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HomeMy WebLinkAboutAGENDA REPORT 2003 1015 CC REG ITEM 10EITEM- 1 D • E Moorpark City Council AGENDA REPORT TO: The Honorable City Council FROM: John Brand, Senior Management Analyst DATE: October 7, 2003 (CC meeting of October 15, 2003) SUBJECT: Consider Amendment to Agreement Between the City of Moorpark and Waste Management of California DBA the Simi Valley Landfill and Recycling Center for Local Impacts. BACKGROUND The City Council is now being asked to extend the term of the existing Agreement until June 30, 2009. On April 1, 1998, the Council entered into a one -year Agreement with the Simi Valley Landfill and Recycling Center for Local Impacts. On March 3, 1999, a five -year Agreement with the landfill was approved. The current Agreement expires June 27, 2004. The Simi Valley Landfill and Recycling Center Agreement for Local Street Access recognizes the local impacts of the landfill to Moorpark and mitigates them with a fee of at least $2.50 per ton of solid waste deposited in the landfill from Moorpark's franchise haulers. Currently, the Local Impact Fee averages $65,000 per year of recurring General Fund revenue for the City of Moorpark. DISCUSSION No change in fees charged to the public will result from the extension of this Agreement. This Agreement obligates the Simi Valley Landfill and Recycling Center to pay no less than $2.50 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. It also obligates the landfill to accept all solid waste discards delivered to the landfill by the City's CC Meeting of October 15, 2003 Landfill Agreement Staff Report Page 2 franchise haulers. The Agreement obligates the City 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 because of the extension of this Agreement. This Agreement complies with the AB 939 mandate for jurisdictions to plan for long term landfill capacity. The cities of Simi Valley and Thousand Oaks have similar agreements with the landfill. RECOMMENDATION Approve the Amendment to the Agreement, subject to final language approval by the City Manager and City Attorney, and authorize the Mayor to execute the Agreement. AMENDMENT TO AGREEMENT FOR LOCAL STREET ACCESS THIS AMENDMENT TO AGREEMENT, made and entered into this day of 1 2004, by and between the City of Moorpark, a municipal corporation located in the County of Ventura, State of California, hereinafter referred to as "City" and Waste Management of California, DBA The Simi Valley Landfill and Recycling Center, hereinafter referred to as "Waste Management". RECITALS Whereas, on April 1, 1998, the City and Waste Management entered into a one (1) year Agreement entitled "An Agreement Between the City of Moorpark and Waste Management of California DBA the Simi Valley Landfill and Recycling Center for Local Street Access," and Whereas, on March 3, 1999, the City and Waste Management entered into another Agreement pertaining to local street access; and for additional five (5) year period; and Whereas, Waste Management anticipates obtaining an extension of the approvals required to operate the Landfill after June 27, 2004; and Whereas, the City and Waste Management mutually agree to extend the term of the Local Street Access Agreement. NOW, THEREFORE, in consideration of the mutual convents, benefits and premises hereinafter contained, the parties hereto agree as follows: I. Term Section 3 of the Agreement has been amended to extend the term of the Agreement five (5) years to June 30, 2009. II. Miscellaneous Section 8.H. "Notices," of the Local Street Access Agreement is amended to substitute the following persons as notice recipients on behalf of Waste Management: 1t1�•1 City of Moorpark - Simi Valley Landfill Agreement Page 2 To WASTE MANAGEMENT: District Manager Simi Valley Landfill and Recycling Center 2801 N. Madera Road Simi Valley, CA 93065 With a copy to: Senior Legal Counsel Waste Management Western Group 9081 Tujunga Avenue, 2nd Floor Sun Valley, CA 91352 III. Remaining Provisions All other provisions of the aforesaid Agreement (Attachment A) shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first above written. City of Moorpark, Patrick Hunter, Mayor Attest: Deborah S. Traffenstedt, City Clerk Waste Management of California, Inc., a California Corporation DBA Simi Valley Landfill and Recycling Center Signed: Name: Title. 1t1 M•e ATTACHMENT "A" AN AGREEMENT BETWEEN THE CITY OF MOORPARK AND WASTE MANAGEMENT OF CALIFORNIA, DBA THE SIMI VALLEY LANDFILL AND RECYCLING CENTER FOR LOCAL STREET ACCESS THIS AGREEMENT is made and entered into in the City of Moorpark, on this 3rd day of March, 1999, by and between the City of Moorpark, a municipal corporation, hereinafter referred to as CITY, and Waste Management of California, 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 has the authority and intent 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 usage of certain streets within the City, and WHEREAS, WASTE MANAGEMENT wishes to fairly compensate the CITY for the increased usage of certain streets 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 incorporate herein. \\ MOR _PRI_SERV \Home_Folders \JBrand \M \SOLID \Landfill \Simi Valley Landfill Local Street Access Agreement 1999.doc 1 000042 2. Definitions A. "CITY" means the City of Moorpark, California, its duly elected Council, City Manager, and /or its appointed officers and employees. B. "Acceptable Discards" mean any and all discarded waste, as defined in the CITY'S Municipal Code, that is solid waste, as the latter term is defined in California statutes and regulations except "Unacceptable Discards" as defined below. C. "Unacceptable Discards" mean 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. D. "Discarded Material" means all "Acceptable Discards" which, in compliance with governmental licenses.and permits in effect, may be disposed of at the LANDFILL. 3. Term The term of this AGREEMENT commences on the date first written above and terminates on June 27, 2004. The parties mutually agree that the April 1, 1998, agreement between CITY and LANDFILL for Local Street Access be terminated upon the execution of this AGREEMENT. \\ MOR _PRI_SERV \Home_Folders \JBrand \M \SOLID \Landfill \Simi Valley Landfill Local Street Access Agreement 1999.doc 2 000043 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 increased use sustained by local streets in the CITY by vehicles accessing the LANDFILL pursuant to this AGREEMENT, WASTE MANAGEMENT hereby agrees to compensate the CITY a Local Streets Access 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 (as adjusted annually), times the total tons of discarded material from the CITY disposed in the LANDFILL during the month, with a guaranteed minimum value of $2.50 per ton. Annual Consumer Price Index (CPI) adjustments will be applied to the $29.00 rate. The CPI adjustments shall be equal to the amount derived by multiplying the previous rate times the percentage increase or decrease in the CPI for all urban consumers for all items less shelter for the Los Angeles - Riverside- Orange County, CA area during the previous calendar year. The comparison shall be made as of December 31St of each year and shall be effective each January ist thereafter. The first CPI adjustment shall be as of December 31, 1999, effective January 1, 2000. Example: Hauler qualifies for a discount rate of $32.25 per ton and the hauler disposes 8,000 tons from the CITY to the LANDFILL. ($32.25 - $29.00) x 81000 tons = $26,000.00 Example: Hauler qualifies for a discount rate of $34.75 per ton and the hauler \ \MOR_PRI —SERV \Home Folders \JBrand \M \SOLID \Landfill \Simi Valley Landfill Local Street Access Agreement 1999.doc 3 0®0044 disposes 7,500 tons from the CITY to the LANDFILL ($34.75 - $29.00) x 7,500 tons = $43,125.00 Example: Hauler qualifies for a discount of $31.00 per ton and hauler disposes of 8,000 tons from the CITY to the LANDFILL. The monthly compensation value (the difference between the $29.00 rate and the hauler discounted rate) is $2.00 per ton ($31.00- $29.00). As a result of the minimum monthly compensation of $2.50 per ton, the CITY will be compensated as follows: $2.50 /ton x 8,000 tons = $20,000.00 C. Monthly Payment Terms. WASTE MANAGEMENT shall make the payment provided in Paragraph 4.B, above, monthly, not later than the last day of each and every month, for the previous month, in the form of a check or wire transfer payable to the City of Moorpark General Operating Account. Such monthly payments will retroactively begin for the month commencing on March 1, 1999, with the first payment due by April 30, 1999, 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 discard franchisees to dispose of all Discarded Material at the LANDFILL. 5. Obligations 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. CITY shall not enter into any 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 \\ MOR _PRI— SERV \Home_Folders \JBrand \M \SOLID \Landfill \Simi Valley Landfill Local Street Access Agreement 1999.doc 4 00004 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, and (2) expansions of the LANDFILL; and will encourage its discard franchisees to provide such support. C. Modifications to Existing County Operating Agreement. CITY will agree to and support the removal of the 85% of the maximum permitted tons per operating day, limitation contained in the second amendment to the current Ventura. County Operating Agreement. 6. Representations and Warranties A. WASTE MANAGEMENT. WASTE MANAGEMENT represents and warrants that it has the requisite authority to execute agreements of the like kind and description and that is has all permits, licenses and approvals to operate the LANDFILL in such a manner to comply with the terms of the AGREEMENT. B. CITY. CITY represents and warrants that it has the requisite authority to execute agreements of like kind and description and that it has the authority to direct all franchisees that collect or haul Discarded Material in the CITY to dispose of such Discarded Material at the LANDFILL. 7. Termination. Notwithstanding the provisions of Paragraph 3, either party may terminate this AGREEMENT by giving one hundred eighty (180) days written notice to the other party. \ \MOR_PRI_SERV \Home Folders \JBrand \M \SOLID \Landfill \Simi Valley Landfill Local Street Access Agreement 1999.doc 5 r'fr•. 8. 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 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, altered, changed, or amended in any respect unless in writing and signed by both parties hereto. D. Illegal Provisions. AGREEMENT shall be or unenforceable k jurisdiction, the the AGREEMENT shall effect. If any provision of the declared illegal, void, >y a court of competent remaining provisions of remain in full force and E. Headings. The headings used herein are for convenience only and are not to be construed as part of this AGREEMENT. F. Assigning or Subletting the Contract (1) WASTE MANAGEMENT shall not assign or sublet this AGREEMENT, or any portion of this AGREEMENT, without written approval of the CITY; which approval shall not be unreasonably withheld, except that WASTE MANAGEMENT may assign this AGREEMENT to an affiliate and the approval of the CITY is not required. Any such assignment to an affiliate shall be recognized and honored by the City. \ \MOR_PRI_SERV \Home Folders \JBrand \M \SOLID \Landfill \Simi Valley Landfill Local Street Access Agreement 1999.doc 6 MEDUFA (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 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 Steve Kueny, City Manager 799 Moorpark Avenue Moorpark, CA 93021 To WASTE MANAGEMENT: Frank P. Kiesler, District Manager Simi Valley Landfill and Recycling Center 2801 N. Madera Road Simi Valley, CA 93065 with a copy to: Waste Management E. William Hutton, Assoc. General Counsel 9081 Tujunga Avenue, 2nd Floor Sun Valley, CA 91352 Any changes of address by either party shall be by notice given to the other in the same manner as specified above. \ \MOR_PRI_SERV \Home Folders \JBrand \M \SOLID \Landfill \Simi Valley Landfill Local Street Access Agreement 1999.doc 000048 I. Entire Agreement. This AGREEMENT constitutes the entire agreement and understanding between the parties hereto, and it will not 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: Deborah Traffen er, Mayor Simi Valley Landfill and Recycling Center: A L ' //e Frank P. Kiesler, District Manager \ \MOR_PRI_SERV \Home Folders \JBrand \M \SOLID \Landfill \Simi Valley Landfill Local Street Access Agreement 1999.doc 8 000049