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HomeMy WebLinkAboutStaff Report 3.A 05/20/2019A � zs�,a DATE: May 20, 2019 TO: FROM: Honorable Mayor and Members of the City Council through City Manager Dan St. John, F.ASCE — Director, Public Works and Utilities Department oj� SUBJECT: Resolution Approving an Eleventh Amendment to the Agreement Between the City of Petaluma and the Sonoma County Waste Management Agency to Provide Petaluma Citizens Continued Use of the County's Central Disposal Site for Household Hazardous Waste Disposal and Other AB 939 -Required Services and Authorizing the City Manager to Execute Said Amendment RECOMMENDATION It is recommended that the City Council adopt the attached Resolution Approving an Eleventh Amendment to the Agreement between the City of Petaluma and the Sonoma County Waste Management Agency to Provide Petaluma Citizens Continued Use of the County's Central Disposal Site for Household Hazardous Waste Disposal and Other AB 939 -Required Services and Authorizing the City Manager to Execute Said Amendment. I��f1►1llZllil►L The Sonoma County Waste Management Agency (SCWMA) and Zero Waste Sonoma 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 SCWMA is comprised of the County of Sonoma and 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 set at $5.40 per ton as of April 1, 2019. In 2004, Petaluma began hauling its solid waste out of the county. This necessitated an agreement with the SCWMA to allow Petaluma continued access to the SCWMA's programs that are funded by the tipping fee surcharge. In November 2004, the SCWMA Board, of which Petaluma is a member, approved an agreement with Petaluma in which the SCMWA would continue to 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 2013, when the term was extended for three years, to 2016, and subsequently to 2019. The agreement includes services for educational efforts, recycling, compliance with AB 939 reporting, and any updates necessary to State 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 SCWMA. Compensation amounts under the agreement are established by applying the current tip fee surcharge amount to the actual tonnage of solid waste hauled by Recology Sonoma Marin on Petaluma's behalf during the year. Petaluma's current annual tonnage is approximately 21,300 tons. The City's current annual payment under the agreement is approximately $115,000. DISCUSSION SCWMA normally collects the surcharge through the County's agreement with Republic Services. Republic Services operates the Central Disposal Site and four transfer stations and applies the $5.40/ton surcharge to all materials taken into the system, not just refuse. Under the proposed 11th Amendment between the SCWMA and the City, the surcharge payment is applied to just the refuse and not the green waste currently being delivered to the Redwood Landfill. The attached draft of an Eleventh Amendment extends Petaluma's agreement five years, from July 1, 2019 to June 20, 2024. PUBLIC OUTREACH No public outreach has been performed related to the approval of this amendment. However, it should be noted that the approval of this Amendment will continue public education and outreach on solid waste issues by the SCWMA. FINANCIAL IMPACTS Tipping fees have increased effective April 1, 2019 from $4.85/ton, the rate it has been since 2014, to $5.40/ton. The fee is paid by the City monthly and is reimbursed by contract from Petaluma's waste management provider, Recology Sonoma Marin. Passage of this resolution does not create any new financial impacts to the City or ratepayers. ATTACHMENTS 1. Resolution 2. Draft Eleventh Amendment 0 Attachment 1 RESOLUTION APPROVING AN ELEVENTH AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF PETALUMA AND THE SONOMA COUNTY WASTE MANAGEMENT AGENCY TO PROVIDE PETALUMA CITIZENS CONTINUED USE OF THE COUNTY'S CENTRAL DISPOSAL SITE FOR HOUSEHOLD HAZARDOUS WASTE DISPOSAL AND OTHER AB 939 -REQUIRED SERVICES AND AUTHORIZING THE CITY MANAGER TO EXECUTE SAID AMENDMENT WHEREAS, in conformance with AB 939 waste diversion requirements, the City of Petaluma promotes safe and proper disposal of household hazardous waste as an important component of its waste management program; and WHEREAS, when the City of Petaluma began hauling its garbage outside of the County, it entered into an agreement with the Sonoma County Waste Management Agency (SCWMA) that, in return for a yearly fee, Petaluma residents would have continued use of the County's Household Hazardous Waste Facility; and WHEREAS, the City of Petaluma and Agency hereby ratify each of the previous amendments to the Agreement and affirm that the Agreement as amended to date has continued in full force and effect since its commencement on January 1, 2005; and WHEREAS, an Eleventh Amendment is proposed to extend the Agreement for Petaluma's participation in the Household Hazardous Waste Program and other SCWMA services until June 30, 2024, with annual compensation to the SCWMA based on the same method of calculation as the previous year, by applying the SCWMA's tipping fee surcharge rate to the actual tonnage of solid waste disposed by the City of Petaluma, as reported to the SCWMA by its hauler Recology Sonoma Marin by the 20th of the succeeding month. The SCWMA will invoice the City, based on their approved rate of $5.40 per ton, due and payable to SCWMA within 10 days after receipt. In turn, the City of Petaluma will bill Recology Sonoma Marin for the pass-through amount. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Petaluma hereby authorizes the City Manager to enter into an Eleventh Amendment (incorporated herein by reference as Exhibit A to Resolution), and execute all related documents, to the Household Hazardous Materials Facility Use Agreement, dated January 1, 2005, with the Sonoma County Waste Management Agency, to allow the City of Petaluma continued participation in SCWMA's AB 939 services, including disposal of household hazardous waste, for a period of five years from July 1, 2019, to June 30, 2024, paid on a monthly basis from refuse collection rates. During the term of the Eleventh Amendment, the City of Petaluma's waste hauler, Recology Sonoma Marin will continue to provide monthly tonnage reports to the SCWMA for the purpose of AB 939 reporting, and for calculation of subsequent compensation amounts. IMI�N Exhibit A to Resolution ELEVENTH AMENDMENT TO AGREEMENT Household Hazardous Waste and AB 939 Program Services This Eleventh Amendment to Agreement, effective the 1St day of July, 2019, ("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 1, 2005 and terminating on January 1, 2006, governing the use of AGENCY's Household 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 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 extend the term of the Agreement for an additional thirty-six (36) months, until June 30, 2015, and, WHEREAS, CITY and AGENCY approved the Ninth Amendment to the Agreement extend the term of the Agreement for an additional twelve (12) months, until June 30, 2016, and, WHEREAS, CITY and AGENCY approved the Tenth Amendment to the Agreement to adjust the compensation to the AGENCY by the CITY and extend the term of the agreement through the earlier of the expiration of the term of the joint exercise of powers agreement establishing the AGENCY, or June 30, 2019. 5 WHEREAS, CITY and AGENCY wish to amend the Agreement for an eleventh time to extend the term of the Agreement for an additional five (5) years, until June 30, 2024, and, NOW, THEREFORE, in consideration of the mutual promises, covenants and conditions contained in this Eleventh Amendment, AGENCY and CITY agree as follows: 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 January 1, 2005 and terminates at midnight on June 30, 2024, 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 Eleventh Amendment to the Agreement to be executed as of the date first set forth above. CITY OF PETALUMA SONOMA COUNTY WASTE MANAGEMENT AGENCY City Manager Agency Chair APPROVED AS TO FORM: Agency Counsel ATTEST: City Clerk APPROVED AS TO FORM: City Attorney APPROVED: Risk Manager APPROVED: Finance Director C