6. SOLID WASTE SERVICES

6. SOLID WASTE SERVICES City of Capitola City of Santa Cruz City of Scotts Valley City of Watsonville County of Santa Cruz CSA 9C Santa Cruz LAFCo: Countywide Service Review June 2005 Public Review Draft

6.0 SOLID WASTE SERVICE Agency Overview Solid waste services within Santa Cruz County range from curbside collection and recycling to transfer/diversion and landfill operations. The Cities of Santa Cruz and Watsonville directly provide trash collection and recycling within city limits; each city owns and operates its own landfill. The County and the Cities of Capitola and Scotts Valley contract for trash collection and recycling services with a private hauler. The County has established County Service Area (CSA) 9C for this purpose. Waste from the unincorporated areas of the County and Scotts Valley is directed to the Buena Vista Landfill which is owned and operated by the County of Santa Cruz. Capitola s waste is directed to the Marina Landfill in Monterey County. The four cities and the County all have active recycling and waste stream reduction programs. The agencies providing solid waste services within Santa Cruz County are as follows: Table 6.1 Solid Waste Agencies Santa Cruz LAFCO Countywide Service Review City of Capitola (by contract) City of Santa Cruz City of Scotts Valley (by contract) City of Watsonville County of Santa Cruz CSA 9C (by contract) Trash Collection Recycling Trash Transfer Landfill Operations A map of County Service Area 9C follows. June 2005 Administrative Review Draft Section 6-1

June 2005 Administrative Review Draft Section 6-2

6.1 Growth and Population Growth patterns and population projections are directly related to solid waste services in terms of waste generation (type and volume), source reduction and diversion opportunities, disposal, and the rate at which landfill capacity is used. The California Integrated Waste Management Act of 1989 (AB 939) requires that each county adopt a Countywide Integrated Waste Management Plan (CIWMP) to provide structure and guidance for waste management programs on a countywide basis. The Santa Cruz CIWMP includes an analysis of Santa Cruz County demographics and population. One of the benchmarks included in AB 939 was for cities and counties to achieve a 50% reduction in the amount of solid waste disposed in landfills by the year 2000. The CIWMP serves as the planning document to ensure that that level is maintained and efforts continue for further waste reduction. The CIWMP incorporates the following solid waste planning documents for the County and each of the four cities: Source Reduction and Recycling Element Non-disposal Facility Element Household Hazardous Waste Element Countywide Siting Element Summary Plan The Santa Cruz County CIWMP was approved by the California Integrated Waste Management Board in March 1999. A complete review of the CIWMP is required every five years to assure that the underlying assumptions are still valid and there has been no major change in demographics or waste generation. The Santa Cruz County Integrated Waste Management Local Task Force (Local Task Force) completed and adopted the 5-year Review Report in December 2004. As mentioned above, there are specific issues required to be addressed in the CIWMP Review Report, including changes in demographics within the County and changes in the sources and volume of waste generated. The Review Report found that the demographics within Santa Cruz County had not changed significantly since the planning documents were originally prepared. In addition, it was found that each jurisdiction has kept pace with its population growth through expansion of solid waste management services, including recycling and other diversion programs. 1 It was further noted that the source reduction and household hazardous waste programs are meeting their goals; each jurisdiction has exceeded the mandated 50% disposal reduction. The projected population for Santa Cruz County is as follows: 1 Santa Cruz County Countywide Integrated Waste Management Plan Five Year Review Report. Draft November 18, 2004. June 2005 Administrative Review Draft Section 6-3

Table 6.2 Population Estimates Public Agency 2005 2010 2015 2020 2025 2030 Annual Growth Rate City of Capitola 10,869 10,978 11,041 11,104 11,120 11,136 0.1% City of Santa Cruz 56,953 57,768 58,846 59,924 61,956 63,987 0.5% City of Scotts Valley 13,182 13,667 13,864 14,062 14,169 14,275 0.3% City of Watsonville 52,716 56,779 61,126 65,473 67,946 70,418 1.3% Santa Cruz County (unincorporated) 133,824 136,167 139,150 142,132 143,582 145,031 0.3% Source: AMBAG 2004 Projections The waste sources and related per capita generation from each jurisdiction are as follows: Jurisdiction Table 6.3 Waste Generation Source: Residential Source: Non- Residential Per Capita Generation 2002 (lbs per person per day) % Change (4 year trend) Diversion Rate 2002 City of Capitola 41% 59% 11.9 (1.7%) 51% City of Santa Cruz 52% 48% 12.6 (3.4%) 52% City of Scotts Valley 15% 85% 16.1 (2.3%) 65% City of Watsonville 39% 61% 15.0 0.3% 72% Unincorporated Santa Cruz County 38% 62% 8.6 (1.4%) 51% Source: SCC CIWMP Five Year Review Report, Tables 1, 4 and 7, Nov 2004 Although growth will be moderate over the next 25 years and the volume of waste generated per capita is trending downwards, there will be a continued need for comprehensive solid waste services due to the capacity limits at the three landfills in the County. In September 2004, the Local Task Force voted to discontinue the study of potential landfill sites in Santa Cruz County and focus the agencies resources on the study of alternatives to new landfills. These alternatives include exporting waste to landfills outside of Santa Cruz County, converting garbage to reusable energy products through heat or chemical processes, and composting. Seventeen options for increased diversion have been identified based on the County s 2000 Waste Diversion Study. By taking this direction, the agencies within Santa Cruz County will be considering new technologies and approaches to solid waste management to ensure that adequate service levels are provided. Solid waste planning requires a long lead time for implementation, whether for permitting, operating pilot projects to test technology or constructing capital improvements. The County and the four cities are aware of this requirement, and through their participation on the Local Task Force are proactively preparing for the long term solid waste management needs of Santa Cruz County. June 2005 Administrative Review Draft Section 6-4

6.2 Infrastructure Needs and Deficiencies Solid waste infrastructure needs are based on the programs and services provided by each agency. These should be considered within the hierarchy or priority of waste management practices defined in Public Resources Code 40051: 1) source reduction, 2) recycling and composting, and 3) environmentally safe transformation and land disposal. For Santa Cruz County, the major infrastructure components are permitted facilities: recycling centers, transfer station and landfills. Recycling is a critical component in the solid waste system for Santa Cruz County, particularly for the benefits provided in reducing the volume of waste disposed in landfills. In 2004 the Santa Cruz County Grand Jury investigated recycling programs in the County. Several recommendations were made in that study, including that the County should examine its Buena Vista landfill operations in order to more closely monitor and enforce recycling practices. It also suggested the use of incentives for proper disposal of recyclables and citations for improper disposal. It recommended that the local agencies evaluate the benefits of mandatory recycling. It was also recommended that cardboard and office paper be banned from the County s landfills, with fines imposed on those who do not comply. City of Santa Cruz The City of Santa Cruz provides trash collection service for approximately 12,000 single-family residential accounts. The following recycling services are offered: Residential Curbside: mixed paper, glass/plastic/metal containers, motor oil and filters, and greenwaste Business Collection: mixed paper, containers, cardboard, greenwaste, and construction/demolition materials boxes Drop-off at Recycling Center: mixed paper, containers, oils and filters, scrap metal, appliances, tires, greenwaste, mattresses/box springs, toilets, household hazard wastes, and batteries (the recycling Center processes and markets all of the above) Household Hazardous Waste drop-off facility operated by the County at the City site on Saturdays The City of Santa Cruz Landfill, located on Dimeo Lane, was permitted in June 2003 for a throughput of 535 tons per day and a capacity of 7.12 million cubic yards. The site covers 100 acres with 67 acres available for disposal use. The facility is permitted to accept the following waste types: construction/demolition, dead animals, green materials, industrial, inert, metals, mixed municipal, sludge (biosolids), tires, and wood. There is also a permitted green waste composting facility on site. As of 2004, the facility had a remaining capacity of 6 million cubic yards. Based on the current usage rate the estimated closure is in 2037. The City s Resource Recovery Facility and Recycling Center is located at the landfill site. The Resource Recovery Facility only accepts municipal solid waste and serves as a sorting facility to remove any recyclable or composting materials. The Recycling Center accepts a variety of recyclable materials. The facility is open to City of Santa Cruz residents and North Coast residents; however the North Coast June 2005 Administrative Review Draft Section 6-5

residents must pay a 10% surcharge. The City noted several major accomplishments in the past five years, including the construction of a public tipping facility at the Landfill/Recycling Center, staffing for the Zero Waste Task Force, and conducting several Household Hazardous Waste drop-off days at the facility. For FY 2004-2005, the City has budgeted $255,000 for capital improvements, including foundation improvements for the landfill equipment maintenance building, leachate line maintenance, paving near the recycling building, facility maintenance, stormwater discharge improvements and maintenance on the landfill s water and gas monitoring system. City of Watsonville The City of Watsonville provides trash collection service for 7,728 residential accounts. The following recycling services are offered: Fully commingled curbside recycling Curbside collection of waste oil and oil filters Delivery of free compost bins Free cardboard recycling for commercial accounts Green waste disposal and excessive/oversize trash and recyclables at Public Drop-Off Household hazardous waste and electronic waste at Public Drop-Off Half price roll-off boxes for clean wood, metal and concrete/asphalt The City s landfill was permitted in August 2000. It is located on San Andreas Road and covers 103 acres with 48 acres available for disposal use. The facility is permitted to accept the following waste types: agricultural, construction/demolition, mixed municipal, and sludge (biosolids). There is a permitted green waste composting facility on site as well. The facility had a remaining capacity of 2 million cubic yards in 2004; based on the current usage rate closure is projected to be in 2029. The City has established a Public Drop-Off facility on Harvest Drive. The permit was issued in March 2004 for 99 tons per day. The following waste types are accepted: construction/demolition, green materials, industrial, metals, mixed municipal, tires and wood waste. The waste is sorted and recyclables removed before being transported to the landfill. Watsonville s trash collection fleet includes 16 vehicles. The City has budgeted $650,500 for capital improvements to its solid waste facilities and equipment in FY 2004-2005. Cities of Scotts Valley and Capitola The Cities of Scotts Valley and Capitola contract with Waste Management, Inc. a private hauler, for trash collection and recycling services. Scotts Valley serves 3,480 residential accounts and offers curbside recycling of yard waste, containers, fiber, used oil and filters. The City s recycling program includes yard waste drop-off, street sweeping and other programs; services are provided by contract. Solid waste is directed to the County s Buena Vista Landfill near Watsonville. June 2005 Administrative Review Draft Section 6-6

Capitola serves 2,300 residential accounts, and the waste is directed to the Marina Landfill operated by the Monterey Regional Waste Management District. The City has used the Marina Landfill since the 1980 s, opting to not participate in CSA 9C. Although the waste is being exported out of the County, the difference in tipping fees between the Marina Landfill and Buena Vista Landfill make it cost effective. (This has had the added benefit of extending the life of the Buena Vista Landfill.) Capitola offers recycling service for sorted trash, green waste, household hazardous waste, used oil, and electronic waste. County of Santa Cruz County Service Area 9C The County owns and operates the Buena Vista Drive Sanitary Landfill, a 126-acre disposal site near Watsonville which operates under a full Solid Waste Facility Permit. The permit was issued in April 2000 for a capacity of 7.54 million cubic yards and a throughput of 822 tons a day. The site is permitted to accept the following waste types: agricultural, construction/demolition, contaminated soil, dead animals, green materials, industrial, inert, metals, mixed municipal, sludge (biosolids), tires, and wood. As of 2004, the facility had 4 million cubic yards of remaining capacity. Based on the current rate of usage the estimated closure is in 2019. The Buena Vista Landfill received the Silver Award for Landfill Excellence from the Solid Waste Association in 1997. The landfill is equipped with an environmental liner system that exceeds federal and State standards. The facility also has a leachate collection and removal system. The County also operates the Ben Lomond Transfer Station on Newell Creek Road. The 80-acre facility is permitted for 300 tons of throughput per day and accepts non-hazardous residential, commercial and industrial waste. The transfer station serves San Lorenzo Valley and receives about 25% of the total refuse deposited in the Buena Vista Landfill. The other 75% goes directly to the Buena Vista Landfill. The wastes handled at the transfer station receive a comparable level of diversion prior to shipping to the Buena Vista Landfill with the exception of construction debris which is sorted on the station floor and hauled to the landfill for processing. The Ben Lomond Transfer Station received the Bronze Award for Transfer Station Excellence in 1998 from the Solid Waste Association. In July 2003 the County received a permit for a wood waste chipping operation on the same site with a throughput capacity of 75 tons per day and 12,000 tons per year. The County is using several approaches to divert more solid waste from its landfill. The County landfill and transfer station currently accept wastes and recycling from the unincorporated area and the City of Scotts Valley, which constitute CSA 9C, as well as from the cities of Santa Cruz and Capitola which are located outside the service area, without surcharge. However, the Santa Cruz County Board of Supervisors is now considering either an outright ban on out-of-district materials or a surcharge to preserve the limited landfill space for in-district customers. The County no longer accepts any Watsonville City wastes or recycling, at the request of the City Public Works Department. This is being done to assist the City, but will likely be enforced in the future through a formal County policy. June 2005 Administrative Review Draft Section 6-7

Green and wood waste is processed through the permitted wood waste processing facility on the Buena Vista Landfill site. The County began operating a sorting system for construction/demolition materials on site in 2005. In addition, the County is proposing a contract with a private deconstruction firm to operate a building materials reuse center. The County is also proposing a collection and composting program for commercial food waste that would begin in spring 2005. 6.3 Financing Constraints and Opportunities Solid waste services are generally operated as an enterprise activity by public agencies, such that the fee structure is adequate to cover trash collection, processing and landfill costs as well as reserves. The largest capital costs are associated with landfill development, maintenance, and closure/post-closure costs. The California Integrated Waste Management Board requires that each agency responsible for operating a landfill estimate closure and post-closure costs and then establish adequate reserves based on the percentage of the landfill capacity that has been used. This ensures that funding will be available to carry out closure and post-closure programs that are in compliance with State regulations. City of Santa Cruz The City of Santa Cruz uses an enterprise fund to account for the solid waste services provided by the City. The following summarizes the City s Refuse Fund: Finances City Santa Cruz Refuse Fund FY 02-03 Actual FY 03-04 Final Budget FY 04-05 Proposed Budget Operating Revenue $13,456,043 $14,118,490 $14,189,850 Operating Expenses $13,965,397 $11,961,839 $12,434,986 Operating Income (Loss) ($500,354) $2,156,651 $1,754,864 Non-Operating Sources / Uses ($443,154) ($3,362,775) ($2,492,866) Total Contributions and Transfers $40,133 $44,380 ($14,325) Fund Balance, End of Year $2,939,042 $1,559,319 $806,992 At June 30, 2003 the City estimated closure and post-closure costs for the City s landfill at $12.1 million. The City s liability is $5,013,899 based on 41.43% of capacity used. As of June 30, 2003 the reserves designated for this purpose were $2,527,296. The City has several long-term debts associated with solid waste services. Santa Cruz Landfill Certificates of Participation (COP) were issued in 1993 in the amount of $5,535,000. The revenue was used to refinance a previous COP issue used for constructing landfill improvements. The COP is scheduled to be paid in full by December 2007. The outstanding balance at June 30, 2003 was $2,400,000 with interest rates ranging from 4.0% to 5.75%. June 2005 Administrative Review Draft Section 6-8

Santa Cruz Refuse Certificates of Participation were issued in 1999 to repay the City s Wastewater Enterprise Fund for earlier loans to construct a tunnel at the City s landfill and a leachate line from the landfill to the City s wastewater treatment plant. Annual payments will be made through October 2020. The outstanding balance at June 30, 2003 was $4,035,000 with an interest rate ranging from 4.0% to 5.625%. An additional issue was made in March 2001 for $7.5 million to purchase property and improvements. Semi-annual interest payments and annual principal payments will be made through 2021 on the 2001 COP at interest rates ranging from 3.5% to 4.875%. The outstanding balance at June 30, 2003 was $7,455,000. The City of Santa Cruz secured a loan in 2001 from the State of California for the construction of solid waste facilities to assist the City in achieving compliance with State minimum standards. The loan requires annual principal payments through 2016. The outstanding balance at June 30, 2003 was $433,333. The City noted several challenges it faces in the next five years that are related to solid waste finances. First, the continued escalation of costs for health insurance, workers compensation and retirement benefits will require sizable rate increases without a compensating increase in service levels. This is considered a financial constraint as the City attempts to moderate future rate increases. Second, higher fuel costs and the requirement to move to ultra low-sulfur diesel with diesel engine retrofits are expected to increase operating costs. Third, the requirement to ensure that landfill gas and contaminated groundwater do not move off the landfill site may require large capital costs. Last, the recycling processing facility needs to be upgraded. City of Watsonville The City of Watsonville accounts for its solid waste services through an enterprise fund. The City uses a biennial budgeting process which allows for longer range planning and mid-cycle adjustments; mid-cycle changes to the Solid Waste Fund for FY 2004-2005 were minimal. The following is a financial summary of the Solid Waste Fund: Finances City of Watsonville Solid Waste Fund FY 02-03 Actual FY 03-04 Final Budget FY 04-05 Final Budget Operating Revenue $5,842,294 $6,036,711 $6,278,448 Operating Expenses $4,693,971 $4,471,839 $4,593,933 Operating Income (Loss) $1,148,323 $1,564,872 $1,684,515 Non-Operating Sources / Uses ($2,542,184) ($1,430,333) Total Contributions and Transfers Fund Balance, End of Year $3,365,513 $2,388,201 $2,457,283* Fund Balance at 06/30/05 is 100% restricted for insurance reserves and landfill closure costs. June 2005 Administrative Review Draft Section 6-9

The City has recognized its landfill closure costs in accordance with the requirements of the CIWMB, based on the expected total closure costs, percentage of the landfill used and expected life. As of June 30, 2003, only 27.2% of the capacity of the open landfill cell had been used. The City had set aside $1,378,130 for closure and post closure costs for the closed Phase I and II cells, and $775,350 for the open Phase III cell. The total estimated closure and post-closure costs for the Phase III cell are $2,205,260. The City of Watsonville issued two revenue bonds pertaining to solid waste. The first, Solid Waste Revenue Refunding Bonds Series 1998, was issued on April 1, 1998 at interest rates ranging from 4.25% to 5.00%. The financing was used to retire $2,445,000 of outstanding 1991 Solid Waste Revenue Bonds with interest rates ranging from 4.74% to 6.75%. The outstanding principal at June 30, 2003 was $3,835,000; annual debt service including principal and interest is approximately $400,000 through 2016. The second revenue bond, Solid Waste Revenue Refunding Bonds Series 1996, was issued on November 1, 1996 to provide financing for the construction of a new 10-acre Phase III landfill cell. Interest rates range from 5.1% to 5.7%. The outstanding principal at June 30, 2003 was $3,345,000. Annual debt service including principal and interest is approximately $365,000 through 2016. County of Santa Cruz The County of Santa Cruz has established County Service Area (CSA) 9C as the means to provide funding for solid waste services along with gate fee revenue. CSA 9C is a dependent special district governed by the County Board of Supervisors and includes all of the unincorporated area within the County and the City of Scotts Valley. Revenue collected through the CSA is used to fund long-term capital expenditures for the County s Solid Waste and Recycling Program such as future landfill construction, construction of environmental management facilities, management of reuse of landfill gas resources, and long-term closure of County landfills. Funds are also used for community based programs such as public education and outreach, graffiti abatement, litter removal, street sweeping, illegal disposal clean-up, long-term solid waste and recycling planning, and management of franchised refuse collections services. The following is a financial summary of CSA 9C: June 2005 Administrative Review Draft Section 6-10

CSA 9C Financial Summary Finances FY 02-03 Actual FY 03-04 Actual FY 04-05 Budget Revenue: Refuse Disposal Fees $5,769,183 $6,349,413 $6,940,700 District Service Charges $3,069,641 $3,085,322 $3,085,553 Other Revenue $423,898 $584,456 $380,000 Interest $361,323 $183,735 $259,400 State Other / Aid from Other Govt Agencies $379,204 $320,192 $204,000 Other Chgs Current Services $42,888 $291,886 $288,000 Sale of Fixed Assets $26,798 $12,000 Misc. Revenue (revenue applicable to prior years Expenditures: $41,308 $50 0 Total Revenue $10,087,446 $10,851,433 $11,169,653 DPW Services $10,060,020 $9,527,736 $15,667,296 Principal on Lease Purchase $97,741 Contribution to General Fund $624,639 $640,425 $630,000 Fixed Assets $2,102,769 $5,163,614 $4,301,976 Operating Transfers Out $215,000 $644,445 $307,631 Contingencies $20,000 Total Expenditures $13,100,169 $15,976,220 $20,926,903 Fund Balance, End of Year $16,675,675 $11,598,612 The County has also established special accounts for the closure of the Buena Vista Landfill and Ben Lomond facilities. As of June 30, 2004, the Buena Vista closure account had a balance of $3,268,265 and the Ben Lomond account had a balance of $199,350. 6.4 Cost Avoidance Opportunities The agencies providing solid waste services are controlling solid waste disposal costs through aggressive source reduction, waste diversion and recycling programs. The County and the four cities actively promote recycling programs for residents and businesses, from both an environmental perspective and to extend the life of the landfills. Since the direction was taken by the Local Task Force to concentrate on alternative approaches to solid waste management rather than new landfill sites, it will be increasingly important that these types of programs are maximized so that solid waste is managed cost effectively and efficiently in the future. June 2005 Administrative Review Draft Section 6-11

New approaches that have demonstrated effectiveness and education are highly encouraged. The County of Santa Cruz offers Waste Reduction Grants ranging from $1,000 to $25,000 on an ongoing basis. The grants are available to local non-profit organizations, community groups, and small locally-owned business enterprises to implement programs for source reduction, waste diversion, market development for reuse/remanufactured materials, and education. The Buena Vista Landfill and Ben Lomond Transfer Station currently accept wastes and recycling from outside the CSA 9C service area (except for Watsonville) without surcharge. The County Board of Supervisors is now considering either an outright ban on out-of-district materials or a surcharge to preserve the limited landfill space for in-district customers. If this recommendation is approved, a ban or surcharge could become effective as early as July 2005. Decomposition within landfills generates methane gas, a usable resource. The City of Santa Cruz collects the gas and uses it to run a turbine which produces electricity. The County has developed a similar project at the Buena Vista Landfill through a private vendor, and it is under construction. Household Hazardous Waste (HHW) requires special handling and is currently handled by the County. Watsonville s Solid Waste Department currently contracts with the County for the removal of HHW in the City. Watsonville s Public Works Department developed a program to receive and dispose of HHW including a drop-off area in the City. The City will fund the project at the same level as the County contract, resulting in an increase in revenue to Watsonville s General Fund. The County will continue to operate the program at the City of Santa Cruz Landfill. Similar to the County, the City of Santa Cruz will be looking at food waste collection and processing in an attempt to divert that waste from its landfill. The County and the Cities of Scotts Valley and Capitola are controlling collection costs through the use of franchise agreements with Waste Management, Inc. Collection costs are also minimized through the use of automated services. As part of the recycling effort, emphasis has been placed on developing markets for recycled and remanufactured products and materials. Because of this, recycled materials are sold by several entities within the County, often with no overall coordination on price. The Santa Cruz County Grand Jury s 2004 report on Recycling Programs recommended that a regional approach be taken to obtain countywide contracts in order to combine and sell each category of recycled material to the highest bidder. 6.5 Opportunities for Shared Facilities The County and cities share some physical facilities as well as planning efforts for solid waste services. The County s Buena Vista Landfill and Ben Lomond Transfer Station accept waste from all areas of the County except Watsonville. The City of Santa Cruz Landfill accepts waste from North Coast residents with a 10% surcharge. The County provides Household Hazardous Waste services for the City of Santa June 2005 Administrative Review Draft Section 6-12

Cruz. The County and the four cities participate in the Integrated Waste Management Local Task Force with the County serving as the lead agency for the Santa Cruz County Countywide Integrated Waste Management Plan. All of the agencies collaborated on the Disposal Facility Siting Study and will continue to work together on evaluating landfill alternatives. The Santa Cruz County Grand Jury 2004 report on Recycling Programs recommended that the County and the Cities of Santa Cruz and Watsonville cooperate more on recycling programs, including coordinating on printed recycling information and media coverage in order to maximize public exposure and fiscal efficiency. 6.6 Management Efficiencies Each of the agencies directly providing solid waste services is achieving management efficiencies through the use of Best Management Practices and staffing. Solid waste services are provided with the following staff: Table 6.5 Staffing for Solid Waste Services Solid Waste Services Public Agency (FTE) City of Santa Cruz 80.5 City of Watsonville Refuse/Recycling 14.0 Landfill Operations 3.0 Recycle Processing 8.6 Public Drop Off 2.0 Total 27.6 County of Santa Cruz 36.0 City of Santa Cruz The City of Santa Cruz noted that its solid waste operations are in full compliance with federal, state, and local air, water and waste regulations for collection vehicles, processing operations, and landfill disposal operations. The City has implemented several best management practices to improve its solid waste services: Landfill gas collection system is used to run a turbine to produce electricity Bio-diesel is used for landfill equipment to reduce CHG emissions Collection vehicles are washed daily and the wash water is directed to a treatment system The collection fee structure provides incentive to reduce waste generation through the use of proportional rates. Watsonville The City of Watsonville s Solid Waste Division is housed within the Public Works and Utilities Department. Watsonville noted several best practices in use: Fully commingled, every other week, curbside recycle collections Use of same fully automated side loading trucks for refuse and recycle collections June 2005 Administrative Review Draft Section 6-13

Aggressive waste stream diversion at Public Drop Off, Material Recovery Facility and Landfill to maximize AB 939 percentage Use of sweeper dirt and non-recyclable construction debris as alternative daily cover at the landfill. The biggest challenges faced by Watsonville in the next five years are the following: 1) balancing the need for on-street parking with efficient solid waste collections and street sweeping; 2) improving the solid waste public education program to reach the migrant population, and 3) conducting an ongoing assessment of new fully automated collection vehicles for improvements in operational efficiency, noise and pollution. 6.7 Opportunities for Rate Restructuring The current disposal rates within Santa Cruz County are as follows: SOLID WASTE RATES MONTHLY RATE FOR 32-35 GALLON CART $24.00 $23.00 $22.00 $21.00 $20.00 $19.00 $18.00 $17.00 $16.00 $15.00 $14.00 $13.00 $12.00 $11.00 $10.00 $9.00 $8.00 $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 City of Capitola City of Scotts Valley County of Santa Cruz City of Watsonville City of Santa Cruz PUBLIC AGENCY MONTHLY RATE FOR 32-35 GALLON CART The City of Capitola s current agreement with Waste Management Inc. began in 2002. Rates are adjusted annually and were increased 0.8% in 2003 and 2.68% in 2004. The City of Santa Cruz reviews rates every three years. Part of the collection fees are used to offset landfill costs. North Coast residents may use the City s landfill and recycling facility, but must pay a 10% surcharge. June 2005 Administrative Review Draft Section 6-14

The City of Scotts Valley has a ten-year franchise agreement with Waste Management, Inc. that includes annual rate adjustments. The rate increased 0.7% in 2004. The contract will expire in approximately five years. The City of Watsonville evaluates its solid waste service rates every two years in conjunction with the budgeting process. Rates were increased 2.2% in FY 2003-2004 and 0.5% in FY 2004-2005. Parcels within County Service Area 9C (unincorporated area and the City of Scotts Valley) are assessed an annual charge as set by the County Board of Supervisors. Rates for FY 2004-2005 were not changed from the prior year: Single Family $56.95 Apartment/MH $28.48 Comm/Church/School $113.90 Agricultural $113.90 Vacant Lot -0-6.8 Government Structure Options The Cities of Santa Cruz and Watsonville are directly providing full solid waste services within their boundaries. The County is providing solid waste services for the unincorporated areas of the County and the City of Scotts Valley both directly and through contract. Each of these agencies is providing adequate service and has achieved the required 50% diversion rate per AB 939. Each actively promotes source reduction, recycling and diversion programs. One possible government structure option would be the formation of a countywide Waste Management Authority (Authority). The Authority would be a public agency formed by a Joint Exercise of Powers Agreement among the County of Santa Cruz and each of the four cities. The Authority would be responsible for administering the Santa Cruz County Integrated Waste Management Plan and Santa Cruz County Hazardous Waste Management Plan. It would also be responsible for managing a long-range program for solid waste facilities and could offer a wide variety of other programs in the areas of source reduction and recycling, market development, technical assistance and public education. Funding could be provided by per ton disposal. This type of government structure is currently in use in several counties and could provide the coordinated structure for Santa Cruz County to achieve its solid waste goals and avoid the need to export waste to other counties. It was clearly noted by the Local Task Force that the cost/benefit analysis for the waste management strategies and alternatives will vary across the agencies. The Authority would require full representation from each of the agencies so that these concerns can be addressed and there can be consensus on how solid waste management services will be provided for the maximum benefit of the County s residents. June 2005 Administrative Review Draft Section 6-15

The disadvantage to this option is the cost to create and fund the Authority. Three of the agencies are currently faced with landfill operation and closure/post closure costs and finances are constrained. The benefits and costs would need to be fully evaluated to determine if this option would be appropriate for Santa Cruz County at this time. 6.9 Local Accountability and Governance Solid waste services are addressed by each of the City Councils and the County Board of Supervisors during their regular meetings. Each has procedures in place to ensure that public notice and governance standards are met. The County and the Cities of Capitola, Santa Cruz, and Watsonville all provide information on solid waste services and recycling on their websites. In addition, the cities noted several achievements for their solid waste services that provide benefit to their local communities, including the following: Capitola was the first public agency in Santa Cruz County to have an E-Waste Day. In addition, the City holds an annual garage sale and works with the public schools to provide education on recycling benefits and programs. The City of Santa Cruz has accomplished the following: Full curbside refuse, recycling and greenwaste services offered to all residents and businesses Achieved 51% diversion rate over 1991 volumes which already had significant recycling programs in place Landfill gas has been used to generate electricity since 1989; approximately 5.4 mwh/year are generated The City s landfill has implemented major environmental efforts since the mid-1990 s including a leachate system that pipes leachate to the wastewater treatment plant for treatment; a tunnel constructed to divert a freshwater creek under the landfill to prevent contact with landfilled waste; clean up of old contaminated fill material at landfill into a lined cell; and construction of fully lined cells for future waste disposal. A fill sequencing and cover plan has been developed to maximize landfill life. Watsonville has accomplished the following The City was the first community in the Monterey Bay area to use fully automated refuse collections (1995); use fully automated recycle collections (1999); and use single stream recycling (1999). The City has the highest diversion rate (72% in 2002) in Santa Cruz County The City implemented a novel low-tech E-waste deconstruction and CRT glass crushing/recovery program in 2004. June 2005 Administrative Review Draft Section 6-16

DETERMINATIONS BY AGENCY Determinations are included only for those agencies directly providing solid waste services. City of Santa Cruz 1) Population and Growth Population within the City of Santa Cruz is expected to reach 63,987 by 2030 with an annual growth rate of 0.5%. Growth will result in continued demand for comprehensive solid waste services, including recycling, waste diversion and source reduction. The City of Santa Cruz has considered population growth and demographics within its Source Reduction and Recycling Element and in the Countywide Integrated Waste Management Plan. 2) Infrastructure Needs and Deficiencies The City of Santa Cruz owns and operates a landfill for waste generated within the City. The City also operates a Resource Recovery and Recycling Facility to process and sort waste prior to its disposal in the landfill. These facilities are available to City residents and those residing within the North Coast area of Santa Cruz County. As of 2004 the landfill had 6 million cubic yards of capacity remaining; at the current usage rate it is projected to close in 2037. The City includes its solid waste facilities in the City s Capital Improvement Plan and budgets for improvements as needed. 3) Financing Constraints and Opportunities The City of Santa Cruz accounts for its solid waste activities through an enterprise fund and structures fees to cover related costs. The City has three long-term debt obligations related to solid waste facilities; the longest term extends through 2021. The City has several financial obligations in the next five years that are potential financing constraints: 1) increased personnel benefit costs, 2) higher fuel costs and equipment retrofits, 3) capital costs associated with restricting the movement of landfill gas and contaminated groundwater, 4) upgrades for the recycling facility. 4) Cost Avoidance Opportunities The City of Santa Cruz is avoiding costs through aggressive source reduction, diversion and recycling programs to extend the life of the landfill. June 2005 Administrative Review Draft Section 6-17

The City uses methane gas produced by the landfill to power a turbine which produces electricity. 5) Management Efficiencies The City of Santa Cruz has achieved a 52% diversion rate, exceeding the 50% required by AB 939. 6) Shared Facilities The City participates on the Integrated Waste Management Local Task Force, along with the County and the other cities. 7) Rate Restructuring The City of Santa Cruz reviews its solid waste rate structure every three years. The City charges a 10% surcharge for North Coast residents who use the City s recycling facility and landfill. 8) Government Structure Options The City of Santa Cruz operates its solid waste division through the Public Works Department. A Countywide Waste Management Authority could provide advantages for each of the agencies including solid waste technology grant funding, coordination and collaboration opportunities for public education, recycling programs, market development, and the means to establish countywide goals for waste reduction. The disadvantage is the additional cost to create and administer the agency. 9) Local Accountability and Governance Solid waste services are addressed by the Santa Cruz City Council during regular meetings. Public notice is provided for all meetings. The City provides recycling and other related public information on its website. City of Watsonville 1) Population and Growth Population within the City of Watsonville is expected to reach 70,418 by 2030 with an annual growth rate of 1.3%. Growth will result in continued demand for comprehensive solid waste services, including recycling, waste diversion and source reduction. The City of Watsonville has considered population growth and demographics within its Source Reduction and Recycling Element and in the Countywide Integrated Waste Management Plan. 2) Infrastructure Needs and Deficiencies The City of Watsonville owns and operates a landfill for waste generated within the City. The City also operates a Public Drop-off facility which accepts non-hazardous materials. The waste is sorted and the recyclables removed before the material is disposed in the landfill. June 2005 Administrative Review Draft Section 6-18

Watsonville s landfill had 2 million cubic yards of capacity remaining in 2004; at the current usage rate it is projected to close in 2029. The solid waste facilities are included in the City s Capital Improvement Plan and the City budgets for improvements as needed. 3) Financing Constraints and Opportunities The City of Watsonville accounts for its solid waste activities through an enterprise fund and structures fees to cover related costs. The City has two revenue bonds related to solid waste facilities; both mature in 2016. 4) Cost Avoidance Opportunities The City of Watsonville has implemented comprehensive source reduction, diversion and recycling programs to extend the life of the landfill. The City is handling its Household Hazardous Waste program in-house. It is estimated that the City will save about $40,000 compared to contracting with the County for service. 5) Management Efficiencies The City of Watsonville has achieved a 72% diversion rate, exceeding the 50% required by AB 939. 6) Shared Facilities The City participates on the Integrated Waste Management Local Task Force, along with the County and the other cities. 7) Rate Restructuring The City of Watsonville reviews its solid waste rate structure every two years. Rates have increased annually for the past two years. 8) Government Structure Options The City of Watsonville operates its solid waste division through the Public Works and Utilities Department. A Countywide Waste Management Authority could provide advantages for each of the agencies including solid waste technology grant funding, coordination and collaboration opportunities for public education, recycling programs, market development, and the means to establish countywide goals for waste reduction. The disadvantage is the additional cost to create and administer the agency. June 2005 Administrative Review Draft Section 6-19

9) Local Accountability and Governance Solid waste services are addressed by the Watsonville City Council during regular meetings. Public notice is provided for all meetings. The City provides recycling and other related public information on its website. County of Santa Cruz CSA 9C 1) Population and Growth Population within unincorporated area of Santa Cruz County and Scotts Valley is expected to reach 159,306 by 2030 with an annual growth rate of 0.3%. There will be a continued demand for comprehensive solid waste services, including recycling, waste diversion and source reduction. The County of Santa Cruz has considered population growth and demographics within its Source Reduction and Recycling Element and in the Countywide Integrated Waste Management Plan. 2) Infrastructure Needs and Deficiencies The County of Santa Cruz operates the Buena Vista landfill and the Ben Lomond Transfer Station. Waste is accepted from anywhere in the County except for the City of Watsonville. The Transfer Station receives waste and allows for sorting prior to transfer to the landfill. As of 2004, the landfill had 4 million cubic yards of capacity remaining; at the current usage rate it is projected to close in 2019. The County is using a variety of programs to divert waste from the landfill, including green and wood waste recycling, construction/demolition sorting, and a potential collection and composting program for commercial food waste. 3) Financing Constraints and Opportunities The County of Santa Cruz provides its solid waste services through County Service Area 9C. Revenue from the CSA is used for capital improvements, closure/post-closure costs, operations, education and other related programs. 4) Cost Avoidance Opportunities The County of Santa Cruz is reducing costs through aggressive recycling programs to extend the life of the landfill. The County provides Household Hazardous Waste services for the City of Santa Cruz. 5) Management Efficiencies The County of Santa Cruz has achieved a 50-52% diversion rate, in accordance with the requirements of AB 939. June 2005 Administrative Review Draft Section 6-20

6) Shared Facilities The County is the lead agency for the development and administration of the Countywide Integrated Waste Management Plan. 7) Rate Restructuring Residents within the unincorporated area pay the collection rate the County has negotiated under the franchise agreement with the private hauler. The County Board of Supervisors sets the annual per parcel charges for properties within the boundaries of CSA 9C. This includes all of the unincorporated area in the County as well as the City of Scotts Valley. 8) Government Structure Options The County of Santa Cruz operates its solid waste division through the Department of Public Works. A Countywide Waste Management Authority could provide advantages for each of the agencies including solid waste technology grant funding, coordination and collaboration opportunities for public education, recycling programs, market development, and the means to establish countywide goals for waste reduction. The disadvantage is the additional cost to create and administer the agency. 9) Local Accountability and Governance Solid waste services are addressed by the Santa Cruz County Board of Supervisors during regular meetings. Public notice is provided for all meetings. The County provides recycling and other related public information on its website. June 2005 Administrative Review Draft Section 6-21

Agency Profiles Solid Waste Services City of Capitola (Solid Waste) Contact: Lisa Murphy, Assistant to the City Manager Mailing Address: 420 Capitola Avenue, Capitola, CA 95010 Phone Number: (831) 475-7300 Fax Number: (831) 475-8879 Email/Website lmurphy@ci.capitola.ca.us Types of Services: Trash collection and recycling by contract Population Served: 10,000 Size of Service Area (sq miles): 2 sq miles Infrastructure and Staff Staff: FTE NA Number of Residential Accounts 2,300 % Waste Diversion / Landfill 51% / Marina O&M Costs for Residential Solid Waste NA Collection O&M Costs for Recycling Services NA Financial Information Budget: (FY 2004-2005) Operating Revenues Operating Expenses Fund Balance (end of yr) NA NA NA Services provided by franchise agreement with Waste Management Inc. City of Santa Cruz (Solid Waste) Contact: Martin Bernal, Assistant City Manager Mailing Address: 809 Center Street, Room 10, Santa Cruz, CA 95060 Phone Number: (831) 420-5010 Fax Number: (831) 420-5011 Email/Website citymgr@ci.santa-cruz.ca.us Types of Services: Trash collection, recycling, landfill operation Population Served: 56,953 Size of Service Area (sq miles): 12 sq miles Costs / Staff Staff: FTE 80.5 Number of Residential Accounts 12,000 single family % Waste Diversion / Landfill 52% / Santa Cruz City Landfill (Dimeo Lane) O&M Costs for Residential Solid Waste $132.20 per ton (collection only) Collection O&M Costs for Recycling Services $320 per ton (collection and processing, includes green waste) Financial Information Budget: (FY 2004-2005) Operating Revenues Operating Expenses Fund Balance (end of yr) $14,189,850 $12,434,986 $806,992 June 2005 Administrative Review Draft Section 6-22

City of Scotts Valley (Solid Waste) Contact: Scott Hamby, Wastewater/Environmental Program Manager Mailing Address: One Civic Center Drive, Scotts Valley, CA 95066 Phone Number: (831) 438-0732 Fax Number: (831) 438-7218 Email/Website shamby@scottsvalley.org Types of Services: Trash collection and recycling by contract Population Served: 11,598 Size of Service Area (sq miles): 4.5 sq miles Costs / Staff Staff: FTE NA Number of Residential Accounts 3,480 % Waste Diversion / Landfill 65% / Buena Vista Landfill O&M Costs for Residential Solid Waste NA Collection O&M Costs for Recycling Services NA Solid Waste Services Financial Information Budget: (FY 2004-2005) Operating Revenues Operating Expenses Fund Balance (end of yr) NA NA NA Services provided by franchise agreement with Waste Management Inc. City of Watsonville (Solid Waste) Contact: Marcela Tavantzis, Assistant City Manager Mailing Address: PO Box 50000, Watsonville, CA 95077-5000 Phone Number: (831) 728-6011 Fax Number: (831) 761-0736 Email/Website mtavantzis@ci.watsonville.ca.us Types of Services: Trash collection, recycling, landfill operation Population Served: 52,716 Size of Service Area (sq miles): 6.59 sq miles Costs / Staff Staff: FTE 27.6 Number of Residential Accounts 7,728 % Waste Diversion / Landfill 72% / City of Watsonville Landfill O&M Costs for Residential Solid Waste $25.08 Collection O&M Costs for Recycling Services $40.55 Financial Information Budget: (FY 2004-2005) Operating Revenues Operating Expenses Fund Balance (end of yr) $6,278,448 $4,593,933 $2,457,283 June 2005 Administrative Review Draft Section 6-23