HomeMy WebLinkAbout22 - CC-11 - A Resolution of the City Council of the - 6/2/2015CITY COUNCIL AGENDA REPORT
MEETING DATE: JUNE 2, 2015
ITEM NUMBER: CC -1 1
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA APPROVING
AN AMENDMENT TO THE 2009 WASTE DISPOSAL AGREEMENT WITH THE COUNTY
OF ORANGE
DATE: MAY 20, 2015
FROM: PUBLIC SERVICES DEPARTMENT/ADMINISTRATION
PRESENTATION BY: ERNESTO MUNOZ, PUBLIC SERVICES DIRECTOR
FOR FURTHER INFORMATION CONTACT: MIKE KOZIEL, MANAGEMENT ANALYST, (714) 754-
5024
RECOMMENDATIONS:
1. Adopt Resolution No. 15-15 (Attachment 1) amending the Waste Disposal Agreement (WDA) between
the County of Orange and the City of Costa Mesa to allow for the continued importation of waste at
the County's three (3) landfills and to extend the terms of the WDA through June 30, 2025.
2. Authorize the Mayor and the City Clerk to sign and execute the agreement.
BACKGROUND:
The disposal of solid waste at Orange County landfills is governed by a 2009 Waste Disposal Agreement
in which cities in the County (including the City of Costa Mesa) agreed to deposit their solid waste at the
County's three (3) landfill facilities in return for low, stable disposal rates. The term of the current WDA
began on July 1, 2010 and runs through June 30, 2020, with importation of waste from outside the County
at County landfills set to expire on June 30, 2016.
The WDA is a great example of the County and cities working in collaboration and strategically leveraging
a countywide asset. The solid waste revenues are utilized by the County: to maintain the landfill system;
to preserve funds for landfill closure costs; to address post -closure maintenance; and to mitigate long-
term risk and environmental liabilities. The cities benefit from additional services provided by the County.
These services include permanent household hazardous waste collection facilities; green waste
acceptance at no charge to cities to assist in compliance with state recycling mandates; and support of
city programs to meet state diversion requirements.
ANALYSIS -
With the success of waste diversion and recycling in recent years combined with slow recovery from the
Great Recession, the resulting effect has caused in -County waste generation to dramatically decrease
which in turn has created a reduction in revenues. A committee of City Managers representing Orange
County cities participated with the County in preparing a framework to address the reduction in revenues
and to ensure rate stabilization for local residents and businesses. The proposed Amendment
(Attachment 2) to the WDA sets forth the continuation of future importation to offset the revenue reduction
and establishes a fair -share allocation of net importation revenues to cities. An in-depth review of County
resources concluded the amount of imported waste combined with in -County waste will remain below
total disposal tonnage projections contemplated in the current WDA. The proposed 5 -year extension of
the WDA to 2025 will provide additional stability to the system in light of more stringent legislative and
regulatory requirements such as AB 1826, AB 1594, and the 75% recycling target of AB 341.
ALTERNATIVES CONSIDERED:
The alternative to this Council action would be to reject the amendment, resulting in a potential loss of the
revenues to the City listed as per Appendix 5 of the Amendment to the WDA and per the terms detailed
in the Amendment. If the agreement was rejected, it would also potentially show a lack of interest in
maintaining cooperation in a long-term partnership between the County of Orange and the City of Costa
Mesa and other Orange County cities resolving to adopt the amendment.
FISCAL REVIEW:
There is no fiscal impact to the City's General Fund in FY14-15 relative to this agreement. As detailed in
the attached Amendment to the Waste Disposal Agreement, pursuant to section 3.6, the participating city
allocation includes an Initial Payment of $117,936 per the allocation percentage of 2.18% of the total. The
City would also receive a share of future revenues from FY 2018-19 to FY 2024-25 based on the
percentage of actual tonnage of waste received at County landfills in those years.
LEGAL REVIEW:
The City Attorney's office has reviewed the attached Amendment to the Waste Disposal Agreement and
has approved it as to form.
CONCLUSION:
In order to provide stable rates for residents and businesses, continue service levels, ensure long-term
capacity, maintain long-term partnerships between the City and the County, and share net importation
revenues with cities, staff recommends that the City Council adopt Resolution No. 15-15 amending the
Waste Disposal Agreement (WDA) with the County of Orange; and authorize the Mayor and the City Clerk
to sign and execute the agreement. Upon approval by the Orange County cities, the proposed
Amendment to the WDA will be considered by the Board of Supervisors at their earliest available meeting.
ERNESTO MUNOZ
Public Services Director
STEPHEN DUNIVENT
Interim Finance Director
ATTACHMENTS: 1. Resolution No. 15-15
2. Amendment to WDA
DISTRIBUTION: Chief Executive Officer
Assistant Chief Executive Officer
City Attorney
City Clerk Division
Staff
File
MIKE KOZIEL
Interim Management Analyst
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