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HomeMy WebLinkAboutAGENDA REPORT 2017 1206 CCSA REG ITEM 10K ITEM 10.K. cALFOP , cr i:r,u�e di f�,aas2ino a-od__A0/7__ , C iiiiu. MOORPARK CITY COUNCIL .1,, - - - -- -- � AGENDA REPORT, , TO: Honorable City Council FROM: Brian Chong, Assistant to the City Manager -> DATE: November 28, 2017 (CC Meeting of 12/6/17) SUBJECT: Consider Amendment No. 14 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 has been extended 13 times and currently is set to expire on December 31, 2017. Proposed Amendment No. 14 would extend the Agreement to March 31, 2018, to coincide with extensions to the City's solid waste franchise agreements, which the City Council is considering as a separate agenda item. 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 640 Honorable City Council December 6, 2017 Page 2 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 the highest calculated rate to date until the CPI factor increases again. As such, the 2017 Local Street Access Fee is $2.68 per ton, and the 2018 Fee will be $2.74 per ton based on an increase in the CPI. DISCUSSION The City Council is being requested to approve an amendment to the Agreement with WM, extending the Agreement for an additional three months (from December 31, 2017 to March 31, 2018). FISCAL IMPACT The Local Street Access Fee currently generates approximately $60,000 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. 14 to the Waste Management Agreement for Local Street Access Fees, extending the Agreement until March 31, 2018, subject to final language approval by the City Manager. Attachment 1: Draft Amendment No. 14 for Local Street Access Agreement 641. ATTACHMENT 1 AMENDMENT NO. 14 LOCAL STREET ACCESS AGREEMENT WASTE MANAGEMENT OF CALIFORNIA, INC., DOING BUSINESS AS THE SIMI VALLEY LANDFILL AND RECYCLING CENTER This Amendment No. 14 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. 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 Street 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 Street 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 Street 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 Street 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 Street 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 Street 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 Street Access Agreement for an additional three (3) month period extending the Agreement until June 30, 2016; and 642 WHEREAS, on June 1, 2016, the City and WM entered into Amendment No. 9 to the Local Street 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 Street Access Agreement for an additional six(6) month period extending the Agreement until June 30, 2017; and WHEREAS, on June 30, 2017, the City and WM entered into Amendment No. 11 to the Local Street Access Agreement for an additional three (3) month period extending the Agreement until September 30, 2017; and WHEREAS, on September 30, 2017, the City and WM entered into Amendment No. 12 to the Local Street Access Agreement for an additional one (1) month period extending the Agreement until October 31, 2017; and WHEREAS, on October 31, 2017,the City and WM entered into Amendment No. 13 to the Local Street Access Agreement for an additional two (2) month period extending the Agreement until December 31, 2017; and WHEREAS, the City and WM mutually agree, with Amendment No. 14, to further extend the term of the Local Street Access Agreement to March 31, 2018. 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 March 31, 2018, unless sooner terminated." II. Other Provisions: All other provisions of the Agreement shall remain in full force and effect. Amendment No. 14 to Agreement between City of Moorpark and Waste Management of California, Inc. doing business as the Simi Valley Landfill and Recycling Center Page 2 643 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. 14 to Agreement between City of Moorpark and Waste Management of California, Inc. doing business as the Simi Valley Landfill and Recycling Center Page 2 644