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HomeMy WebLinkAboutAGENDA REPORT 2016 0316 CCSA REG ITEM 10C ITEM 10.C. CITY OF MOORPARK,CALIFORNIA City Council Meeting of .3 /6 c;20 ACTION: aige 4..a,.d 4 fr G/ MOORPARK CITY COUNCILAtitatelf;77�`"' 'T"L"T � lQ��� AGENDA REPORT BY:_ ____ dJ TO: Honorable City Council FROM: Brian Chong, Administrative Services Manager , ' DATE: March 3, 2016 (CC Meeting of 3/16/16) SUBJECT: Consider Amendment to the Local Street Access Agreement between the City of Moorpark and Waste Management of California, Inc., Doing Business as the Simi Valley Landfill and Recycling Center BACKGROUND In 1998,the City of Moorpark(City)entered into an agreement with Waste Management of California, Inc. (WM), doing business as the Simi Valley Landfill and Recycling Center (Landfill), with the understandingthat the Landfill would accept all discarded material from the City and in consideration of increased vehicle usage of City streets due to the transport of Moorpark discards to the Landfill. WM would, in turn, compensate the City by paying a monthly local street access fee. This original 1998 Agreement was amended in 1999, extending the term to June 27, 2004. In 2003,Amendment No. 2 extended the Agreement an additional five (5) years, to June 30, 2009. In 2009,the City Council approved Amendment No. 3,which extended the Agreement from June 30, 2009 to June 30, 2014. In addition,Amendment No. 3 revised the fee calculation method and amount of the Local Street Access Fees levied upon the Landfill. Amendment No. 3 adjusted the Local Street Access Fee such that, beginning January 1, 2010,the base rate of$2.50 per ton would be used to calculate the Fiscal Year Local Streets Access Fee for calendar year 2010. To this base rate was added the September to September Consumer Price Index(CPI)adjustment(All Urban Consumers, Los Angeles County, less shelter) percentage calculated at 86.00% (this is the same CPI formula used during the annual solid waste rate adjustment) up to a maximum increase of 3.00% annually. In the event that the September to September calculated CPI decreased,the Local Street Access Fee would remain at the current calculated rate until such time as the next annual indexing results in a CPI increase. The new calculated 2010 fee was then used in January 2011 to calculate the calendar year rate for 2011 and so on. In summary, each time the CPI factor increases, so does the Local Streets Access Fee. If the CPI decreases, the fee remains at 85 Honorable City Council March 16, 2016 Page 2 the highest calculated rate to date until the CPI factor increases again (the 2016 Local Street Access Fee is $2.68 per ton). On May 21, 2014, the City Council approved Amendment No. 4, which extended the Agreement from June 30, 2014 until December 31, 2014. On November 5, 2014, the City Council approved Amendment No. 5, which extended the Agreement from December 31, 2014 until June 30, 2015. On June 3, 2015, the City Council approved Amendment No. 6, which extended the Agreement from June 30, 2015 until December 31, 2015. On November 18, 2015, the City Council approved Amendment No. 7, which extended the Agreement from December 31, 2015 until March 31, 2016. The extensions were intended to match the Agreement terms of the current solid waste franchise agreements. DISCUSSION The City Council is being requested to approve an amendment to the Agreement with WM, extending the Agreement for an additional three (3) months (from March 31, 2016 to June 30, 2016). The three(3) month extension matches the extension of the current solid waste franchise agreements being considered by a separate item at this same City Council meeting. It is anticipated that future adjustments to the franchise agreements may create the need for future adjustments to the WM Local Street Access Agreement. FISCAL IMPACT The Local Street Access Fee currently generates approximately $50,000 in general fund revenue annually. Approving the renewal of the Agreement will ensure the continuation of this revenue. STAFF RECOMMENDATION Authorize the City Manager to sign Amendment No. 8 to the Waste Management Agreement for Local Access Fees, extending the Agreement until June 30, 2016, subject to final language approval by the City Manager. Attachment 1: Draft Amendment No. 8 for Local Street Access 86 ATTACHMENT AMENDMENT NO. 8 LOCAL STREET ACCESS AGREEMENT WASTE MANAGEMENT OF CALIFORNIA, INC., DOING BUSINESS AS THE SIMI VALLEY LANDFILL AND RECYCLING CENTER This Amendment No. 8 to the Local Street Access Agreement, dated April 1, 1998, between the City of Moorpark, a municipal corporation ("City"), and Waste Management of California, Inc., a corporation doing business as the Simi Valley Landfill and Recycling Center and hereinafter referred to as "WM", is made and entered into this day of , 2016. RECITALS WHEREAS, on April 1, 1998, the City and WM entered into a one (1) year Agreement for Local Street Access; and WHEREAS, on March 3, 1999, the City and WM entered into Amendment No. 1 to the Agreement extending the term until June 27, 2004; and WHEREAS, on October 15, 2003, the City and WM entered into Amendment No. 2 to the Local Access Agreement for an additional five (5) year period extending the Agreement until June 30, 2009; and WHEREAS, on July 21, 2009, the City and WM entered into Amendment No. 3 to the Local Access Agreement for an additional five (5) year period extending the Agreement until June 30, 2014; and WHEREAS, on June 6, 2014, the City and WM entered into Amendment No. 4 to the Local Access Agreement for an additional six (6) month period extending the Agreement until December 31, 2014; and WHEREAS, on December 9, 2014, the City and WM entered into Amendment No. 5 to the Local Access Agreement for an additional six (6) month period extending the Agreement until June 30, 2015; and WHEREAS, on June 3, 2015, the City and WM entered into Amendment No. 6 to the Local Access Agreement for an additional six (6) month period extending the Agreement until December 31, 2015; and WHEREAS, on November 18, 2015, the City and WM entered into Amendment No. 7 to the Local Access Agreement for an additional three (3) month period extending the Agreement until March 31, 2016; and 87 WHEREAS, the City and WM mutually agree, with Amendment No. 8, to further extend the term of the Local Street Access Agreement to June 30, 2016. NOW, THEREFORE, it is mutually agreed by and between the parties to the Agreement as follows: I. Section 3, Term, shall be amended to read, in its entirety, as follows: "3. Term. The term of this AGREEMENT commences on March 2, 1998, and ends on June 30, 2016, unless sooner terminated." II. Other Provisions: All other provisions of the Agreement shall remain in full force and effect. In Witness Whereof, the parties hereto have caused this Amendment to be executed the day and year first above written. CITY OF MOORPARK WASTE MANAGEMENT OF CALIFORNIA, INC., dba the SIMI VALLEY LANDFILL AND RECYCLING CENTER Steven Kueny Scott Tignac City Manager District Manager Attest: Maureen Benson, City Clerk Amendment No. 8 to Agreement between City of Moorpark and Waste Management of California, Inc. doing business as the Simi Valley Landfill and Recycling Center Page 2 88