HomeMy WebLinkAbout12 - CC-12 - Revised Effective Date to an Amendment - 4/19/2016CITY COUNCIL AGENDA REPORT
MEETING DATE: APRIL 19, 2016 ITEM NUMBER: CC -12
SUBJECT: REVISED EFFECTIVE DATE TO AN AMENDMENT OF THE 2009 WASTE DISPOSAL
AGREEMENT WITH THE COUNTY OF ORANGE
DATE: APRIL 7, 2016
FROM: PUBLIC SERVICES DEPARTMENT/ADMINISTRATION
PRESENTATION BY: ERNESTO MUNOZ, PUBLIC SERVICES DIRECTOR
FOR FURTHER INFORMATION CONTACT: ERNESTO MUNOZ, PUBLIC SERVICES DIRECTOR
(714) 754-5343
RECOMMENDATION:
Adopt Resolution No. 16-_ (Attachment 1) approving a revised effective date to the Waste Disposal
Agreement (WDA) Amendment 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.
BACKGROUND:
The disposal of solid waste at Orange County landfills is governed by a 2009 Waste Disposal
Agreement in which cities in the County have 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.
An 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.
Implementation of the WDA Amendment requires approval by all 34 cities in Orange County.
ANALYSIS:
In June 2015, the City Council approved the WDA Amendment with the County to provide for
continuation of waste importation at the County's three (3) landfills and to extend the terms of the
WDA through June 30, 2025. The WDA Amendment established an effective date of June 30, 2015.
Unfortunately, by the original expiration date of June 30th, not all the cities were able to approve the
WDA Amendment. The deadline was extended to September 30, 2015, but not all cities approved
the WDA Amendment by that date. The deadline was extended to December 31, 2015, but not all
cities approved the WDA amendment by that date. The County is requesting that all cities approve
of a revised effective date of June 30, 2016. This revised effective date requires approval by all 34
cities.
The revision to the WDA Amendment updates the effective date from September 30, 2015 to June
30, 2016. All other terms and conditions that were in the WDA Amendment approved in June 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 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 revised effective date 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:
As detailed in the Amendment to the WDA included in the June 2, 2015 City Council report, an initial
disbursement to the City in the amount of $117,936 is anticipated in next fiscal year. The City would
also receive a share of future revenues from FY 2018-19 to FY 2014-25 based on the percentage of
actual tonnage of waste received at the County landfills in those years.
LEGAL REVIEW:
The City Attorney has reviewed the attached Resolution No. 16-_ approving the revised effective date
of the Amendment to the 2009 Waste Disposal Agreement with the County of Orange, and has
approved it as to form.
CONCLUSION:
On June 2, 2015, the City Council approved the WDA Amendment to provide for continuation of
importation of waste at the County landfills, City allocation of future importation revenues, and to
extend the terms of the WDA through June 30, 2025. A revision to the effective date to the WDA
Amendment is requested to allow additional time for the County to secure all city approvals. This
WDA Amendment will maintain stable disposal rates and continuity of service for residents and
businesses while ensuring continued partnership between all 34 cities and the County.
It is recommended that the City Council adopt Resolution No. 16-_ to approve the revised effective
date to June 30, 2016.
ERNESTO MUNOZ
Public Services Director
ATTACHMENT: 1 - Resolution No. 16 -
DISTRIBUTION: Chief Executive Officer
Assistant Chief Executive Officer
Interim Finance Director
City Attorney
City Clerk
Staff
File
ATTACHMENT 1
RESOLUTION NO. 16-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF COSTA MESA APPROVING THE REVISED
EFFECTIVE DATE TO THE AMENDMENT TO THE 2009
WASTE DISPOSAL AGREEMENT WITH THE COUNTY
OF ORANGE
WHEREAS, the City has an existing Waste Disposal Agreement (the "Waste Disposal
Agreement") with the County of Orange (the "County") which requires the City to dispose of all
specified solid waste generated within the City to County landfills and for the County to accept all
such waste at a price agreed upon by the City and County; and
WHEREAS, the term of Waste Disposal Agreement began on July 1, 2010, and by its term
is set to expire on June 30, 2020; and
WHEREAS, the Waste Disposal Agreement provides that the County will not accept waste
imported from outside the County at County landfills after June 30, 2016; and
WHEREAS, the County and various cities throughout the County negotiated an
amendment to the Waste Disposal Agreement to provide for continuation of importation of waste
from outside the County at County landfills in exchange for allocation to the Participating Cities of
a portion of future importation revenues through June 30, 2025 (the "Amendment"); and
WHEREAS, implementation of the Amendment requires approval by all cities in the
County (the "Participating Cities"); and
WHEREAS, the City Council, by Resolution No. 15-15, approved the Amendment on June
2, 2015;
WHEREAS, the County gave a deadline of approval of the Amendment of June 30, 2015;
and
WHEREAS, not all Participating Cities approved the Amendment by June 30, 2015, and
the County extended the deadline to September 30, 2015; and
WHEREAS, not all Participating Cities approved the Amendment by September 30, 2015,
and the County extended the deadline for approval of the Amendment with a revised effective
date of December 31, 2015 to December 31, 2015; and
WHEREAS, on December 2, 2015, the City Council, by Resolution No. 15-64, approved
the revised effective date of December 31, 2015; and
WHEREAS, not all Participating Cities approved the Amendment by December 31, 2015,
and the County is requesting that all cities approve the Amendment and revised effective date of
June 30, 2016 ("Revised Effective Date"); and
WHEREAS, the City Council desires to approve the Revised Effective Date of the
Amendment.
NOW, THEREFORE, the City Council of the City of Costa Mesa resolves, finds and
determines, on the basis of the facts set forth in the agenda report presented to it and any
testimony received at the meeting at which this matter was considered, as follows:
Section 1. The foregoing recitals are true and correct.
Section 2. The City Council hereby finds and determines that the Revised Effective
Date to the Amendment furthers the public health, safety and welfare.
Section 3. The City Council hereby approves the Revised Effective Date.
Section 4. The officers and employees of the City are authorized and directed, jointly
and severally, to do any and all things necessary or advisable in order to effectuate the purposes
of this Resolution and to administer the City's obligations, responsibilities and duties to be
performed.
PASSED AND ADOPTED this day of , 2016.
Stephen M. Mensinger, Mayor
ATTEST:
Brenda Green, City Clerk
I, Brenda Green, City Clerk of the City of Costa Mesa, California, DO HEREBY CERTIFY
that the foregoing is the original of Resolution No. and was duly passed and adopted by
the City Council of the City of Costa Mesa at a regular meeting thereof held on the 19th day of
April, 2016, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
IN WITNESS WHEREOF, I have set my hand and affixed the seal of the City of Costa Mesa this
19th day of April, 2016.
Brenda Green, City Clerk