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HomeMy WebLinkAbout31- Public Services CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: James Howell, Director Subject: Progress status report on the Waste Disposal Agreement Dept: Public Services Date: October 29, 1997 �©L Synopsis of Previous Council Action: Norcal proposal of June 26, 1997 was continued from August 4,1997 to October 06, 1997, to November 3, 1997 Recommended Motion: That the status report dated October 29, 1997, on the Waste Disposal Agreement between the County of Sa: Bernardino and the City of San Bernardino be received and filed. Signature Contact person: Lynn Merrill, Solid Waste Manager Phone: 5140 Supporting data attached: Staff Report Dated October 29. 1997 from James Howell Ward: All FUNDING REQUIREMENTS: Amount: $250,000.00 Source:(Acct. No.) 527-412-5179 & 527-413-5179 (Acct. Description) DUMP FEES Finance: Council Notes: Continued to 117/� Agenda Item No. •�� • STATUS REPORT October 29, 1997 The County of San Bernardino and the Consortium of Cities, including the City of San Bernardino, concluded their negotiations on the Waste Disposal Agreement (WDA) on October 28, 1997 and the final version of the WDA has been prepared. The Waste Systems Division of the County has scheduled this item for presentation to the Board of Supervisors on Tuesday, November 4, 1997. At that time, County staff is requesting that the Board of Supervisors approve the final version of the agreement as presented, and authorize the County staff to proceed with formal presentation of the WDA to the individual cities. Pending action by the Board of Supervisors, City staff is expecting to present this agreement for adoption by the Mayor and Common Council at the November 17'b Council meeting after review by the City Attorney's office. This agreement is for a fifteen year period and provides for the following benefits to the City of San Bernardino: • A reduction of the landfill tipping fee charged to the City, from $33.00 per ton to $28.50 per ton, effective January 1, 1998. Estimated savings for remaining FY 97-98 are expected to be $250,000. Savings for FY98-99 are estimated to be $546,000 and will be reflected in next year's budget. • Indemnification for environmental liability in the amount of$15.0 million for the City's use of the County landfill system. This includes liability protection for past usage, as well as any potential current and future liability, excluding CERCLA and RCRA. This indemnification will survive the fifteen year period of the agreement. •- Strict control over future tipping fee rate increases, including definition of a process for tipping fee rate adjustments by the County. • This agreement does not affect the City's ability to aggressively pursue waste reduction and recycling opportunities in accordance with the mandates set forth in AB939 and which may further reduce the City's disposal costs. While the tipping fee presented in this agreement is not the lowest tipping fees available within Southern California when compared to rates presented in either Orange County ($22.00 per ton) or Riverside County ($23.50 per ton), staff believes that this rate is competitive when the cost to transfer the wastes from the City to these distant counties is included in the analysis. During the FY97-98 budget process, Council directed a reduction in the disposal costs of the Refuse Division in the amount of$330,000. Staff is confident that, with the proposed savings of $250,000 in disposal cost, as well as $80,000 savings resulting from two unfilled Refuse Route Supervisor vacancies within the Refuse Division,the$330,000 budget reduction will be met. Staff is requesting that the Mayor and Common Council receive and file this report, and to direct staff to present the final version of the WDA at the November 17' meeting. CITY OF SAN BERNARDINO PUBLIC SERVICES INTER-OFFICE MEMORANDUM TO: Mayor Tom Minor and Common Council FROM: Jim Howell, Director of Public Services BY: Lynn Merrill, Solid Waste Manager DATE: September 30, 1997 SUBJECT: Status and Update on Waste Disposal Agreement COPIES: James Penman, City Attorney j Fred Wilson, City Administrator The following is the status and update regarding the negotiation process on the Waste Disposal Agreement between the consortium of cities and the County. Seven meetings were held during the month of September between the County and the consortium of cities. After an initial offer by the County of$31.00 per ton effective January 1, 1998 that was rejected by the consortium of cities, the County returned with a rate of $28.50 per ton, effective January 1, 1998 and a term length of fifteen (15) years. Savings in tipping fees for the remainder of the fiscal year are estimated at $250,000. Additional cost analysis was performed by the County and reviewed by the consortium of cities. During the week of September 29`h, both parties will be directing their respective attorneys to revise language of the Waste Disposal Agreement to reflect the current offer. Minor negotiating points remain to be discussed. Staff is recommending that this item be continued to the November 3`d Common Council meeting, at which time it is expected that a Waste Disposal Agreement will be available for formal presentation by staff. JH/LM/jj Previously 10 1,041 A/7 -ITY 'OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION -:;r James R. Howell Subject: Progress and status report on the Waste Disposal Agreement Dept: Public Services date: August 25, 1997 vnopsis of Previous Council Action: orcal proposal of June 26, 1997 was continued from August 4, 1997 to September 2, 1997. recommended Motion: That the progress and status on the Waste Disposal Agreement from the County of San Bernardino dated August 19, 1997 be received and filed; and request this item be continued to Council meeting of October 6, 1997. g ture :ontact person: Lunn Merrill Solid Waste Manager Phone: 5140 Supporting data attached: Memorandum dated August 20 1997 from James Howell and letter dated 4ugust 19 1997 from County of San Bernardino Ward: FUNDING REQUIREMENTS: Amount N/A Source: Finance: Previously - # 5 ,p%1 z-9'7 Council Notes:_ Previously - #y3 ��` `9 7 /W-7 Agenda Item No. 3 CITY OF SAN BERNARDINO PUBLIC SERVICES DEPARTMENT INTER-OFFICE MEMORANDUM TO: Mayor and Common Council FROM: James R. Howell, Director of Public Services BY: L Merrill, Solid Waste Manager Ir y� SUBJECT: Progress and Status on the Waste Disposal Agreement DATE: August 20, 1997 CC: Fred Wilson, City Administrator; James Penman, City Attorney 1 We received the attached letter from Gerry Newcombe, Contract Administrator for the County Waste System Division which provides a revised timeline and milestones regarding the Waste Disposal Agreement currently being negotiated by the consortium of 1.7 cities and the County. As presented in the letter, it is the intent of both parties to complete negotiations on the Waste Disposal Agreement by September 5t'. The County has requested this additional extension of time in order to determine the lowest possible rate which would be available to the cities who sign the WDAs. Based on the proposed timetable, it is anticipated that the final Waste Disposal Agreement will be placed on agenda for the October 6t' Council meeting. Staff is therefore requesting that discussion regarding the Participation and Service Agreement be continued. i C I AUG-20-199? 10: 16 WASTE SYSTEM DIUISION COUNTY OF SAN BERNARDINO JASTE SYSTEM DIVISION PUBLIC SERVICES GROUP W — GERRY NEWCOMBE -21 39pltallty Lene,Second Floor San Bernardino,CA 92415-0017 Contract Administrator }9);W,6722 • Fax(909)386-8786 August 19, 1997 post-it"Fax Note 7671 M 49„► To r>v CO JO pt. Pnono•Mr.John Davis 0 Mojave Desert& Mountain Solid Waste JPA Fit 3 " Jr 700 E. Redlands Blvd.,Suite 311 Redlands, California 92373 Dear John, During our meeting yesterday regarding the development of Waste Delivery Agreements (WDA)between the County and the consortium of 17 cities,the city negotiating team concurred with the County's request to extend the schedule for one week. The extension is necessary to allow sufficient time to run the Solid Waste System Financial Model to determine the lowest possible rate available to the cities who sign WDAs. The revised schedule is as follows: • August 21 - WS'D to send list of model run assumptions to city negotiating members for review • August 27 - 10:00 A.M. meeting @ Nocecan's n�model review assumpNons if necessary assumptions August 29 -Hold date for continued meeting September 2- 1:00 P.M.meeting @ Fontana Performing Arts Center to negotiate WDA rate structure and amounts and finalize remaining agreement language Se tember 2 • September 3 - 9:30 A.M. meeting @ Fontana to resolve any ope n items from P meeting Schedule additional meetings as necessary complete negotiations by September 5. • The continued progress ess that has been made at our previous meetings is encouraging and we are all looking -------� forward to bringing this process to a successful conclusion. Sincerely, Gerry ewe be Contract Administrator GN:js cc: Robert L.Jocks,County Counsel Marty Czerniak,NORCAL Conway Collis,Collis Associates !A!.IES J HLAWEK Board of Superv,sors TMM DISIrik COUr.IV Adn'W-F.Ir3uve OftiCtr KATHY A DAVIS.... .. ........ First District DENNIS HANSEIERGER Fourth D+3tr1c Tin./ nELLY JON 0.MIKELS sucond of-strict LARRY WALKER . •. ..••• (:oun'y JERRY EAVES •.• Fifth District A-"A-d PW C..rv,r,, TOTAL P.01 CIYV OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: Mayor Tom Minor Subject: That the Common Council table further consideration of-PSA ,t: Mayor's Office and direct discussions with County on Waste Disposal Agreement. Date: July 29, 1997 Synopsis of Previous Council Action: Recommended Motion: That the Common Council table further consideration of the Participation and Service Agreement and direct staff to continue discussions with the County on the Waste Disposal Agreement. Tom Minor, Mayor Contact person: James Howell, Director of Public Services Department Phone: 5140 Supporting data attached: N/A Ward: ALL FUNDING REQUIREMENTS: Amount N/A Source: Finance: Council Notes: Previously - # '?3- Previously - # 3q J 0f/p f-`y 7 Previously - # /0/10 7 Agenda Item No. / /7 CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION Discussion with the County of San Bernardino regarding a long term waste flow agreement has been ongoing with the City for the past two years. I have closely monitored this issue in consideration of the significance of such an agreement. I recommend that the Council table further discussion regarding the County's Participation and Service Agreement (PSA) and direct staff to continue the current negotiation process on the proposed Waste Disposal Agreement (WDA). The first discussion meeting between the cities and the County occurred on July 30, and participants are confident that this process will result in an agreement acceptable to all parties. It is the goal of the participants to finalize negotiations in September, and for City staff to present this agreement for Council authorization soon thereafter. The following are some of the significant differences between the two agreements: TERM OF AGREEMENT The County PSA is for twenty-five (25) years while the City WDA is for ten (10) years. The longer term is unreasonable in consideration of the continuing advances/changes in the solid waste industry. MOST-FAVORED NATION CLAUSE The County PSA requires a lengthy meet and confer process in order to terminate the agreement, with special considerations to the County. Therefore, it is extremely difficult to terminate this agreement once executed. Additionally, once the PSA agreement is executed, any incentive on the County's part to continue negotiating the WDA agreement in order to obtain a "better deal" would be non-existent once the PSA is executed. COST The rate proposed in the PSA, $30 per ton, would be the highest disposal rate paid in Southern California. Riverside County charges $27.50 per ton, Los Angeles County charges $17.57 per ton and Orange County charges $28.25 per ton. It is the goal of the WDA to establish a rate of $26 per ton, which would translate into a annual savings of $770,000. LIABILITY The PSA agreement only agrees to indemnify the City for liability resulting from "Acceptable Waste" received by the system. Acceptable waste is defined as normal trash. However, the greater liability exposure occurs from hazardous wastes already disposed of within the system, or inadvertently disposed into the system without either the City or the County's knowledge. Gerry Newcombe stated in his letter of July 21, 1997 that "the County agrees to accept the liability for the landfill system, no matter what any court would decide". The County currently is liable for the system without the cities entering into a PSA agreement. Execution of the agreement as presented by the County places the City on the hook for liability it currently doesn't have. The WDA agreement provides adequate safeguards to minimize this liability. �m Tom Minor, Mayor CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: James R. Howell Subject: Response to Norcal Proposal of June 'pt: Public Services 26, 1997 Date: July 16, 1997 Synopsis of Previous Council Action: i Recommended Motion: That the Mayor and Common Council receive and file Memorandum dated July 16, 1997 from James Howell, Director of Public Services, subject: Response to Norcal Proposal of June 26, 1997. S Contact person: Director of Public Services Phone: 5140 Supporting data attached: Memorandum dated July 16 1997 Ward: ALL FUNDING REQUIREMENTS: Amount N/A Source: Finance: Council Notes:_ Previously - # �j5 07�zf�97 Previously - # `/3 /G�lp�b7 Previously - # 3_ ax/lov 7 Previously - # 3 q ' ey/U 7 / #7 Agenda Item No._ _ 1 1 CITY OF SAN BERNARDINO PUBLIC SERVICES DEPARTMENT INTER-OFFICE MEMORANDUM TO: MAYOR TOM MINOR;MEMBERS OF THE COMMON��i,TNCIL FROM: JAMES R.HOWELL,DIRECTOR OF PUBLIC SERVICEF BY; LYNN MERRILL,ACTING SOLID WASTE MANAGER la,,f SUBJECT: RESPONSE TO NORCAL PROPOSAL OF JUNE 26, 1997 DATE: JULY 16, 1997 CC: FRED WILSON,CTIY ADMINISTRATOR;JAMES PENMAN,CrN ATTORNEY Staff has prepared the following information as follow-up to staff's verbal presentation to the Mayor and Common Council on Monday,July 14`x. 1. The City has used the County Landfill system since approximately 1960. 2. While the total amount of wastes generated within the City's corporate boundary is approximately 205,000 tons, the City's Refuse Division only handles approximately 110,000 tons per year for which the City pays a tipping fee. The remaining 95,000 tons of waste is handled by the franchised private haulers Gack's Disposal, Cal's Disposal and Curran's) and individual businesses which self-haul their own wastes to the landfill. Norcal inflated the amount of tonnage directly under the City's control to make this offer appear attractive. The City's tonnage is estimated at 110,000 tons for FY97-98, and is expected to continue to decrease to approximately 80,000 tons by the year 2000 in response to increased recycling and waste diversion efforts. The City would see a reduction of approximately $330,000 per year in FY97-98 under the Norcal scenario at current tonnage. 3. The City has no financial interest in the ownership, management and operation of the County landfill system. The City is only a user of the system. Implying that the City is a "stakeholder/investor" in the County's system may imply liability/responsibility that the City does not currently have. The County is the sole owner of the landfill system and contracts with Norcal/Sa-n Bernardino for it's operation. 4. The City, in cooperation with other cities within the County and the Waste Systems Division of the County, has been involved in on-going discussions related to the Participation and Service Agreement outlined to the Council by Norcal. Staff was recently authorized by the Mayor to expend $2,000 in order to participate with twelve other cities in preparing the Waste Disposal Agreement. The Mojave Desert and Mountain Solid Waste JPA has coordinated the hiring of a negotiator to prepare an agreement acceptable to the cities, and to have this negotiator represent their collective 1 interests at the negotiating table. The cities felt this action was necessary due to the ! extreme lack of the responsiveness of the County/Norval regarding issues of concern for the cities. 5. While Norcal represents that this agreement is a "win-win" for both parties, the proposed reduction in tipping fee rates and the length of term are inconsistent with those offered in both Orange and Riverside Counties for in-county waste. For example, Riverside County has proposed offering rates as low as S27.50 per ton for a ten year period. Given this rate, the proposed Riverside County rate represents a rate reduction of $5.50 per ton less than the existing Norcal./San Bernardino rate of $33.00 per ton. Staff has continually maintained that further savings are available to the City, however the County refuses to acknowledge this cost pressure. Additional downward pressure on rates will occur as large landfills such as Eagle Mountain and Mesquite landfill. 6. A recent court decision in San Diego has established that the only contractual relationship between a city and a county operating the landfill, absent of a formal agreement, occurs at the scalehouse. While the County of San Bernardino has agreed to assume full liability for any environmental damage resulting from the operation of the landfills, this liability, as determined by this court decision, already rests with the County. While RCRA/CERCLA liability (Federal regulations) extends through to the users of the system, this liability exposure only occurs when the financial resources of the principal responsible party have been exhausted. At the present time, the City does not appear to have liability exposure from the County's system; entering into the PSA agreement as presented would increase this exposure. 7. While the County/Norval Participation and Service Agreement (PSA) contains a "most favored nation" clause, such a clause was intended only to cover more favorable terms such as a lower tipping fee that may be secured by other parties at a later date. If the City adopted the PSA as presented, it may not be possible to unilaterally replace the PSA with the proposed WDA without concurrence of both parties. Staff continues to believe that the present course of negotiations will result in an agreement which is acceptable to both parties and which will result in a tipping fee in the range of $26 per ton. 8. While the savings proposed by Norcal would result in an estimated savings of approximately $330,000 per year by lowering the tipping fee from $33.00 per ton, to $30.00 per ton the combination of a reduction in the tipping fee to $26 per ton and aggressive commercial recycling which reduces the amount of waste delivered to the County system from 110,000 tons to 80,000 tons may result in a total annual savings potential of approximately S 1.55 million per year. 2 CITY OF SAN BERNARDINO INTEROFFICE MEMORANDUM CITY CLERK'S OFFICE RECORDS & INFORMATION MANAGEMENT (RIM) PROGRAM DATE: October 2, 1998 TO: All Clients FROM: City Clerk's Office RE: SCANNING DOCUMENT PROBLEM NOTICE -------------------------------------------------------------------------------------------------------------------------------------- MAYOR AND COMMON COUNCIL MEETING DATE: November 3, 1997 ITEM #: #31 DESCRIPTION: Progress and status report on Waste Disposal Agreement relative to response to Norcal proposal of June 26, 1997. ACTION: That the status report be received and filed; and that the matter be continued to November 17, 1997. NOTICE OF: Missing Document. Exhibit/Attachment. Public Works/Engineering Bound Contract. Staff Report. Bad On lity Original. X - Document. Map. Hand Written Original. Ordinance - Legal Advertisement Proof of Publication Bad Quality. Ordinance - No Staff Report. Missing Signature - FOR ASSISTANCE: Should you have any questions on this matter, please do not hesitate to contact either the records management staff or the Administrative Operations Supervisor at (909) 384-5002. Rachel Clark City Clerk RC:mam