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HomeMy WebLinkAboutStaff Report 3.G 12/01/2014DATE: December 1, 2014 TO: Honorable Mayor and Members of the City Council FROM: John C. Brown, City Manager Agenda Item #3.G SUBJECT: Resolution Approving a Ninth Amendment to the Agreement between the City of Petaluma and the Sonoma County Waste Management Agency to Provide Petaluma Residents Continued Use of the County's Central Disposal Site for Household Hazardous Waste Disposal and Other A13939 -Related Services RECOMMENDATION It is recommended the City Council adopt the attached resolution Approving a Ninth Amendment to the Agreement between the City of Petaluma and the Sonoma County Waste Management Agency to Provide Petaluma Residents Continued Use of the County's Central Disposal Site for Household Hazardous Waste Disposal and Other AB939-Related Services, and authorizing the City Manager to execute said Amendment. BACKGROUND The Sonoma County Solid Waste Management Agency (SCWMA, or the Agency) was formed in 1992 as a Joint Powers Authority (JPA) to develop programs to handle household hazardous waste, wood waste, and yard waste generated in Sonoma County, and to provide for public education pursuant to the requirements of AB939, the Integrated Waste Management Act of 1989. The JPA is comprised of the County of Sonoma and the nine incorporated cities in the County. Certain AB 939 services, including household hazardous waste, education and outreach, and planning and reporting are funded primarily through a tipping fee surcharge on each ton of solid waste received into the County solid waste system. This surcharge is, and has been for the past four years, set at $5.95 per ton. In 2004, Petaluma began hauling its solid waste out of the county. This necessitated an agreement with the Agency to allow Petaluma continued access to the Agency's programs that are funded with the tipping fee surcharge. In November, 2004, the SCWMA Board (on which Petaluma holds a seat), approved an agreement with Petaluma in which the Agency would provide services to Petaluma residents for calendar year 2005, with the cost to be paid directly by Petaluma in lieu of tipping fee surcharges. This agreement was renewed annually until 2012, when the tern was extended three years, to 2015. The agreement includes services for educational efforts, recycling, compliance with AB 939 reporting requirements, and any updates necessary to State and/or County planning documents on behalf of the City of Petaluma, as required by the Countywide Integrated Waste Management Plan, the JPA, and State regulations. Petaluma provides monthly tonnage reports to the Agency, for AB 939 reporting. Compensation amounts under the agreement are established by applying the current tip fee surcharge amount to the actual tonnage of solid waste hauled by Petaluma Refuse and Recycling for Petaluma during the previous year. Petaluma's current annual tonnage is approximately 30,000 tons. The City's current payment under the agreement is approximately $178,500. DISCUSSION The County's agreement with Republic Services, under which Republic will operate the Central Disposal site and four transfer stations, will apply the aforementioned surcharge to all materials taken into the system, not just refuse. The SCWMA Board desires that its revenues remain neutral from the effect of these changes. At its September meeting, the SCWMA Board discussed reducing the surcharge to achieve that revenue neutrality, and the need to amend the surcharge agreement with Petaluma to maintain consistency among all JPA members. Fees are expected to be reduced, effective December 1, 2014 from $5.95 per ton, to $4.85 per ton. This surcharge payment would only apply to the refuse collected by Petaluma Refuse and Recycling, not to green waste cm-rently being delivered to the Redwood Landfill. The attached draft of a Ninth Amendment decreases Petaluma's surcharge payment to $4.85 per ton, effective December 1, 2014. It also extends the agreement through June 30, 2016, saving the need to extend the agreement again prior to its current expiration in June 2015. This matter is scheduled for SCWMA's December meeting, following Council's consideration and recommended approval. FINANCIAL IMPACTS Decreasing the Agency tipping fee surcharge from $5.95 per ton to $4.85 per ton will reduce the City's annual payment to SCWMA from approximately $178,500 to approximately $145,500. ATTACHMENTS 1. Resolution 2. Draft Amendment ATTACHMENT RESOLUITION APPROVING A NINTH AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF PETALUMA AND THE SONOMA COUNTY WASTE MANAGEMENT AGENCY TO PROVIDE PETALUMA RESIDENTS CONTINUED USE OF THE COUNTY'S CENTRAL DISPOSAL SITE FOR HOUSEHOLD HAZARDOUS WASTE DISPOSAL AND OTHER AB 939 REQUIRED SERVICES WHEREAS, when the City of Petaluma began hauling its refuse outside of the County, it entered into an annual agreement with the Sonoma County Waste Management Agency (AGENCY) effective January 1, 2005, (hereinafter the "Agreement") that in return for a yearly fee, Petaluma residents would have continued use of the County's Household Hazardous Waste Facility and participation in AB 939 -related Education and Outreach and Planning and Reporting services; and WHEREAS, the City and the AGENCY approved the First Amendment to the Agreement to extend the term of the Agreement for an additional six (6) months, until June 30, 2006; and, WHEREAS the City and the AGENCY approved the Second Amendment to the Agreement to (1) add additional services for compliance to the requirements mandated by AB 939; (2) compensate the AGENCY for services managed and performed by the AGENCY; and (3) extend the term of the Agreement for an additional twelve (12) months, until June 30, 2007; and, WHEREAS, CITY and AGENCY approved the Third Amendment to the Agreement to compensate the AGENCY for services managed and performed by the AGENCY, and extend the term of the Agreement for an additional twelve (12) months, until June 30, 2008; and, WHEREAS, CITY and AGENCY approved the Fourth Amendment to the Agreement to compensate the AGENCY for services managed and performed by the AGENCY, and extend the term of the Agreement for an additional twelve (12) months, until June 30, 3009; and, WHEREAS, CITY and AGENCY approved the Fifth Amendment to the Agreement to compensate the AGENCY for services managed and performed by the AGENCY, and extend the term of the Agreement for an additional twelve (12) months, until June 30, 3010; and, WHEREAS, CITY and AGENCY approved the Sixth Amendment to the Agreement to compensate the AGENCY for services managed and performed by the AGENCY, and extend the term of the Agreement for an additional twelve (12) months, until June 30, 2011; and, WHEREAS, CITY and AGENCY approved the Seventh Amendment to the Agreement to compensate the AGENCY for services managed and performed by the AGENCY, and extend the term of the Agreement for an additional twelve (12) months, until June 30, 2012; and, WHEREAS, CITY and AGENCY approved the Eighth Amendment to the Agreement to extend the term for thirty-six (36) months, until June 30, 2015, and maintained the same method of calculating compensation as the previous year, by applying the AGENCY's tipping fee surcharge rate to the actual tonnage of refuse disposed by the City of Petaluma, as reported to the AGENCY by its hauler, Petaluma Refuse and Recycling, Inc. (PR&R). In tum, the City will bill PR&R for the pass-through amount; and WHEREAS, CITY and AGENCY wish to amend the Agreement for a ninth time to reduce the compensation to the AGENCY by the CITY from $5.95 to $4.85 per ton and extend the term of the agreement through June 30, 2016. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Petaluma hereby approves and authorizes the City Manager to execute a Ninth Amendment (incorporated herein by reference as Exhibit A to this Resolution) to the Household Hazardous Materials Facility Use Agreement with the AGENCY dated January 1, 2005. Said amendment reduces the compensation to the AGENCY from the CITY from $5.95 per ton and extends the term of the agreement through June 30, 2016. During the term of the Ninth Amendment, PR&R will continue to provide monthly tonnage reports to the AGENCY for the purpose of AB 939 reporting, and for the calculation of subsequent compensation amounts. 4 Exhibit A NINTH AMENDMENT TO AGREEMENT Household Hazardous Waste and AB 939 Program Services This Ninth Amendment to Agreement, effective the I" day of December. 2014. ("Effective Date"), is made and entered into by and between the City of Petaluma, a municipal corporation and a charter city, hereinafter referred to as "CITY," and the Sonoma County Waste Management Agency, a joint powers agency, hereinafter referred to as "AGENCY." WHEREAS, CITY and AGENCY entered into an Agreement effective January I, 2005 and terminating on January 1, 2006, governing the use of AGENCY's IIousehold Hazardous Waste Facility (hereinafter the "Agreement'); and WHEREAS, CITY and AGENCY approved the First Amendment to the Agreement to extend the term of the Agreement for an additional six (6) months, until June 30, 2006; and, WHEREAS, CITY and AGENCY approved the Second Amendment to the Agreement to (1) add additional services for compliance to the requirements mandated by AB 939; (2) compensate the AGENCY for services managed and performed by the AGENCY; and (3) extend the term of the Agreement for an additional twelve (12) months, until June 30, 2007; and, WHEREAS, CITY and AGENCY approved the Third Amendment to the Agreement to compensate the AGENCY for services managed and performed by the AGENCY, and extend the term of the Agreement for an additional twelve (12) months, until June 30, 2008; and, WHEREAS, CITY and AGENCY approved the Fourth Amendment to the Agreement to compensate the AGENCY for services managed and performed by the AGENCY, and extend the term of the Agreement for an additional twelve (12) months, until June 30, 2009; and, WHEREAS, CITY and AGENCY approved the Fifth Amendment to the Agreement to compensate the AGENCY for services managed and performed by the AGENCY, and extend the term of the Agreement for an additional twelve (12) months, until June 30, 2010; and, WHEREAS, CITY and AGENCY approved the Sixth Amendment to the Agreement to compensate the AGENCY for services managed and performed by the AGENCY, and extend the term of the Agreement for an additional twelve (12) months, until June 30, 2011; and, WHEREAS, CITY and AGENCY approved the Seventh Amendment to the Agreement to compensate the AGENCY for services managed and performed by the AGENCY, and extend the tern of the Agreement for an additional twelve (12) months, until June 30, 2012; and, WHEREAS, CITY and AGENCY approved the Eighth Amendment to the Agreement to extend the term of the Agreement for an additional thirty-six (36) months, until June 30, 2015; and, WHEREAS, CITY and AGENCY wish to amend the Agreement for a ninth time to adjust the compensation to the AGENCY by the CITY and extend the term of the agreement through June 30, 2016. NOW, THEREFORE, in consideration of the mutual promises, covenants and conditions contained in this Ninth Amendment, AGENCY and CITY agree as follows: Section 1. Section 2 of the Agreement, "Compensation; Business Tax Certificate," is amended to read as follows: 2. Compensation A. For the full performance of the Services as described herein, CITY shall compensate AGENCY under the terms defined in Exhibit A Services and Compensation. Payment of this amount is due in monthly installments, upon invoice, effective December 1, 2014. Section 2. Section 3 of the Agreement, "Term." is amended to read as follows: 3. Term. The term of this Agreement commences on the effective date of December 1, 2014 and terminates at midnight on June 30, 2016, unless extended or terminated sooner pursuant to the provisions of this Agreement. Section 3. Except as expressly amended hereby, all the remaining provisions of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this Ninth Amendment to the Agreement to be executed as of the date first set forth above. CITY OF PETALUMA SONOMA COUNTY WASTE City Manager ATTEST: City Clerk APPROVED AS TO FORM: City Attorney APPROVED: Risk Manager APPROVED: Finance Director MANAGEMENT AGENCY Agency Chair APPROVED AS TO FORM: Agency Counsel 7 Exhibit "A" — Ninth Amendment Services and Compensation Under the terms of this agreement, the Sonoma County Waste Management Agency (AGENCY) shall allow the CITY and its residents the use of the Household Hazardous Waste (HHW) Facility at the Central Disposal Site, without additional charge during the term of the Agreement. CITY residents shall be provided any other privilege or right enjoyed by other member agencies of the AGENCY regarding the promotion and use of the HHW Facility at the Central Disposal Site. Services provided by this agreement shall also include education and outreach efforts, recycling and other waste diversion services, compliance with AB 939 reporting requirements and any updates necessary to state and/or county planning documents on behalf of CITY as required by the Countywide Integrated Waste Management Plan and state regulations. The annual compensation for services shall be calculated by applying the AGENCY tipping fee surcharge rate to the actual tonnages of refuse disposed by the City of Petaluma's franchised waste hauler, Petaluma Refuse and Recycling. No other materials, including but not limited to recyclable materials, compostable materials, household hazardous waste, etc., collected by Petaluma's current hauler, Petaluma Refuse and Recycling, or any subsequent hauler during the term of this agreement, shall be subject to the tipping fee surcharge. The amount of refuse disposed for each month shall be reported to AGENCY for invoicing purposes by the 20`h of the succeeding month. The AGENCY approved rate of $4.85 per ton will be used for calculating invoices. Payment of each monthly invoice shall be due and payable to AGENCY ten (10) days after receipt of the invoice.