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HomeMy WebLinkAboutMINUTES - 07141998 - C182 AP4 Contra TO: BOARD OF SUPERVISORS Costa County my FROM: DENNIS M. BARRY, AICP COMMUNITY DEVELOPMENT DIRECTOR DATE: July 14, 1998 SUBJECT: Review and Approve Distribution of Solid Waste Franchise Fees to Solid Waste Programs SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION 1. Direct staff to utilize all Franchise Fees collected from solid waste collection franchises, both In the past and in the future, to the administration of Franchise Agreements and to the development and operation of Solid Waste Programs for the purpose of meeting AB939 program requirements, and 2. Direct staff to maintain a balance of $100,000 for the purpose of paying for solid waste related studies such as Rate Review Methodologies, revised AB939 documents, etc. and, 3. Direct staff to work with the California Integrated Waste Management Board staff to determine how best to redirect the County solid waste reduction efforts with a decreased budget size in order to achieve a 50% reduction in waste disposed and avoid the possibility of state AB939 fines. FISCAL IMPACT Directing Solid Waste Franchise Fees to solid waste programs would eliminate the current budget deficit and would allow for the expansion and development of programs required to meet AB939 requirements. CONTINUED ON ATTACHMENT: YES SIGNATURE >>r wow RECOMMENDATION OF MUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITT E APPROVE OTHER SIGNATURES1 V�A& ACTION OF BOARD ON APPROVED AS RECOMMENDED 4w"LR ._. VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE UNANIMOUS (ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN AYES. NOES: AND ENTERED ON THE MINUTES OF THE ABSENT: ABSTAIN: BOARD OF SUPERVISORS ON THE DATE SHOWN. , Contact: Mary Fleming (925.336-1230) ATTESTED cc: Community Development Department (CDD) PHIL TC LOR, CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR �J BY - DEPUTY /"b J:1groupSWaadp0dWArj0rielbo Vpd _1111 . ........ ......... ......... ....................._. ........_.... ._.._.._. ......._............................... 13ACKGROUNUIREASONS FOR REQOM JIENDATIONS In January of 1996 the County first began to collect 5% Franchise Fees in the area served by RSS. in March of 1996, Franchise Fees of 5%were established in the Central Contra>Costa Solid Waste Authority (CCCSWA) area. Franchise Fees of 5% were initiated in Kensington with approval of a franchise agreement beginning in January 1997. This fee was later reduced to 3% when the County entered into a Memorandum of Understanding with the Kensington Community Service District. Crockett Franchise Fees of 3% began in February of 1957. The Board approved a Franchise Fee of 5% for the area served by Garaventa Enterprises through the County Franchise Agreement effective August 1, 1998. The new BFI rate structure includes a Franchise Fee of 5%. The area franchised by lronhouse Sanitary District will have a Franchise fee of 2%when approved by the Sanitary District. At the direction of the Ad Hoc Solid Waste Committee the Community Development Department has utilized the Franchise Fees in the following ways: First 2% - to County Solid Waste Programs Next 1% - to Study Fund (for gate Review Methodology, audits, etc.) Final 2% - where available, to Trust Fund, not currently utilized for Solid Waste Programs The Community Development Department Solid Waste Division has received a maximum of 2% Franchise Fee for operation of the Solid Waste programs. This level of funding is proving to be inadequate to provide for the Solid Waste programs required by the Stag as described in the State Approved Source Reduction and Recycling Element (SRRE). The Solid Waste Division has several areas of responsibility with different revenue sources as described below : 1) Bay Area Wide and Countywide Programs - Includes a coordination function for the Bay Area wide public education programs, operation of the recycling hotline, production of a Reuse Directory, production of a Recycling Guide and participation in development of a School Recycling Program. The County is also the agency responsible for collecting waste disposal data for the entire County and providing reports to the CCC Cities, to outside Cities and Counties and to the State regarding the amount of waste disposed by each jurisdiction. PcQjg ted cost: $155,000 - $185,000 per year ( this could increase with the formation of a Local Task Force) r-1ected Income Source and Amount: AB939 Fee ($.15 per Ton) income of approximately $105,000 per year- this fee is currently not being paid for waste that is going out of the County. The missing fees would add approximately $45,000 to this budget item. Staff is currently seeking to obtain these fees from all areas of the County as the services provided benefit the entire County. In addition, costs have increased beyond original expectations due to requests from the Cities for more detailed disposal reporting information and the County participation in providing for local coordination of Bay Area Wide public education programs. 2) Franchise Review and Administration - The Community Development Department Solid Waste Program is responsible for administering four Franchise Agreements, two Memorandum of Understandings and participating in the ,activities of the West Contra Costa Integrated Waste Management Authority (WCCIWMA) and the CCCSWA. Staff works with the Crockett Local Advisory Committee and with the Kensington local Advisory Committee. Staff has spent considerable time and effort in working with the local communities, where there has been an objection to the County franchising the solid waste services, in an attempt to negotiate an acceptable working arrangement that will accomplish the solid waste reduction goals. In the next fiscal year Staff will be working with the Franchisees to provide for the added services, such as providing for curbside collection of cardboard, mixed paper, greenwaste and used oil and for providing mini-can service and variable can rates as required by County Ordinance and by the County ERRE and will be completing rate reviews to reflect the added cost of the new services. Projected cost: $158,000 per year Proiected mneme agum andount:t: $158,000 per year from Franchise Fees. The County collected Franchise Fees of approximately $247,386 in fiscal year 97-98. Of this amount only $100,500 was directed to solid waste programs. The remainder went into either a fund to pay for solid waste studies (approximately$60,000) or a Trust Fund (approximately$200,000) to be held until the Board determined how best to utilize the funds. Additional fonds will be available when Franchise Fees are collected from the BFI and Garaventa Enterprises franchises. The 2% portion of those fees is estimated to provide approximately $81,000/year - BFI, $31,000/year- Garaventa Enterprises and $35,000/year- Ironhouse Sanitary District. Any fees in excess of that needed for Franchise Administration will be applied to AB939 Programs Development and Implementation. 3) AB939 Program Development and Implementation - The Community Development Department is responsible for implementing numerous Source Reduction and Recycling programs as required by the State Approved SRR.E. Some of these programs involve developing programs directly with the solid waste haulers such as increased curbside recycling, including used oil, greenwaste and reusable products and materials pickup. Variable can rates and mini-cans need to be established in each area. Other programs include the establishment of composting facilities and drop-off and buy-back facilities. The County is committed to providing Source Reduction Programs, Recycling Programs, Composting Programs, Special Waste Programs and Public Information Programs. Please see attached Tables 4-10, 5-9, 6-7, 74, 8-2 and 9-1 for a list of programs and the projected start-up and on-going costs. PMected cost: The County committed to developing and operating programs with an annual cost of approximately $840,000. Projected I ncoMe Source and Amount: Between $66,800 and $123,400 from the remaining Franchise Fees, the larger amount assuming a 2% Franchise Fee from the BPI contract effective August 1,1998, a 2% Franchise Fee from Garaventa Enterprises through the County Franchise effective August 1, 1998 and a 2% Franchise Fee through the MOU with Ironhouse Sanitary District (timing unknown). Some of the above fees may not actually begin until later in the fiscal year, thus reducing revenue below the $123,400 in an unknown amount. Cue to:lack of funding the County has not been able to implement the majority of the required solid waste programs. Projected Income Source and Amount 1998-99 Solid Waste Company Solid Waste Programs Study Fund Trust Fund RSS $44,900 $22,450 $44,900 CCCSWA 71,000 35,500 71,000 Say Point 19,600 9,800 Crockett 3,900 1,950 ---------------- Garaventa Ent. (CCC) 29,500 14,760 29,500 (11 mos) Garaventa Ent. (ISD)"` 34,700 ----------- __., ----. ----- {11 mos} BFI* (11' mos.) 74,800 37,400 74,800 Totals 278,400 125,260 227,000 Less Franchise Admin. Cost $155,000 Available for AB939 Camp. 123,400 __..------------- ----------------- Prog. *Assumes fee begins August 1, 1998. Garaventa Enterprises and BFI fees were approved by BOS to begun August 1, 1998. The Department currently has approximately $200,000 set aside in the Franchise Trust Fund and approximately $60,000 in the Study Fund. Revenue Needs -As can be seen by examining the attached Tables, the County committed to programs that were anticipated to have Start-up Costs of $954,600 and Annual Costs of $840,400. In addition to program casts, there are costs in administering the Franchise Agreements. The administration costs will tend to drop significantly when all of the legal issues are settled, rate review processes are in place and the hauler required programs are in place. The revenue for these programs was to have been a combination of AS939 Tipping Fee of$.15 per ton, Resource Recovery Fees collected at the landfills (since discontinued by the Beard) and revenue from the sale of materials from the planned buy-back and drop-off facilities. Since the elimination of the Resource Recovery Fee staff has been working to develop Franchise Agreements or Memorandums of Understanding in all areas of the unincorporated County and to institute Franchise Fees to cover some of the cost of developing Source Reduction and Recycling Programs. The revenue from the 2% Franchise Fees will not produce more than $300,000 of the needed funds and a portion of that will be required for the costs related to the administration of the Franchise Agreements. Inclusion of the 2%Trust Fund portion (which is receivedin only some areas) would add approximately $236,500 to the Solid Waste budget. This would provide for a total of approximately $536,000 in revenue. This amount will still not provide the total funds needed to implement the SRRE as it currently exists. it will therefore be necessary for the County to either provide additional funds to pay for the implementation and operation of programs or to seek the approval of the State to modify the SRRE with the State's approval to include less costly programs. State of California Review - The California Integrated Waste Management Board has initiated a biennial review for Contra Costa County to determine if the level of County compliance with the AB939 requirements is adequate. If found to be inadequate they will offer to work with the County to bring it into compliance. At this time the County has submitted two Annual Reports to the State of California. Due to lack of funds the County has clearly not implemented the agreed upon programs during the agreed upon timeframes. Staff is convinced that if the County is to reach a 50% reduction in waste it will be necessary to implement more of the SRRE programs. It is therefore, staff's recommendation that the Board of Supervisors direct staff to utilize all previously collected Franchise Fees, (except as described below) and all future Franchise Fees for the purpose of developing and operating the required Source Reduction and Recycling Programs. Staff further recommends that the Study Fund be allowed to reach a balance of$100,000. Cance that balance has been reached, any additional funds will be applied to programs. When funds are spent for conducting necessary Studies, the fund balance will be reestablished by payment of the I% Franchise Fee until the balance reaches $900,000 again. Staff further recommends that the Board direct staff" to meet with the State representatives to determine what concerns and recommendations they may have regarding'County compliance and direct staff to return with a report which discusses the options for maintaining compliance with AB939 requirements. J:XGROUPS�COADPOOLWARYICONSERVIBOARDORD\FRANC HIS.B©S Table 4-10 Summary of Source Reductwo Program Casts :}r°t, .rxr`;t:,+i::<.;>.?,y;:;:s.%r'i::. .' rf: �.+;:•f'te.�ir '?': ,>,:,:;%.i,:+Js::%�:."+'R::;%.,: t••>...�.: :i 6 r 'a,,y;Yf .f,• n Jt,• i ��" ,Kt tx > •}. � .` �'•'.5,•`s 4 :..,;,. , r Xc�v,�•}y�' .;.::Xr.::;�:, '•t: •.?;.. n. r�:xk •ir'"S''.ta;,S•:. :s. �`S.ta::,�,�5 ..y f."f ;."r, ?.}}••t�+:,•4•o}}:.x.:<,•.•: � � n�,r' ti�� }•rt :,ti:.:. '.'F}r..c'i,ti,•, t. ,,.:., •�;2»�'•'f$::','.•,•';•r,:}":. :;x..<,.xx• r,.;� a �,"t x :?fs 5u• .;} c:}: y,,;:}„:,;:f./. >. "4Y�•�tC��;;�'� moi% `ti�su;�g'';€'�' �>. :'��'•,.::>,:xf M1# .� i•'yi', ct't.,�� i 3#•�d.'# r;; ':4,/. '�:yr '`:St�”':•4,x,tk:: .a,•.+ 'r�. r t`:2. r%}t�•,�,�h�5•`Y<jtw > Vi.,}rk+', . ,. iyY`�f i •1, s.•}'"",};.f,;Pr7:•�S„:i:`}j•'•,t"\. 1�•,. R��""r,,,t,�{;{f5: , -...� fr. .nx t,r •�.c,• r. U. Variable Con Rates 3/91 $4,840 $4,844 ,1 Refuse Collection Rates 1b. Weight-Rased Pilot 4/92 $78,400 -- Refuse Collection Program Rates/Resource Recovery Fee 2, Vocational Training and 4/92 $9,204 $6,800 .1 Resource Recovery Business License Fee Fee Reduction 3. Reusables Pick-up 3/92 $9,600 $14,840 .1 Resource Recovery Fee 4. Reducing Fast Food 2/93 $20,000 -- .1 Resource Recovery Packaging Waste Fees/AB 939 Tipping Fee 5. Reducing the use of 4/92 $22,400 $9,840 .1 Resource Recovery Disposable Diapers Fee 6. Organic Wastes Source 4/92 $101,200 $94,200 1.65 Resource Recovery Reduction Fee 7. Resource Evaluations for 2/93 $4,840 $62,800 1.1 Resource Recovery Businesses Fee TO)TAL. $244,600 $196,000 3.25 *Plus loss of business license revenue. $249,640 $198,000 may 1993 4- 69 Contra Costa County Source Reduction and Recycling Element Source Reduction Component VIII. PROGRAM IMPLEMENTATION Table 5-9 s of costs ak, v::::-:: ............. :i:$;:.r,?F;•$ifi .:. ;}.iX:fivl':::: •:i:;:•.4:',}•:i:::•::i:?.4h-.:x:: •i:.::.?::::i'ti?•:.?:•::'•'•:i::•i%.%•`:-i i:S:4i::;4:}i:•ii;•:.......:..:....:::.::::....::•.rr...: :.:.., •.....v-•:':^::?v: .....•,,•.:.... ........................y...............r............................................:.....,.rr ...., ...u.. •i:???8• ::::ry:.:..., :, .:iVy,:.:, ..i:: ;.:.... ,.., /:s.:.:::ri:::•.,i'r::-.'%iii':;5:::?i::�.ii yi'J::::.::.1:r,:iv.::<i% :tti::.i:.::_:;•:�.'.::::i•:i::r::..:�:•::,v...::::::::::.:::::::n:•:'i::i'.:':..'r:.;•::::::r:r:r:r.:•'•:•:.:-.:.:v : •:Jrr:,.. ::rF:: }, 11. :•ih:• '�+,��1yy ,yam ':%%%::::''::::%�:%:.:::%:::%:•:%i -::...-.........-......-:.v.n....,,...,:,,,...,....:....:.:..........................n.....,..r:n......v.:•.,. ::rv:::vr:w:x;-::.F =..,.r...a..... ........ :-..•..:n..'.vr:r..:rte... ..............:... •, .. .,.. .....r.........., .. r. :. ...*......•.., ::::.. .r ..: .r.... .,.:............ :v... v;1.-.:.:ir.is•i:ti{::•i:?::i%:.}::iiiii:%iiii:%::::iii:i::i%i:%ii?'%:i:% .:::.............. nn,:.:.-:f.--:,:.•::::..:::J....::.......:...:.,::....-.�..,?•::.n:,,•::•..:.:.. r.r..,:.....:...:r...::.r,;... ..v...JJ:,r,•::.J:: .-:.:,u..... r....y.;. ,.{..:n. :?:::::i:•iii:v:ii::iiii:.y:i{n;•:ti.:+:iii;?•:ii:?{':i::?:%i} :.yi•:.:,::.::::^rw::•v:i•.::•\;: " �':'t✓ :•iF - 1. Residential Curbside 1192 -- $9,600 .2 Curbside Collection Rate/Franchise Fees 2. Multi-pamily 1/92 -- $4,800 .1 Same as Residential. Curbside 3. Drop-off Facilities 4/92 $228,000 *$39,200 .4 Sale of Material/ Resource Recovery Fees 4. Buy-Backs 1/93 $316,000 *$202, .1 Sale of Material/ Resource Recovery Fees 5.Commercial/Industrial Routes 1/92 $28,800 $9,600 .2 CDD 6. Land-Use Permits 4/94 $8,000 $2,400 .05 CDD 7. Direct Links es 4/92 $62,000 1 $30,000 .5 1 Resource Recovely Fees 8. Source-Separation C&D Debris 1/93 $7,200 $4,800 .1 I CDD 9. Schools 1/92 -- $4,800 .1 CDD 10. Return-to-Source 4/92 -- $9,600 .2 Resource Recovery Fees 11. Rec c Market Devel went Zone 3/92 -- tl680:0t'_, 0 0001.25 Resource Recove pees TOTAL $650 000 3.2 * Annual operating costs will be partially or wholly offset through the sale of materials. Contra Costa County 5- 74 May 1993 Source Reduction&.Recycling Element Recycling Component " 9 v 0 , 64 Ell J4 Oct w d rr3 I'll w v a 3 ao © b v v LO ' 78 F z Q � sn CA w v zu x A U U a A u U oull b 4.. - � 4,1 d � at ° o r� w w 8 w � � H o � w a � � z p U a� o W � A A A A A A a A a v U U U U U v tn U a � a as a a a a as aaa In a a a a s �C U a U C7 U U U U U U U x a w � ' U c u� y o a A a o U b &9 U 11i fro d .4: U � � U A AU a � 78 lu y w 4 rra a '4 U In i c VI. FUNDING AND STAFFING REQUIREMENTS The following table includes estimates of program costs, including staffing requirements and budgetary requirements for materials, media time, etc. Dollar amounts do not include funding requirements for staff. Estimates of staff requirements include monitoring and evaluation staffing!requirements. Table 8-2: Fwxft and ELaft Re uirements for Caen EPI Pr s Program Staff Requirements Materials and Other Budgetary a I'E'sy Requirements(start-up and annual costs shown separato 1. Contra Costa County Waste Reduction and .1 $10,000/year Rf,qcjing Guide 2. Co Hotline 1 $5,M/year 3. Resource Evaluations(outreach and promotion 1 $10,000 Start-up; on1 $2,000/year 4. Schools Program .2 $10,000 Start-up; $2,000/ ear 5. Disposable Diapers see Source Red. 6. Vocational Training Program .2 $10,000450,000 start-up; $0460,000/year 7. Speakers Bureau 1 $4 0001 ear 8. Tires Source Reduction(See also the Special .1 $10,000/year Waste Component) 9. Organic Materials Source Reduction See Source Red. Information and Outreach 10. Promotion of Drop-off and Buy-back .05 $3,000/year Facilities Oversight and Coordination of Franchisee's EPI .15 --- Efforts Total: 2.0 $30,000480,000 start-up; $36,000496,000 per year Revenues and Revenue Sources None of the programs are expected to generate any revenues. Funding sources for EPI programs Will come from two sources: for franchised programs, funding will come from the ratepayers, and Will be considered a part of the cost of services provided; for County-run programs, funds will come from the Resource Recovery Fee, which derives from landfill tipping fee charges. These funding sources hold true both for program costs, and for monitoring and evaluation costs. May 1993 8-9 Contra Costa County Source Reduction&Recycling Element Education&Public Information Component Table 9-1: Summary of Pro ram Costs Prt� ran Stttrt tui al t� fin ST MT t { ( (FfE`SivrSt�nJvertn Source Reduction 249,6()0198,000 3.25 3.9 8.9 Recycling 650,450t416,800 3.2 22 37 Co ostia 0 54,000 .2 6.2 12.4 S ecial Waste 0 9,600 .2 4 0 Education and Public Info. 55,000 162,0002.0 0 0 Contra Costa County 9-2 Source Reduction&Recycling Element May 1993 Funding Component III. FUNDING MECHANISMS Funding for the diversion programs will come from two primary sources; the AB 939 Tipping Fee, and the Resource Recovery Fees required as part of the Land Use Permit Conditions of Approval for the ACME Transfer Station and the Marsh Canyon and Feller Canyon Landfills. The County's portion of the AB 939 Tipping Fee is $.15 per ton which results in a'revenue of$150,000 per year for implementation of the diversion programs and for monitoring and evaluation of those programs. The Resource Recovery Fees provide additional revenue. These fees were imposed, and became effective, when the Land Use Permit approvals were given for the Transfer Station and new landfills. The fees are specifically designated to fund County-run activities aimed at conserving landfill capacity for all county jurisdictions and residents. In that the two new landfills will provide disposal for all jurisdictions and all residents, programs which conserve capacity serve all jurisdictions and residents; the costs for such programs is a shared cost for shared disposal capacity. The Resource Recovery Fee was levied as a pass-through business cost incurred by the operators. If the operators of the new landfills or of the ACME Transfer Station/Material Recovery Facility pass these costs on, the impact could be calculated as a little less than$1.00 per year per person living in Contra Costa County. A third revenue source will be sale of materials from the planned buyback and drop-off facilities. These facilities are expected to generate revenues approximately equal to their operating costs, i.e., approximately $250,000 per year. Because of the instability of commodities markets, and uncertain volume of materials that will be handled, the actual revenues are uncertain. All revenues from sale of materials will be used either for the operation of the facilities, or for other County programs. In that full implementation of all diversion programs will be phased in over the short-',and medium-terms, the revenues from the County's portion of the AB 939 Tipping Fee, from the Resource Recovery Fees, and from the sale of materials should fully cover program costs. May 1993 9-3 Contra Costa County Source Reduction&Recycling Element Funding Component