TO: Board of Supervisors
FROM: Steven Lederer, Director, Public Works
REPORT BY: Steven Lederer, Director, Public Works
SUBJECT: FY 2021-22 Recommended Budget Hearing for UVDS Franchise Fee
RECOMMENDATION
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SET MATTER 9:50 AM - 5 Minutes
Director of Public Works and Auditor-Controller request the following relating to the new budget unit, UVDS Franchise Fee:
1. Accept public testimony on the Fiscal Year 2021-22 budget with a total appropriation of $158,000 in Fund 2182 Division 2182000; and
2. Continue for consideration September 21, 2021 at 9:30 a.m. for adoption of the recommended budget.
(4/5 vote required)
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EXECUTIVE SUMMARY
Staff will discuss the proposed Fiscal Year 2021-2022 budget for the UVDS Franchise Fee.
PROCEDURAL REQUIREMENTS
1. Staff reports.
2. Public comments.
3. Motion, second, discussion and vote to tentatively adopt the budget.
4. Continue Public Hearing through Tuesday, September 21, 2021 for final adoption.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
No |
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Is it Mandatory or Discretionary? |
Mandatory |
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Is the general fund affected? |
No |
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Consequences if not approved: |
No appropriation authority will exist for the subject budget unit |
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County Strategic Plan pillar addressed: |
Effective and Open Government |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.
BACKGROUND AND DISCUSSION
On October 19, 2020, the Upper Valley Waste Management Agency (UVA), a Joint Powers Agency (JPA) of which the County is a member, agreed to an updated and restated franchise agreement with the contracted waste hauler, Upper Valley Disposal Service (UVDS). The new agreement resulted in UVDS paying a fee to each of the members of the agency. Revenues received by the County can be used to implement activities related to waste management, diversion, and recycling. The funds can also be used to mitigate impacts from providing waste related services, such as wear and tear on our roadways.
In the first year of the agreement, the revenue to be received will be 2.5% of the gross revenue received by the company for services provided to unincorporated county customers. This is expected to generate approximately $155,000 in new revenue for the County. In the second year of the contract the percentage rises to 6%, and in the third and subsequent years the percentage rises to 10%.
Staff proposes to expend the revenue on the following programs:
1. Implementation of SB 1383, Organics regulations ($88,000);
2. Litter Reduction Program ($25,000);
3. Road repairs related to wear and tear from franchise vehicles ($45,000).
Remaining funds will held in reserves.
Staff requests the Board accept public testimony and continue the item to September 21, 2021 at 9:30 a.m. for final adoption.