Loading...
HomeMy WebLinkAboutAgenda Report - June 25, 1986 (74)�7 � � x� � �* s � � s X be delayed no later than December 31, 1986" It is the County's position that the imposition of the gate fee is necessary because of a mounting deficit in this operation. w: .t This deficit has been the result of increased operating costs; increased closure costs as a result of new. State requirements for closure; inadequate funding frau both the City of Lodi and the County's franchised and. licensed �`. collection activities; and the non-payment of disposal fees for same waste brought to the site. Included in this last category is waste generated by Lodi's industrial ccmminity. The proposed agreement is the result of a number of lengthy negotiating sessions involving several members of both the City and County staffs. The County's figures, with which the City staff has no argument, would translate to an increase to residential. and commercial custcmers of approximately 8.2%. This would take the first can residential rate frau $4.87 to $5.27; the second can frau $2.35 to $2.54. The camiercial rates would go from $6.83 to $7.39 for the first can; $11.22 to $12.14 for two cans. This is also an approximate 8.2% increase. The impact on the industrial carmunity is considerably different. For example, the current charges for a 20 -yard bin is $95.00. Mr. Vaccarezza has advised the City that a dump fee is not included in this figure since none is presently charged. Adding the proposed $2.00 per cubic yard gate fee ($2.00 x 20 cubic yards = $40.00) takes this figure fran $95.00 to $135.00, an increase of approximately 42%. Obviously, this increase is considerably more than the residential - cc mmercial adjustment. However, since apparently no dump fees have, to this date, been charged to the industrial custcners, this segment of our ccmmmity has benefitted fran lower disposal fees in past years. Following a lengthy discussion with questions being directed to Staff, Council, on motion of Mayor Reid, Olson second, continued this matter to the Regular Council Meeting of July 2, 1986 requesting amended language be included in the proposed agreement for Council review and approval. a result, as matters stand at ;this moment, the gate feer established March 1, 1986 excludes Lodi residential, ccmrercial and industrial waste and waste- fran municipal 'a vehicles. The study to review the refuse collection service in this City is now underway and should be carpleted in 8-10 weeks. The County recognizes -the City's desire to complete the study now underway and to thoroughly evaluate the results of that study. In view of this, at City staff's request, the agreement provides that " .. the actual imposition of :t charges for gate fees for residential and commercial refuse generated by City residential and cmrercial sources shall X be delayed no later than December 31, 1986" It is the County's position that the imposition of the gate fee is necessary because of a mounting deficit in this operation. w: .t This deficit has been the result of increased operating costs; increased closure costs as a result of new. State requirements for closure; inadequate funding frau both the City of Lodi and the County's franchised and. licensed �`. collection activities; and the non-payment of disposal fees for same waste brought to the site. Included in this last category is waste generated by Lodi's industrial ccmminity. The proposed agreement is the result of a number of lengthy negotiating sessions involving several members of both the City and County staffs. The County's figures, with which the City staff has no argument, would translate to an increase to residential. and commercial custcmers of approximately 8.2%. This would take the first can residential rate frau $4.87 to $5.27; the second can frau $2.35 to $2.54. The camiercial rates would go from $6.83 to $7.39 for the first can; $11.22 to $12.14 for two cans. This is also an approximate 8.2% increase. The impact on the industrial carmunity is considerably different. For example, the current charges for a 20 -yard bin is $95.00. Mr. Vaccarezza has advised the City that a dump fee is not included in this figure since none is presently charged. Adding the proposed $2.00 per cubic yard gate fee ($2.00 x 20 cubic yards = $40.00) takes this figure fran $95.00 to $135.00, an increase of approximately 42%. Obviously, this increase is considerably more than the residential - cc mmercial adjustment. However, since apparently no dump fees have, to this date, been charged to the industrial custcners, this segment of our ccmmmity has benefitted fran lower disposal fees in past years. Following a lengthy discussion with questions being directed to Staff, Council, on motion of Mayor Reid, Olson second, continued this matter to the Regular Council Meeting of July 2, 1986 requesting amended language be included in the proposed agreement for Council review and approval. �QUNCIL COMMUNICATION TO: THE CITY COUNCIL DATE NO. FROM: THE CITY'. MANAGER'S. OFFICE June 20, 1986 SUBJECT: HARNEY LANE SANITARY LAMFILL GATE FEE AGREEMENT PREPARED BY: City Manager RECOMMENDED ACTION: That the City Council approve and authorize the execution of an agreement with the County of San Joaquin providing for the implementation of a gate fee at the Harney Lane Sanitary Landfill. BACKGROUND INFORMATION: During its 1984-85 budget review, the County of San Joaquin Board of Supervisors approved the concept of charging a user fee to all users of County solid waste facilities. Since that time the necessary agreements have been prepared, and ordinance amendments have been adopted providing for the implementation of this fee at all such facilities throughout the County. The gate fee was implemented effective March 1, 1986. However, because of an existing agreement in effect between the City and the County, this gate fee was not applied to refuse brought to the Harney Lane Sanitary Landfill generated by City of Lodi residents and commercial establishments. The gate fee to be implemented at the Harney Lane site is $2.00 per cubic yard. As the Council is aware, Lodi's industrial ccmmmznity is not included in the City franchise agreement with Sanitary City Disposal Ccopany. It was the County's intention to apply this gate fee to industrial waste brought to the Harney Lane site effective March 1, 1986. At its regular meeting of February 19,. 1986, the City Council directed the City Manager to write to the County Board of Supervisors requesting a 60 -day delay of the implementation of this fee to provide time for the City to review the entire refuse collection service within the City. The board of Supervisors honored this request. In early May, the County advised the City that the 60 -day grace period had expired and that the gate fec would, effective May 19. 1986, be charged on industrial = waste brought to the Harney Lane site. I reported this to the City Council at its regular meeting of May 7, 1986. At the time the 60 -day delay was granted, the County and Mr. Dave Vaccarezaa executed an agreement which provided that the gate fee would not be applied to refuse brought to the Harney Lane site generated by the City of Lodi residential, commercial, industrial customers and City of Lodi vehicle collection service until the City and the County "establish and execute an agreement regarding switching the City of Lodi to the gate fee system." Thus the gate fee cannot be applied to waste generated in the City and taken to the. landfill by a ccxmiercial hauler (i.e. Sanitary City Disposal Co., California Waste Removal System, Inc.) until the attached agreement (Exhibit A) is approved. As a result, as matters stand at this moment, the gate fee established March 1, 1986, excludes Lodi residential, commercial and industrial waste and waste frzxm municipal vehicles. The study to review the refuse collection service in this City is now underway and should be ccnTpleted in 8-10 weeks. The County recognizes the City's desire to complete the study now underway and to thoroughly evaluate the results of that study. In tview of this, at. City staff's request, the agreement provides that " •. the actual imposition of charges for gate fees for residential and commercial refuse generated by City residential and commercial sources shall be delayed no later than December 31, 1986.11 It is the County's position that the imposition of the gate fee is necessary because of amounting deficit in this operation. This deficit has been the result of increased operating costs; increased, closure costs as a result of new State :requirements for closure; inadequate funding from both the City of Lodi and the County's franchised and licensed collection activities; and the non-payment of disposal fees for some waste brought to the site. Included in this last category is waste generated by Lodi's industrial community. The attached agreement is the result of a minber of lengthy negotiating sessions involving several members of both the City and County staffs. The County's figures, with which the City staff has no argument, would translate to an increase to residential and ocmmercial customers of approximately 8.2%. This would take the first can residential rate from $4..87 to $5.27; the second can from $2.35 to $2.54. The commercial rates would go from $6.83 to $7.39 for the first can; $11.22 to $12.14 for two cans. This is also an approximate 8.2% increase. The impact on the industrial commmity is considerably different. For example, the current charges for a 20 -yard bin is $95.00. Mr. Vaccarezza has advised the City that a dump fee is not included in this figure since none is presently charged. Adding the proposed $2.00 per cubic yard gate fee ($2.00 x 20 cubic yards = $40.00) takes this figure fram $95.00 to $135.00, an increase of approximately 42%... Obviously, this increase is considerably more than the residential-camrexcial adjustment. However, since apparently no dump fees have, to this date, been charged to the industrial customers, this segment of our co m mity has benefitted from lower disposal fees in past years. The staff will be prepared to discuss this matter with the City Council and answer any questions Council.menbers may have. Respectfully submitted, - Ca. 6t�L_i Thomas A. Peterson City Manager TAP/br THIS AGREF is- made and entered into this day of 1985, by and between the City of Lodi, a municipal corporation, hereinafter "CITY", and tha County of San Joaquin, a political subdivision of the State of California, hereinafter "COUNTY". WHEREAS, the City and.County.have an agreement dated January 2, 1975 regarding the operation of the Harney Lane sanitary landfill and the disposal of City refuse at such landfill; and WHEREAS, such January 2, 1975 agreement provides that the City shall have the right to have certain refuse generated within City limits disposed of at the Marney Lane sanitary landfill in exchange for the City paying County a certain percentage of fees col3ected by City from collectors of City refuse; and WHEREAS, the City and County have an agreement dated March 19, 1980 relating to solid waste management; and WHEREAS, it is the intent of County that users of County refuse disposal facilities pay the disposal costs connected with such use, and it is the intent. of County and City that City pay only its fair share of disposal site closure costs; and WHEREAS, County has begun the implementation of gate fees for the t disposal of refuse in sanitary landfills which County awns, operates, or controls; and WHEREAS, County desires to substitt. -e a gate fee for the present arrangement whereby City pays to County a percentage of fees collected by City frcan collectors of City refuse; and t For Disposal of Refuse for Refuse Service Area B of the County of San Joaquin, dated February 25, 1986, that gate fees shall be applied against the actual volume of refuse which is delivered by Sanco or its affiliates to disposal sites provided by County and which is derived from City residential, comTercial and industrial, sources, and City vehicle collection services, when City and County establish and execute 71 an agreement regarding switching City to the gate fee system; l NOW, THEREFORE, City and County agree as follows regarding switching City to a gate fee system for disposal of City refuse in 3, 14 disposal facilities provided by County: 1 Beginning on the effective date of this agreement, all - -4 industrial, ccmTercial and residential refuse, as the terms "residential refuse", "industrial refuse" and "comTercial refuse" are defined by Section 5-2101(e), (m), (r) of the San Joaquin County Ordinance Code, derived frcin City residential, ccnuercial and industrial sources shall be subject to and charged a gate fee. Such A gate fee shall be based on the volume or weight of refuse disposed. Any gate fee based on weight shall be as established frcin time to time by the Board of Supervisors of County. Any gate fee based on volume shall be equal to the number of unecalpacted cubic yards of refuse Si deposited tines an amount for unccalpacted cubic yards established from time to time by the Board of Supervisors of County. Each compacted cubic yard of refuse shall be multiplied by a factor of 1.4 to determine the total amount of uncompacted cubic yards of refuse to beginning on the effective date of this agreement, a gate fee established by the Board of Supervisors of County based on the volume or weight of refuse so disposed. 2. Users of County -owned, operated or controlled refuse disposal facilities shall pay disposal costs connected with such use. City shall pay only its fair share of the cost of closure of refuse disposal facilities owned, operated or controlled by County. z" 5; t, be deposited; provided that the actual imposition of charges for gate'.. fees for residential and commercial refuse generated. by City residential and commercial sources shall be delayed no later than s December 31, 1986, in order to allmy City to .complete a study regarding the impact of gate fees on the collection of refuse in the City; and provided further than on and after December 31, 1986, such gate fee shall be imposed automatically against residential and commercial refuse generated by City residential and commercial sources as. hereinabove set forth, if not earlier implemented by agreement of City and Cou,ty. Notwithstanding anything to the contrary in the January 2, 1975 agreement between City and County, for City -awned vehicles Al utilizing County -owned, operated or controlled disposal facilities for j the disposal of refuse as defined herein, City shall pay County, beginning on the effective date of this agreement, a gate fee established by the Board of Supervisors of County based on the volume or weight of refuse so disposed. 2. Users of County -owned, operated or controlled refuse disposal facilities shall pay disposal costs connected with such use. City shall pay only its fair share of the cost of closure of refuse disposal facilities owned, operated or controlled by County. l COUN'T'Y OF SAN JOAQUIN, a �.: S. . political subdivision of t shall send to Citv, the Countstaff rgate " E c - ` H Clerk of the Board of 3 5. This agreement shall be in effect on July 1, 1986, and remain By in full force and effect throughout the terms of the January 2, 1975 DOUQIASS W. WILHOTT, Chairman I: and March 19, 1980 _agreements between City and County hereinabove Board of Supervisors mentioned, and after the expiration of s.:ch agreements, rates charged Deputy Clerk i for the disposal of City industrial, cmTmrcial and residential refuse . ;-A corporation of the 1 _ ( :2 at disposal facilities provided by County shall be as established by State of California By the Board of Supervisors of County. Fred M. Reid �t mr City Clerk Mayor A IN WITNESS WfHPMF the parties hereto have executed this agreement -4- r'gr �. _ this day of , 1986. s COUN'T'Y OF SAN JOAQUIN, a �.: S. . political subdivision of 1 the State of California ATTEST: JORETTA J. HAYDE ` H Clerk of the Board of f Supervisors of the County of San By Joaquin, State of California DOUQIASS W. WILHOTT, Chairman Board of Supervisors By (SEAL) Deputy Clerk CITY OF LODI, a municipal corporation of the 1 _ ( :2 A�{}�sS} State of California By Alice M. Reimche Fred M. Reid City Clerk Mayor A -4- �. t APPROVED AS TO FORM: APPROVED AS TO FOM: JOHN F. CHEADLE _. County Counsel RONALD M. STEIN By City Attorney TERRANCE R. DER*MY CITY OF IUDI Chief Deputy County. Counsel Attorneys for C xwy a APPRM D AS TO CONTE[U: s = HENRY hZRATA, Director Public Works Departrent 3 .. exchange for the City paying County a certain percentage of fees collected by City from collectors of City refuse; and WHEREAS, the City and County have an agreement dated March x ` 19, 1980, relatiag to solid waste management and WHEREAS, it is in the intent of County that users of County refuse disposal facilities pay the disposal costs connected with such use and it is the intent of County and City that City pay only its fair share of disposal site closure costs; and WHEREAS, County has begun the implementation of gate fees for the disposal of refuse in sanitary landfills which County owns, operates, or controls; and WHEREAS, County desires to substitute a gate fee for the ,* EXHIBIT A d : AGREEMENT REGARDING REFUSE DISPOSAL AT HARNEY LANE LANDFILh THIS AGREEMENT is made and entered into this day of 1986, by and between the City of Lodi, a municipal .r corporation, hereinafter "CITY", and the County of San Joaquin, a political subdivision of the State of California, hereinafter dW 3 "COUNTY". WHEREAS, the City and County have an agreement dated January it 2, 1975, regarding the operation of the Harney Lane sanitary landfill and the disposal of City refuse at such landfill; and WHEREAS, such January 2, 1975, agreement provides that the City shall have the right to have certain refuse generated within City limits disposed of at the Harney Lane sanitary landfill in exchange for the City paying County a certain percentage of fees collected by City from collectors of City refuse; and WHEREAS, the City and County have an agreement dated March x ` 19, 1980, relatiag to solid waste management and WHEREAS, it is in the intent of County that users of County refuse disposal facilities pay the disposal costs connected with such use and it is the intent of County and City that City pay only its fair share of disposal site closure costs; and WHEREAS, County has begun the implementation of gate fees for the disposal of refuse in sanitary landfills which County owns, operates, or controls; and WHEREAS, County desires to substitute a gate fee for the NOW, THEREFORE, City and County agree as follows regarding switching City to a gate fee system for disposal of City refuse rF34 in disposal facilities provided by County: 5 1. Beginning on the effective date of this agreement, all industrial, commercial and residential refuse, as the terms s "resi.dential refuse", "industrial refuse" and "commercial refuse" are defined by Section 5-2101(e), (m), (r) of the San Joaquin County Ordinance Code, derived from City residential, commercial and industrial sources shall be subject to and charged a gate fee. Such gate fee shall be based on the volume or weight of refuse disposed., Any gate fee based on weight shall be as established from time to time by the Board of Supervisors of County. Any gate fee based on volume shall be equal to the number of uncompacted cubic yards of refuse deposited times an - 2 - present arrangement,whereby Citypays to County.a percentage'.of z fees collected by City from collectors of City refuse; and WHEREAS, Co-anty and Sanco Disposal Service Incorporated, a California corporation with its principal offices in Lodi, Cali-- fornia, (hereinafter "Sanco") have agreed by the Second Amendment to Contract for Disposal of Refuse for Refuse Service Area B of z the County of San Joaquin, dated February 25, 1986, that gate fees shall be applied against the actual volume of refuse which is delivered by Sanco or its affiliates to disposal sites pro- vided by County and which is derived from City residential, com- mercial and industrial sources, and City vehicle collection services, when City and County establish and execute an agreement regarding switching City to the gate fee system; NOW, THEREFORE, City and County agree as follows regarding switching City to a gate fee system for disposal of City refuse rF34 in disposal facilities provided by County: 5 1. Beginning on the effective date of this agreement, all industrial, commercial and residential refuse, as the terms s "resi.dential refuse", "industrial refuse" and "commercial refuse" are defined by Section 5-2101(e), (m), (r) of the San Joaquin County Ordinance Code, derived from City residential, commercial and industrial sources shall be subject to and charged a gate fee. Such gate fee shall be based on the volume or weight of refuse disposed., Any gate fee based on weight shall be as established from time to time by the Board of Supervisors of County. Any gate fee based on volume shall be equal to the number of uncompacted cubic yards of refuse deposited times an - 2 - amount for uncompacted cubic yards established.from time to -time by the Board of Supervisors of County. Each compacted cubic yard of refuse shall be multiplied by a factor of 1.4 to determine the total amount of uncompacted cubic yards of refuse to be deposited; provided that the actual imposition of charges for gate fees for residential and commercial refuse generated .by City. residential and commercial sources shall be delayed no later than December 31, 1986, in order to allow City to complete a study regarding the impact of gate fees on the collection of refuse; in n the City; and provided further that on and after December 31, 1986, such gate fee shall be imposed automatically against resi- dential and commercial refuse generated by City residential and commercial sources as hereinabove set forth, if not earlier implemented by agreement of City and County. Notwithstanding anything to the contrary in the January 2, 1975, agreement be- tween City and County, for City owned vehicles utilizing County - owned, operated or controlled disposal facilities for the disposal of refuse as defined herein, City shall pay County, beginning on the effective date of this agreement, a gate fee established.by the Board of Supervisors of County based on the volume or weight of refuse so disposed. 2. Users of County owned, operated or controlled refuse disposal facilities shall pay disposal costs connected with such use. City shall pay only its fair share of the cost of closure of refuse disposal facilities owned, operated or controlled by County. 3. This agreement shall be in effect on July 1, 1986, and 3 - 'i - By (SEAL) Deputy Clerk Clerk, City of Lodi CITY OF LODI, a municipal corporation of the State of California By Title - 4 - remain in fu1T force and effect' throughout..the terms of the January 2, 1975,` and March 19, 1980, agreements between City: and County hereinabove mentioned, and after the`expiration'a such agreements, rates charged for the disposal of City industrial, . z commercial and residential refuse `at disposal facilities provided by County shall be as established by the Board of Supervisors of # County. 4. The disposal of any "refuse", as that term is defined.by Section 5-2101(p) of the San Joaquin County Ordinance Code,.which is not otherwise dealt with in section l of this agreement, is subject to such disposal fees as imposed by County and shall not be the subject of this agreement. IN WITNESS WHEREOF the parties hereto have executed this agreement this day of 1986. COUNTY OF SAN JOAQUIN, a s political subdivision.of the State of California ATTEST: JORETTA J. HAYDE -F Clerk of the Board: of Super- visors of the County of San By Joaquin, State of California DOUGLASS W. WILHOIT, Chairman J Board of Supervisors - By (SEAL) Deputy Clerk Clerk, City of Lodi CITY OF LODI, a municipal corporation of the State of California By Title - 4 - (19:TRD:"HARNEYl")