HomeMy WebLinkAbout4.04 IntegratedSolidWstMgtAgmt
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CI~LERK
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AGENDA STATEMENT
CITY COUNCIL MEETING DATE: FEBRUARY is, 1996
SUBJECT:
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Integrated Solid Waste Management Agreement
Report Prepared by: Steve Honse, Administrative Assistant
EXHmITS A IT ACHED:
1. Resolution Approving the Agreement with Waste Management of
Alameda County for subsidy of recycling program operations.
RECOMMENDATION~
FINANCIAL STATEMENT:
Adopt the Resolution' and authorize the Mayor to execute the
agreement
The expenditures covered by this agreement were negotiated as part
of the original Agreement and they will not affect current rates.
Adequate funds are included in the adopted 1995/96 Budget.
DESCRIPTION:
As disclosed in the Iune30, 1995 Staff Report the initial rate schedule was predicated upon the City
transferring certain monies to Waste Management of Alameda County. If the City had not provided for
these contributions it would have been necessary to adopt higher rates. Staff has prepared the necessary
agreement to provide for the transfer of these monies to the Company.
'.:. Backl!round
On Iune 30, 1995, the City of Dublin and Waste Management of Alameda County (WMAC) entered into
an Integrated Solid Waste Management Agreement. Under the tenns of the agreement, WMAC provides
solid waste collection, disposal and recycling services for the City per the rate schedule"adopted under the
agreement. The City's consultant who assisted with the negotiations identified that the adopted rate
schedule combined with City contributions should meet the necessary revenue required for the Company
operations. The transfer of funds was to be included as a future agreement, since some of the final capital
cost figures were unknown at the time the City Council adopted the Agreement The use of City grants to
moderate rate increases is explicidy provided for in Article 6.11 of the Agreement '
Source of G...~ Funds
The source of funding for grants is a combination of Measure D Recycling funds (which must be used for
recycling related activities) and Balancing Account Monies cw:rendy held by the City in the Garbage
Service Fund (#225). The Balancing Account Monies were transfenedby WMAC to the City in Fiscal
Year 1994-95. These monies had accrued over the years due to the fact that the City of Dublin rates
generated revenues in excess of the allowed company costs. The funds were to be provided for both
Recycling Operating Costs as well as One. Tune Capital Grants associated with the new automated service.
Pursuant to the assumptions used for the development of the current rate schedule. the City will need to
transfer the following funds for the identified uses;
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COPIES TO: Kevin Walbridge, President WMAC
Dan Borges,'LDD General Manager LJ LI
ITEMNO.~
Wee.fGl"lllSl....tmLdoe
FISCAL YEAR 1995~96
ONE TIME CAPITAL
CONTRIBUTION
Balancing Account
Funds
#225
$173,129
$195,000 $ 90,744
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TOTAL
$ 173 129 i.' ',.'
$ 285,7441 , }: ;
$37,500
$37,SOO
.Recvdiol!. QeeratlnftGrant DescriotUln
The proposed agreement addresses the provision of recycling operating grant for the 18 month period from
January 1, 1996 through June 30, 1997, with City Measure D contributions totaling $112,500 for the
period. A total of $37,500 would be paid in Fiscal Year 1995/96 and $75,000 in Fiscal Year 1996fJ7.
Thiscoverithe'first 18~month period under the new agreement. The Company may request a rate
adjustment effec;tive Iuly 1, 1991 and; dlis operating SUbsidy covers the cOSts until that time. At thaltime
the City, Counciltnay consider,whether 'the amount .of the Recycling Operating Subsidy should be changed
to cover any portion of the rate increase, attributable to Recycling. WMAC has agreed to bill the City and
accept payment of the subsidy on.. quarterly basis.
CaDital Grant Despilldoa
WMAC has already purchased the above~referenced co..collection vehicle and containers necessary for
both Green Waste an4Automatt;d Garbage CollecQon.' As required, WMAC has provided. the City with
documentation of the actual co~.The.migina1.contribution asswnedin the Agreement was $195.000 in
Measure D funds.and $291,000 frotrlthe B~lU1Cing Account monies. The City will provide grants for the
following one:-tlme expcnses:oneresldeatial one-pass collection vehicle; all green waste cans (green
containers); and a City contribution.ofS27,l26 towards the purchase of garbage carts (maroon containers).
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ProDosed ~lIle1!dOJellt
Attached to the Staff report is the proposed Agreement, which will provide for the transfer of the funds to
Waste'Managernentof Alameda County. It ' shouJd'be noted, the award ofa grant or subsidy to WMAC
doesnotre$u1t in a windfall to1he;~y. The provision of these funds were considered wheo\the rates
were establisbetLTbc effec;t of inCluding these grants was to allow. the City to adopt rates which were
lower than what would have otherwise been tequired.
Recom~~~
Staff recommends 1batthe City Counclladoptthe Resoluuon;which will authorize the Mayor to execute
the Agreement (Exhibit uA'').
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RESOLUTION NO. - 96
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN
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ADOPTING AGREEMENT WITH WASTE MANAGEMENT OF ALAMEDA COUNTY
REGARDING SUBSIDY FOR RECYCLING PROGRAM OPERATIONS
WHEREAS, through Resolution 59-95, adopted Iune 13, 1995, the City of Dublin adopted a Solid
Waste Disposal Franchise Agreement with Waste Management of Alameda County ("AGREEMENT')
which allowed the City to moderate the cost of service with City contribution of grants and subsidies: and
WHEREAS, through Resolution 60-95, adopted Iune 13, 1995, the City of Dublin adopted a rate
schedule which anticipated that the City would provide an operating subsidy for the residential recycling
program and provide grants to offset certain capital expenses; and
WHEREAS, the City receives Measure D funds which must be used for Recycling and Source
Reduction activities and programs; and
WHEREAS, Measure D funds will be used to provide an operating subsidy for the residential
recycling program and to provide a one-time grant for the purchase of green waste containers, both of
which are appropriate uses of Measure D funds; and
WHEREAS, the City currently holds funds in the Garbage Service Fund which must be used for
..,! solid waste management activities; and .
WHEREAS, funding was identified in the adopted 1995196 City Budget to provide for these
contributions; and
WHEREAS, the City Manager has recommended that the Council approve the Agreement in the
fonn attached as Exhibit "A";
NOW, TIlEREFORE, BE IT RESOLVED that the Mayor of the City of Dublin is authorized to
execute the agreement attached hereto as Exhibit "A" and by reference made a part hereof.
PASSED, APPROVED AND ADOPTED this 13 day of February, 1996.
AYES:
NOES:
ABSENT:
ABSTAIN:
.. ATTEST:
Mayor
City Clerk
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AGREEMENT BETWEEN WASTE MANAGEMENT OF ALAMEDA COUNTY (COMPANY) AND
THE CITY OF DUBLIN (CITY) FOR CITY SUBSIDY OF
RECYCLING PROGRAM OPERATIONS AND CAPITAL COSTS
This agreement, dated for convenience as 13 February 1996, is entered into by the City of Dublin, hereafter
"CITY" and Waste Management of Alameda County, hereafter "COMPANY" in accordance with Section
6.11 of the Agreement between the City of Dublin and Waste Management of Alameda County for
Integrated Solid Waste Management Services, dated 30 Iune 1995 (hereafter the "AGREEMENT").
CITY and COMPANY hereby agree to the following:
Recitals
WHEREAS, the City Council of CITY has declared its intention of maintaining reasonable rates for
the collection, transportation, recycling, processing, and disposal of solid waste; and
WHEREAS, the rate structure incorporated within the AGREEMENT was approved with the
understanding that CITY would provide an operating subsidy for the recycling program; and
WHEREAS, the rate structure in the AGREEMENT was approved with the understanding that the ..~:':
CITY would subsidize capital expenditures for the purchase of a co-collection vehicle and containers; . ,..
NOW, THEREFORE, in consideration of the premise above stated and the terms, conditions,
covenants and agreements contained herein, CITY and COMPANY do hereby agree as follows:
1. Grant from CITY to COMPANY to Subsidize Recycling Program Operating Costs
A) Pursuant to Article 6.11 of the AGREEMENT, CITY agrees to provide a grant to
COMPANY from Measure D recycling funds to subsidize recycling operations as follows:
Period
Ianuary 1996-Iune 1996
Iuly 1996-Iuly 1997
, Amount
$37,500
$75,000
B) CITY agrees to pay the above subsidy on a quarterly basis at the beginning of each quarter
following the receipt of a request for payment from COMPANY. COMPANY
understands that the source of funds is Alameda County Measure D Recycling Funds.
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EXHIBIT A
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II. Grant from CITY to COMPANY to Purchase Co-collection Vehicle and Semi-Automated
Collection Cart<;.
A) CITY shall provide, pursuant to Section 6.11 of the AGREEMENT, a one-time capital
funding grant as outlined in the table below and subject to subparagraphs B through F
below:
ONE TIME CAPITAL
CONTRmUTION
Capital Grant: One-Pass Co-Collection
Vehicle
Green Waste Cart<; (5,900 carts)
e resents 100% of Green Waste Carts
Garbage Carts (822 - 35 gallon carts)
e resents 24% of 35 allan containers)
GRAND TOTAL CAPITAL
$ 173,129
$ 285,744
$ 27,126
$ 485 999
B)
CITY shall pay the sum of $173,129 to COMPANY as a grant to reimburse COMPANY
for the total cost of one (1) one-pass co-collection vehicle upon submittal satisfactory
documentation of purchase. The total cost includes truck chassis, truck body, sales tax, and
DMV fees. The vehicle shall remain with COMPANY as described in the AGREEMENT.
C) CITY shall pay the sum of $285,744 to COMPANY to reimburse COMPANY for the
total cost for 5,900 green waste containers upon submittal of satisfactory documentation of
purchase. The total cost includes purchase price, sales tax, and delivery expense.
D) CITY shall pay the sum of $27,126 to COMPANY to reimburse COMPANY for the cost
of 822 garbage containers upon submittal of satisfacto~ documentation of purchase.
E) COMPANY shall submit an invoice and the necessary documentation to CITY. CITY shall
tender the above sums (B, C & D) to COMPANY within 30 days of receipt of the invoice
and necessary docwnentation.
F) CITY shall have the right to request and conduct an inspection of original records for the
items described above for a period of up to three years following the date of this
agreement COMPANY shall respond to any reasonable request by CITY to verify the
expenditure of funds in accordance with this agreement. '
EXHIBIT A
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IN WITNESS WHEREOF, This agreement is executed by the parties to the original AGREEMENT.
A TrEST:
Kay Keck, City Clerk
APPROVED AS TO FORM
Elizabeth H. Silver
City Attorney
CITY OF DUBLIN
("CITY")
By:
Guy S. Houston, Mayor
WASTE MANAGEMENT OF
ALAMEDA COUNTY
("COMPANY")
By:
Name: Kevin Walbridge
Title: President, Waste Management Alameda County
BY:
Name: Dan Borges
Title: Division President and
General Manager
Livermore-Dublin Disposal
EXHIBIT A
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