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HomeMy WebLinkAboutAGENDA REPORT 1996 0221 CC REG ITEM 10GCITY OF MOORPARK CITY COUNCIL REPORT TO: The Honorable City Council FROM: Mary K. Lindley, Assistant to the City Manager DATE: February 7, 1996 (CC Meeting of February 21) ITEM /40. SUBJECT: Consider the Landfill Agreement between Waste Management Inc., Participating Jurisdictions, and Private Solid Waste Haulers and the Joint Powers Authority Agreement between the Participating Jurisdictions Summary The City Council is being asked to consider and: 1) approve the Landfill Agreement between various Ventura County local governments, private solid waste haulers, and Waste Management Inc.; 2) a Joint Powers Agreement authorizing the formation of the Coordinated Waste Authority and; 3) appoint one representative as the City's member and one representative as the City's alternate member to the Coordinated Waste Authority Board of Directors. Background On December 15, 1993, the East Ventura County Waste Task Force directed its staff to enter into discussions with the Simi Valley Landfill for the purpose of developing an agreement to reserve the capacity at the Simi Valley Landfill, limit out -of- County waste importation, and process a landfill permit time extension. On November 9, 1995, staff reached a tentative agreement with the Simi Valley Landfill. The major provisions of the draft Agreement include: (1) reserves as much as possible, the remaining Simi Valley Landfill capacity for the exclusive use of Ventura County residents and businesses; (2) limits out -of- County waste importation, which would ensure sufficient regional landfill capacity at the Simi Valley Landfill; (3) the Landfill will submit a request for a landfill permit time extension, which would extend the life of the Simi Valley Landfill; and, (4) significantly reduces the Simi Valley Landfill tipping fee by 34 percent. In addition, the proposed Landfill Agreement mandates that the public parties to the Landfill Agreement form a Joint Powers Authority (JPA) for the purpose of replacing the East Ventura County Waste Task Force and administering the Agreement. The JPA, to be known as the Coordinated Waste Authority, would be governed by a Board of Directors consisting of one representative from each of the public parties to the Agreement. 000138 In summary, the major provisions included in the landfill and JPA agreements include: Landfill A reement • Article 3.00 - Landfill Time Extension - Requires the Simi Valley Landfill to submit a landfill time extension application to the County to modify their Conditional Use Permit, which would extend the Landfill's term from the year 2004. The Landfill would be permitted to operate until its fill elevations have been reached, estimated to be 2013 based on the tonnage received to date and the limits set forth in this Agreement. The current permit, issued by the County of Ventura and held by the Simi Valley Landfill, is set to expire in the year 2004. • Article 3.01 - Landfill Time Extension Support - All of the cities and haulers participating in the Agreement agree to support the Landfill's request for this time extension. • Article 3.02 - Landfill Limitation /Restrictions - The Landfill shall limit receipt of solid waste to no more than 2,250 tons per day. The Landfill also agrees that public parties may, through a unanimous vote of the Joint Powers Authority, increase the contracted limit of 2,250 tons per day to the Landfill's maximum permitted limit per day, as circumstances may require. • Article 3.03 - Solid Waste Flow Agreement - All the jurisdictions and haulers shall deliver all of their residual solid waste to the Simi Valley Landfill. The Simi Valley Landfill would be able to accept up to 200 tons per day of additional waste from out -of- County sources; however, the public parties and private haulers to this Agreement shall have first priority. If the tonnage falls under 1,400 tons per day, the Landfill may give the public parties 90 days notice of intent to terminate the Agreement. Termination may occur unless public parties restore the tonnage or agree in writing to maintain payments to the Landfill based on 1,400 tons per day. If one or more public parties fail to deliver all of their waste to the Simi Valley Landfill, the Landfill shall be entitled to recover damages of 15% of the then existing tipping fee for said tonnage from the respective public party(ies). The Landfill shall notify the public parties if the daily tonnage falls below 1,400 due to technological advances that reduce wasteflow. If, within 90 days, the public parties fail to cause an increase to meet 1,400 tons per day or fail to agree to maintain payments, this Agreement shall terminate. In addition, a Public Party will be in breach of this Agreement if they fail to deliver all its residual solid waste to the Simi Valley Landfill and will be subject to a daily fine. • Article 3.04 - Simi Valley Landfill Rates - Identifies initial landfill tipping fees and the adjustment formula for specific areas of the JPA as noted in Exhibit A, pages 25 -27. The tipping fees will be remitted by the haulers to the JPA, who will then 2 pay the Landfill as discussed in Section II of this staff report. Because of the varying differences in rates currently paid by haulers of some jurisdictions and varying distances from jurisdictions to the Simi Valley Landfill, an allocation of the average landfill tipping fee is based on three area designations (see Exhibit A of the Agreement). The tipping rate for Area 41, including Moorpark and Simi Valley, is $25.43 /ton; Area #2 is $23.43 /ton; and, Area #3 is $21.43/ton. The rate for Area #2 is lower than Area #1 due to the transportation costs that must additionally be factored into those jurisdictions overall cost (e.g. it costs more to haul waste from San Buenaventura to the Simi Valley Landfill than it does from Simi Valley or Moorpark). The rate for Area #3 is lower than those for Areas #1 and #2 due to a need to be lower than the rate currently being paid by haulers in Area #3 to the Calabasas Landfill ($24.15 effective January 1, 1996) and the rate ($24.25 effective January 1, 1996) authorized by the County for Material Recovery Facilities/ Transfer Stations (Gold Coast Recycling). The landfill tipping fee at the Simi Valley Landfill is $36.90, effective January 1, 1996. • Article 3.05 - Simi Valley Landfill Rate Adjustments - Provides a formula for future rate adjustments. Annual CPI increases shall be limited to no more than 12 %. All other costs stated in the Landfill's Operational Agreement with the County, except for Operation and Maintenance costs, shall be included in the rate adjustment for this Agreement. The CPI formula (Rate x 86% x CPI) replaces Base Rate increases due to Operation and Maintenance costs. The public parties shall be guaranteed the lowest landfill rate for like customers, disposal method, and tons delivered. • Article 4.00 - Effective Date /Term - As currently written, this Article states that in the event that the Simi Valley Landfill experiences a temporary or permanent closure, Waste Management must provide an alternative landfill site and may only charge the parties set JPA tipping fee. The cost to transport solid waste to an alternative landfill will be borne by the Public Parties and Private Haulers. City staff recommends that in the event of a permanent closure, the Public Parties should have the ability to opt out of the Agreement. In addition, it is recommended that for temporary closures, Waste Management must provide space at its closest site to the Simi Valley Landfill. If that landfill's tipping fee is less than the set JPA tipping fee, the Parties must be charged at the lower rate. • Article 4.01 - Assignment - The Landfill may not assign the Agreement without the consent, which shall not unreasonably be withheld, of the public parties and vice - versa. • Article 4.02 - Ownership of Residual Solid Waste - Once the residual solid waste is disposed at the Landfill, the Landfill shall become the owner of the solid waste. The haulers acknowledge and concur with the public parties' flow commitment. 0001,40 • Article 4.03 - Hold Harmless and Indemnification - Waste Management agrees to hold the public parties and private haulers harmless, including but not limited to claims alleged or asserted under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA). In turn, the public parties agree to hold Waste Management harmless, excluding CERCLA. II. Joint Powers Agreement • Article 2 - Creation of the Authority - This Article specifies: the JPA name (Coordinated Waste Authority); its purpose; and, powers, such as no power to tax and issue revenue bonds, the ability to enter into contracts, employ agents and employees, acquire, manage, operate personal property, to sue and be sued, incur debts, issue notes, apply for grants, and, to take any action reasonably necessary to administer the Simi Valley Landfill Agreement. It also specifies the JPA as a separate legal entity, which constitutes the member agencies, service territory, provisions for ex- officio members. • Article 2.09 - Simi Valley Landfill Agreement - This section specifies that the public parties and their haulers and processors shall use California divided highways when enroute to and from the Simi Valley Landfill, unless separate agreements between the JPA participants are executed. Moorpark staff believes that this provision should be moved to the Landfill Agreement. Most jurisdictions do not have the contractual ability to direct the truck routes of their haulers. Entering into an agreement with the haulers regarding the use of divided highways is the only sure way of directing and enforcing truck routes. The private haulers will be signatories on the Landfill Agreement but not the JPA Agreement, therefore, it would be more meaningful if this provision were included in the Landfill Agreement.. • Article 3 - Organization - This Article specifies the appointment of representatives to the Board of Directors; meetings; quorum; voting procedures; offices of a chairman, vice- chairman, and others as necessary; option of employing a manager and other employees; and, rules of conduct. The JPA will administer all aspects of the Landfill Agreement with the Simi Valley Landfill, provide JPA Board administration, and other activities as the JPA's Board of Directors may direct. The JPA supersedes the East Ventura County Waste Task Force; therefore, the JPA would become the forum for the discussion of the Task Force's objective of mutual cooperation in achieving of AB 939 goals and resolving waste issues facing the jurisdictions executing the Agreement and JPA. • Article 4 - Financial Provisions - The cost of operations shall be derived from fees and charges for the disposal/processing of solid and household hazardous waste in U 000141 Authority- contracted facilities, activities, and grant funds; the limitations of the Authority from debt or contract with a member without their consent; no member shall be liable for any debt without their express consent; procedures for subsequent members to pay their fair share of assets in order to join the JPA; the agency has no taxing power; establishes the fiscal year calendar; which accounting procedures and audits to be used; and, bonding of employees. It is proposed that the CWA be funded by a $.25 /ton fee for each ton brought to the Simi Valley Landfill from participating jurisdictions. An estimated $117,000 would be raised annually to fund CWA activities. • Article 5 - Properly Rights - States that assets must be in the name of the Authority, and provides procedures for the transfer of assets upon JPA dissolution. • Article 6 - Miscellaneous Provision - Provides for an effective date of the JPA and termination of the Agreement that established the East Ventura County Waste Task Force; withdrawal procedures and subsequent financial obligations of withdrawing members; agreement termination with a 4/5 vote of the Board of Directors; insurance requirements of the JPA; arbitration procedures in cases of disputes among members; notices; severability; amendments; successors; assignment; additional documents; and, caption limitations. Language will be modified to ensure that east county jurisdictions are given a majority vote on the JPA Board. The Landfill and JPA agreements were presented to the Ventura Council of Governments on January 25. The elected officials present were asked to discuss the agreements with their respective governing bodies. Participation in the Agreements is on a first -come basis until the number of jurisdictions representing between 1,800 and 2,000 tons of residual solid waste per day is officially committed. Participation must be ratified by the respective jurisdictions by March 1, 1996. Final participation composition shall result in modifications to the Landfill and JPA agreements to reflect the names of the entities participating, associated costs, and area designations. In addition, once the final composition is known, modifications to the JPA will be necessary to ensure that the east county cities maintain the voting majority of the Coordinated Waste Authority. Because the Agreements are currently being considered by several jurisdictions, the changes recommended by your staff will not be considered by the negotiating committee until after March 1. However, staff recommends that the City Council approve the City's participation in the Landfill Agreement and JPA Agreement pending the approval of the recommended changes. In summary, these changes include: Landfill Agreement 1. Language clarification in Article 3.03 concerning breach damages in the event that a Pubic Party fails to deliver all of its residual solid waste. 5 2. Language changes that allow Public Parties to opt out of the Agreement if the Simi Valley Landfill closes permanently or on a long -term basis. In the event of a temporary closure, provide the Public Parties with the lower tipping fee if the tipping fees is lower at the alternative landfill site. 3. Move the provision requiring all parties to use divided highways to and from the Simi Valley Landfill to the Landfill Agreement thereby effectively gaining commitment from the Private Haulers. 4. Any other language changes deemed necessary by the City Manager and City 4 Attorney. Recommendation Staff recommends that the City Council: Approve the Agreement between various Ventura County local governments, private solid waste haulers, and Waste Management Inc., subject to the changes recommended in the body of this staff report and final language approval by the City Manager and City Attorney; 2. Approve a Joint Powers Agreement authorizing the formation of the Coordinated Waste Authority subject to final language approval by the City Manager and City Attorney; 3. Instruct staff to negotiate any City Council directed changes to the Agreements; 4. Authorize the Mayor to sign the Landfill Agreement and JPA Agreement on behalf of the City; and Appoint one representative as the City's member and one representative as the City's alternate member to the Coordinated Waste Authority Board of Directors. G f 1 1'