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HomeMy WebLinkAboutStaff Report 3.E 06/06/2011LU. I'8`5 DATE: June 6, 2011 A Item 3 . E TO: Honorable Mayor. and Members of the City Council through City Manager FROM: Larry Zimmer, CIP Division Manager SUBJECT Resolution Approving a Seventh 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 RECOMMENDATION It is recommended that the City Council, adopt the attachedxesoluti_on approving a Seventh Amend rnent to the Agreement between ^the City of Petaluma an d 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. BACKGRO'TND When Petaluma began hauling its solid waste outside of the County, it became necessary to negotiate with the County for cor tinued access to its household`hazard'ous waste (HHW) disposal program, normally paid participants' "tipping fe'e•surcharges for disposal within the County. In November 2004, the Sonoma County Waste Management Agency (SCWMA) Board.approved,un agreement with the City of Petaluma in which SCWMA would provide HHW services to Petaluma residents for Calendar Year 2605; with the cost to be paid .directly by Petaluma in Iieu tipping fee surcharges. A,subsequent First Amendment to the Agreement extended the term until the end of FY 05 -06 (June 30, 2,006,). A Second Amendment (Revised) to the Agreement extended the term until the end .of. FY`06 -07 (June 30, 2007) and, in addition to ITHW,servi'ces,'neluded:other SCWMA surcharge - funded' services, such as 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 re wired. b, the: Count. wed q y y e Integrated Waste Management Plan, the Joint Powers Agreement and state re ulatio g ns..,A, Third Amendment extended the agreement for another year, stipulated p g and es monthly tonn report's to the. Agency for the purpose of AB 939 re that Petal y g ortin tablished co tipp ing, ould prove e ,, ,q fe surcharge a a amount ap to actual mpens_ tion s e ual , l of solid waste 'hauled b. Grebe nWaste Recycling duriri tot e current e y r . e, Fourt drnents, approv � 'Y g' g the previous a ear Th hand Fifth Amen" ed ire June 2008 and April 2009, respectively, each extended the above terms for an additional year. The Revised Sixth Amendment, approved Agenda Review: City Afton l e Finance Director City Maria I in June 2010, . extended the agreement for an additional year and readjusted the method of calculating the Agency's compensation by applying the Agency's tipping fee surcharge rate to the actual tonnage of solid waste disposed by the City of'Petalum'a, to be billed on a monthly basis DISCUSSION will, roy' Continued participation p „ ide Petaluma residents with us e of the household hazardous waste facility at the County's Central Disposal'Site, an essential component of the AB 939 mandate, as well as access to other surcharge- funded'servic.es. It also, acknowledges the full financial participation, of Petaluma in the SCWMA. In anticipation of the continued relationship the SCWMA approved a Seventh`Amendment to the Agreement (Exhibit A to Resolution) at its meeting of May 18, 2011-, which exte the term of the original Agreement for another year (July 1, 2011 to June 30, 2012). FINANCIAL. IMPACTS, During the term of the Seventh Amendment Petaluma, through its solid waste hauler Petaluma Refuse & Recycling (PR &R), Will : provide the SCWMA with,actual monthly solid waste tonnage reports by the 20"' of the succeeding, month. SCWMA will then calculate compensation, based 11 on the Agency's tipping fee surcharge °rate of $5.95 per ton (unchanged, from last year), and submit an invoice to the City, due and payable to the Agency ten days after receipt. Concurrently, the City will invoice PR &R for the same amount, which will be` passed through to rate payers. This method, is'unchanged, will keep the' City on the same schedule and basis of calculation and payment as the rest'of the jcirisdictions'that use the County system for reporting tonnage disposed and payment of a.surcharge tipping fee. Passage of this resolution does not create any new financial impact to the City or�th&rate payers. ATTACHMENTS 1. Resolution, including Exhibit A to Resolution, Revised Seventh Amendment to the Petaluma Services Agreement 2. Original Agreement of January ,1, 2005, including. Amendments 1 -6 2 I. ATTACHMEN u, I RESOLUTION APPROVING..A.SEVENTH AMENDMENT TO THE AGREEME NT BETWEEN THE CITY OF PETALUMA AND THE SONOMA COUNTY WASTE.IVIANAGEMENT AGENCY TO PROVIDE PETALUIYIA CITIZENS CONTINUED USE OF THE COUNTY'S "CENTRAL DISPOSAL SITE FOR'HOUSEHOLD HAZARDOUS WASTE DISPOSAL AND OTHER AB' 939 REQUIRED SERVICES WHEREAS`; in conformarnce,with AB 939 waste 'diversion .requirements, the City of Petaluma promotes safe and ro er disposal of household hazardous was p p p teas 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 ( "Agency ") that, in return for a yearly fee, Petaluma. residents would °have continued use of the County's Household Hazardous Waste Facility; and WHEREAS, the Household Hazardous Materials Facility Use Agreement ( "Agreement "), dated January 1, 2005 was subsequently arriended on January 1, 2006, to extend the terms to the end of FY 07 (June 30; 2006); a Second Amendment extended the terms; for another year and added additional Agency surcharge - funded services; a Third Amendment extended terms for one year and revised the method of calculating compensation amounts, based" 'on the'previous year's actual tonnage of solid waste disposed_by the City's contracted hauler;. Fourth and Fifth Amendments extended the Agreement to June 30; 2009 and June 30, 2010,'lirespe'ctively; and a'Sixth Amendment extended the Agreement June 30, 2011, and readjusted the method of calculating 'the Agency's cornp6nsati'on by applying the Agency's tipping fee surcharge rate, to the actual tonnage of solid waste- ;disposed: by the City of Petaluma, to be °billed oii a monthly basis; and WHEREAS,;a Seventh Amendment is proposed to extend the Agreement for Petaluma's participation in the Household Hazardous Waste Program and' other Agency services until June 30, 2012, with,annual,compensation to the Agency based on the same method of calculation as the previous year, by applying the Agency'.s tipping fee surcharge rate to the actual tonnage of solid waste disposed by the City of Petaluma, as reported to the Agency by its hauler Petaluma 3 I Refuse & Recycling, Inc. (PR &R) by the 20' of the succeeding month. The Agency -will invoice-the City, based on their approved rate of $5.95 per ton, due and payable to SCWMA within 10 days after receipt. In turn, the City of Petaluma will bill PR &R.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 a Seventh Amendment (incorporated herein by reference as Exhibit A to Resolution) 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, fora period of one year from July 1, 2011, to June 30, 2012, paid on a monthly basis from,refuse collection rates'. During the term of the Seventh Amendment, the City of Petalurna's waste hauler Petaluma Refuse & Recycling, Inc. will continue to provide monthly tonnage reports to the Agency for the purpose of AB 939.reporting, and for calculation of subsequent compensation amounts,. 21 J EXHIBIT A TO RESOLUTION SEVENTH AMENDMENT TO AGREEMENT Household Razardous7 Waste and AB "939 Program Services This Seventh Amendment to Agreement, effective thell of July, 2011, ( "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 ( hereinafterihe'`Ag'reeriment "); 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, pp WHEREAS, CITY and AGENCY approved the Seco nd 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 servicesmanaged 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 by1h"e 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 wish to amend the Agreement a seventh time to adjust the compensation to 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: NOW, THEREFORE in consideration' of the mutual promises, covenants and conditions contained in this Seventh Amendment, AGENCY,and CITY agree as follows: Section 1 . Section 2. of theAgreement, "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 monthly'installments, upon invoice, beginning August 1, 2011. B. AGENCY shall be compensated for services in addifion to those described in Exhibit A AGENCY and CITY execute a written amendment to this Agreement describing the additional services to be; performed and the compensation to be paid for such services. 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 July 1, 2011 and terminates at midnight .on June 30, 2012, unless. extended or1ermi'hbted , sooner pursuant to the provisions of this Agreement. p p sly amended' hereby, th Section 3 . Except as! ex res y, e rem aining provisions of the Agreement shall remain in fuf force Viand effect. IN WITNESS WHEREOF,1he parties hereto have caused -this Seventh Amendment to the Agreement to be executed as.of'the date first set forth above. CITY OF PETALU,MA City Manager S.ONOMA COUNTY WASTE MANAGEMENT AGENCY Agency Chair APPROVED AS TO FORM: Agency Counsel I ATTEST: City Clerk APPROVED AS TO FORM: City Attorney APPROVED: Department Director Risk Manager APPROVED: Finance Director 7 EXHIBIT A TO, SE!lENTH.AMENDMENT Exhibit "A" — Seventh 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 educational 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 fo p i r se.rvi�es' shall be calculated,,by applying the AGENCY tipping fee surcharge, rate, on the actual tonnages of solid waste disposed by the City of Petaluma's franchised waste hauler, Petaluma Refuse and Recycling. The amount of solid waste disposed for�each month 'shall ` shall be reported to AGENCY for invoicing purposes by the 20 of the succeeding month. The AGENCY approved rate of $5.95 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.