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HomeMy WebLinkAboutAGENDA REPORT 1998 0318 CC REG ITEM 11GIli FROM: DATE: City of Moorpark AGENDA REPORT The Honorable City Council John Brand, Senior Management Analyst I March 10, 1998 (CC meeting of March 18, 1998) ITEM i ''tC ) 14 , Sz 2- CITY OF MOORPARIC, CALIFORNIA City Council Meeting of h'IArC_h !y 199 ACTION: A P.p ro vet BY•_ SUBJECT: Consider Agreement Between the City of Moorpark and Waste Management of California DBA the Simi Valley Landfill and Recycling Center for Local Impacts. BACKGROUND Sanitary landfills are a necessary component of any community. The challenge is to have the convenience of nearby landfill without the intrusion of one which is too close. The Simi Valley Landfill is located a few minutes out of town at the eastern edge of Simi Valley, providing Moorpark with solid waste disposal and green waste recycling services. In November, 1993 The East Ventura County Waste Task Force was formed and initiated negotiations on an Agreement to reserve landfill capacity for local use and ensure future landfill capacity with Waste Management of California, owner and operator of the Simi Valley Landfill. A draft Agreement was circulated in 1995. While the Cities of Moorpark and Simi Valley approved the Agreement, other jurisdictions in the Task Force did not. Subsequent direction to staff from the City Council and the Task Force was to continue negotiations on an ad hoc basis. The proposed Agreement is the result of those negotiations. Waste Management of California, the owner and operator of the Simi Valley Landfill, desires the support of the City for its continued operation at its existing site. Permit renewal or revision by a landfill operator can be a lengthy process. This Agreement recognizes local impacts of the landfill to Moorpark and mitigates them with a fee. This arrangement may be analogous in concept to fees paid by developers. This Local Impact Fee represents a new source of General Fund revenue for the City of Moorpark. C:\My Documents\M\MoorparklCity CouncillCC Agenda Staff ReportslSimi Valley Landfill Local Impacts.wpd 0 004 11% CC Meeting of March 18, 1998 Landfill Agreement Staff Report Page 2 SUMMARY No change in fees charged to the public will result from this Agreement. This Agreement obligates Waste Management to pay a certain amount to the City for every ton of discards that the City's franchisees haul to the landfill. The Local Impact Fee paid to the City amounts to the difference between the volume discount price earned by the hauler, and a base price. For example, if the haulers' discount is three dollars above the base, then the City will receive three dollars per ton for that period. Previously, Waste Management retained the difference between the hauler's discounted rate and their base rate. Revenue is conservatively estimated to be between $55,000 and $75,000 for Fiscal Year 1998 -99. Green waste and recycling activity is not included in the fee equation. Discount rates vary substantially throughout the year, as waste volumes rise and fall seasonally. Hauler waste volumes are considered proprietary information. The City is obligated to continue directing its franchise haulers to the Simi Valley Landfill, and to support approval of its permit extensions, expansion for future capacity, and recycling activities. No increase in truck traffic in the City is anticipated as a result of this Agreement. This Agreement complies with the direction to reserve landfill capacity and promote the development of further landfill capacity. The City of Simi Valley entered into a similar Agreement with Waste Management of California earlier this month. RECOMMENDATION Approve the Agreement, subject to final language changes by the City Manager and City Attorney, and authorize the Mayor to execute the Agreement. C:\My DocumentsMMoorparMity CouncillCC Agenda Staff ReportslSimi Valley Landfill Local lmpacts.wpd � y00 T, DRAFT AN AGREEMENT BETWEEN THE CITY OF MOORPARK AND WASTE MANAGEMENT OF CALIFORNIA DBA THE SIMI VALLEY LANDFILL AND RECYCLING CENTER FOR LOCAL IMPACTS THIS AGREEMENT is made and entered into in the City of Moorpark on this day of 1998, by and between the City of Moorpark, a municipal corporation, hereinafter referred to as CITY, and Waste Management of California, Inc., hereinafter referred to as WASTE MANAGEMENT, doing business as the Simi Valley Landfill and Recycling Center, hereinafter referred to as LANDFILL. RECITALS: WHEREAS, WASTE MANAGEMENT owns and operates a sanitary LANDFILL and desires to provide disposal and other solid waste related services to the CITY, and WHEREAS, CITY currently directs and wishes to continue to direct franchisees that collect or haul discards within the CITY to dispose of all discards collected in the CITY at the LANDFILL, and WHEREAS, in addition to CITY franchisees, other waste haulers serving Ventura County and Los Angeles County dispose of Discards in the LANDFILL, and WHEREAS, the foregoing - described patronage of the LANDFILL will cause increased local impacts within the CITY, and WHEREAS, WASTE MANAGEMENT wishes to fairly compensate the CITY for local impacts within the CITY during the term of this AGREEMENT. NOW, THEREFORE, in consideration of their mutual promises, obligations, and covenants hereinafter contained, the parties hereto agree as follows: 1. Recitals. The above recitals are true and correct and are incorporated herein. 2. Definitions. A. "Acceptable Diseards Waste Material' means any and all discarded waste, as defined in the CMY'' -s�nioipal- C-ode, that is solid waste, as the latter term is defined in California statutes and regulations except "Unacceptable Discards" as defined below. 000..1,4_ B. "Unacceptable Disc -a d- sWaste Material' means any and all discarded waste that is either: (1) Waste which is prohibited from disposal at a sanitary landfill by state, federal or local law, regulation, rule, code, ordinance, permit or permit condition; (2) Hazardous waste, as defined in Public Resources Code Section 40141 and Health and Safety Code Section 25117; or (3) Special Waste without an approved Special Waste Agreement. C. "Discarded Material" means all "Acceptable Waste Material' which, in compliance with governmental licenses and permits in effect, may be disposed of at the LANDFILL. 3. Term. The initial term of this AGREEMENT is one (1) year commencing on the date first written above. This AGREEMENT may be renewed for two (2) one year terms commencing at the end of the initial term upon the mutual consent of the parties. 4. Obligations of WASTE MANAGEMENT. A. Operation. WASTE MANAGEMENT will accept at the LANDFILL all Discarded Material from the CITY that is delivered to the LANDFILL pursuant to this AGREEMENT. B. Monthly Compensation. In consideration of the local impacts SeA use Sustained by 1.--e-ai streets, in the CITY by-vehieles- aeeessing from the City's utilization of LANDFILL pursuant to this AGREEMENT, WASTE MANAGEMENT hereby agrees to compensate the CITY a Local Impacts Fee to be calculated as follows: Hauler discounted rate for the month (which will vary depending on actual tons delivered during the month) minus $29.00, times the total tons of discarded material from the CITY disposed in the LANDFILL during the month. EXAMPLE: Hauler qualifies for a discount rate of $32.25 per ton and the hauler disposes 2,000 tons from the CITY to in the LANDFILL. ($32.25-$29.00) x 2,000 tons = $6500.00 EXAMPLE: Hauler qualifies for a discount rate of $34.75 per ton and the hauler disposes, 2,200 tons from the CITY to in the LANDFILL. ($34.75-$29.00) x 2,200 tons = $12,650.00 00.111 C. Monthly Payment Terms. WASTE MANAGEMENT shall make the payment provided in Paragraph 4.B., above, not later than the twentieth (20th) day after the County of Ventura Department of Solid Waste quarterly confirmation of delivered tons for the months of the previous quarter, in the form of a check or wire transfer payable to the City of Moorpark General Fund. Such payments will retroactively begin for the month commencing on February 1, 1998, with the first payment due 20 days after the County of Ventura Department of Solid Waste quarterly confirmation of delivered tons, and shall continue through the term of this AGREEMENT. Such obligation shall not arise until CITY has fulfilled its obligation pursuant to Paragraph 5.A., below, to require all current franchisees to dispose all Discarded Material at the LANDFILL. 5. Obli ations of CITY. A. Exclusive Right. CITY shall require all franchisees that collect or haul Discarded Material within the CITY to dispose of all such Discarded Material at the LANDFILL. During the term of this AGREEMENT, CITY shall not enter into any new franchise, license, or other agreement for the collection or hauling of Discarded Material with any party unless there is a provision in such franchise, license, contract, or other agreement requiring that all Discarded Material collected or hauled thereunder will be taken to the LANDFILL in accordance with this AGREEMENT. B. Permit Extensions and LANDFILL Expansions. CITY will actively and fully support WASTE MANAGEMENT's efforts to obtain any and all approvals needed for (1) permit time extensions for the operation of the LANDFILL, (2) expansions of the LANDFIL ; and will encourage its discard waste franchisees to provide such support. 6. Termination. Notwithstanding the provisions of Paragraph 3, either party may terminate this AGREEMENT by giving one - hundred eight (180) days written notice to the other party. 7. Miscellaneous A. Performance Under Disaster Conditions. WASTE MANAGEMENT shall not be liable for failure to wholly perform its duties if such failure is caused by factors beyond its control, such as a catastrophe, act of war, civil disturbance, or act of God. B. Waiver. No waiver by either party of any breach of any of the provisions hereof will be taken or held to be a waiver of any succeeding breach of such provision or as a waiver of any other provision. C. Modification. This AGREEMENT constitutes the entire agreement and understanding between the parties hereto, and it shall not be considered modified, 000;4116 altered, changed, or amended in any respect unless in writing and signed by both parties hereto. D. Illegal Provisions. If any provision of the AGREEMENT shall be declared illegal, void, or unenforeable by a court of competent jurisdiction, the remaining provisions of the AGREEMENT shall remain in full force and effect. E. Headings. The headings used herin are for convenience only and are not to be construed as part of this AGREEMENT. F. Assigning of or Subletting the Contract (1) WASTE MANAGEMENT shall not assign or sublet this AGREEMENT, or any portion of this AGREEMENT, without the written approval of the CITY; which approved shall not be unreasonably withheld. (2) CITY has the right of assignment to its interest in this AGREEMENT to another public agency, at its discretion and the approval of WASTE MANAGEMENT is not required. Any such assignment shall be recognized and honored by WASTE MANAGEMENT. G. Successor and Assigns. Subject to the foregoing restrictions on transfer and assignment contained in Paragraph 8.F.(1) and 8.F.(2), above, this AGREEMENT will insuf inure to the benefit of and will be binding on the parties hereto and their respective successor and assigns. H. Notices. All notices or other communications to be given hereunder shall be in writing and shall be deemed given when mailed by registered or certified United States mail: To CITY: City of Moorpark City Manager 799 Moorpark Avenue Moorpark, California 93021 To WASTE MANAGEMENT Danilo F. Vidal, Division Manager Simi Valley Landfill and Recycling Center 2801 Madera Road Simi Valley, California 93065 with a copy to: Waste Management Howard S. Yamaguchi, General Counsel lw 18500 Von Karman Avenue, Suite 900 Irvine, California 92715 Any changes of address by either party shall be by notice given to the other in the same manner as specified above. I. Entire Agreement. This AGREEMENT constitutes the entire agreement and understanding between the parties hereto, and it will be considered modified, altered, changed, or amended in any respect unless in writing and signed by the parties hereto. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first above written. Attest: Debbie Traffenstedt City Clerk City of Moorpark, A Municipal Corporation By: Patrick Hunter, Mayor of City of Moorpark Simi Valley Landfill and Recycling Center Danilo F. Vidal, Division Manager 000118