Fremont City Council Meeting: 06/11/24 07:00 PM
3300 Capitol Avenue Div/Dept: Environmental Services
Fremont, CA 94538 Category: Agreements and Contracts
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 5183) DOC ID: 5183
Updated: 6/5/2024 4:33 PM by Dina Lewis Page 1
HOUSEHOLD HAZARDOUS WASTE DROP-OFF FACILITY FUNDING AGREEMENT AMENDMENT- Approve Amendment to Memorandum of Understanding with the Alameda County Waste Management Authority (StopWaste) to Extend Agreement Term and Fund Operational Costs of the Fremont Household Hazardous Waste Drop-Off Facility Through June 30, 2029 and Making Findings of CEQA Exemption Contact Persons:
Name: Kathleen Cote-Guarnieri Dan Schoenholz
Title: Environmental Services Manager Community Development Director Div/Dept: Environmental Services Community Development
Phone: 510-494-4583 510-494-4438
E-Mail: [email protected] [email protected]
Executive Summary: Fremont’s Household Hazardous Waste (HHW) Drop-Off Facility is one of four facilities operating in Alameda County. The Alameda County Waste Management Authority (StopWaste) authorizes and administers the fees funding these facilities including 1) a per ton HHW fee for waste disposed at landfills and 2) a HHW Collection and Disposal Fee collected from each residential property owner. Fremont receives its allocation of funding consistent with a Memorandum of Understanding (MOU) between StopWaste and the City, which is set to expire on June 30, 2024. Staff is recommending the City Council authorize the City Manager to execute an amendment to the MOU which would continue the current terms (performance obligations, reporting requirements, insurance, etc.) and establish the funding amounts for the next five fiscal years (FY 2024/25 through FY 2028/29). The MOU includes a process for establishing the funding amounts after FY 2028/29. There would be no General Fund impact.
BACKGROUND: State law requires that municipalities provide for the appropriate disposal of HHW for residents and small businesses. HHW consists of leftover household products that are corrosive, toxic, ignitable, or reactive that can pollute the environment or pose a threat to human health if disposed of improperly. Examples include paints, cleaners, oils, and pesticides. The City provides HHW disposal services through the HHW Drop-Off Facility located at the Fremont Recycling and Transfer Station. This is one of four HHW facilities in Alameda County. The Alameda County Health Department, under StopWaste’s direction, operates three stand-alone HHW drop-off sites located in Oakland, Livermore, and Hayward.
StopWaste provides funding for all four facilities.
The Fremont HHW Drop-off Facility is operated by BLT Enterprises, which owns and operates the Fremont Recycling and Transfer Station. Operational standards and performance requirements are specified in the Transfer Station Agreement between the City and BLT Enterprises. The City compensates BLT Enterprises for HHW drop-off costs in accordance with the terms of the Transfer Station Agreement and receives funding from StopWaste consistent with the MOU.
There have been several funding agreements between the City and StopWaste since Fremont’s HHW Drop-Off Facility opened in 2008 although the level of funding has changed over the years.
Council Staff Report (ID # 5183) Meeting of June 11, 2024 Updated: 6/5/2024 4:33 PM by Dina Lewis Page 2
When the Fremont HHW Drop-Off Facility became operational in 2008, the City desired expanded hours, beyond those offered at the stand-alone HHW sites, in order to meet the projected demand. This required the City to provide supplemental funding from the Integrated Waste Management Fund. From July 2008 through June 2014 the City funded close to 50% of the cost of operating the Fremont HHW Drop-Off Facility, approximately $350,000 - $400,000 per year.
In 2014, StopWaste implemented a HHW Collection and Disposal Fee, collected from each residential property owner. This provided additional funding to increase the hours at the County run facilities to match those of the Fremont facility and cover a greater percentage of the Fremont facility operating costs. This funding increase provided approximately $950,000 of annual funding with the City funding the remaining $150,000 of operational costs.
The current MOU, which became effective July 1, 2020, provided increased reimbursement to fully fund Fremont’s HHW Drop-Off Facility and continued provisions that both parties found beneficial.
DISCUSSION/ANALYSIS: The current MOU will expire on June 30, 2024. The proposed amendment continues the agreement through June 30, 2029, and would fully fund the anticipated operational costs. The terms described below are largely unchanged from the current agreement except for updated reimbursement amounts and the flexibility to carry over any unreimbursed allocated funds to a subsequent fiscal year.
Term
• July 1, 2024 – June 30, 2029
• Continues without interruption while StopWaste provides specified funding and Fremont HHW Drop-off Facility provides required services
Reimbursement
• Reimbursement for documented costs up to the not to exceed amount specified in Exhibit A of the MOU
• Unspent funds may be applied to a subsequent fiscal year provided the 5-year total is not exceeded
• Exhibit A reimbursement amounts:
o FY 2024/2025 $1,383,116
o FY 2025/2026 $1,440,510
o FY 2026/2027 $1,467,348
o FY 2027/2028 $1,532,569
o FY 2028/2029 $1,556,710
o Five Year Total $7,380,253
• Parties will negotiate in good faith, no later than February 2029, the reimbursement amounts beginning July 1, 2029, and the agreement expires if the parties are unable to reach agreement
Operations/Marketing
• Fremont is responsible for marketing the facility to its residents Council Staff Report (ID # 5183) Meeting of June 11, 2024 Updated: 6/5/2024 4:33 PM by Dina Lewis Page 3
• No charge to any Alameda County resident or residential landlord for use • Small quantity business generators will be charged rates set by the Board of Supervisors (Exhibit B of MOU)
• City to invoice StopWaste twice per year and include documentation supporting the reimbursement requests
Reporting
• Annual report required detailing number of vehicles, number of transactions, customer type, quantities of material collected and shipped out for disposal • Proposed annual spending plan for the next fiscal year due by February 15th of each calendar year
In summary, the MOU would provide reimbursement to fully fund Fremont’s HHW Drop-Off Facility through June 30, 2029, and continues the existing provisions that both parties find beneficial.
FISCAL IMPACT: There would be no General Fund impact. The proposed reimbursement is expected to meet projected expenses, but any shortfall would be funded by the Integrated Waste Management Fund.
ENVIRONMENTAL REVIEW: Approving the Household Hazardous Waste Drop-Off Facility Funding Agreement Amendment is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to, without limitation CEQA Guidelines Sections 15378(b)2), (4) and/or (5) and/or 15061(b)(3) in that is an administrative or fiscal activity of the City that does not the potential for causing a significant effect on the environment.
Each of the foregoing provides a separate and independent basis for CEQA exemption.
ATTACHMENTS: None.
RECOMMENDATION: Authorize the City Manager or her designee to execute an amendment to the Memorandum of Understanding for Household Hazardous Waste Services with the Alameda County Waste Management Authority (StopWaste) as described in this staff report and take all reasonable actions necessary and appropriate to implement same.