CITY OF GLENDALE CALIFORNIA REPORT TO CITY COUNCIL. Christina R. Sansone, General CounseL... ~~

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1 On May 25,1993, the City Council adopted Ordinance No. 5019, which imposed an AB 939 fee on holders of solid waste services permits in the City of Glendale. The fee is authorized by State law to recover the costs of preparing and implementing the City's plans to reach and maintain the State required diversion of 50 percent of 8 B CITY OF GLENDALE CALIFORNIA REPORT TO CITY COUNCIL July 13, 2010 AGENDA ITEM Agenda Item: Report Regarding Increase in AB 939 Fees (1 Resolution Increasing AB 939 Fees COUNCIL ACTION Public Hearing [] Ordinance [ Consent Calendar' ", Action Item [\ Report Only [ J Approved for July 13, 2010 calendar ADMINISTRATIVE ACTION Submitted Stephen M. Zurn. Director of Public Works... >.. ~~~~ Prepared Mario F. Nunez, Integrated Waste Administrator... ~-::;l:,z.?-~;l:1~"";;;(c~ Approved James E. Starbird, City Manager.... ~~~:~~e~oward, City Attorney... ~ Christina R. Sansone, General CounseL... ~~ RECOMMENDATION It is respectfully recommended that the City Council approve the Resolution increasing AB 939 fee on holders of solid waste services permits from 15 to 20 percent of each permittee's gross receipts for solid waste collected in the City of Glendale. The additional funds are necessary to pay for the increased cost of the recycling services provided by the Integrated Waste Management Division. SUMMARY

2 Glendale wasle from landfill disposal. In order 10 recover a greater portion of the City's waste diversion costs, it is recommended to increase the fee from 15 to 20 percent of each permittee's gross receipts for solid waste collected in Glendale. FISCAL IMPACT The AS 939 fee currently generates roughly $1.1 million in annual revenue. The increase would raise annual revenue by roughly $350,000 based upon the current level of private sector solid waste revenue for Glendale accounts. BACKGROUND In California Integrated Waste Management Act of 1989 (AS 939 mandated that the Cily divert 50 percent of its waste from landfill disposal by In order to fund compliance with the Act, the California Public Resources Code was amended to authorize cities or counties to "impose fees in amounts sufficient to pay the costs of preparing, adopting, and implementing an integrated waste management plan." This authority was cited by the City Council when AB 939 fees were imposed in 1993 on firms holding permits to collect solid waste in Glendale. As stated in Municipal Code Section B, the fees collected under the solid waste permit system "are to be used exclusively to pay the costs of preparing, adopting and implementing the city's integrated waste management plans" developed pursuant to AB 939. Since 2004, the AB 939 fees have been set as 15 percent of the permittee's gross receipts for solid waste collected in Glendale. Currently, the City collects roughly $1.1 million per year in AS 939 fees. The most equitable means of sharing the costs of meeting the goals of AB 939 is for the City and private haulers to divide the City's total waste diversion costs by the percentage of waste disposed by each sector. The most recent available data indicates that private haulers disposed 55% of the total waste disposed in Glendale in 2009 (89,913 of 162,290 tons. During that same period, the City spent roughly $2.6 million on recycling and waste reduction programs. In order for private haulers to pay the appropriate 55% share of those waste diversion costs, the AB 939 fee would need to generate $1.43 million in annual revenue. Since a fee of 20 percent would generate an estimated $1.43 million per year in revenue, the City is within its authority under AB 939 to increase the AB 939 fee to 20 percent. Currenlly, the Cities of Burbank and Pasadena charge AS 939 fees of 16 percent and percent respectively. Ten other cities included in a recent attached survey had total AB 939 and franchise fees ranging from 9.5 to 25 percent. In order to allow private haulers sufficient time to adjust their rates to include the increased fee, the attached Resolution delays the increase till January 1, EXHIBITS 1. Resolution Increasing AB 939 Fees. 2. Survey of Local AS 939 and Franchise Fees

3 Survey of Local AB 939 and Franchise Fees City AB 939 andlor Franchise Fee Percentage Arcadia 9.5% Beverly Hills $120,000/foul' years Burbank 16% Glendale 15% Lawndale 19% Long Beach 8% Montebell o 13% Mon terey Park 24.8% Pasadena % Pomona 25% Santa Clarita 10% Santa Fe Sptings 16.5% Torrance 13.5% + $0.70/(on

4 RESOLUTION NO. RESOLUTION OF THE COUNCIL OF THE CITY OF GLI,NALE INCREASING AB 939 FEES WHEREAS, Section of the Glendale Muni cipal Code, 1995, provides for modify ing AB 939 fees by resolution of the Council of the City of Glendale; and WHEREAS, the Director of Public Works has reviewed the AB 939 fees currently charged and, with the approval or ihe City Manager, recommend s the modificati on of said fcc. NOW THEREFORE, BE IT RESOLVE BY THE COUNCIL OF THE CITY OF GLENDALE, CALIFORNIA: SI,CTION 1. The AB 939 fee authorized in Section S0.C of the Glendale Municipal Code is hereby increased to twenty percent (20% of the gross receipts of holders of the City of Glendalc solid waste services PC1111its for solid waste collected in the City of Glendale. SECTION 2. The AS 939 fee increase shall take ailect on January I, Adopted by the Council o[ lhe Cily of Glendale on the day of, ATTEST: Mayor City Clerk 8 8 1

5 STATE Of CALI FORNIA COUNTY Of LOS ANGELES SS I, Ardashcs Kassakhian. City Clerk of the City of Glendale, ccltity that the foregoing Resoluti on No. was adopted by the Council orihe City of Glendale, Ca li fornia, at a regular meeting held on the 20 to, and that same was adopted by the following vote: Ayes: Noes: Absent: Abstain: day of~~~~~~~~~~ City Clerk