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HomeMy WebLinkAbout10 - CC-6 - Resolution Approving a Revised Effective - 12/1/2015CITY COUNCIL AGENDA REPORT MEETING DATE: DECEMBER 1, 2015 ITEM NUMBER: CC -6 SUBJECT: A RESOLUTION APPROVING A REVISED EFFECTIVE DATE TO THE WASTE DISPOSAL AGREEMENT AMENDMENT BETWEEN THE COUNTY OF ORANGE AND THE CITY OF COSTA MESA DATE: NOVEMBER 19, 2015 FROM: PUBLIC SERVICES DEPARTMENT/ADMINISTRATION PRESENTATION BY: ERNESTO MUNOZ, PUBLIC SERVICES DIRECTOR FOR FURTHER INFORMATION CONTACT: MIKE KOZIEL, MANAGEMENT ANALYST, (714) 754-5024 RECOMMENDATION: Adopt Resolution No. 15-_ revising the effective date of the Waste Disposal Agreement (WDA) Amendment (Attachment 1) between the County of Orange and the City 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. BACKGROUND: The Costa Mesa City Council approved the Amendment to the Waste Disposal Agreement with the County of Orange on June 2, 2015 (Attachment 2). The Amendment would only have become effective with the approval of all City WDA holders, and to date all City WDA holders have approved the Amendment, except for the City of Irvine. The Board of Supervisors has authorized an extension through December 31, 2015 to allow the City of Irvine additional time to address concerns or questions. Each city in the County must now approve of the extension. The proposed amendment to the Waste Disposal Agreement (WDA Amendment) was negotiated by a committee of City Managers representing Orange County cities and the County to address the reduction in revenues and to ensure rate stabilization for local residents and businesses. The committee of City Managers reports that outstanding issues have been resolved, and it is likely that the WDA Amendment will receive the required unanimous approval. ANALYSIS: In June 2, 2015, the City Council approved the WDA Amendment with the County to provide for continuation of waste importation at the County's three landfills and to extend the terms of the WDA through June 30, 2025. The WDA Amendment established an effective date of September 30, 2015. Unfortunately by the original expiration date of September 30th, not all the cities were able to approve the WDA Amendment. However, as the outstanding issues have been resolved, the County is requesting that all the cities approve an updated amendment. This updated amendment requires approval by all 34 cities. The revision to the WDA Amendment updates the effective date from September 30, 2015 to December 31, 2015. All other terms and conditions that were in the WDA Amendment approved June 2, 2015 remain in full force and effect. ALTERNATIVES CONSIDERED: The alternative to this Council action would be to reject the extension, resulting in a potential loss of revenues to the City listed as per Appendix 5 of the Amendment to the WDA noted in the June 2, 2015 Council Report, and per terms detailed in the Amendment. If the agreement to provide the extension is rejected, it would also potentially show a lack of interest in maintaining cooperation in a long-term partnership between the County of Orange and 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 FY15-16 relative to the amended WDA. LEGAL REVIEW: The City Attorney has reviewed the Agreement to Extend the Deadline for all cities in the County to approve the Waste Disposal Agreement with the County of Orange, Resolution 15-_, and has been approved as to form. CONCLUSION: Therefore staff recommends that the City Council approve a revision to the effective date to the WDA Amendment as requested to allow additional time for the County to secure all city approvals. ERNESTO MUNOZ Public Services Director MIKE KOZIEL Management Analyst ATTACHMENTS: 1 - Resolution No. 15- 2 - City Council Report of June 2, 2015 and the Amendment to the WDA DISTRIBUTION: Chief Executive Officer Assistant Chief Executive Officer Interim Finance Director City Attorney City Clerk Staff File