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Home My WebLink AboutAgenda Report - December 17, 1986 (109)BACKGROUND IMRMATION: At its regular meeting of July 2, 1986, the City Council unanimously adopted resolution approving an agreement with the County of San Joaquin providing for the implementation of a gate fee at the Harney To Sanitary Landfill. A copy of this agreement is attached (Exhibit A). The agreement provides, among other things, that the gate fee of $2.00 per cubic yard for industrial waste brought to the Harney Lane Sanitary Landfill be effective on the date of the execution of the agreement (July 8, 1986). The agreement further provides that r the same gate fee be applied to residential and commercial waste generated within the City limits and brought to the Harney Lane Sanitary Landfill for ? disposal no later than December 31, 1986. This gate fee is in lieu of the present 7% of refuse bill revenue collected by the City which is remitted to := San Joaquin County for dump charges. The delay in the implementation of the gate fee for residential and ccmmrcial customers was granted by the County at the City of Lodi's request to permit the City time to undertake the first-ever ccmprehensive review and evaluation of r the operations of the City's contract hauler, Sanitary City Disposal Ccxtpany. ` One of the purposes of the study was to determine the need for rate adjustments in addition to the gate fee. To conduct this study, the City Council, at its regular meeting of June 4, 1986, retained the consulting firm of Eljumai.ly-Butler Associates of Santa Rosa, experts in the field of waste management. For a variety of reasons, not the least of which is the cci plexity ' f the assignment, t the drafts of the study, gnmen along with a proposed ordinance and franchise agreement were delivered to the City was just delivered to the City within the last two weeks. Assistant City Manager Jerry Glenn has spent considerable time reviewing the contents of same with the consultant. There remains to be acccnplished discussion with Mr. Dave Vaccarezza of Sanitary City Disposal Company before the final results of the study can be transmitted to 1 the City Council. Hopefully, this will occur sometime in February, 1987. 3. the City pay to the County the gate fee as billed effective December 31, 1986 until such date as the City Council acts on ''- the implementation of the gate fee and appears on the utility bill COMMENT: This would cost the City approximately $14,000 per month until the gate fee is placed in effect. The City would not recover this expenditure. This is not in the best interests of the City nor does it represent sound utility management. In addition, the City Attorney has some concern that this could be interpreted as a gift of public funds. A,.. COUNCIL CU44MCATICN X HARVEY LANE SANITARY LANDFILL GATE FEE December 17,`1986 A: Page 2 In the meantime, in accordance with the terms and conditions of the agreement between the City, and the County of San Joaquin, the $2.00 per cubic yard gate - fee will be charged or. residential and commercial refuse taken to the Harney Lane Sanitary Landfill for Disposal effective December 31, 1986. This equates U to approximately 38 cents on the first can and 18 cents on the sem ` can. x This represents a 7.8% adjustment which should also be applied to all commercial rates: In addition, we are aware that Sanitary City Disposal Qmpany will be approaching the City Council for an overall rate adjustment in #-' the immediate future. The draft report prepared by the City's waste management consultant includes a recmnmdation for such an adjustment. Ib minimize confusion for the rate payer, it is preferred that whatever rate adjustments are to be implemented, be placed in effect at the same time (gate fee and Sanitary City Disposal Company request). Several alternate approaches have surfaced as staff has reviewed this issue. These are: t 1. request of the County an additional time extension for the implementation of the gate fee on residential refuse : This is really not a practical alternative. in the first place, the County most assuredly would deny the 61 request. The six-month delay in this implementation was an accommodation on the County's part. Everyone in the. Ccunty, including Lodi's industrial cc mmnity is paying a per cubic Al yard gate fee with the exception of Lodi's residential and w cmuercial communities. } § 2. implement the $2.00 per cubic yard Cate fee effective December'31, t 1986 in accordance with the terms and conditions of the July 2 1986 agreement between the City of Lodi and the County of San Joaquin CCV7T: This would result in, assuming the City Council ultimately grants a rate adjustment in response to the anticipated request for same from Sanitary City Disposal Company, two separate garbage rate increases which is to be avoided if possible. 3. the City pay to the County the gate fee as billed effective December 31, 1986 until such date as the City Council acts on ''- the implementation of the gate fee and appears on the utility bill COMMENT: This would cost the City approximately $14,000 per month until the gate fee is placed in effect. The City would not recover this expenditure. This is not in the best interests of the City nor does it represent sound utility management. In addition, the City Attorney has some concern that this could be interpreted as a gift of public funds. attac','�ment TXTA. 06C CUM125 COUNCIL CUOUNICATION HARNEY LANE SANITARY LANDFILL GATE: FEE, December 17" 1986""' Page 3 4. the City pay to the County the gate fee as billed effective Decarber 31, 1986 until such date as the, City Council acts on the implementation of the gate fee and it appears on the utility bill with the proviso that any adjustment in the garbage rate include the repayment to the City over an appropriate period, one or two years A perhaps, of any expenditure made by the City, in satisfying the gate Bee in the interim COMMENT: This gives t -lo City Council time to carefully evalaatethe entire garbage rate picture, perhaps devOtIng one or more shirtsleeve sessions to this review prior to arriving at a decision. In addition it provides for the ultimate recovery of expenditures made by the City in meeting the gate fee charge. It is the staff recommendation that the City Council opt for the last WE alternate. The staff will be prepared to discussed this matter in detail at Mr. .g' Wednesday night's meeting and answer any questions Councilmmrbers may have. tb Respectfully sulirtitted, Tharas A. Peterson City Manager TAP:br attac','�ment TXTA. 06C CUM125 IlMPLA>1112KYTING HARNEY LANE SANITARY LANDFILL GATE FEES WHEREAS, at its regular meeting of July 2, 1986, the City Council adopted a resolution approving an, agreement with the County of San Joaquin. providing for the implementation of a gate fee at the Harley Lane Sanitary Landfill; and WHEREAS, said agreement provides, among other things, that'the gate fee of $2.00 per cubic yard for industrial waste brought to the Harney Lane Sanitary Landfill be effective on the date of the execution of the agreement (July 8, 1986); and WHEREAS, said agreement further provides that the same gate fee be applied to residential and commercial waste generated within the City limits and brought to the Harney Lane Sanitary Landfill for disposal no later than December 31, 1986; and WHEREAS, the delay in the implementation of the gate fee for residential and crcial customers was granted by the County at the City of Lodi's request to permit the City time to undertake a review and evaluation study of the City's contract hauler, Sanitary City Disposal Company, which study in part is to determine the need for rate adjustments in addition to the gate fee. The City Council at its regular meeting of June 4, 1986 retained as consultants for the preparation of said study, Eljumaily-Butler Associates of Santa Rosa, and said study is no yet fully completed; and WHEREAS, in accordance with the terms and conditions of the agreement between the City acid the County of San Joaquin, the $2.00 per cubic yard gate fee will be charged on residential and commercial refuse taken to said Landfill by the City effective December 31, 1986; and WHEREAS, the City Council has reviewed several alternate approaches to :$ be used in the implementation of said gate fee and has agreed on the alternate that they feel is in the City's best interests; NOW, THEREFORE, BE IT RESOLVED that the City pay to the County the gate fee as billed effective December 31, 1986 until such date as the City Council acts on the implementation of the gate fee and it appears on the utility bill with the proviso that any adjustment in the garbage rate include the repayment to the City over an appropriate period of time any interim expenditure made by the City in satisfying the gate fee. 86-187 i a sY if F Dated: December 17, 1986 f t I hereby certify that %esolution No. 86-187 was passed and `'. adopted by `the City: Council of the City of Lodi in a regular meeting held by the following votes r Ayes: Council Members - Olson, Pinkerton, Snider, Hirschman, and Reid (Mayor)_ 's Noes: Council Members - None Absent: Council Members - None Alice M. Reird:he City Clerk "3 V ^J r- S: 86-187