HomeMy WebLinkAbout2015-26 - Approving an Amendment to the 2009 Waste Disposal Agreement with the County of OrangeRESOLUTION NO. 2015 -26
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT
BEACH APPROVING AN 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 Waste Disposal Agreement became effective on or about July 23,
2009, 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, an Amendment to the Waste Disposal Agreement (the
"Amendment'), which is attached hereto as Exhibit "A" and incorporated herein by this
reference, has been negotiated between the County and various cities throughout
Orange County to provide for continuation of importation of waste from outside the
County at County landfills in exchange for allocation to the cities of a portion of future
importation revenues and to extend the terms of this activity within the Waste Disposal
Agreement to June 30, 2025; and
WHEREAS, the City Council desires to ensure that solid waste generated within
the City can be disposed of in an environmentally safe manner and at a reasonable cost
for the near future; and
WHEREAS, the proposed Amendment furthers these goals by, among other
things, ensuring that solid waste generated within the City can be disposed of at County
landfills through -June 30, 2025; that the landfills will be operated in an environmentally
safe and reliable manner; and that the cost of disposing of solid waste at County
landfills will be reasonable.
NOW, THEREFORE, the City Council of the City of Newport Beach 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 proposed Amendment to the
Waste Disposal Agreement between the County of Orange and the City of Newport
Beach ( "Amendment ") furthers the public health, safety and welfare.
Section 3:
The City Council hereby finds and determines that the terms and provisions of the
Amendment, in the form as submitted by the City Manager, are approved and that the
Mayor is authorized to execute, and the City Clerk to attest, the Amendment on behalf
of the City.
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.
Section 5:
This Resolution shall take effect immediately upon its adoption by the City Council, and
the City Clerk shall certify the vote adopting the resolution.
ADOPTED this 14th day of April, 21
Edward D. Selich
Mayor
ATTEST:
46 ,
Eeilani 1. Brown r
City Clerk
EXHIBIT A
AMENDMENT TO WASTE DISPOSAL AGREEMENT
Between
THE COUNTY OF ORANGE, CALIFORNIA
and the
CITY OF NEWPORT BEACH
County Amendment Authorization Date:
_, 2015
County Notice Address:
Director
OC Waste and Recycling
300 N. Flower, Suite 400
Santa Ana, CA 92703
2015 Amendment to waste Disposal Agreement
April 14, 2015
City Amendment Authorization Date:
April 14, 2015
City Notice Address:
Dave Kiff, City Manager
City of Newport Beach
100 Civic Center Drive
P.O. Box 1768
Newport Beach, CA 92658
AMENDMENT TO WASTE DISPOSAL AGREEMENT
THIS AMENDMENT TO WASTE DISPOSAL AGREEMENT (the "Amendment') is made
and dated as of the date indicated on the cover page hereof between the County of Orange, a political
subdivision of the State of California (the "County"), and the City designated on the cover page of this
Amendment, a charter city and political subdivision of the State of California (the "City ").
RECITALS
The County owns, manages and operates a sanitary landfill system for the disposal of
municipal solid waste generated by the cities and the unincorporated area within the County (the
"Disposal System "). The Disposal System includes three active landfills and four regional household
hazardous waste collection centers.
The Disposal System is used for the disposal of municipal solid waste which is not reused,
recycled or otherwise diverted from landfill disposal, pursuant to the California Integrated Waste
Management Act of 1989 (Division 30 of the California Public Resources Code) (the "Act').
The County has entered into waste disposal agreements in 2009 (the "Original Waste Disposal
Agreements ") with all of the cities in the County, including the City, as well as certain sanitary districts
located in the County (the "Participating Cities"), pursuant to which the County agreed to provide
disposal capacity for waste generated in or under the control of the Participating Cities, and the
Participating Cities agreed to deliver or cause the delivery of waste generated in or under the control of
the Participating Cities to the Disposal System, as more specifically set forth in, and subject to the
terms and conditions of, the Original Waste Disposal Agreements.
The City has determined that the execution of this Amendment by the City is in the best interest
of the City and will serve the public health, safety and welfare by providing greater disposal rate
stability, more predictable and reliable long -term disposal service, and sound environmental
management.
The County has determined that the execution by the County of this Amendment will serve the
public health, safety and welfare by providing a more stable, predictable and reliable supply of
municipal solid waste and the resulting service payment revenue to the Disposal System, thereby
enabling the County to plan, manage, operate and finance improvements to the Disposal System on a
more prudent and sound long term, businesslike basis consistent with its obligations to the State and
the holders of obligations secured by its Disposal System.
Official action approving this Amendment and determining it to be in the public interest and
authorizing its execution and delivery was duly taken by the County on the County authorization date
indicated on the cover page hereof.
Official action approving this Amendment and determining it to be in the public interest and
authorizing its execution and delivery was duly taken by the City on the City authorization date
indicated on the cover page hereof.
It is, therefore, agreed as follows:
2015 Amendment to Waste Disposal Agreement
Section 1. Amendment to Original Waste Disposal Agreement.
(a) Sections 3.6(C) and 3.6(E) of the Original Waste Disposal Agreement are deleted and
replaced in their entirety, as set forth below:
"(C) Receipt of Imported Acceptable Waste on a Contract Basis. Throughout the Term
hereof, the County shall have the right to enter into a contract or other agreement with any
municipal or private non - County entity for the delivery of Imported Acceptable Waste on
terms and conditions that the County determines to be necessary to ensure and enhance the
viability of the Disposal System for the benefit of the County and the Participating Cities and to
generate Net Import Revenues. The County certifies that in its good faith judgment the contract
or other agreement for the delivery of such waste will not materially and adversely affect the
ability of the County to receive and dispose of Acceptable Waste from the Participating Cities
in accordance with the applicable Disposal Agreements throughout the Term thereof. "
"(E) Application and Use of Revenues From Other Users. (1) Throughout the term
hereof, all revenues received by the County from the disposal of County Acceptable Waste by
the Disposal System, and all revenues received by the County from the disposal of Imported
Acceptable Waste by the Disposal System (including amounts received by the County as a
result of the failure of contract counterparties to deliver minimum required amounts of
Imported Acceptable Waste) , shall be deposited by the County in the County OC Waste &
Recycling Enterprise Fund and shall constitute revenues of the Disposal System. Pursuant to
the County's Plan of Adjustment, the County is entitled to receive net revenues (after payment
of all costs attributable to the acceptance of such Imported Acceptable Waste at the Disposal
System) ( "Net Import Revenues ") from the disposal of Imported Acceptable Waste by the
Disposal System. Costs attributable to the disposal of Imported Acceptable Waste include
deposits to the Environmental Fund, deposits to closure and postelosure reserves, City host
fees (if applicable), operating costs (such as manpower expenditures, equipment, services and
supplies expenditures), state surcharges, and a pro rata share of capital project costs. Net
Import Revenues shall be used for the payment of bankruptcy related obligations until payment
in full of such bankruptcy related obligations required to be paid from such Net Import
Revenues pursuant to the Plan of Adjustment. It is estimated that payment in fall of such
bankruptcy related obligations required to be paid from such Net Import Revenues pursuant to
the Plan of Adjustment will occur by the end of Fiscal Year 2017 -18.
(2) Until the County's obligation to apply Net Import Revenues for the payment of
bankruptcy related obligations in accordance with the Plan of Adjustment has been satisfied in
full, Net Import Revenues shall be calculated as provided in Section (3.6)(E)(l). For any
period after the County's obligation to apply Net Import Revenues for the payment of
bankruptcy related obligations in accordance with the Plan of Adjustment has been satisfied in
full, Net Import Revenues shall be calculated as follows:
(i) in Fiscal Year 2017 -18, Net Import Revenues for each ton of Imported Acceptable
Waste received shall be equal to the revenues received for the disposal of such ton of Imported
Acceptable Waste (excluding any newly established per -ton fees or increases to existing
per -ton fees with respect to Imported Acceptable Waste payable to the State, other regulatory
agencies or cities in which facilities in the Disposal System are located) in excess of $17.57 per
ton;
(ii) in Fiscal Year 2018 -19, Net Import Revenues for each ton of Imported Acceptable
Waste received shall be equal to the revenues received for the disposal of such ton of Imported
2015 Amendment to Waste Disposal Agreement
Acceptable Waste (excluding any newly established per -ton fees or increases to existing
per -ton fees with respect to Imported Acceptable Waste payable to the State, other regulatory
agencies or cities in which facilities in the Disposal System are located) in excess of $18.01 per
ton;
(iii) in Fiscal Year 2019 -20, Net Import Revenues for each ton of Imported Acceptable
Waste received shall be equal to the revenues received for the disposal of such ton of Imported
Acceptable Waste (excluding any newly established per -ton fees or increases to existing
per -ton fees with respect to Imported Acceptable Waste payable to the State, other regulatory
agencies or cities in which facilities in the Disposal System are located) in excess in excess of
$18.46 per ton; and
(iv) thereafter, Net Import Revenues shall be equal to 30% of the revenues received by
the County from the disposal of Imported Acceptable Waste (excluding any newly established
per -ton fees or increases to existing per -ton fees with respect to Imported Acceptable Waste
payable to the State, other regulatory agencies or cities in which facilities in the Disposal
System are located).
(3) After the County's obligation to apply Net Import Revenues for the payment of
bankruptcy related obligations in accordance with the Plan of Adjustment has been satisfied in
full (i) 50% of any Net Import Revenues (as calculated pursuant to Section 3.6(E)(2)) shall be
paid to the County General Fund; and (ii) 50% of such Net Import Revenues shall be paid to the
Participating Cities (and to the County, with respect to the unincorporated area) listed in
Appendix 5 for use for any purpose by the Participating City, including but not limited to state
mandated solid waste programs. Payments of such amounts to the County General Fund and
the Participating Cities shall be made by the County within 90 days after the end of each fiscal
year. The portion of Net Import Revenues specified above payable to the Participating Cities
shall be apportioned in the percentages set forth in Appendix 5.
(4) The percentages set forth in Appendix 5 with respect to each Participating City will
be adjusted at the end of Fiscal Year 2019 -20 to reflect the percentage of actual deliveries of
Acceptable Waste from each Participating City as compared to the total amount of actual
deliveries from all of the Participating Cities during Fiscal Years 2017 -18, 2018 -19, and
2019 -20. The County shall notify each Participating City of the revised percentages in
Appendix 5 within 120 days after the end of Fiscal Year 2019 -20. The revised percentages will
be used for the allocation of Net Import Revenues generated during Fiscal Year 2020 -21 and
thereafter.
(b) Section 4.2(A)(z) is added to the Original Waste Disposal Agreement (immediately
following Section 4.2(A)(y)) as follows:
"(z) decrease the amount of Net Import Revenues otherwise payable to the County
General Fund and the Participating Cities pursuant to Section 3.6(E)(2) and Section 3.6(E)(3)
and use the amount of such decrease to pay costs of the Disposal System."
(c) Section 6.1(A) and Section 6.1(B) of the Original Waste Disposal Agreement are deleted
and replaced in their entirety with the following:
2015 Amendment to Waste Disposal Agreement
"SECTION 6.1 EFFECTIVE DATE AND TERM
(A) Initial Term. This Agreement shall continue in full force and effect until June
30, 2025, unless earlier terminated in accordance with its terms, in which event the Term shall
be deemed to have expired as of the date of such termination.
(B) Option to Renew, This Agreement shall be subject to renewal by mutual
agreement of the parties, on or before June 30, 2023, for an additional term of ten years (the
"Renewal Term") on the same terms and conditions as are applicable during the Initial Term
hereof. The City shall give the County written notice of its irrevocable election to renew this
Agreement on or before June 30, 2022. If the parties do not renew this Agreement by June 30,
2023, the Agreement shall expire on June 30, 2025."
(d) The first sentence of Section 6.1(C) of the Original Waste Disposal Agreement is deleted in
its entirety and replaced with the following:
"In connection with the parties' right to renew this Agreement for an additional ten -year term
pursuant to Section 6.1(B), the parties shall, on or before June 30, 2023, negotiate an applicable
change in the Contract Rate for such renewal term."
(e) Appendix 2 of the Original Waste Disposal Agreement is deleted in its entirety and
replaced with the form attached hereto.
(f) Appendix 5 shall be added to the Original Waste Disposal Agreement as a new appendix, in
the form attached hereto.
(g) All other terms and conditions of the Original Waste Disposal Agreement shall remain in
full force and effect.
Section 2. Initial Payment. As consideration for the execution of this Amendment by all of the
Participating Cities, and subject to the occurrence of the Amendment Effective Date pursuant
to Section 3, the County agrees to pay, from the County OC Waste & Recycling Enterprise
Fund, the Amendment Payment to the Participating Cities listed in Appendix 5. The aggregate
Amendment Payment shall be $5,400,000, and shall be distributed to the individual
Participating Cities (including the City) in the percentages set forth in Appendix 5 by
September 30, 2016.
Section 3. Effectiveness of Amendment. The provisions of this Amendment shall not become
effective unless and until the Amendment has been executed by the County and all of the
Participating Cities. The date on which all of the Participating Cities have executed the
Amendment shall be the "Amendment Effective Date." The County shall give written notice of
the Amendment Effective Date to the City. In the event that the Amendment Effective Date
does not occur by June 30, 2015, this Amendment shall be automatically terminated and the
County shall have no obligation to make the Amendment Payment; provided, however that the
County Board of Supervisors may extend such automatic termination date to a date no later
than September 30, 2015.
2015 Amendment to Waste Disposal Agreement
Section 4. REPRESENTATIONS AND WARRANTIES OF THE PARTIES. Each of the
parties to this Amendment represent and warrant that it is a political subdivision of the State of
California validly existing under the Constitution and laws of the State and (ii) it has duly
authorized the execution and delivery of this Amendment, and has duly executed and delivered
the Amendment.
All other terms and conditions of the 2009 Original Waste Disposal Agreement not specifically
changed by this Amendment, shall remain in full force and effect.
IN WITNESS WHEREOF, COUNTY and CITY have caused this Amendment to be executed
by their duly authorized officers or representatives as of the day and year first above written.
Date
APPROVED AS TO FORM:
CITY AT O EY'S OFFICE
Date: �� pp
By VV�
Aaron C. Harp
City Attorney
ATTEST:
Date:
IN
Leilani I. Brown
City Clerk
APPROVED AS TO FORM:
COUNTY COUNSEL
ORANGE COUNTY, CALIFORNIA
Date
2015 Amendment to Waste Disposal Agreement
COUNTY OF ORANGE
By
Director, OC Waste & Recycling
CITY OF NEWPORT BEACH,
a California municipal corporation
Date:
By:
Edward D. Selich
Mayor
APPENDIX 2
County Acceptable Waste Tonnage Target to be Used
for Purposes of Section 4.2(b)
Fiscal Year
FY 2015 -16
FY 2016 -17
FY 2017 -18
FY 2018 -19
FY 2019 -20
FY 2020 -21
FY 2021 -22
FY 2022 -23
FY 2023 -24
FY 2024 -25
2015 Amendment to Waste Disposal Agreement
Tonnage
Cumulative
2,724,250
2,724,250
2,681,153
5,405,403
2,638,746
8,044,149
2,597,017
10,641,166
2,558,522
13,199,688
2,520,605
15,720,293
2,483,256
18,203,549
2,483,256
20,686,805
2,483,256
23,170,061
2,483,256
25,653,317
APPENDIX
PARTICIPATING CITY ALLOCATION PURSUANT TO SECTION 3.6
Cit
Allocation Percentage for
Allocation of
Purposes of Section 3.6
Initial Payment
Anaheim
13.18%
$711,509
Aliso Viejo
0.67
36,416
Buena Park
2.34
126,275
Brea
2.28
123,085
Costa Mesa
2.18
117,936
Costa Mesa Sanitary District
1.48
79,976
Cypress
2.56
138,115
Dana Point
0.99
53,278
Fullerton
4.10
221,271
Fountain Valley
1.76
95,217
Garden Grove(
GG Sanitary District
7.17
387,197
Huntington Beach
6.13
330,807
Irvine
8.22
444,036
Laguna Beach
1.14
61,796
Laguna Hills
0.74
40,098
Laguna Niguel
1.36
73,341
Laguna Woods
0.41
22,274
La Habra
1.69
91,431
Lake Forest
2.45
132,214
La Palma
0.32
17,325
Los Alamitos
0.58
31,362
Mission Viejo
2.42
130,902
Newport Beach
3.68
198,946
Orange
4.90
264,468
Placentia
1.58
85,116
Rancho Santa Margarita
1.11
60,009
Santa Ana
10.60
572,184
San Clemente
1.40
75,728
San Juan Capistrano
1.23
66,420
Seal Beach
0.82
44,292
Stanton
1.62
87,287
Tustin
1.42
76,648
Villa Park
0.21
11,081
Midway City Sanitary
District (Westminster)
2.13
114,893
Yorba Linda
1.78
96,344
County Unincorporated
3.35
180,723
Totals
100%
$5,400,000
2015 Amendment to Waste Disposal Agreement
STATE OF CALIFORNIA }
COUNTY OF ORANGE } ss.
CITY OF NEWPORT BEACH }
I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the
whole number of members of the City Council is seven; that the foregoing resolution, being Resolution
No. 2015 -26 was duly and regularly introduced before and adopted by the City Council of said City at a
regular meeting of said Council, duly and regularly held on the 14`h day of April, 2015, and that the same
was so passed and adopted by the following vote, to wit:
AYES: Council Member Peotter, Council Member Petros, Council Member Curry,
Council Member Duffield, Council Member Muldoon, Mayor Pro Tern Dixon,
Mayor Selich
NAYS: None
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of
said City this 151h day of April, 2015.
IX1�1�Y
11L � . G! /U "V ��
City Clerk
Newport Beach, California Jv
(Seal)