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HomeMy WebLinkAboutAGENDA REPORT 1999 0303 CC REG ITEM 11DTO: FROM: DATE: SUBJECT: CITY OF MOORPARK AGENDA REPORT The Honorable City Council ;J ,MM I I. Dom� CITY OF MOORPARK, CALIFORNIA City Council Meeting Of 5-3-99 ACTION: n�OrD�IPc� _ BY: -- -- John Brand, Senior Management Analyst 'IV February 25, 1999 (CC meeting of March 3, 1999) Consider an Agreement Between the City of Moorpark and the Simi Valley Landfill and Recycling Center for Local Street Access. The City Council is being asked to consider approve an agreement with Waste Management, the operator of the Simi Valley Landfill and Recycling Center, regarding local street access. If approved, the five -year agreement would result in the receipt of a local street access fee from Waste Management. BACKGROUND The City currently has a one -year agreement with Waste Management which compensates the City for the use of local streets by refuse collection vehicles using the Landfill. The Street Access Fees paid by the Landfill are based on a formula. For the eleven -month period from February to December 1998, the City has received $93,447 in Street Access Fees from Waste Management. The Street Access Fee paid to the City amounts to the difference between the volume discount price earned by the haulers, 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 haulers' discounted rate and their base rate. This Agreement obligates Waste Management to pay that amount to the City as the Street Access Fee. Revenue from the fee is projected to be between $75,000 and $100,000 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 0001.0: Landfill Local CC Meeting of, Page 2 information. DISCUSSION Street Access Agreement 1999 The City Council is being asked to consider the attached agreement with Waste Management that contains a couple of provision that differ from the original agreement. The changes include an extended term of five years to coincide with the Landfill permit expiration date (June 27, 2004). Additionally, Waste Management has agreed to a minimum cap on the fee. In other words, the per ton fee cannot fall below $2.50. Under the original agreement, there was no minimum cap. Also, rather than paying the fees by the twentieth of each month, the Landfill will make payment by the last day of each month. Lastly, the City agrees to support Waste Management's request to remove a provision in the operating agreement that requires them to only accept 85% of their daily permitted capacity. This provision was meant to ensure that the cities and the County would always have a place to dispose of their waste in the event the Landfill received a significant amount of tons from outside the County. The original and new agreements contain a provision that requires the Landfill to accept all discarded materials from the City. As a result, it becomes the responsibility of the Landfill to accommodate the City's waste in the event they reach their daily permitted capacity. There are-no other changes proposed. The fees structure remains the same. The City continues to agree to direct its discard flow to the Simi Valley Landfill, support a permit extension and landfill expansion. No new or increased charges to the public will result from this Agreement. There continues to be a termination provision that provides either party the ability to terminate the Agreement upon 180 days written notice to the other party. The City of Simi Valley considered and approved the same agreement with Simi Valley Landfill in February. RECONasENDATION Staff recommends that between the City and regarding Local Street the City Manager and execute the Agreement. Landfill Local Street Access Agreement the City Council approve the Agreement Simi Valley Landfill and Recycling Center Access, subject to final language changes by City Attorney, and authorize the Mayor to U®03.03 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. M: \JBrand \M\Moorpark \City Council \CC Agenda Staff Reports \Simi Valley Landfill Local Street Access.doc 1 000104 2. 3. Definitions Term 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. The term of this AGREEMENT commences on the date first written above and terminates on June 27, 2004. The parties mutually agree that the March 2, 1998, agreement between CITY and LANDFILL for Local Street Access be terminated upon the execution of this AGREEMENT. M: \JBrand \M \Moorpark \City Council \CC Agenda Staff Reports \Simi Valley Landfill Local Street Access.doc 2 000105 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 1St 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 8,000 tons = $26,000.00 Example: Hauler qualifies for a discount rate of $34.75 per ton and the hauler M: \JBrand \M \Moorpark \City Council \CC Agenda Staff Reports \Simi Valley Landfill Local Street Access.doc 3 000106 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 January 1, 1999, with the first payment due by February 28, 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 al 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 M: \JBrand \M \Moorpark \City Council \CC Agenda Staff Reports \Simi Valley Landfill Local Street Access.doc 4 000107 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 850 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. M: \JBrand \M \Moorpark \City Council \CC Agenda Staff Reports \Simi Valley Landfill Local Street Access.doc 5 0®01-08 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 h jurisdiction, the the AGREEMENT shall effect. If any provision of the declared illegal, void, iy 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. (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. M: \JBrand \M \Moorpark \City Council \CC Agenda Staff Reports \Simi Valley Landfill Local Street Access.doc 6 00010-41 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. 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. M: \JBrand \M \Moorpark \City Council \CC Agenda Staff Reports \Simi Valley Landfill Local Street Access.doc 7 Ooulo 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 Simi Valley Landfill and Recycling Center: Frank P. Kiesler, District Manager Attest: Deborah Traffenstedt, City Clerk M: \JBrand \M \Moorpark \City Council \CC Agenda Staff Reports \Simi Valley Landfill Local Street Access.doc 8 000111