Integrated M n gement Fund
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- Cathleen Ross
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1 Integrated M n gement Fund M I S S I 0 N o provide solid, waste disposal and recycling services, collect fees for those services, and lead City efforts to encourage reduction, reuse, and recycling of solid waste. Services provided through this fund are: Management of the residential and commercial solid waste system; Management of the Construction and Demolition waste system; Residential billing and customer service; Household Hazardous Waste services; Management of garbage and recycling services for City facilities and public litter cans; Zero waste efforts for special events at City properties; Public education and outreach; Countywide solid waste planning and programming; Enforcement of Solid Waste municipal code provisions, franchises, and agreements; Customer rate setting and revenue monitoring; Development of the Environmental Innovation Center; and Grant procurement and oversight
2 Budget Summary Garbage and Recycling Services, Public Outreach, and Administrative Services Accounting and Lien Collection City-Wide Disposal Contract Mgmt Adopted Ad opted 118,170,440 $ 118,939,914 1,382,813 1,354,874 8,752,800 9,041,000 % Change 0.7% (2.0%) 3.3% Budget Highlights In , the Integrated Waste Management Fund will support garbage and recycling services, reduce neighborhood blight, and pursue energy conversion technologies. A continuing goal for this fund in is to maintain the Recycle Plus single-family and multi-family garbage and recycling programs as dose to 100% cost recovery as possible. No rate increases for Recycle Plus services are required for San Jos6 Garbage & Recycling Single-Family Residential Rates []Rate (Actual) []Rate (Adopted) San Jos~ Garbage & Recycling Monthly Single-Family Residential Rates Actual Actual Actual Actual Actua.! Adopted Rate $26.95 $27.50 $27.50 $29.95 $29.95 $29.95 Effective Date 7/1/2008 7/1/2009 7/1/2010 8/1/2011 7/1/
3 Imegrated Was,e Management Fund The Integrated Waste Management (IWM) Fund supports residential, commercial, and City facility and operations solid waste disposal, including administration of various agreements for collection, processing, and disposal. The fund also supports the implementation of Green Vision Goal #5: Divert l OO percent of the waste from the Ci(y s landfill and convert waste to energy. The residential services group manages Recycle Plus garbage, recycling, yard trimmings, and street sweeping services contracts for single-family dwelling (SFD) and multi-family dwelling (MFD) properties. In , the City Council gave approval to discontinue the in-house service delivery model for Recycle Plus billing and customer service and directed staff to evaluate utilizing the Santa Clara County Secured Property Tax Bill for Recycle Plus billing or shifting all Recycle Plus billing and customer service responsibility to the municipal solid waste haulers. On September 17, 2013, the City Council approved a service delivery strategy to collect Recycle Plus payments for garbage_and recycling services for all single family residential households through the Santa Clara County Secured Property Tax Bill. Notable residential projects completed in include integration of the Neighborhood Clean-Up event schedule with the online Collection Day Look-up tool, creation of the second annual ReSources newsletter distributed to all 210,000 single-family households, redesign of program signage found on 184 Recycle Plus collection vehicles, and introduction of 18 new CNG vehicles to the multi-family residential collection fleet. Waste & Recycling News awarded the Recycle Plus program the "2012 Green City Award" for having the most effective and successful residential recycling program for a large city in the U.S. On June 21, 2011, Council granted Allied Waste Services (now known as Republic Services, their parent company) two exclusive franchises for north and south San Jos~ to provide solid waste collection, recydables processing, and disposal services for most of the City s commercial waste, and authorized an agreement with Zero Waste Energy Devdopment Company (ZWED) to provide commercial organic waste processing services. On July 1, 2012, the transition commenced, and businesses switched from the non-exclusive franchise system (involving more than 20 different haulers) to service with a single hauler, Republic, serving the entire City. Beyond consolidating service with one hauler, the transition introduced new technologies and approaches. Approximately 8,000 business sites are now participating in a new wet/dry collection system with waste materials being separated into two. categories: 1) wet or organic material such as food waste or plant trimmings, and 2) dry material such as paper or plastic. All solid waste collected is delivered to Republic or ZWED facilities for processing, and residual garbage from the processing operations is sent to a landfill for disposal. In an effort to ensure that a degree of competitive and shared market remains, two large components of the commerdal waste stream continue to be collected through the non-exclusive franchise system: construction and demolition debris and residential cleanout materials. For these components, there are currently 19 non-exclusive franchised haulers, with four more applications pending. In order to ensure compliance withvthe San Jos~ Municipal Code and the various franchise agreements, the addition of two Environmental Inspectors dedicated to field enforcement was approved with the City s Adopted Operating Budget. This enforcement function helps ensure that the cost of the new system is distributed appropriately among all customers covered by the franchise, thus mitigating risk of rate increases. The inspectors also ensure that franchisees are collecting waste per the terms of their agreements and are meeting requirements for the quality of services to the customer.
4 Fund Overview The Construction and Demolition Diversion Deposit (CDDD) program continues to divert the single largest component of the City s waste stream. Under this program, building permits are subject to one of two tracks depending on the Building Code that impacts the project. The CDDD is still required for most addition and alteration building permits; however, new construction, nonresidential additions greater than 2,000 square feet in size, and non-residential alterations greater than $500,000 in value are subject to the CALGreen Building Code and a non-refundable flat fee is paid in-lieu of a deposit. CALGreen s building permit scope is expected to expand to include all non-residential additions greater than 1,000 square feet and all alterations with a valuation greater than $200,000 in the beginning of Currently, all applicants must demonstrate that a certain amount of construction and demolition waste was diverted from landfills before either their deposit is returned, or they can obtain final occupancy for projects subject to the CALGreen mandatory measures. Deposits which are abandoned, or which are not eligible to be returned to the depositor, support a variety of City activities. Transfers of CDDD Revenue to the General Fund total $600,000 for In addition to this transfer, CDDD monies will fund a portion of two existing Planning, Building and Code Enforcement positions that support CDDD efforts. Renovation and construction of the Environmental Innovation Center (EIC) on Las Plumas Avenue began in September 2011 and is slated to open in spring In November 2011, a New Markets Tax Credit transaction with JPMorgan Chase (the investor) and three Community Development Entities closed, resulting in additional funding of approximately $4.3 million for the project. The EIC advances the City s commitment to San Jos~ s Green Vision, with an approximately 10,000 square foot permanent Household Hazardous Waste (HHW) drop-off facility for the convenient and safe disposal of common toxic items; flexible laboratory and office space for members of Prospect Silicon Valley (Prospect SV) to demonstrate, devdop, and deploy emerging clean technologies in renewable energy, energy efficiency, green building, and transportation; conference space for environmental workshops and job trainings; and a Habitat for Humanity ReStore that will sell discounted new, like new, and surplus building materials that would likely otherwise be landfilled. The Organics to Energy Strategic Plan was devdoped in the summer 2009 as a road map to pursue energy conversion technologies that will reduce the volume of material entering landfills, and prepare the material for further processing, while capturing energy for beneficial uses. The Environmental Services Department 0gSD) is currently implementing a conversion project that will divert pre-landffll organics to biomethane production. The ZWED Anaerobic Digestion Facility will support processing of commercial organics collected as part of the new exclusive franchise agreements that started on July 1, The Anaerobic Digestion facility is projected to receive material by early The Zero Waste Event Program provides technical assistance and resources to the event planning community for "green" events, and helps incorporate zero waste planning into procedures and processes. Resources include workshops, recycling equipment loans, free recycling collection services, and a certification program to encourage participation. In addition, this program administers grants to help offset additional costs associated with producing green events, and manages an agreement with the San Jos~ Conservation Corps to implement recycling services at special events on City property.
5 [ntegrated Waste Management Fund 201% =2014 % Actual Adopted Adopted Change (2 to 3)~ Do,Mrs by Sources Beginning Fund Balance Operating Revenues interest and Transfers Tota~ 21,151,590 $ 10,291,516 $ 14,615, % 137,602, ,733, ,664,679 (1.6%) 136,900 78, ,661 (12.0%) 158,891,183 $ 141,102,905 $ t43,349, % Dollars by Uses Garbage and Recycling Services, $ Public Outreach, and Administrative Services AccounlJng and Lien Collection City-Wide Disposal Contract Management Other * Ending Fund Balance Tota~ $ 136,624,260 $ 118,170,440 $ 118,939, % 1,392,293 1,382,813 1,354,874 (2.0%) 8,288,816 8,752,80 0 9,041, % 963, ,000 0 (100.0%) 11,622,133 12,546, ,013, % 158,891,183 $ 141,102,g05 $ 143,349, % * These are miscellaneous items paid for from Ibis fund on a one-time basis, and offset by miscellaneous or unrestricted revenues.
6 Budget Category: Garbage and Recycling Services, Public Outreach, and Administrative Services Budget Category Overview Activities in this budget category ensure the achievement of City objectives related to waste management and the reduction of solid waste. The Garbage and Recycling Services unit oversees and manages the garbage and recyclables collection contracts for San Jos~ residents and the franchises and agreements for services to businesses. This unit also designs, evaluates, and implements programs to reduce waste generated by the City, provides policy and technical analysis, promotes programs such as the State of California s Recycling Market Development Zone in order to develop markets, and ensures compliance with environmental laws and permits. Administrative Services include support services provided by various City departments, overhead to the General Fund, as well as Workers Compensation Claims costs. No general customer rate increases for Recycle Plus services were approved for , as savings from are available to offset solid waste hauler contractual increases. Rate increases for the optional subscription yard trimmings cart and on-demand large item collection were approved in The subscription yard trimmings cart rate increase is necessary to b~ng the cart program up to cost recovery. The large item collection rate increase is an annual adjustment that is required contractually between the City and the service provider. The large item program is managed by the Recycle Plus recycling haulers with customers paying the large item collection rate direcdy to the haulers. Any rate increases will be evaluated through the annual budget process, based on the growth in indexes that drive the garbage hauling contractual increases and other costs. The Ending Fund Balance includes a reserve of $2.0 million to prepare for the Integrated Billing System (IBS) replacement solution, which will need to be implemented by 2015 because the current system will not be supported by the vendor past Actions for include the addition of an Environmental Inspector for the Residential section. The new Environmental Inspector position will perform compliance work and monitoring in residential areas to address city-wide blight and compliance issues. These include illegal dumping, recyclables scavenging, and recyclables contamination. The cost of this position was offset by ddeting a vacant Environmental Services Specialist position and also includes funding for associated non-personal costs and the purchase of a vehide. X-14
7 Budget Category: Garbage and Recycling Services~ Public Outreach~ and Administrative Services Garbage and Recycling Services, 2011 o2012 Public Outreach, and Administrative Actua~ Services % Adopted Adopted Change 2 3 (2 to 3) Garbage and Recycling Services Public Outreach Administrative Services Total 101,442,180 $ 110,375,265 $ 108,886,579 (1.3%) 364, , , % 34,817,917 7,517,387 9,775, % 136,624,260 $ 118,170,440 $ 118,939, % The following changes are included for in the Garbage and Recycling Services, Public Outreach, and Administrative Services allocations: Adopted Ailocation Adopted Adopted Change [ Garbage and Recycling Services $110,375,265 $108,886,579 ($1,488,686) ] Base Adjustments (One-time Prior Year Expenditures Deleted/Technical Adjustments to Costs of Ongoing Activities): Household Hazardous Waste Las Plumas Facility CEC Grant: Biomass to Energy Technology Project Capital Program and Public Works Department Support Costs Environmental Services Department (ESD) Non-Personal/ Equipment Clean Creeks, Healthy Communities Single-Family Recycle Plus Yard Trimmings/Street Sweeping Multi-Family Recycle Plus Elimination of one-time funding associated with the construction of the Household Hazardous Waste Facility Expenditures related to a grant from the California Energy Commission Decrease in Capital Program and Public Works Costs (Completion of Environmental Innovation Center) One-time funding associated with the Environmental Innovation Center, Miscellaneous Non-Personal/Equipment changes Expenditures related to a grant from the Environmental Protection Agency Contractual increase to the single-family dwelling garbage and recycling contract Contractual increase to the yard trimmings and street sweeping contract Contractual increase to the multi-family dwelling garbage and recycling contract ($6,059,604) ($600,000) ($148,000) ($117,407) ($32,000) $630,521 $441,454 $350,023
8 Budget Category: Garbage and Recycling Services, Public Outreach, and Administrative Services Budget Category Summary Adopted Allocation Change [ Garbage and Recycling Services I Various Departments Personal Services City Facilities Recycle Plus PBCE Non- Personal/Equipment Salary/benefit changes, position eliminations, and other changes Contractual increase to the City Facilities garbage contract Miscellaneous Non-Personal/Equipment changes Subtotal Base Adjustments $321,345 $32,265 $8,269 ($5,173,134) Budget Proposals Approved ESD Personal Services DOT Non- Personal/Equipment Household Hazardous Waste Las Plumas Facility AB939/CDDD/Late Fees ESD Non- Personal/Equipment Various Departments Non-Personal/ Equipment Environmental Services Department Staffing Transfer of Energy Program to Public Works Solid Waste Contract Compliance Staffing Recycle Plus Billing Transition Project Staffing Environmental Services Department Administrative Services Division Oversight San Jos6 Downtown Association Rebudget project funds from One-time funding for Environmental Innovation Center Solid Waste Compliance and Enforcement and Recycle Billing Transition Project Environmental Innovation Center Miscellaneous Non-Personal/Equipment changes Subtotal Budget Proposals Approved ($100,706) ($29,204) $89,565 $43,265 $7,88o ($20,000) $2,350,943 $1,519,290 $52,815 ($250,000) $20,600 $3,684,448 Total Garbage and Recycling Services ($1,488,686) X-16
9 Budget Category: Garbage and Recycling Services~ ipublic Outreach~ and Administrative Services 20 ~2-20 ~ =2(H4 Adopted A~ocation Adopted Adopted Change Public Outreach $277,788 $277,788 $0 J Total Public Outreach $0 Administrative Services $7,5"17,387 $9,775,547 $2,258,180 ] Base Adjustments (One-Time Prior Year Expenditures Deleted/Technical Adjustments to Costs of Safe Routes to Schools Creative (SRTC) Grant IBS Commercial Paper Payment Transfer to the General Fund - CDDD Overhead Various Departments Personal Services Transfer to the City Hall Debt Service Fund Workers Comp Claims Various Departments Non-Personal/ Equipment Second year of a schools program funded by the ($84,600) Metropolitan Transportation Commission Integrated Billing System commercial paper repayment Increased transfer of CDDD revenue to the General Fund Net change in overhead reimbursement resulting from staffing changes Salary/benefit changes, position reallocations, and other changes Increased City Hall Debt Service allocation increased allocation for Worker s Compensation Claims Miscellaneous Non-personal/Equipment changes Subtota~ Base Adjustments $1,431,469 $35O,O00 $306,124 $119,685 $39,192 $3,000 $4,276 $2,169,146
10 Budget Category: Garbage and Recycling Services, Public Outreach, and Administrative Services Budget Category Summary Adopted Allocation Adopted Adopted Change Administrative Services Budget Proposals Approved Workers Workers Compensation Claims Adjustment ($76,000) Compensation Claims PBCE Personal Salary/benefit changes, position reallocations, and ($1,867) Services other changes - Delinquent Lien Delinquent Lien Releases Fee Increase $145,000 Releases Transfer to the San Jos6 Downtown Association $20,000 General Fund Overhead Net change in overhead reimbursement resulting from $1,881 staffing changes Subtotal Budget Proposals Approved $89,014 Total Administrative Services $2,258,160 Total Garbage and Recycling Services, $118,170,440 $118,939,914 $769,474 Public Outreach, and Administrative Services X-18
11 Budget Category: Accounting and Lien Collection This category provides accoun~g and de~quency co~ecfion se~ices fo~ ~e ~esidendal Recycle Plus program, ~clu~g ~e Garbage Lien unt. Pin,am staff reconc~es ~evenue, expen~es, and accounts receivable. Accounting and Lien Collection 201% % Actual Adopted Adopted Change (2 to 3) Accounting and Lien Collection $ 1,392,293 $ 1,382,813 $ Total $ 1,392,293 $ 1,382,813 $ 1,354,874 (2.0%) 1,354,874 (2.0%) The following changes are included in for the Accounting and Lien Collection allocation: Adopted Allocation =2014 Adopted Adopted Change Accounting and Lien Collection $1,382,813 $1,354,874 ($27,939) Base Adiustments (One-Time Prior Year Expenditures Deleted/Technical Adjustments to Costs of Ongoing Activities): Finance Non- Personal/ Equipment Finance Personal Services Miscellaneous Non-Personal/Equipment changes ($30,000) Salary/benefit changes, position eliminations, and other $2,061 changes Subtota~ Base Adjustments ($27,939) Total Accounting and Lien Collection $1,382,813 $1,354,874 ($27,939) [ Total Accounting and Lien Collection $1,382,813 $1,354,874 ($27,93g) X-19
12 Budget Category: City-Wide Landfill Disposal Contract Management Budget Category Overview This category manages the City-Wide Landfill Disposal Agreement and pays the costs of the disposal of residential waste delivered to the Newby Island Landfill. Budget Category Summary City-Wide Disposal Contract Management City-Wide Disposal Contract Management Total $ $ % Actual Adopted Adopted Change (2 to 3) 8,288,816 $ 8,752,800 $ 9,041, % 8,288,816 $ 8,752,800 $ 9,041, % San Jos~ entered into a 30-year agreement with IDC (International Disposal Corporation of California, Inc.) in 1985 for City waste disposal services. The City successfully renegotiated changes to the agreement in 2009 and the term was extended through The City and IDC also agreed to provide for an additional extension of this agreement should the life of the landfill extend beyond December 31, The residential disposal costs paid from the IWM Fund for the IDC contract cover the cost for disposing of the waste that is collected by the City s Recycle Plus contractors from single-family dwellings and multi-family dwellings. The single-family garbage is hauled directly to Newby Island Sanitary Landfill for disposal, but multi-family garbage is first processed by another contractor. The residue is then hauled to Newby Island, as are the residue from processing recyclables from single-family and multi-family residences and the debris from Neighborhood Cleanups. The City s payments for residential waste delivered to the Newby Island Landfill consist of the following: an annually adjusted base rate for each ton of residential waste delivered to the landfrl; fees and taxes that IDC must pay back to the City, State and County on each ton of waste received (disposal surcharges); and regulatory rate payments for the City s share of costs resulting from changes to laws and regulations made after January 1, The only change in this category is an increase to the IDC agreement, due to higher indexed prices, especially diesel fuel. X - 20
13 ~[ntegrated Waste Management Fund Budget Category: City-Wide Disposal Contract Management The following changes are included in for the City-Wide Disposal Contract Management allocation: Adopted Allocation 20t2= =20~4 Adopted Adopted Change City-Wide Disposa~ Contract Management Base Adjustments $8,752,800 $9,041,000 $288,200} IDC Disposal Contract (Late Fees) = IDC Disposal Contract Reduction to reflect revised methodology for calculating. distribution of city Waste disposal increase is a result of higher indexed prices Subtota~ Base Adjustments ($165,700) $453,900 $288,200 Tota~ City-Wide Disposal $8,752,800 $9,041,000 $288,200 Contract Management Tota~ City=Wide Disposa~ $8,752,800 $9,041,000 $288,200 Contract Management
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