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HomeMy WebLinkAbout06 WASTE FRANCHISE AG 04-06-98AGENDA DATE: APRIL 6, 1998 NO. 6 4-6-98 I n t e r- C o m TO: FROI',~,: SUBJECT: WILLIAM A. ItUSTON, CITY MANAGER PUBLIC WORKS DEPARTMENT SOLID WASTE FR.4dNCttlSE AGREEMENT AMENDMENT RECOMMENDATION: Staff recommends that the City Council approve an amendment to the Solid Waste Franchise Agreement with Great Western Reclamation (GWR) and authorize the City Manager to execute the document. FISCAL IMPACT: None. DISCUSSION: In March of 1997, the City Council approved a Waste Disposal Agreement with the County of Orange. This agreement, more commonly 'known as the Flow Agreement, gave the County first right to the City's solid waste in exchange for a lower and fixed tipping fee for a ten-year period. The current fee is $22.00 per ton. A clause in the flow agreement with the County required each city to amend their local Franchise Agreements to require that waste be hauled only to landfills owned and operated by Orange County. This Franchise Agreement amendment formally implements that clause and is included as Attachment A to this report. Specifically, this amendment states that "the location of the final disposal of all municipal solid waste collected by the Contractor (GWR) after recycling and salvage ... shall be the Orange County Landfill System...". The approval of this amendment will not result in any changes to customer rates or to the term of the contract. The approval of the Waste Disposal Agreement with the County did result in a five dollar per ton decrease for the tipping fees that GWR pays at the Orange County landfills. That savings has already been passed along to customers and is reflected in the current rate structure. Tim D. Serlet Public Works Director/City Enginmr TDS'.JM:ceg: CC rpt Contract Amendment ATTACHMENT A GREAT WESTERN RECLAMATION FRANCHISE AGREEMENT AMENDMENT AMENDMENT NUMBER 4 TO AGREEMENT FOR THE COLLECTION AND TRANSPORTATION OF SOLID WASTE REFUSE PRODUCED OR ACCUMULATED IN THE CITY OF TUSTIN This Amendment Number 4 to the Agreement for Collection and Transportation of Solid Waste Refuse Produced or Accumulated in the City of Tustin dated December 19, 1988, is made and entered into by and between the CITY OF TUSTIN, a municipal corporation (hereinafter "City"), and GREAT WESTERN RECLAMATION, a division of WASTE MANAGEMENT COLLECTION AND RECYCLING, INC., a California corporation (hereinafter "Contractor"), to be effective as Of the 30th day of March, 1997. RECITALS 1. The parties to this Amendment Number 4 heretofore entered into the Agreement for Collection and Transportation of Solid Waste Refuse Produced or Accumulated in the City of Tustin dated December 19, 1988 (the "Original Agreement") and thereafter, the parties amended the Original Agreement aS follows: (i) by that certain Amendment No. 1 to Agreement for Collection and Transportation of Solid Waste Refuse Produced or Accumulated in the City of Tustin effective June 28, 1991, (ii) by that certain Amendment No. 2 to Agreement for Collection and Transportation of Solid Waste Refuse Produced or Accumulated in the City of Tustin effective September 15, 1992, and (iii) by that certain Amendment No. 3 to Agreement for Collection and Transportation of Solid Waste Refuse Produced or Accumulated in the City of Tustin effective July 1, 1993 (the Original Agreement and the above described amendments shall be collectively referenced as the "Agreement, as amended"). 2. In recognition of the City's having entered into that certain Waste Disposal Agreement by and between the City and the County of Orange, providing for the long- term disposal of municipal solid waste collected within the City at the Orange County Landfills at a guaranteed tipping fee, the City desires and Contractor agrees to enter into this Amendment 4 to establish specific terms that will allow the City to meet its obligations under the Waste Disposal Agreement, and clarify other pending matters. NOW, THEREFORE in consideration of the mutual benefits and covenants herein, the parties agree as follows: 1100-0000 42430_1 AGREEMENT 1. Notwithstanding the terms and conditions of the Agreement, as amended, including but not limited to Section 1 and Section 8(f)(iv) of the Original Agreement, and Sections 1,2, 5 and 10 of Amendment No. 1, the City of Tustin shall have the right to approve the location of final disposal of municipal solid waste collected by Contractor in the City or any residue thereof remaining after recycling or salvage under the terms of the original Agreement, as amended. Unless otherwise notified by City in writing, the location of final disposal of all municipal solid waste collected by Contractor after recycling or salvage in accordance with the terms of the Agreement, as amended, shall be the Orange County Landfill System as described in the Waste Disposal Agreement. 2. Contractor agrees that all residue or material remaining after recycling, salvage or processing of City's municipal solid waste, shall be delivered to the final disposal location approved by City. To the extent that Contractor utilizes any other operator of a materials recovery facility, other than one controlled by Contractor, for the processing, recycling, salvage or transfer of municipal solid waste collected within the City ("Other Facility"), the City shall have the right to approve the Other Facility. It shall be a condition of the Contractor's use of the Other Facility, that the Contractor enter into agreements providing that the City's requirements for designation of the final disposal location will be met. Further, from time to time as may be requested by City, the Contractor and any material recovery facility used by Contractor shall be required to certify under penalty of perjury the amounts of municipal solid waste delivered to the facility by Contractor and the amounts of residue or material remaining after processing, recycling or salvage. 3. Contractor has reviewed a copy of the Waste Disposal Agreement. In the event that any City breach of the Waste Disposal Agreement occurs due to the independent action or inaction of the Contractor or any materials recovery facility under Contractor's control that accepts City's municipal solid waste from Contractor, the Contractor agrees to pay, on behalf of the City, any amounts which may become due and owing to the County as a result thereof. 1100-00001 42430_1 2 IN WITNESS WHEREOF, the parties have caused this Amendment No. 4 to be executed by their duly authorized representatives as of the day and year first above written. "City" City of Tustin, a municipal corporation Approved as to Form: Lois E. Jeffrey j City Attorney By: William A. Huston, City Manager "Contractor" Great Western Reclamation, a division of Waste Management Collection and Recycling, Inc., a California corp~ati.o~n / / 1100-00001 42430._1 3