HomeMy WebLinkAboutAGENDA REPORT 2017 0705 CCSA REG ITEM 10E ITEM 10.E.
CITY OF MOORPARK,CALIFORNIA
City Council Meeting
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MOORPARK CITY COUNCIL ACTION: . . _ .�� -
AGENDA REPORT A '
TO: Honorable City Council
FROM: Brian Chong, Administrative Services Manage
DATE: June 26, 2017 (CC Meeting of 7/5/2017)
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 understanding that 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
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Honorable City Council
July 5, 2017
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the highest calculated rate to date until the CPI factor increases again (the 2016 Local
Street Access Fee is $2.68 per ton).
Since 2014, the Agreement has been extended multiple times, most recently by
Amendment No. 10, which extended the agreement through June 30, 2017. The
extensions were intended to match the Agreement terms of the current solid waste
franchise agreements. On June 21, 2017, the City Council authorized the City Manager to
extend the solid waste franchise agreements through October 31, 2017. To match the
terms and remain in effect, the draft Amendment No. 11 would also extend the Agreement
through October 31, 2017.
DISCUSSION
The City Council is being requested to approve an amendment to the Agreement with WM,
extending the Agreement for an additional four (4) months (from June 30, 2017 to
October 31, 2017). The extension matches the extension of the current solid waste
franchise agreements previously approved by the City Council.
FISCAL IMPACT
The Local Street Access Fee currently generates approximately $55,000 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. 11 to the Waste Management
Agreement for Local Access Fees, extending the Agreement until October 31, 2017,
subject to final language approval by the City Manager.
Attachment 1: Draft Amendment No. 11 for Local Street Access
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ATTACHMENT 1
AMENDMENT NO. 11
LOCAL STREET ACCESS AGREEMENT
WASTE MANAGEMENT OF CALIFORNIA, INC.,
DOING BUSINESS AS THE SIMI VALLEY LANDFILL AND RECYCLING CENTER
This Amendment No. 11 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
, 2017, effective as of June 30, 2017.
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
WHEREAS, on March 16, 2016, the City and WM entered into Amendment No. 8 to
the Local Access Agreement for an additional three (3) month period extending the
Agreement until June 30, 2016; and
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WHEREAS, on June 1, 2016, the City and WM entered into Amendment No. 9 to
the Local Access Agreement for an additional six (6) month period extending the
Agreement until December 31, 2016; and
WHEREAS, on October 5, 2016, the City and WM entered into Amendment No. 10
to the Local Access Agreement for an additional six (6) month period extending the
Agreement until June 30, 2017; and
WHEREAS, the City and WM mutually agree, with Amendment No. 11, to further
extend the term of the Local Street Access Agreement to October 31, 2017.
NOW, THEREFORE, it is mutually agreed by and between the parties to the
Agreement as follows:
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 October 31, 2017, 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. 11 to Agreement between City of Moorpark and Waste Management of
California, Inc. doing business as the Simi Valley Landfill and Recycling Center Page 2 3 3 3