provisions a. The franchisor may obligate the contractor to comply with all legal requirements-laws, ordinances, orders, regulations of any governmental entity which has jurisdiction. b. The agreement should state that it is governed by, construed, and enforced in accordance with laws of the State of California. C. The agreement should state that the franchise agreement, including attachments, represents full and entire agreement between parties with respect to matters covered herein. d. All references in the agreement to laws shall be understood to include such laws as may be subsequently amended or recodified. e. There should be a statement that the agreement may not be modified or amended in any respect, except in writing. f. It should state that any lawsuits arising out of this agreement shall be brought and concluded in the Courts of of the State of California in Contra Costa County. g. The agreement should state that it will be interpreted and construed reasonably and neither for or against either party. h. The agreement should state that a waiver by either party of any provisions in the agreement shall not be deemed to be a waiver of other provisions in the agreement. i. The agreement should state that it does not modify any agreement with another contractor. 36 j. Force Majeure (A superior or irresistible force) The agreement should provide that the .contractor shall not be in default under the following circumstances: riots, wars, strikes (Some thought needs to be given to whether the franchisor wants to include strikes as a legal excuse for non- performance.), acts of God, etc. This does not include financial inability to perform or failure to obtain permits or licenses. k. The franchise should require that in the case of property or pavement 4 P P Y damage, the contractor is responsible for any extraordinary damage to franchising area's driving surfaces due to vehicle use. The contractor , should also be responsible for physical damage caused by negligent or willful acts. I. Right of Entry - The contractor should have the right to enter any private street for purpose of collecting solid waste or recyclables. M. The contractor should not demand or accept any compensation or ' gratuity for the collection of solid waste required under the agreement. 8.16 Franchisor Responsibility , In this provision the franchisor agrees ' a. to take reasonable steps to protect the contractor's ownership of all recyclable materials placed at the curbside or designated collection , location. A franchisor ordinance will provide remedies to secure protection. b. that If there are separate recycling and solid waste collection agreements, the franchisor acknowledges that it would be helpful to coordinate agreements. 37 ' SECTION 9. REFERENCES 9.1 Solid Waste Franchises a. Aareement Between the City of Hercules and Pinole Garbage Service. a Division of Richmond Sanitary Service, September 10, 1986, 15 pp. b. Aareement Between the -City of Livermore and Livermore Dublin Disposal and Oakland Scavenger Company for Collection and Processing of Solid Waste and Collection and Processing of Recyclable Materials, April 22, 1993, 86 pp. C. Agreement Between Contra Costa Counly-and Pleasant Hill Bayshore Disposal, Inc., for. Solid Waste, Collection and Recycling in West Pittsburg, March 5, 1991, 18 pp. d. Agreement for Collection and Disposal of-Refuse in the City of Beni October 25, 1989, 36 pp. e. Agreement for Residential Curbside Recycling in the City of Benicia, November 1, 1990, 19 pp. f. Aareement for Collection, Removal and Disposal of Garbage Between Central Contra Costa Sanitary District and Valley Waste Management. Zone 2, March 1, 1986, 20 pp. g. Amendment to Agreement for Collection and Disposal of Refuse in the City of Benicia, September 4, 1991, 3 pp. h. An Aareement Between the City of San Bruno- and the San Bruno Garbage Company for the San Bruno Recycling Program, December 1, 1987, 22 pp. i. City of San Ramon - Valley Waste Management Agreement for Collection, Removal and Disposal of Garbage, April 3, 1986, 36 pp. j. Contract for the Performance of a Five-Year Curbside Collection of Recyclable Materials in Castro Valley in the Eden Township of Alameda County jBetween Castro-Valigy Sanitary District and Browning-Ferris Industries of California, Inc./Pleasant Hill Bayshore Disposal, Inc.), January 8, 1991, 7 pp. k. Draft SummaU of Franchise Agreement Between the City of Walnut Creek and Valley Waste Management, Inc., for the Collection and Disposal of Solid Waste, undated, 12 pp. 38 I. Draft Summary of the City of Walnut Creek Revision of Recycling Collection and Processina Agreement with Pacific Rim Recycling, April 14, 1991, 15 pp. m. Franchise Agreement Between Contra Costa ,County and Richmond Sanitary Service, Inc., October 12, 1993, 30 pp. n. Franchise Agreement Between City of Martinez and Pleasant Hill Bayshore Disposal Inc.. (Solid Waste), March 22, 1993, 54 pp. o. Franchise A reement Between City of Martinez and Pleasant Hill Bayshore Disposal. Inc. (Residential Recycling), March 22, 1993, 53 pp. p. Franchise Agreement Between the City of Richmond and Richmond ' Sanitary Service, Inc., September 6, 1991, 38 pp. 9.2 Periodicals a. Hornig, Constance. "Laws Give Shape to Solid Waste Contracts and Finance", Solid Waste & Power, October 1991. b. Pferdehirt, Wayne; O"Leary, Phil; and Walsh, Patrick. "Planning a High Performance Collection System", Waste Age, February 1993. , 9.3 Unpublished Works a. Deloitte & Touche. "Regulation" (Part of a larger work presented at Pacific Recyclers Expo), 1992, 14 pp. ' b. Hilton, Farnkopf & Hobson. "Presentation of Issues and Options Regarding Model Franchise Agreement - Contra Costa Solid Waste Authority", June 2, 1993, 10 pp. C. Hornig, Constance. "Key Recycling Clauses for Garbage RFP's and Contracts: Transfer Stations, Rail Haul and Landfilling" (California Resource Recovery Association Workshop), December 11, 1992, 10 pp. d. Young, Rufus C. and Ki htlin er, Jeffre "Financing Strategies for ' 9 9 9 Y 9 9 Integrated Waste Management Programs; Answers for Communities"; "Financing Issues in Establishing Service Agreements" (League of ' California Cities Workshop), May 1992, 16 pp. 39 9.4 Miscellaneous a. Castro Valley Sanitary District. Specifications for Performance of a Five- Year Curbside Collection of Recyclable Materials in Castro Valley in the Eden Township of Alameda County, September 1990, 40 pp. b. City of Saratoga. Request for Qualifications to Perform a Refuse Collection and Disposal Performance Audit, December 4, 1992, 16 pp. C. County of Santa Clara. Garbage Collection Districts 1 & 4 - Request for Proposals, February 1, 1993, 47 pp. 1 1 1 1 1 1 1 40 i 1 � PART II � WASTE COLLECTION RATE a REVIEW MODEL Q 1 1 1 i t February 1994 WASTE COLLECTION RATE REVIEW MODEL TABLE OF . CONTENTS SECTION PAGE EXECUTIVE SUMMARY 1 SECTION 1. DEFINITIONS 3 SECTION 2. RATE SETTING METHODLOGY OVERVIEW 6 SECTION 3. OPERATING RATIO METHODOLOGY 8' 3.1 Definition 8 3.2 Advantages 8 3.3 Disadvantages 8 3.4 Range 8 3.5 Cost to Administer 8 3.6 Mitigation Strategies 9 3.7 Balancing Account 9 3.8 Operating Ratio Sample Calculation With No Balancing Account 9 SECTION 4. ALLOWABLE PROFIT USING RESIDENTIAL CUSTOMER EQUIVALENT UNITS NET OF CAPITAL USE CHARGE METHODOLOGY 10 4.1 Introduction 10 4.2 Quality of Service 10 4.3 Cost of Service 11 4.4 Revenue and Expense Balancing Account 11 4.5 Capital Use Charge 11 4.6 Profit Calculations 12 4.7 Advantages 13 4.8 Disadvantages 13 4.9 Cost to Administer 13 SECTION 5. PUBLIC UTILITIES COMMISSION METHODOLOGY 14 5.1 Rate Making Process 14 5.2 Rate Making Formula 14 5.3 Cost of Service 15 5.4 Return 15 5.5 Rate Base 16 5.6 Deferred Income Taxes 16 5.7 Working Capital 17 5.8 Rate of Return 17 5.9 Advantages/Disadvantages 18 SECTION PAGE SECTION 6. INDEXED RATE METHODOLOGY 19 f 6.1 Purpose 19 6.2 Guidelines for Use 19 6.3 Benefits 20 6.4 Disadvantages 20 6.5 Cost to Administer 20 SECTION 7. REFERENCES 7.1 Rate Regulation Methodologies and Rate Structures 21 9 g 7.2 Rate Application Analyses 21 7.3 Miscellaneous 22 SECTION 8. APPENDICES A Memorandum of Agreement and Work Plan Between the Contra Costa Solid Waste Authority and Contra Costa County B APCUC Sample Calculations C Public Utilities Commission (PUC) Example Calculations D Indexed Rate Sample Rate Adjustment Formulae t �. WASTE COLLECTION RATE REVIEW MODEL EXECUTIVE SUMMARY In April, 1993, Contra Costa County (County) and the Contra Costa Solid Waste Authority (Authority) approved a Memorandum of Agreement and Work Plan which had as its goal a partnership which could address the challenges and high costs of complying with the California Integrated Waste Management Act of 1989 (AB 939). One of the tasks set forth in that work plan was the development of a waste collection rate review model which could assist solid waste franchising agencies in effectively regulating the solid waste and recycling collection rates of the various collection companies. By doing so, the two entities acknowledged the need for informed staff and elected officials capable or responding to the challenge of rising cost and mandated recycling requirements. The model is intended to be a companion document to the Model Waste Collection Franchise, also prepared as part of the Work Plan. The model does not advance one rate regulation methodology over another but presents four models for consideration. The Operating Ratio and Allowable Profit Using Residential Customer Equivalent Units Net of Capital Use Charge methodologies are methods currently being used in Contra Costa County. The Public Utilities Commission (PUC) type model is used by the State of California and the City and County of San Francisco. The Indexed Rate methodology is used by the cities of Benicia, Suisun and San Jose. The City of Sunnyvale uses a modified Index Rate methodology, also incorporating a biannual review. 1. Definitions Terminology utilized in the three methodologies has been included, as well as nomenclature commonly used in the rate review process. Definitions are generally generic. Where definitions differ, depending on the source of the methodology, both are included. 2. Overview The complexities of managing both disposal collection and recycling services and keeping up with state diversion mandates have made franchise agreements and accompanying rate review process a dynamic process which requires greater attention by both staff and elected officials. A rate review should not only assure that the customer receives cost effective services but provides an understandable and measurable formula for future increases. Issues which the rate setting entity needs to address are need for a common methodology, waste stream control, subsidizing of residential rates by commercial customers, pass through costs, frequency of rate reviews, AB 939 requirements, franchise fees, etc. 1 3. Operating Ratio Methodology The Operating Ratio Methodology is utilized in some form by a majority of the franchising entities in Contra Costa County, as well as the State of California. The methodology presented is that used by the City of Walnut Creek, which is a modified operating ratio. It is easy to calculate; however, profits are based on expenses so that higher costs result in higher profits. 4. Allowable Profit Using Residential Customer Equivalent Units Net of Capital Use Charge ( PCUC) In an effort to provide a methodology which provides incentives for cost cutting and efficiency by the 'hauler while providing reasonable profit the APCUC method was devised. It is comprised of four major components - Quality of Service, Cost of Service, Revenue and Expenses Balancing Account and Capital Use Charge, - which are folded into the fifth component: the Profit Calculation. Quality of Service is measured by customer satisfaction surveys, which assign a letter grade ranking. Cost of Service is determined by surveys of other jurisdictions single can rate and rate increase percentage. Revenue and Expense Balancing Account is used to account for the difference between the forecasted and projected actual result of operations. The Capital Use Charge compensates the hauler for the use of capital, owned, rented or lease equipment. The profit calculation considers all of these factors and determines the necessary revenue increase. 5. Public Utilities Commission Methodology The utility rate making process sets rates by estimating a utility's reasonable expenses and revenues, then adding a "fair and reasonable" return on its investment. No utility is guaranteed a profit, however, merely a reasonable opportunity to earn one. The amount of revenue that a regulated company should be allowed to earn is calculated as follows: Revenue requirement = cost of service Cost of service = operating expenses + return Return = rate base x authorized rate of return 6. lndexgd Rate Indexed Rate is becoming more and more attractive to entities which wish a more uniform formula for handling rate escalation in a systematic and less costly manner. 'Guidelines are presented which discuss all elements which should be present in a contract's rate requirements if this methodology is to be used. Appendix D contains excerpts from the Cities of Fremont and San Jose franchising contracts which utilize the indexing methodology for annual rate adjustment. 2 SECTION 1. DEFINITIONS 1 .1 Above-the-line refers to revenues collected and expenses incurred in performance of a utility's primary functions and which may be reflected in the rates its customers pay. 1 .2 "Affiliated Entity" any entity over which the contractor or one or more of its �- shareholders exercises substantial control. 1 .3 "Allowable Costs" contractor costs agreed to by the franchisor to be recovered through the rates. It can include collection/disposal of garbage and curb side recyclables. They must be adequately documented and supported by financial statements. 1 .4 "Allowable Profit" the amount of profit which the contractor may be allowed on operating costs such as trucking, tipping fees, office charges, etc. 1.5 "Balancing Account" a reserve account use d to "balance" the difference between anticipated and actual financial performance. Any excess revenues received by the contractor are deposited in the account. Payments are made to the contractor if there are unanticipated shortfalls in revenue. 1 .6 "Below-the-line" expenses of a utility which cannot be recovered through rates. 1 .7 "Bi-Annual Review" a detailed review of revenues and expenses every other year with indexed costs in the intervening years. 1 .8 "Capital Use Charge" the amount of net tangible fixed assets plus 1/2 the cost of capital additions, divided by the two year Treasury note interest rate (See Appendix B-1). 1 .9 "Consumer Price Index" a series of numbers, one for each period, that represents an average price for a group of goods and services, relative to the average retail price of the same group of goods and services at the beginning date. 1 .10 "Cost of Service" a method of using utility cost in rate design; a cost of service study measures a utility's cost incurred in serving each customer class, including a reasonable return on investment. 1 .11 "General Accepted Accounting Practices" (GAAP) the conventions, rules and procedures necessary to define accepted accounting practice at a particular time. 1 .12 "Indexed Rate" prior year rate multiplied by one plus the change in a selected index. 3 1 .13 "Modified Operating Ratio" expenses (excluding certain pass-throughs) divided by revenues 1 .14 "Operating Ratio" the ratio of operating expenses to operating revenues. "Operating Ratio" (PUC) the total of operating expenses, interest, expense and taxes divided by the total of operating revenues, interest income and ' dividend income. "Operating Ratio" expenses (excluding interest and taxes) divided by revenues 1 .15 "Performance Audit" an independent survey of the contractor's general operational efficiency with the objective of lowering costs and therefore, rates. 1 .16 "Public Utilities Commission Review" a detailed review of revenue and expenses as needed when utility profits fall below a designated level. 1 .17 "Rate Base" a calculation by which the accumulated depreciation and the deferred income tax is subtracted from the combined physical assets. "Rate Base" the value of a regulated company's plant and equipment used to serve its customers. 1 .18 "Rate Change Application" a detailed application for a rate change which includes detailed operating and financial information. 1 .19 "Rate of Return" reflects the utility's weighted cost of capital. The capital structure components are multiplied by the costs associated with the various forms of financing. It includes interest on borrowed funds, plus dividends on preferred stock and a reasonable allowance for a return on equity. 1 .20 "Residential Customer Equivalent Units" the amount reached by dividing total residential and commercial revenue by the average revenue per residential customer. 1 .21 "Return" the profits made by a company 1 .22 "Return on Assets" net income divided by owners' assets 1 .23 "Return on Equity" net income divided by owners' equity "Return on Equity" the profits distributed to common shareholders after all expenses, interest, costs and preferred stock dividends have been paid. It is the level of revenue needed to earn a fair return on investment. 1 .24 "Return on Rate Base" net income divided by total investment (both debt and equity financing) in productive assets. 4 1 .25 "Tipping Fee" transfer station and landfill disposal costs imposed by owner and/or regulatory jurisdiction. 5 1 SECTION 2. RATE SETTING METHODOLOGY OVERVIEW The complexities of managing both disposal collection and recycling services as well as keeping up with state mandates has made franchise agreements dynamic documents that require attention by both staff and elected officials. Franchise agreements and rate setting methodologies have undergone reevaluation in the face of rising collection costs and mandated recycling requirements. The end result of a solid waste franchise agreement is to provide service that is dependable, meets health and safety requirements and serves the public's needs. The primary reason for a rate/performance review is to determine if service, detailed in the franchise agreement, is in line with costs. A rate review should result in not only providing the services you need, efficiently, and at the least cost, but should also provide a formula for future rate increases and reasonable profit to the collection company. Since no public entity within the County provides garbage collection services, rate reviews are performed within the context of public review of a privately owned company. Therefore, many rate review methodologies are a compromise between the collection company and the franchising jurisdiction. Further complicating the matter is public perception that garbage collection is a public service much like water or telephones that must be regulated under public scrutiny. Sometimes the franchise agreement will detail the type of procedure to be used in performing a rate review. However, inclusion of detailed rate setting methodologies within the franchise agreement is the exception rather than the norm. Within Contra Costa County several jurisdictions have completed or are in the process of developing comprehensive rate setting methodologies. The implementation of various rate setting methodologies on haulers that serve multiple jurisdictions, could affect overall rates if methodologies are not similar or one methodology requires more detailed information. Garbage collection rates can be broken down by collection costs, transfer and/or disposal, profit and mandatory fees. Key issues that could be examined within collection costs are productivity, equipment or leasing costs, maintenance, safety and training, insurance, labor costs, and regulatory compliance. Financial and accounting issues may include audits, financial reporting, system documentation, affiliated entities, contract compliance and/or financial incentives. In addition, several policy issues may need to be considered in the development of a rate setting methodology such as: waste stream control of garbage and recyclables; underwriting of residential rates by commercial customers; transfer/landfill tipping fees as pass through costs or costs applied to profit; frequency of rate reviews; retroactive reimbursement, responsibility of AB 939 requirements; in lieu services; franchise fees; etc. Decisions on policy issues will have a direct impact on the rate setting methodology developed. 6 Overviews of four different rate setting methodologies are provided below. The first is the method currently used in the City of Walnut Creek; the second is the methodology used for jurisdictions franchised by the Central Contra Costa Sanitary District; the third is an overview of a public utility model; and the fourth discusses using the Consumer Price Index and its components. 7 �� SECTION 3. OPERATING RATIO 3.1 Definition One method for calculating profit when setting garbage and recycling rates is ithe operating ratio. Rates are determined by projecting expenses, revenues and allowed profit. The operating ratio determines the level of profit.and is calculated by dividing operating expenses by revenues excluding interest and taxes. The City of Walnut Creek uses a modified operating ratio, and thereby excludes profit on disposal expenses (which are beyond the control of the contractor thus considered pass-through) and are also excluded from expenses. Walnut Creek excludes disposal fees of more than $25.13 per ton whereas current disposal fees are now $75.97. Therefore, the allowed. profit is set on a pre-tax, pre- interest basis which should provide a return to the company and allow for interest payments on future investment in capital assets. 3.2 Advantaaes The primary advantage if the operating ratio method is that it is easy to calculate and is widely used for solid waste rate regulation allowing for relatively easy comparison across jurisdictions. 3.3 Disadvantages The primary disadvantage is that profits are based on expenses so that higher costs result in higher profits. Therefore, there is often little incentive for the contractor to control costs which may result in higher rates. 3.4 Range Most operating ratios in the solid waste area range from 90%-95%. The revenue requirement (expenses plus profit) which is determined after expenses are reviewed and the operating ratio calculated, serves as the basis for the rates charged. 3.5 Cost to Administer Most entities hire a financial consulting firm to verify the contractor's figures in the rate application. This typically can cost upwards of $ 15,000 in 1993-1994 dollars. Staff time, spent on the rate review process is approximately 40-80 hours 8 3.6 Mitigation Strategies One way to analyze the effect of this method is to review the contractor's expenses over time and compare increases in the rate of inflation and look for unreasonable cost increases. Walnut Creek has done this consistently on an annual basis and has concluded that use of the operating ratio has not resulted in unreasonable expense increases. Additionally, up until 1993, Walnut Creek had a 95% modified operating ratio which defines the high end of the range, lowest contractor profit. Consequently, the contractor has consistently asked for a lower operating ratio which the City finally granted after the contractor cut operating costs significantly. In 1992, re-routing saved the rate payer $300,000 and as a result, the contractor received an adjustment in its operating ratio to 93%. 3.7 Balancing Account This method is also used with a balancing account which protects both the City and the contractor from the projected differences in revenue to actuals. Revenues collected in excess of those required by the contractor are credited to the rate payer and lower than anticipated collected revenue is credited to the contractor. The City takes this deficit or credit balance into account when setting the next round of rates. This has been particularly useful in addressing the uncertainty surrounding disposal costs and the impact of curb side recycling programs on disposed tonnage. 3.8 Operating Ratio Sample Calculation With No Balancing Account Expenses as projected by company $10,079,800 Expenses as adjusted by the City 9,981,900 Less Franchise Fee (5%) 550,972 Profit Basis 9,430,928 To calculate pre-tax profit at 93% operating ratio: pre-tax profit at 93% _ (profit basis/operating ratio) - profit basis 9,430,928/0.93 = X X - 9,430,928 = 709,856 i Pre-tax profit at 93% _ $ 709,856 9 t� SECTION 4. ALLOWABLE PROFIT USING RESIDENTIAL CUSTOMER EQUIVALENT UNITS NET OF CAPITAL USE CHARGE 4.1 Introduction In the past, the District used several rate-setting methodologies including Operating Ratio, and more recently, Return on Assets (ROA) and Return on Equity (ROE). These methods provide no incentive for cost-cutting; in fact, profit is allowed for each dollar spent so there is an incentive to spend as much as possible as a way to raise profits. Because of this deficiency, an alternative approach was devised. This method is called Allowable Profit Using Residential Customer Equivalent Units Net of Capital Use Charge (APCUC). The APCUC method has five major components which provide for the calculation of reasonable profit and promote cost-cutting and efficiency by the refuse hauler. The first four components are Quality of Service, Cost of Service, Revenue and Expense Balancing Account, and Capital Use Charge. These four components fold into the fifth major component which is the profit calculation. 4.2 Quality of Service The District conducts surveys to measure the level of customer satisfaction with the services provided by the franchised refuse collectors annually. The survey results are summarized in terms of a grade ranking, based on the following numeric scale: Grade Numeric Ranking Scale A+ 1.20 A 1.15 A- 1.10 B+ 1.05 B 1.00 B- .95 C+ .90 C .85 �\ C- .80 D .40 - .80 F .00 - .40 In settingthe Quality of Service modification factor, the responsiveness and Y p cooperativeness of the refuse collector is considered. 10 4.3 Cost of Service Surveys of other jurisdictions with similar service levels are performed to obtain collection rate information to determine the comparative ranking of the franchised refuse collectors. The ranking is based upon the single can rate amount and the percentage increase in the rate over the preceding three years. Sampled rates are adjusted for differences in services provided, and major differences in the topography of the service area. In setting the Cost of Service modification factor, the degree of control the franchised refuse collector has over disposal charges, refuse collection expense control, and other related factors, is considered. 4.4 Revenue and Expense Balancing Account Given the uncertainties inherent in operating a business in as volatile a field as solid waste, extreme precision in the franchisees' ability to operate exactly on budget cannot be expected. Without a Balancing Account, budgetary surpluses have been retained by the franchisees. The Balancing Account is used to account for the difference between the forecasted and projected actual results of operations for the preceding rate-setting year and applies such excess or shortfall in operating income to decrease or increase the revenue requirement of the current rate-setting year. Because the audited financial statements for the preceding rate-setting year are not available until after the current year rate- setting process is completed, a final adjustment to the projected actual results of operations is made in the subsequent rate-setting year. 4.5 Capital Use Charge This charge is necessary to include a sum of money in the calculation of the rate adjustment to compensate the franchiser for the use of capital. This sum is calculated by multiplying an interest rate times the depreciated value of the franchisee's Net Tangible Fixed Assets (NTFA). The NTFA is computed on the basis of the original acquisition cost to avoid mark-ups resulting from changes in franchise ownership being passed on to the rate paying public. The average yield of High Quality 10-Year Corporate Bonds is used as the interest rate. This rate is not used on the basis of the cost of borrowed capital. Rather, it is used as a realistic rate of income which the franchisee could expect to realize from an alternative secure investment. Return on capital greater than this amount is considered to be part of the owner's profits. With this approach, the franchisee realizes an income stream direct) related to PP Y his capital purchases. Rented or leased equipment is added to the NTFA (capitalized) and both a depreciation allowance and an imputed interest allowance (use of capital charge) are calculated in the rate adjustment. Rent payments are disallowed. This approach puts owners and renters on a common economic basis. 11 '� 4.6 Profit Calculations After reviewing the rate application and the hauler's financial records, rate adjustments are made as necessary to determine actual expenses that will be allowed for rate setting purposes. Projected revenues are also analyzed. Profit is then calculated as follows: . a. The Capital Use Charge is calculated using the approach outlined in the preceding section, using the average High Quality 10-year Corporate Bond interest for the year under consideration multiplied by the book value of the Net Fixed Tangible Assets in that year. The Capital Use Charge is subtracted from the actual gross profit leaving a net profit before income taxes. This method uses the practice of setting before-tax profit. Hence, no allowance needs to be made for income taxes. Appendix B-1 shows an example of a Capital Use Charge calculation. b. Residential Customer Equivalent Units are calculated to establish a common profit base. First, the average revenue per residential customer is calculated by dividing total residential revenue by the number of residential customers. Equivaient Units are arrived at by taking total revenue, including commercial, and dividing by the average revenue per residential customer. In the first year this method was used, six years of profit were analyzed. An average Equivalent Unit was obtained after first omitting the highest and lowest year's calculations. In subsequent years, the Customer Equivalent Unit calculated in the base year is incremented by the Consumer Price Index. C. Actual profit, net of Capital Use Charge, per residential unit is determined by dividing actual profit by the Residential Customer Equivalent Units. In the base year, multiple years of data are analyzed. The new profit figures are adjusted by the Consumer Price Index to inflate them to current dollars. The high and low years are rejected to determine an average mean of the remaining years. Appendix B-2 illustrates the computation of allowable profit, net of Capital Use Charge, resulting in Customer Equivalent Units of 48,357 and allowable profit per equivalent unit of $11.87. Applied Quality of Service and Cost of Service Modification Factors are illustrated in the computation of allowable profit on B-4. This attachment illustrates the calculation in the year following the base year. d. The Percent Increase in Revenue is calculated based on allowable expenses, Capital Use Charge, and allowable profit. Appendix B-3 illustrates how these components fold together to produce the required revenue increase. 12 iJ e. The Revenue and Expense Balancing Account is prepared, comparing projected versus actual operating results, as discussed previously. Appendix B-5,6 shows a sample of the Balancing Account calculation. 4.7 Advanta es The APCUC model is a rate-setting method that promotes efficiency. Ratings for Quality of Service and Cost of Service are applied to the profit calculations. Increased efficiency and customer service can result in greater profit to the hauler. The Revenue and Expense Balancing Account allows for adjustments to be made for inconsistencies between projected and actual expenses and revenues. The Capital Use Charge fairly compensates the hauler for the use of capital and treats owned, rented or leased equipment in the same manner. The profit calculation takes into consideration all of these factors and determines the necessary revenue increase. 4.8 Disadvantages While this methodology is intended to promote efficiency and does avoid the higher collection costs associated with the operating ratio methodology, its rate review process is fairly expensive to administer. The Quality of Service component, because it is based on customer survey evaluation of responsiveness and cooperativeness is more subjective than other methodologies. 4.9 Cost to Administer (In 1992-93 dollars) . Consultant to verify the contractor's figures and to evaluate the rate application $ 55,000 Customer Satisfaction Survey 19,000 Staff Costs 24.000 98 750 13 ,� SECTION 5. PUBLIC UTILITIES COMMISSION METHODOLOGY The following is an overview of the rate making process, for utilities in general. The concepts apply directly in the telecommunications industry. The rate making process determines the selling price of services provided by a regulated company; it specifies the overall level of revenues, the types and amounts of rates that may be charged, and the various classes of users to which the different rates apply., Rate making also influences the application of accounting principles by a regulated company, because the regulatory body often prescribes, accounting methods for regulated companies under its jurisdiction, which may or may not conform .� with General Accepted Accounting Practices (GAAP) appropriate for non-regulated business. 5.1 The Rate making Process The rates that a regulated company charges its customers are a matter of administrative law; its revenues are predetermined and subject to the scrutiny of interested parties and the approvai of regulatory bodies. The regulated company proposes rates designed to cover its costs, and provide a return on its investment, to the federal or state regulatory commission having jurisdiction. The regulatory authority then reviews the rate proposal and allows interested parties such as consumer groups or major industrial customers to respond to, and often challenge, the proposal. After the commission has considered the arguments of the regulated company and interested parties, it determines the amount of revenue the regulated company should be permitted to receive (usually less than the regulated company's original proposal) and approves the corresponding rates (the tariff) to be charged to various classes of customers. The rates of public power agencies usually are set by their own governing boards, which are empowered by statute or contract to establish-rates. 5.2 The Rate making Formula Determining the amount of revenue a regulated company should be allowed to earn (the revenue requirement) can be summarized in the following equations: Revenue requirement = cost of service Cost of service = operating expenses + return Return = rate base x authorized rate of return 14 5.3 Cost of Service. ' Cost of service is the amount that will permit the regulated company to meet all expenses properly chargeable to current regulated operations and incurred to provide regulated services, plus provide a return on amounts invested in assets necessary to provide such services. Operating expenses include salaries, materials, supplies, miscellaneous expenses, taxes, and depreciation of plan. ' Developing the operating expenses component of cost of service begins with the regulated company's historical accounting record of operating costs incurred, recorded in accordance with .the prescribed Uniform System of Accounts (USDA). The regulated company selects a test period to be used in the rate application. Ideally, the test period selected should be as close as possible to the period for which the rates to be fixed will be operational; in most . instances, the test period will not coincide with the regulated company's fiscal year. Normally, test-period costs are adjusted for anticipated or known changes (normalized) in expenses during, or after the test period. For example, annualized union wage increases during the test period and any contracted future cost increases would be taken into account in determining cost of service. In some jurisdictions, regulated companies have been allowed to use a projected future test period. In these instances, the regulated company applies for rates to go into effect at a future date and projects the cost of service at the effective date. If a regulated company develops a cost of service study that is reasonable in relation to costs incurred (or to be incurred) and is able to justify those costs, and if the regulatory commission agrees that the costs are reasonable, the regulated company should receive adequate revenues to operate successfully. That means that if the regulated company is operated efficiently, it should provide adequate service and be able to attract additional capital as needed. Unexpected changes in cost or sales volume, however, may preclude the regulated company from achieving the results anticipated in the rate application. The terms "above the line" and "below the line" are commonly used in rate making. the "line" is net operating income (i.e., operating revenues net of operating expenses, including income taxes). Costs above the line are operating expenses that are part of the cost of service and are reflected in the revenue requirement. Other revenues and expenses, referred to as non-rate items (e.g., income or expense resulting from non-regulated activities), do not constitute operating income or expense and therefore are not part of the cost of service; they are shown below the line as other income or expenses and are borne, in effect, by the common stockholders. 5.4 Return. Return is the amount that should induce investors to invest in, or retain their investments in, a regulated company. The first step in calculating the amount of a regulated company's return is determining the regulated company's rate base. 15 r 5.5 Rate Base. The rate base represents a regulated company's total investment in facilities used to provide service, generally measured at its original cost. This is the base to which a rate of return is applied to arrive at the level of operating earnings (e.e., return) at which the regulated company should be able to operate successfully. The principal components of rate base are as follows: a. Plant in Service. Plant in service includes the cost of facilities used and useful in providing service to the public, net of accumulated depreciation b. Plant Under Construction (PUC). Although it appears that the "used and useful" principle would automatically eliminate PUC from inclusion in the rate base since PUC will not be used or useful until some time in the future, some commissions include all or part of PUC in the rate base. In some cases, PUC is included to allow a regulated company that has significant construction projects to remain financially viable. This is a sensitive issue since the inclusion of PUC in the rate base forces current customers to pay for a plant that generally is considered to benefit future customers. In many jurisdictions, PUC is excluded from the rate base. From the regulated company's viewpoint, however, the investment in PUC is no different from any other investment and therefore merits a return. This is recognized, in those jurisdictions in which PUC is excluded from the rate base, through capitalizing, as a cost of construction, an estimated return commonly referred to as construction IDC (interest during construction). The effect of recording an IDC is to recognize that the regulated company has sacrificed the alternative use of the funds invested in PUC and that the return on amounts invested in construction represents part of the cost of completed construction. While the regulated company tends to view the IDC from a return perspective, capitalizing the carrying costs of construction projects is a generally accepted account principle. 5.6 Deferred Income Taxes. Since a regulated company recovers the full provision for income taxes from its customers as an operating expense, net deferred tax credits generally are deducted from the rate base. This is done to recognize that the positive cash flow resulting from deferred taxes provides the regulated company with cost- free capital that is supplied by the rate payers. Not deducting deferred income tax credits would have the effect of providing the regulated company's investors with a return on a portion of the rate base for which they did not provide the capital. 16 r 5.7 Working Capital. 1 Regulators recognize that a regulated company cannot operate without continuously available funds and therefore permit an allowance for working ?� capital to be included in the rate base. This allowance may represent a specific number of days of a regulated company's cash requirement; however, regulators may require regulated companies to submit a study to justify the amount of working capital claimed. The rate base, as determined through the rate making process, is the total value , on which the regulated company is permitted to earn a return. 5.8 Rate of Return. The authorized rate of return is the return expressed as a percentage of the regulated company's rate base, and it is based on the regulated company's cost of capital. (Cost of capital is calculated as a weighted average of the cost of the various components of the regulated company's capital structure --- its debt, preferred stock, and common shareholders' equity. Most corporate and managerial finance books discuss at considerable length the concept of the cost of capital, how to calculate it and the factors that affect it.) A regulated company's actual (realized) rate of return is the amount it earns expressed as a percentage of the rate base after deducting operating expenses, including depreciation and taxes. The authorized rate of return may differ from the actual rate of return attained because of delays in the rate making process (regulatory lag) and revenues and expenses that vary from expected levels. In the landmark case Bluefield Water Works and Improvement Company v. Public Service Commission of West Virginia (262 U.S. 679, 672 (1923] ),the U.S. Supreme Court discussed rate of return as follows: . A public utility is entitled to such rates as will permit it to earn a return on the value of the property which it employs for the convenience of the public equal to that generally being made at the same time and in the same general part of the county on investments in other business undertakings which are attended by corresponding risks and uncertainty, but it has no constitutional right to profits such as are realized or anticipated in highly profitable enterprises or speculative ventures. The return should be reasonably sufficient to. assure confidence in the financial soundness of the utility and should be adequate, under efficient and economical management, to maintain and support its credit and enable it to raise the money necessary for the proper discharge of its public duties. 17 ' In determining the authorized rate of return, an appropriate cost for each of the regulated company's various sources of capital - long-term debt, preferred stock and common equity, including retained earnings--is identified. For long-term debt and preferred stock, the coupon interest rate or dividend rate, appropriately adjusted for premiums or discounts, is the cost of capital. Determining an appropriate cost of capital for common equity (including retained earnings) is usually more subjective. The overall cost of capital is the weighted average return on all sources of capital. (See Appendix C for sample calculations) 5.9 Advantages/Disadvantages This methodology is generally not recommended for use by franchising entities in regulating collection or disposal costs. It is regarded as too cumbersome and unnecessarily complex. Cost figures on its administration are, therefore, are unavailable. r 18 SECTION 6. INDEXED RATE METHODOLOGY This methodology incorporates an escalation provision into collection and disposal contracts to adjust future rates based on changes in the Consumer Price Index (CPI) 6.1 Purpose The general purpose of escalation mechanisms is to adjust payments for ' changes in prices. The CPI is the most widely used measure of inflation and is frequently used for escalation purposes. Although such adjustments are sometimes called cost-of-living adjustments (COLA), the CPI is not strictly a cost-of-living index. The CPI measures the change in the prices of a fixed market basket of consumer goods and services purchased on an average, by the population covered by the index. 6.2 Guidelines for Use The following are general principles to consider when developing escalator clauses. Appendix C provides two examples taken from the City of Fremont and the City of San Jose, showing how the following guidelines can be utilized in a collection contract. i a. Clearly define the base rate or other value which is subject to escalation. b. Select and identify the specific index components to be used for escalation: 1) Title of index 2) Subtitle (e.g., All Urban Consumers[CPI -Up 3) Geographic Coverage - National or Bay Area ' 4) Index component - Motor fuel, residential rent, etc. 5) Index base. C. Specify the reference period from which changes in the price index will ' be measured. It may be an average of several months or an annual average. d. State the frequency of adjustment. Adjustments are usually made at fixed time intervals, such as annually, biannually, etc. e. Specify the precise formula for the adjustment calculation - (40% of the annual December to December percentage change in the National CPI- U). 19 f. Define the upper and lower limits of the agreed upon escalation agreement g. Provide a built-in method for handling corrections or changes in the index. 6.3 Advantages ' The advantage to using an indexed rate is its simplicity and ease of administration. It negates prolonged and expensive rate regulation processes , in that the rate base is established at the time the contract is awarded, based on competitive bidding. The City of San Jose has been using an indexed rate and is very satisfied with the results. All contractors for both yard waste collection and -for municipal solid waste are selected through the competitive bidding process, which includes the proposed initial collection rate, with the rate thereafter escalated as illustrated in Appendices D1 and D2. 6.4 Disadvantages As with any of the various rate regulation methodologies, franchisors should key t any increase in profit to pre-established service and performance standards set forth in the franchise agreement (See Model Waste Collection Franchise). In utilizing the indexing methodology, franchising agencies must assure some method of oversight on behalf of the rate payer as equally important to the perceived enhanced ease of administration. 6.5 Cost to Administer This methodology is the least costly to administer, needing only one staff person to annually check the CPI. It is estimated that a maximum of 20 staff hours per year for the entire process, as described in Appendix D1-2, will be needed. , 1 20 ' i iSECTION 7. REFERENCES i7.1 Rate Regulation Methodologies and Rate Structures ia. California Public Utilities Commission Handbook on the Regulation of California's Public Utilities and Transportation Companies, May, 1991 , i 27 pp . b. City of Concord Rate Setting Process and Methodology Manual for Residential Solid Waste Fees, Ernst & Young, February 1993. i C. Cily of Fremont - Request for Proposals for Garbage, Recycling and Yard Waste Services for the City of Fremont, City of Fremont Public Works iDepartment, November 2, 1993, 31 pp. d. City of Richmond Solid Waste Collection Rate Application and Review iProcedural Guide, Barakat & Chamberlain, Inc., October 30, 1990, 46 pp. e. City of Walnut Creek Alternative Rate Regulation Methodology and Rate iStructures, Hilton, Famkopf & Hobson, September 26, 1990, 27 pp. f. Relative Importance of Components in the Consumer Price Index, U.S. Department of Labor , Bureau of Labor Statistics, 1990, 37 pp. g. The Consumer Price Index, U.S. Department of Labor, Bureau of Labor iStatistics, 1992, 58 pp. h. Using the,Consumer Price Index for Escalation, U.S. Department of iLabor Bureau of Labor Statistics, Revised July 1991, Report 761, 8 pp. 7.2 Rate Application Analyses ia. Acme Fill Corporation Interim Transfer Station Rate Application to the County of Contra Costa for the Year Ending May 31, 1993, Austen Lew - iCertified Public Accountant, 54 pp. b. Analysis of Acme Interim Transfer Station, Fiscal Year 1992-93 Rate Application. Deloitte & Touche, November 18, 1992, 24 pp. C. Central Contra Costa Sanitary District Analyses of Orinda-Moraga i Disposal Service Application for Refuse Collection Rate Increase, Effective January 1. 1994, Hilton Farnkopf & Hobson, 32 pp. d. Central Contra Costa Sanitary District Analyses of Valley Waste ' Management Application for Refuse Collection Rate Increase, Effective January 1. 1994, Hilton Farnkopf & Hobson, November 24, 1993, 46 pp. 1 21 1 e. Central Contra Costa Sanitary District Workshop Presentation - 1994 1 Rate Review, Hilton Farnkopf & Hobson, December 16, 1993 f. Central Contra Costa Sanitary District Presentation - 1994 Refuse , Collection Rate Hearing, Valley Waste Management, December 16, 1993, 17 pp. 1 g. Central Contra Costa Sanitary District Analysis of Valley Waste Management Application for Refuse Collection Rate Increase Effective January 1. 1992, CCCSD Staff, 59 pp. 1 h City of Concord Review of Concord Disposal Service's Residential Rate Increase Request, Ernst & Young, June 1, 1993, 24 pp. 1 i City of Pleasant Hill Draft 1993 Refuse rate Review for Pleasant Hill Bayshore Disposal Inc.. (Refuse Rate Policy Discussion Outline - 1 SummaryVersion), Deloitte & Touche, December 7, 1992 j. City of Pleasant Hill 1991 Refuse Rate Review for Pleasant Hill Bayshore, Deloitte & Touche, December 13, 1990, 17 pp. k. Contra Costa County 1992 Refuse Rate Review for Discovery Bay & West 1 Pittsbura, Deloitte & Touche, October 1992, 30 pp. I. Contra Costa County - 1992 Refuse Rate Review for discovery Bay and West Pittsbura, Deloitte & Touche, October 1992, 30 pp. M. County of Contra Costa Keller Canyon Landfill Landfill Rate Analysis , Board of Supervisors Presentation, Deloitte & Touche, May 5, 1992, 37 pp. 7.3 Miscellaneous ' Central Contra Costa Sanitary District Garbage and Recycling Customer Satisfaction Survey Summary Report, Marketing Connections, Inc.: Computers for Marketing Corporation, November 1992, 116 pp. 1 1 22 , 1 APPENDICES 1 f 1 1 1 1 1 1 1 1 1 APPENDIX A 1 � MEMORANDUM OF AGREEMENT AND WORK PLAN � BETWEEN � THE CONTRA COSTA SOLID WASTE AUTHORITY 1 AND ' CONTRA COSTA COUNTY i 1 1 1 1 1 ' IN THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA SUBJECT: A Resolution Ratifying a Memorandum of ) Agreement and Work Plan for a Solid Waste ) Partnership between the Contra Costa Solid ) Waste Authority and Centra Costa County ) RESOLUTION NO. 93/10. ' The Board of Supervisors of Contra Costa County RESOLVES THAT: WHEREAS, a majority of the cities in Contra Costa County, along with a number of Special Districts which franchise for the collection and disposal of solid waste did jointly create the Contra Costa Solid Waste Authority (hereinafter "Authority") and enter into a Joint Exercise of Powers Agreement; and fWHEREAS, those cities and special districts desire to enter into a solid waste planning, coordinating and implementing partnership with Contra Costa County(hereinafter"County")for the betterment of cost effective countywide solid waste management; and ' WHEREAS, the Authority and County have formulated a partnership agreement and work plan which specifies the terms by which the two entities will jointly engage in solid waste planning, ' coordinating and implementing activities; and WHEREAS, it is desirable and appropriate to have that agreement and work plan ratified by all member agencies of the Authority, the Board of Supervisors and the subregional joint powers ' authorities; THEREFORE, BE IT FURTHER RESOLVED THAT the Contra Costa County Board of Supervisors hereby ratifies the attached Solid Waste Memorandum of Agreement and the Work Plan between the Authority and the County. ' PASSED AND ADOPTED by the following vote of the Board of Supervisors on the 9th day of March, 1993: AYES: Supervisors Smith; 'Wishop, McPeak, Torlakson NOES: Hone ABSENT: Supervisor Powers ABSTAIN: done I hereby certify that the foregoing is a true and correct copy of an order entered on the minutes of the Board of Supervisors on the date aforesaid. Contact: Louise Aiello (510/646-1550) icc: Community Development Department (CDD) Witness my hand and the Seal of the Board of Supervisors affixed on this 9th day of "arch , 1993. Phil Batchelor, Clerk of the Board of Supervisors and County Administrator By: Deputy Clerk ' 93&v-%*"oA n RESOLUTION NO. 93/-!'3 2-4 TO: BOARD OF SUPERVISORS , Contra FROM: HARVEY E. BRAGDON Costa DIRECTOR OF COMMUNITY DEVELOPMENT COLM DATE: MARCH 9, 1993 ���! ++�t�� SUBJECT: APPROVE MEMORANDUM OF AGREEMENT ANTS WORK PLAN BETWEEN CONTRA COSTA ' COUNTY AHD TIE CONTRA COSTA SOLID WASTE AUTHORITY SPECIFIC REQUEST(8) OR RECOMMENDATIONS) A BACKGROUND AND JUSTIFICATION RECOMMENDATIONS Accept report from Community Development Director on Memorandum of Agreement with the Contra Costa Solid Waste Authority and , 1. Approve, and authorize Chair to execute, attached Memorandum of Agreement and Work Plan between Contra Costa County and the Contra Costa Solid Waste Authority; 2. Approve attached Resolution ratifying Memorandum of Agreement and Work Plan for a Solid Waste partnership between the County and the Contra Costa Solid Waste Authority; and, 3. Designate Supervisors McPeak and Bishop, as the 1993 County representatives to the AS 939 Local Task Force, as the County's representatives to the meet with the Contra Costa Solid Waste Authority. FISCAL IMPACT As part of Task 11 in the Work Plan, the County and Authority will address staffing and funding. At this time, staff costs will be funded by current County share of the AB 939 Tipping Fee and by Resource Recovery Fee funds. BACKGROUNDIREASONS FOR RECOMMENDATIONS On December 22, 1992, the Board approved twelve conceptual points to serve as the basis for a formal agreement between the County and the Contra Costa Solid Waste Authority for a partnership in solid waste management. At that time, Supervisors McPeak and Bishop were authorized to negotiate this agreement. The attached Memorandum of Agreement and Work Plan represent the successful completion of those negotiations. CONTINUED ON ATTACZMZNT: YES SIG=TURE 01 , W— ACTION OF BOARD ON APPROVED AS ED OTHER VOTE OF SUPERVISORS Z HEREBY CERTIFY THAT THIS is A UNANIMOUS (ABSENT TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED an TIE ABSENT: ABSTAIN: MINUTES OF THE BOARD OF SUPZRVISOJ^ ON TRE DATE SHOWN, Contact: Louise Aiello (510/646-1550) ATTESTED 3 cc: Community Development Department (CDD) PHIL BATCHELOR, CLERK OF TIE BOARD OF SUPERVISORS , ff �AND COUNTY ADMINISTRATOR A- 2 BY L�,!'L��JL � ��5� , DEPUTY LA:gms 939V**VPA-MM ' Memorandum of Agreement and Work Plan ' between County and the Contra Costa SWA Continued -- Page Two The Agreement and Work Plan call for cooperation on solid waste ' management issues on the part of the County, cities, and other franchising agencies. Additionally, the Agreement and Work Plan seek to build the trust necessary for a viable solid waste management organization representing all parties. ' LA:gms "O.roeww-U► r A - 3 MEMORANDUM OF AGREEMENT BETWEEN THE CONTRA COSTA SOLID WASTE AUTHORITY AND CONTRA COSTA COUNTY FOR THE ESTABLISHMENT OF AN INTERIM PARTNERSHIP ' IN THE PLANNING, DEVELOPMENT AND IMPLEMENTATION ' OF SOLID WASTE MANAGEMENT POLICIES AND PROGRAMS This Memorandum of Agreement ("Agreement") is entered into on 1993, by and between the CONTRA COSTA SOLID WASTE AUTHORITY (hereinafter "Authority"), a public entity Joint Powers Authority and the COUNTY OF CONTRA COSTA (hereinafter "County"), a political subdivision of the State of California. It establishes an interim partnership for the planning, development and implementation of solid waste management policies and programs. RECITALS , WHEREAS, the California Integrated Waste Management Act of 1989 ("Act") requires each city and each county in the State to divert solid waste from landfills and , specifies diversion goals of 25% by January 1, 1995 and 50% by January 1, 2000 or face administrative penalties of up to $10,000 per day; and i A- 4 WHEREAS, the planning, development and implementation of policies and programs aimed at achieving the State mandated diversion goals may have high short-term costs to local governments and to ratepayers; and r WHEREAS, cooperative efforts by cities and counties in the planning, ' development and implementation of solid waste management policies and programs may assist in reducing costs for and increasing the efficiency of such solid waste management efforts and consequently accommodate the undertaking of more aggressive waste diversion programs; and WHEREAS, the Authority was formed on July 31, 1991, pursuant to the laws Lof the State of California by the cities of Antioch, Brentwood, Clayton, El Cerrito, Hercules, Lafayette, Martinez, Orinda, Pinole, Pittsburg, Pleasant Hill, Richmond, San Pablo, San Ramon and Walnut Creek, the Towns of Danville and Moraga, and the Byron, Central Contra Costa, Crockett-Valona and Ironhouse Sanitary Districts for the purpose planning, coordinating and implementing solid waste activities county-wide; and WHEREAS, the County, as part of its General Plan, has committed to assuring the development of waste transfer, processing and disposal facilities which meet the environmental standards and providing for cost effective solid highest established e P 9 ' waste management practices; and WHEREAS, the Authority and County seek cooperative approaches to both solid waste management activities and the costs of such activities, resulting in wise and cost effective solid waste management, responsive to solid waste diversion goals and the welfare of the environment; and WHEREAS, representatives of the County and Authority have met and ' developed conceptual points of agreement for cooperative activities between the County and the Authority, attached as Exhibit A; and WHEREAS, the Board of Supervisors of the County and the Board of Directors , of the Authority have concurred by vote with the conceptual points; and WHEREAS, the Authority and the County intend this Agreement to be the framework for solid waste management planning and implementation between the County and the Authority; ' AGREEMENT NOW, THEREFORE, BE IT RESOLVED that the County and the Authority do hereby agree ree as follows: A - 6 SECTION .1 . COUNTYWIDE INTEGRATED WASTE MANAGEMENT PLAN 1.1 The County and Authority agree that the Countywide Integrated Waste Management Plan (CoIWMP) will include provisions (a) for export of solid waste (b) for mechanisms within any solid waste export agreements to (1) monitor the location and costs of disposal, and (2) pass on to the ratepayers any cost savings resulting from lower export rates for disposal. 1.2 County and Authority recognize and agree that if franchising agencies encies within Contra Costa County export solid waste, agencies outside of Contra Costa may be allowed,to dispose of solid waste at Keller Canyon Landfill, and that as a result the County shall have no obligation to provide capacity for jurisdictions which have 1 e entered into such export agreements. Any importing 2ntitv shall pay landfill rates at Fast as high as those charged Contra Costa ugers. end abide by all the Ian fill it m nts imoosed ul2on ContEa County and Authority will comply rwith all applicable laws, including the Interstate Commerce Clause of the U.S. A- 7 Constitution, the Land Use Permit #2020-89, Conditions of Approval #5.2 and #9.3, and the dais tonnage limitations in the applicable Solid W Y 9 Pp ante Facilities Permit. 1.3 The County will respond to all comments on the CoIWMP from the cities and will include modifications c ude mod fications to the CoIWMP on issues where a) concurrence between the County and cities has been reached;and b) the requested modification(s) will not jeopardize State approval of the CoIWMP. 1 .4 The County will complete the CoIWMP and seek final approval by the California Integrated Waste Management Board. SECTION 2 SOLID WASTE MANAGEMENT PLANNING 2.1 Within six months from enactment of this Agreement by the County and by the Authority, the County and Authority, together with the subregional solid waste joint powers authorities, will (a) delineate their respective roles, functions and responsibilities for , solid waste management, and A- 8 ' (b) develop a method for evaluating the number and cost of transfer stations and suggest criteria to assure the most cost effective and efficient system for agencies as well as for ratepayers. 2.2 Within six months from enactment of this Agreement by the County and by the Authority, the County and the Authority will develop a model solid waste ' collection franchise agreement and a rate review model. SECTION 3. COUNTY MATERIALS DIVERSION ORDINANCE 3.1 The Authority and its member agencies acknowledge the right of the County to enact the Materials Diversion Ordinance and the County will review comments from the cities regarding the Ordinance and use these comments to modify or amend the Ordinance with six months of enactment of this Agreement by the ' County and by the Authority. i SECTION 4. STAFF RESOURCES AND FINANCING 4.1 During the six months following enactment of this Agreement by the County and by the Authority, the County and the Authority will discuss staff ' resources and financing. i ' A - 9 4.2 The County and the Authority agree that funding for the Authority shall continue to be based on population and paid by each member agency either directly or via a tipping fee which may be levied, pursuant to the Act, by the County or other appropriate entity at transfer station(s) or landfiil(s). The levying of a tipping fee to ' fund the Authority shall require the request of a majority of the public franchising agencies using the transfer station or landfill and shall apply only to those agencies ' which are members of the Authority. , SECTION 5. SUBREGIONAL SOLID WASTE JOINT POWERS AUTHORITIES, 5.1 Nothing herein is intended to be in conflict with any agreement currently being negotiated by the County, any subregional joint powers authority, or any individual franchising agency. Furthermore, subregional joint powers authorities will , be consulted on a regular basis during the course of negotiations between the Authority and the County. SECTION 6. TERM OF AGREEMENT 6.1 The County and Authority agree to work together on solid waste management issues for a period of three (3) years, renewable for five (5) years following review and affirmation at the end of six (6) months by the County, the ' Authority and its member agencies, and the subregional solid waste joint powers authorities. A - 10 , SIGNATURES. THESE SIGNATURES ATTEST THE PARTIES' AGREEMENT HERETO. COUNTY OF CONTRA COSTA, CALIFORNIA By: x �OY12 �� f�� '� Date: Tom Torlakson, Chair Contra Costa County Board of Supervisors FORM APPROVED: VICTOR J. WESTMAN, County Counsel By: Lillian Fujii, Deputy Vounty Counsel ATTEST: ' Phil Batchelor, Clerk of the Board of Supervisors and County, Administrator By: Deputy Clerk r A - 11 r CONTRA COSTA SOLID WASTE AUTHORITY MEMBERS r BY: r Date: r- s - 93 r City of Akioch Date: -j�-24-- 3 City of Brentwood Date: `� _ I 9 3 Byron Sanitary District , Date: r !ventral Contra Costa Sanitary Distrid, Date: City of Clayton V-a,+ C, 1 Date: Crockett-Valona Sanitary District r Date: 7 19 r T wn of Danville r Date: S i f EI Cerrito Date: S�s�93 City of HerculesL_4� //,'� I , Date: y "' Ironhouse Sanitary District r A - 12 i Date: City of Lafayette 430n.60.na. J, lnlOod Date: City of Martinez 1-7 Date: �— 7',.Moraga J Date: '? _7 City of Orinda Date: 1/s-A� ;. of Pinole N Date: 2 City f Pleassht Hill Date: City of Richmond ' Date: City of San Pablo Date: L / 7 City Ramon Date: - 7- '?_3 City of Walnut Creek ATT r A - 13 CONCURRENCE PURSUANT TO RESOLUTION NO. 93-2 WEST CONTRA COSTA INTEGRATED WASTE MANAGEMENT AUTHORITY By. Date: Title ATTEST: A - 14 ' Step 3 Calculate the tax adjustment • Since the increased required return is an after tax amount, there is a tax effect that must be computed. For our purposes here, we will use a straight forward approach, which simply assumes that the tax effect is the difference between ' the unadjusted return and the calculated return. • The test period income statement shows an unadjusted return (operating income) of $32,000 (See C-2) • The calculated return, based on the above steps, is $33,470. The tax adjustment is then the difference in the two amounts $33,470 - $32,000 = ' $1,470. • This number is then added to the unadjusted income tax amount and increases ' the amount of operating expenses used to determine the cost of service. • Although this is an over simplification of the tax adjustment, it demonstrates to ' the participants that an adjustment is a component of the calculation. r C - 5 Step 4 Add the required return plus the tax adjustment to your operating expenses to determine the total cost of service which equals the revenue requirement. COST OF SERVICE , Test Year ' Amount Adjustments As Adjusted Plant specific expenses $57,000 $57,000 ' Plant non specific expenses 39,000 39,000 Pro forma wage increases $2,000 2,000 Depreciation 12,000 12,000 ' Taxes other than income 9,000 9,000 Income taxes $17.000 1.470 18.470 Operating Expenses 134,000 3,470 137,470 ' Return 32.000 1,470 33.470 Cost of service $166,000 $4,940 $170,940 i r C - 6 � APPENDIX D1 1 CITY OF SAN JOSE � INDEXED RATE SAMPLE RATE ADJUSTMENT � FORMULA 1 1 1 i 1 1 1 1 EXCERPT FROM CITY OF SAN JOSE WASTE COLLECTION AND RECYCLING CONTRACT ' 14.05 Annual Adjustment On July 1 of each year of the term of this Agreement, beginning July 1, ' 1994, the base rate per Service Recipient (Section 14.01), the rate per ton recycled (Section 14.02), the compensation for Garbage overage collection (Section 14.04.1), the compensation for Garbage Containers and Recyclables bins (Section 14.04.3), the compensation for ' emergency services (Section 14.04.4), and the compensation for Bulky Goods services (Section 14.04.5) shall be adjusted upward or downward as described in this Section 14.05. The adjustment shall be applied to the compensation payable in each of these categories as of the February 1 immediately preceding the effective date of the adjustment. For the purposes of this Section 14.05, "compensation payable" does not include ' any amount paid or payable as temporary adjustments such as, but not limited to, adjustments to correct any overpayments or underpayments which may have occurred. The annual adjustment shall be a percentage ' of the compensation payable determined by the sum of: 1. forty percent (40%) of the annual December-to-December ' percentage change in the Consumer Price Index for All Urban Consumers (National CPI-U); and ' 2. ten percent (10%) of the annual December-to-December percentage change in the Motor Fuel Component of the Consumer Price Index for All Urban Consumers (National CPI-U). ' The annual percentage changes shall be calculated by the following formula: Net percentage change = [V (i) - V (i-1)] /V (i-1) Where: V (i) = Index value for the first December immediately preceding the effective date of the adjustment and V (i-1) = Index value for the second December immediately preceding the effective date of the adjustment. Example: For the Jul 1994 adjustment V i = the index f P Y 1 ( ) or December 1993, and V (i-1) = the index for December ' 1992. D1-1 The indices used shall be those published by the United States Department of Labor, Bureau of Labor Statistics. Should any such index ' be discontinued, a successor index shall be used. Successor indices shall be those indices which are most closely equivalent to the discontinued indices as recommended by the United States Department of Labor, Bureau of Labor Statistics. Should any such index not be , published in December of any give year, the calculations shall be performed using the index values of the November immediately preceding the December contemplated by this Agreement. , Annual adjustments shall be made only in units of one cent ($0.01). Fractions less than one cent ($0.01) shall not be considered in making ' adjustments. The indices shall be truncated at four (4) decimal places for the adjustment calculations. No annual increase or decrease for a compensation category shall ' exceed seven percent (7%) of the compensation in effect on July 1, 1993, as set forth in Sections 14.01, 14.02, 14.04.3, and 14.04.5; and the ' aggregate increase or decrease through June 30, 1999, shall not exceed thirty-five percent (35%) of the compensation for the category in effect on July 1, 1993. In the event the term of this Agreement is extended , pursuant to Section 2.02 for an additional one, two or three years, the aggregate increase or decrease for a category over the full term of this Agreement shall not exceed forty-two percent (42%), forty-nine percent ' (49%), or fifty-six percent (56%) respectively. On or before March 1 of each year of this Agreement in which an annual ' adjustment is to be made, City shall submit to contractor a Rate Adjustment Statement setting forth the compensation payable, the applicable index values, the percentage change in the applicable indices, the calculation of the annual adjustment, and the new ' compensation rates. Within thirty (30) calendar days of City's submittal of the Rate Adjustment Statement to Contractor, Contractor shall notify the 1 City Representative of any exceptions to the Rate Adjustment Statement. If Contractor does not submit written exceptions to the Rate Adjustment Statement within said thirty (30) days, Contractor shall be deemed to 1 have accepted the Rate Adjustment Statement submitted by City. 1 i 1 D1-2 ' � APPENDIX D2 1 CITY OF FREMONT INDEXED RATE � SAMPLE RATE ADJUSTMENT � FORMULA AND COST PROPOSAL 1 1 1 1 1 1 1 1 4.14 CoNWENSAMON FOR SERVICES 4.14.1 Basb for Inid2l Annual Payment The conwactor(s) will perform all responsibilities and semces specified in the sm-Ace contract(s) in return for the proposed cost in the annual cost proposal farm(s). This con will be adjusted annuafly to regect (--Iang= in costs subject w tailanon as noted m Section 4.14-2. 'This annual cm will be expresmd on a monthly basis and billed according to the procedure outlined in Section 4.9. 4.14-2 Annual Cog Adjustment Formulae The City anticipates an annual cost adjustment in accordance with a pre-established formula. The City acknowledges that c== costs (such as leases and depre=tIon) are not subject to inflation, while Od=s (such as matetials and supplies) are. Furdur, the ffiqim cost components fm services are fuel and Libor. Accordingly, the formula will be based an a combination of published fuel, labor, WA general (such as the CPI)int ices applied to the appropriate portion of the youlor's COSM A=Ordingiy, cow am broicen out into the fallowing fotw categories: W = Cam not subject to inflation X . COW ubject to a feed indent y = Costs subject to a labor index Z = Costs subject to the CPI Where; W — X + Y + Z = 100% of service pwiap cost Demas of dirt con adjustment formula are provided is Appmdm EL The con proposal kw= specify the cuegories (Le., W, X, Y, and Z) the artrrtlal costs are bmifem amts. 4.14-3 Payment for Special Se YkW In aWiftm go ft proposed con specified in The annuai cost proposal. ftn(s), the commcor may wa=gs at recenve fees for pmfarmmg spemai services at ram agmed to by the cMUWM and each cl torlux requesting such speaW services,and as approved in writing by the City Manqw or hisiber designee, in accordance with the Conn-Act.. 4.14.4 Payment for Additional Incremental Levels of Service For each service component, a baseline defining the standard number of accounts or Manage to be will be established over the Umof the COOMM The CODUW= Will, receive additional compatsmon based an the ma mental levels of service provided above the baseline(s). 7be baselines are defined herein: Resfdajtial city customer count (SFD) 45,860 hmnehold Residential. city customer count (NIFD) 19,,074 Units, 774 complcws CommndustriaL pickup-runt 2,750 accoum ReddeadaL recycling cuswmer count(SFD & WD) 64,934 bousehords Comma Tial racycLing mummer com 2,300 accounts Recycling &:Mty ftoughput 25,000 tons per yen Yard -"rr cm5U)mW COM 45,360 bousebaft Yard wam ftc9hy ftLdgftpUE 22,000 OM per year For each serimr., the baseline and the x=21 emu doting the narm of the contract will be ft basis for dcmwmmwg payment to the contractor for ail kcrememsal kvcb of service above the baseline The payment for each additional accourit or wrimp will be equal to the mcremeamL con per additional X=mt or tonnage served per year specified in Form 8 of the cost proposal.. In the evair that the actual count should fag below the baseline du3dng the nest of the exmiacx, the mondily payment w the contra=win be reduced by an ammm equai to the kKmonewal con per additional accMint or wrinap semced per year muftiplied by the Mawm between the baseline and the xmjai obum calculated for each fiscal quatur. D2 -1 ANNUAL COST ADJUSTMENT FORNIULA A total annual payment to the contractor will be made in accordance with the following formula and the payment schedule specified in Section 4.9 of the RFP: Annual payment to contractor M + (X * [MFI-A/MFI-1]) + (Y * [LI A/L1-rD + (Z [CPI-A/CPI-I]) Where: W = Base costs not subject to inflation (expressed in 1/1/94 dollars) X = Base costs subject to a fuel index (expressed in 1/1/94 dollars) Y = Base costs subject to a labor index (expressed in 1/1/94 dollars) Z = Base costs subject to inflation (expressed in 111/94 dollars) MFI-A = Motor Fuel Index of the Consumer Price Index (CPI) for All. Urban Consumers (U.S. City Average CPI-U) as published by the Department of Labor, Bureau of Labor Statistics, in effect on the first day of each new 12-month period of the service contract NM-I = Motor Fuel Index of the Consumer Price Index (CPI) for All Urban Consumers (U.S. City Average CP1-U) as published by the Deparunent of Labor, Bureau of Labor Statistics, in effect on the first day of the service contract LI-A = Labor Index will be Consumer Price Index (CPI) for All Urban Consumers (U.S. City Average CPI-U) as published by the Department of Labor, Bureau of Labor Statistics, in effect on the first day of each new 12-month period of the service contract. LI-I = Labor Index will be the Consumer Price Index (CPI) for All Urban Consumers (U.S. City Average CPI-U) as published by the Department of Labor, Bureau of Labor Statistics, in effect on the first day of the service contract- D2 - 2 CPI-A = Consumer Price Index (CPI) for All Urban Consumers (U.S. City Average CPI-U) as published by the Department of Labor, Bureau of Labor Statistics, in effect on the first day of each new 12-month period of the service contract. CPI-I = Consumer Price Index (CPI) for All Urban Consumers (U.S. City Average CPI-U) ' as published by the Department of Labor, Bureau of Labor Statistics, in effect on the first day of the service contract. The base costs for variables W, X, Y, and Z are those set forth in the cost proposal forms of the contractor's proposal for services. No changes to these base costs will be allowed over the life of the service contract. These base costs and the corresponding indices will form the basis for determining annual payments to the contractor over the life of the service contract. Additional payments to the contractor will be made for Special Services and Incremental Levels of Service as defined in Section 4.14 of this RFP. The annual CPI adjustment shall not exceed 7 percent per year, and the aggregate increase or decrease over the seven-year term shall not exceed 42 percent of the first year's payment. If the City extends the contractor's term of contract by one, two, or three years, the aggregate increase or decrease shall not exceed 49, 56, or 63 percent, respectively. ' Adjustments to the contractor's payment will be made in units of one cent($0.01). Fractions less than one cent ($0.01) will not be considered in making adjustments. Downward Adjustments The City reserves the right to adjust the compensation awarded to the contractor for failure to comply with the terms included in the service contract. tIt is the City's intent to execute a service contract with the selected proposer that specifies the monthly payment to the contractor be withheld or adjusted should the services performed by the ' Contractor not conform to the requirements of the RFP, the proposal, or the service contract_ The City may adjust compensation downward for specific failure to provide service that is not corrected within a reasonable and agreed time period outlined in the draft contract as defined in the service contract. The bases of downward compensation adjustments may include, but are not limited to: • Start collection prior to approved time • Missed pickups not collected within 24 hours of notice D2 - 3 • Residue left at curbside ' • Failure to deliver carts or recyclables containers within the time period specified in this RFP • Reporting requirements 1. Monthly, quarterly reports: - failure to provide , - falsification of data 2. Annual reports a. Route audits ' - failure to provide - falsification of data b. Financial reports - failure to provide - falsification of data , • Vehicle specification and performance: v v ' Noise levels above acceptable levels - Emissions above acceptable levels - Vehicle not clean - Driver not in uniform - Vehicle not passing CHP Biannual Inspection of Terminals (BIT) • Other performance-related adjustments Other Compensation Adjustments (1) Review of Records. The contractor shall reimburse the City for creation of adequate and separate records if the contractor has failed to maintain adequate and separate records as set forth in Appendix A. (2) Credit to City. If the downward adjustment to the contractor's compensation to be provided under terms specified in this RFP exceeds the City's monthly payment due to the contractor, the- D2 - 4 he- D2 - 4 excess adjustments will be carried over as a credit in favor of the City against the next monthly payment, and succeedingly until the City is paid in full. If credit is due to the City at ' termination of the service contract, the contractor will pay in full the credit due to the City at termination. (3) Uncontrollable Circumstances. The service contract will provide a mechanism to allow the contractor to seek a rate increase in the event the contractor incurs increased costs due to ' reasonably unforeseeable, uncontrollable circumstances (to be defined in the service contract). Upon the contractor's request for such a rate increase, the contractor and the City will conduct ' an extraordinary rate review to determine the contractor's right to a rate increase, the amount of the increase, and the period during which such rate increase may remain in effect. r D2 - 5 "COST PROPOSAL ' Appendix C contains a set of blank forms which the proposer must use to show cost data for the , proposed services. The City will use the data from these forms to project a life-cycle cost for each proposed service through the term of the contract. , Any costs or savings (other than those due to growth) expected to occur in later years must be accounted for in the line items as an annual cost. All capital costs must be annualized. For ' example, if a new vehicle will be needed in the fourth year, its cost should be treated as though it will be defrayed by a fund which receives a constant (in 1994 dollars) amount from 1994 through the term of the contract. Anticipated variations in fuel consumption, parts costs, or any , other line items must be accounted for in the same way. In short, the City expects to pay only the costs shown on the forms, escalated by their respective indices, for all required services. Responses should be based on the assumption that the number of customers remains constant throughout the term of the contract. Projected growth of the residential or commercial customer base will be accounted for by the City using Incremental Costs from Form 8. All cost entries must be in January 1, 1994 dollars. Proposers will note that for each group of costs (non-escalating, fuel-escalating, etc. the form ' Po a P g g, ) lists particular line items (wages, tires, bins, etc.) which the City believes will escalate according to the index for that group. Each line item should be costed, if applicable; but proposers may shift a line item to a different group if they have reason to believe that a different escalation index applies. For example, the line item "Tires" appears in the CPI-escalated group; but if a proposer believes that the cost of tires will escalate with the fuel index, they should strike it , from the CPI-escalated sheet and enter it on a blank line in the fuel-escalated cr group. The costs presented in these forms and the actual indices will form the basis for determining cost ' adjustments over the life of the contract. It is, therefore, required that ALL line item costs for each of the service packages be provided. Any costs (or costs items) not included as part of these forms will not be considered as part of any future cost adjustments. In developing the disposal cost item, the proposer shall assume the tipping fee is $23.76 per ton. In addition, if the proposal provides for recycling or compost collection services and does not propose a specific processing site for these materials, the proposer shall calculation tranportation costs assuming that the processing facility is located within the City limits. D2 - 6 ' 1 °f' c m r N Q m a o ' N � G oZ o0 o Soso o inO_ G o p O T d p 8 ' G � . n Gta , m O G SS O jpS� 01 O eD o O O O G r1 ° ° TT n Gd it N o 7 O w O_ sy t'7 �p Gj,S7 R1 fi k o ? V C? r p 0 �4 07- dt m V40. Z D G e d G So.e V 00 O 0 c7' ,� g .� pec ;_ 3 a' 3 � 7r d O m o 00 voi o �$s+ ey o m C G3 r o c p O� �, � �, ry� m $sod •csD � � >� t� Z m o ''.� "" d tG t Q� V cr. za U r O rCO OCA t!f N d � sa, co � O � NN ZZ r °� � � r FORM 2A CITY OF FREMONT COST PROPOSAL MS'vv COt I F—CmON - ANNUAL COST PROPOSAL RESIDENTIAL AND COMMERCIAL COLLECTION COSTS ONLY Cost Annual Cost Annual Cost No. Category Description of cost Reside"dw Commercial (t/tJ94 sj (tJtl94� NON-ESCALATING COSTS 1 w Long-term lease 2 w Depreciation , w One–time equipment purchases 3 w 5 w 6 w 7 w w Other (specify) a w 9 w 10 w 11 w 12 w w Revenue from salvaged materials 13 w 15 w ( k t ) 18 w ( 1 ) FUEL ESCALATING COSTS 18 X Fuel 19 x Oils and lubricants x Other(specify) 20 x 21 x 22 x 23 x 24 x LABOR ESCALATING COSTS Y wages_ Y Collection 25 Y Drivers 25 Y Helpers 27 Y Clerical/administrative 28 Y Management 29 Y Other(specify): -- 30 Y Other(specify): 31 Y Other(speciiy): D2 - 8 FORM 2A (continued) CITY OF FREMONT ' COST PROPOSAL MS*vV COLLFC;tON — ANNUAL COST PROPOSAL RESMENTIAL AND COMMERCIAL COLLECTION-COSTS ONLY ' Cost Annual Cost Annual Cost No. Category Description of cast Residential Commercial - Y Vehicie Maintenance 32 Y Supervisors 33 Y Mectianim welders, etc. 34 Y Clerical 35 Y Other (specify): Y General and administrative ' 36 Y Legal 37 Y Data processing 38 Y Other professional services 39 Y Security 40 Y Custodial 41 Y Corporate management fee 42 Y Other(specify): 43 Y Other(specify): ' Y Benefits 44 Y Workers compensation insurance 45 Y Social security tan 46 Y State unemployment tax, 47 Y Federal unemployment insurance 48 Y Disabffiity instaance 49 Y Medical, health.and hospital,insurance Sir Y Employee stock ownership program 51 Y Pension fund 52 Y Other(specify): ' Y Other(specify): 53 Y 54 Y 55 Y CPI—ESCALATING COSTS 56 Z Disposal casts ' 57 Z Parts, repair supplies —_ Sa Z Tires 59 Z Licenses 60 Z Interest expense t 61 Z Insurance 62 Z UUTrties 63 Z BuBdng expense ' 64 - Z Bui3dng repair and maintenance 65 Z Offte equipment 66 Z Office supplies 67 Z Rent 68 Z Professional services 69 Z Vehicles 70 Z Taxes 1 71 Z Permit/regulatory fees D2 - 9 FOAM 2A (connnued) CITY OF FREMONT COST PROPOSAL MSW COLLECTION — ANNUM COS+PROPOSAL RESIDENTIAL AND COMMERCIAL COLLECTION COSTS ONLY Cost Annual Cast Annual Cost No_ Category Description of cost Residential Commercial (1/1/94 $) (1/1/94S) 72 Z Collection containers(new or replacement) 73 Z Swbcantracted repairs(Inaiuding towing) 74 Z waste od/$O VM service 75 Z Bad debt and coilection cost Z Ottw3r(specityr): 76 2 77 2 78 Z 79 Z TOTAL COST PER YEAR D2 - 10 CENTRAL CONTRA COSTA SOLID WASTE MANAGEMENT JOINT POWERS AUTHORITY By Date:• —�� Title ATTEST: 1w u t LA:gms 93*v- 4OU-JPA A- 15 WORK PLAN TASK #1 - CONCEPTUAL POINTS #6 AND #9 A. (#6) Delineate, in cooperation with sub-regional solid waste joint powers authorities, roles and responsibilities for solid waste management. B. (#9) Discuss staff resources and financing. STEERING COMMITTEE: Don Blubaugh (Central); Dave Rowlands (East); Bill Davis (West); Val Alexeeff (County) with Avon Wilson and Louise Aiello STAFF: Avon Wilson and Louise Aiello PROCESS: Two workshops using staff preparatory work to focus on key policy/organizational/financing matters First workshop would be held in late June Final workshop would be held in September Workshops would include Authority Board Members, Board of Supervisors, members/staff from subregional jpa's, and other key staff/policy makers as appropriate. DELIVERABLE PRODUCT: Recommendations) for one or more organizational structure(s) and financing/staffing delineating roles, authority, responsibilities STAFF PREPARATORY WORK: 1 . What are the current requirements of State law? How does current law delineate roles, responsibilities, authority? 2. What are the defined purposes, goals, activities related to solid waste for the County, cities, subregional jpa's, Contra Costa Solid Waste Authority, Countywide AB 939 Task Force, Public Managers Solid Waste Committee, and AB 939 Project Managers? A- 16 i 3. Identify the areas of overlap and/or duplication including areas where overlap may be needed. Key areas to be addressed should include -- (a) CoIWMP Monitoring and Revision (b) SRREs and HHWEs update, revision, implementation (c) NDFEs and facilities development and operations 4. What are current funding sources and levels for the organizations and programs identified in #2 above? 5. What mechanisms are available for funding? WORKSHOP FOCUS: Review #1, 2, 3, 4, and 5 Answer the following: 1 . Identify ways to streamline the different aspects of solid waste management to eliminate or reduce overlap/ duplication. In what ways could public agencies and private sector work to streamline, reduce costs, work together more effectively? 2. In what ways can independent/individual jurisdiction decisions making be provided for while building an interdependent and cooperative solid waste management organizational structure? 3. How can cost savings to member agencies or to rate payers result from restructuring how activities are handled and/or under what organization activities are handled? 4. What is the best structure to organize solid waste activities in an efficient, responsive manner in Contra Costa County? 5. Based upon #4, what staffing and funding levels are necessary? 1 A - 17 TASK #2 CONCEPTUALP INT #7 Develop a model waste collection franchise and a rate review ' model. STEERING ' COMMITTEE: Don Blubaugh (Central); Dave Rowlands (East); Bill Davis (West); Val Alexeeff (County) with Avon Wilson and Louise Aiello STAFF COMMITTEE: Key rate setting personnel from a cross-section of franchising agencies-- Walnut Creek, County, Central Contra Costa Sanitary District, Antioch, and Concord or Brentwood PROCESS: Staff Committee will prepare two reports for review with the Steering Committee; the reports will be submitted to the Authority and County by August 30 for consideration/recommendation to franchising agencies I DELIVERABLE PRODUCT: Report which identifies key public agency considerations and provisions for solid waste franchises Report which identifies public agency considerations and key components in solid waste rate setting Reports should be consistent internally and with each other INFORMATION TO BE INCLUDED IN REPORTS: 1 . Identify issues which the public sector needs to know/ address in framing a franchise 2. Identify issues which the public sector needs to know/ address in setting rates 3. Identify all component parts of costs and related reasons (justifications) for costs , 4. Compare various approaches/models to consider in setting rates A - 18 , TASK #3 - CONCEPTUAL POINT #8 Develop, in cooperation with the subregional solid waste authorities, a method for evaluating the number and costs of transfer stations proposed and suggest criteria PROCESS: Prepare a preliminary report by May 15, 1993 STEERING COMMITTEE: Expand Steering Committee comprised of Don Blubaugh (Central); Dave Rowlands (East); Bill Davis (West); Val Alexeeff (County) with Avon Wilson and Louise Aiello, to include other key public agency representatives handling transfer station development DELIVERABLE PRODUCT: Preliminary Report which addresses the appropriate combination of local government and private sector responsibility/authority for transfer and material recovery facilities including recommendation for further action(s) by the County, Authority, subregional jpa's with regard to criteria for the numbers and costs of transfer/material recovery facilities INFORMATION TO BE INCLUDED IN REPORT: 1 . Identify concerns of cities, county, jpa's 2. Consider AB 3001 3. Identify number of proposed facilities and related costs 4. Consider market place impacts on numbers/costs 5. Identify ways to encourage cooperation and/or reduce costs 6. Recommendations) for further action(s) such as use of consultant to evaluate numbers, locations, sizing, costs of facilities I A - 19 . This Page Left Intentionally Blank � APPENDIX B APCUC SAMPLE CALCULATION 1 1 1 1 r SAMPLE CAPITAL USE CHARGE Forecasted Fiscal Year Ending June 30, 1991 Net Capital fixed Assets, June 30, 1990 $ 828,000 Capital Additions 852,000 One-half of Net Capital Additions in 1990 - 1991 561,000 tCapital Use Base $ 2,241,000 Interest Rate (Based on 2 - Year T Note) 8% Capital Use Charge $ 179,000 i B - 1 SAMPLE COMPUTATION OF ALLOWABLE PROFIT, NET OF CAPITAL USE CHARGE i Forecasted Fiscal Year Ending June 30, 1991 EQUIVALENT UNITS RESIDENTIAL CUSTOMERS RESIDENTIAL AVERAGE TOTAL CUSTOMER TOTAL NUMBER OF ANNUAL ALL EQUIVALENT YEAR REVENUES CUSTOMERS REVENUE REVENUES UNITS M 1990 $6,619,000 28,179 $ 235 $ 11,092,000 47,200 1989 5,500,000 27,349 201 8,700,000 43,284 1988 4,388,000 26,511 166 7,752,000 46,699 1987 3,591,000 25,457 141 6,370,000 45,177 1986 3,600,000 27,908 129 6,805,000 52,752 1985 3,465,000 .26,224 132 5,873,000 44,492 FORECAST 1991 6,792,000 28,179 241 $ 11,654,000 48,357 <A> HISTORICAL PROFIT, NET OF INTEREST ACTUAL PROFIT, NET OF CAPITAL PROFIT, NET OF USE CHARGE, PROFIT,NET OF CAPITAL USE CHARGE PER RESIDENTIAL CAPITAL USE CHARGE ADJUSTED BY CPI CUSTOMER ------________----____-- -------------------_____-_-- EQUIVALENT YEAR ACTUAL FORECASTED ACTUAL FORECAST UNIT -- 1990 $ 655,000 $ 463,000 $ 665,000 $ 463,000 $ 13.88 1989 456,000 453,000 476,000 472,000 11.00 1988 476,000 295,000 522,000 323,000 11.18 1987 (119,000) 288,000 (136,000) 330,000 (3.01) 1986 513,000 287,000 603,000 338,000 11.43 1985 762,000 215,000 924,000 261,000 20.79 Average of four years after eliminating lowest and highest figures $11.87 <B> , COMPUTATION OF ALLOWABLE PROFIT, NET OF CAPITAL USE CHARGE ----------------------------------________-________________________- __-----___--- 1990 - 1991 Forecasted Residential Customer Equivalent Units 48,357 <A> Allowable Profit, Net of Capital Use Charge, Per Equivalent Unit $11.87 <B> Allowable Profit, Net of Capital Use Charge $573,998 B - 2 SAMPLE RATE ADJUSTMENT CALCULATION Forecasted Fiscal Year Ending June 30, 1991 ' Allowable Expenses (From Analysis of Rate Application) 11 ,238,000 Capital Use Charge (See Page A - 1) 179,000 Profit (based on recent average of 11.87 per customer per year (See Page A - 2) 574,000 Total Revenue Required 11,991,000 Forecasted Revenue Without Rate Increase (From Analysis of Rate Application) 11,657,000 Required Revenue Increase $ 334,000 Percent Increase in Revenue Required 2.87% B - 3 SAMPLE COMPUTATION OF ALLOWABLE PROFIT Forecasted Fiscal Year Ending June 30, 1992 EQUIVALENT UNITS RESIDENTIAL CUSTOMERS RESIDENTIAL AVERAGE TOTAL CUSTOMER TOTAL NUMBER OF ANNUAL ALL EQUIVALENT YEAR REVENUES CUSTOMERS REVENUE REVENUES UNITS 1992 $ 7,422,000 28,977 $ 256 . $ 12,630,000 $ 49,336.00 PROFIT PER RESIDENTIAL CUSTOMER EQUIVALENT UNIT FOR 1990-1991 BASE YEAR 11.87 CONSUMER PRICE INDEX (APRIL 1990-APRIL 1991 =3.9%) $11.87 X 1.039 12.33 MODIFICATION FACTORS: QUALITY OF SERVICE .95 COST OF SERVICE .85 COMPOSITE MODIFICATION FACTOR .95 X.85= .8075 �. 9.96 COMPUTATION OF ALLOWABLE PROFIT 1991 1992 FORECAST RESIDENTIAL CUSTOMER EQUIVALENT UNITS 49,336.00 PROFIT PER RESIDENTIAL CUSTOMRER EQUIVALENT UNIT 9.96 ALLOWABLE PROFIT $ 491,000.00 B - 4 r SAMPLE BALANCING ACCOUNT <000 OMITTED> 1991 Balancing Account Allowed Profit $ 168 Actual Expenses 4.753 Revenues , Required 4 921 4 rActual Revenues 4.807 1991 Balancing Account 114 Interest $ 4 $ 118 1 r r r r r r r B - 5 BALANCING ACCOUNT Projected 1991 to Adjusted Audited 1991 RATE ADJUSTED FORECASTED VARIANCE AUDITED SETTING AUDITED CALENDAR INCREASE 12-31-91 ADJUSTMENTS 12-31-91 1991 (DECREASE) Revenues $ 4,807<1> 0 4,807 5,299 492____ Disposal Expense 1,336 0 1,336 1,383 47 Driver& Helper Expenses 1,533 (70) <A> 1,463 1,576 113 Truck& Equip- Fixed 231 (31) <B> 200 240 40 Truck& Equip-Variable 664 (13) <C> 651 582 (69) Vehicle Repair Expenses 36 0 36 95 59 ' Other Direct Expenses 384 (132) <D> 252 445 193 General&Administrative 665 (42) <E> 603 594 (9) Franchise Fee 174 (16)<F> 158 155 (3) Operating Expenses 5,003 (304) 4,699 5,070 371 Operating Income/(Loss) (196) 304 108 229 128 , Other Income & Expenses 52 (120) (68) (61) 7 (144) 184 40 168 128 PRIOR YR AUTH EXPENSES: CORPORATE ID PROGRAM 10 10 (10) ' COMPUTERIZED BILLING 4 4 4 Income Before Taxes $ _—(130) 184 54 _------168 114 Rate Setting Adjustments: , <A> To adjust for Workers' Compensation refund received. <B> To exclude lease expense of $178,000 and replace with depreciation expense of $147,000. <C> To exclude voided check included in audited figures. ' <D> To exclude key man life insurance $ (42,000) To exclude consultant payment (90,000) $ (132,000) ' <E> To exclude newsletter $ (4,000) To adjust professional fees (20,000) To reduce travel and entertainment (18,000 $ (42,000) <F> To adjust franchise fee to actual amount. , To adjust capital use charge 50,000 To adjust for Workers' Comp. refund received 70,000 $ 120,000 Note<1>: Includes auditor's write-off of$123,000 of customer receivables due to unreconciled ' difference in formerly maintained manual records. B - 6 I APPENDIX C � PUBLIC UTILITIES COMMISSION ' EXAMPLE CALCULATIONS A 1 1 1 i 1 i 1 1 Example Calculation ABC TELEPHONE COMPANY Balance Sheet Assets Current Assets ' Cash $ 25,000 Accounts Receivable 20,000 Materials and Supplies 7,000 Prepaid Insurance 10,000 Other Assets Miscellaneous deferred debits 26,000 Plant ' Telephone plant in service $535,000 Telephone plant under construction 52,000 587,000 Less: Accumulated Depreciation 240,000 347,000 Total Assets $435,000 Liabilities and Capital ' Current Liabilities Accounts Payable $ 40,000 Accrued Liabilities 20,000 ' Other Accumulated deferred income taxes 30,000 ' Long-term debt 120,750 Capital Common Stock $150,000 Retained earnings 74,250 ' 224,250 Total Liabilities and Capital 435 000 C - 1 ABC TELEPHONE COMPANY , Income Statement Operating Revenues Local $ 66,000 Toll 100.000 166.000 Operating Expenses Plant specific 57,000 Plant nonspecific 39,000 Depreciation 12,000 Taxes - income 17,000 - other 9.000 134,000 Operating income $32,000 Other income, net 7.000 39,000 Income deductions: Interest on debt 16,000 Amortization of debt discount 3,000 Interest during construction (4,000) Amortization of debt discount 15,000 Net income $ 24,000 Assumptions 1) Allowance for working capital is 45 days of the company's net cash operating expenses exclusive of taxes. 2) Average interest rate on long-term debt is 9.5%. 3) Allowable rate or return to investors is 13%. 4) Operating expenses are expected to increase due to wage increases of $2,000. 5) Telephone plant under construction (TPUC) is not included in rate base. C - 2 ' Step 1 Calculating the rate base • The rate base is calculated using telephone plant, accumulated depreciation, inventory, and accumulated deferred income taxes directly from the balance sheet plus an adjustment for working capital iRate Base Telephone plant, original cost $535,000 Accumulated depreciation (240,000) Net plant 295,000 Materials and supplies inventory 7,000 Working capital 12,250 (a) Accumulated deferred income taxes (30,000) ' Rate base $284,250 (b) ' The working capital adjustment is made to determine the amount of cash required to meet plant expenses for a designated period of time, in this case, 45 days. Working Capital ' Plant specific expenses $57,000 Plant nonspecific expenses 39,000 Pro forma wage increase 2.000 98,000 Working capital formula (45/360) x 1/8 Working capital $12,250 (a) C - 3 Step 2 Calculate the required return ' • First you must calculate the required rate of return using a rate of the long term ' debt to common equity expressed as a percent of the combined total • Then multiply the debt percent component by the interest rate on long term debt and the equity percent component by the allowable rate of return to calculate the average rate of return • Then multiply the rate base by the average rate of return to arrive at the required , return Note that since long term debt is considered to be part of capital for ratemaking purposes, it must be included in the calculation. As a result, you must calculate an average rate of return. Return Long-term debt $120,750 35% 9.5% 3.325% ' Common equity 224.250 65% 13.0% 8.450% $345,000 100% 11.775% Rate base $284,250 (b) ' Required return $33,470 i 1 1 1 1 1 1 1 C - 4