For City Council Meeting [June 8, 2021]
TO: Honorable City Council
APPROVAL: Sean Grayson, Acting City Manager
FROM: Michael Tahan, Interim Public Works Director
Title
Request City Council 1) Approve Amendment No. 7 to the Waste Delivery Agreement between the City of Rialto and San Bernardino County, Division of Solid Waste, Extending the Term from June 30, 2021 to June 30, 2026 and 2) Authorize the City Manager to Execute the Agreement.
Body
BACKGROUND:
The Waste Disposal Agreement (WDA) is a 24-year agreement between San Bernardino County and the City of Rialto along with 14 other cities for the use of the County Landfill System. The 14 other cities included in the WDA are the Cities of Adelanto, Apple Valley, Barstow, Big Bear Lake, Colton, Fontana, Grand Terrace, Hesperia, Highland, Loma Linda, Twentynine Palms, Victorville, Yucaipa and Yucca Valley.
The Agreement was first amended on February 19, 2002, to implement the “Article 19 Solid Waste” component of the County Waste Management System and define the City’s share of revenue. This component allowed San Bernardino County to offer competitive rates to non-WDA member cities with member cities being offered a share of the revenue generated from the disposal fees.
In June 2003, Amendment No. 2 was approved to increase the annual maximum limits in the County’s landfill system.
In November 2007, Amendment No. 3 was approved which allowed the County to charge $10.00 per ton (pro-rated) for identified controllable waste generated in the City and to have such waste subject to being processed in a recycling program. For example, roll-off container trucks and other County or City vehicles such as pick-up and dump trucks would be subject to the surcharge.
In November 2007, Amendment No. 4 was approved which allowed the County to calculate an annual cost-of-living adjustment earlier in the calendar year and notify member cities of any changes on a more timely basis.
The approved Amendment No. 5 extended the end date of the WDA Agreement to June 30, 2016.
In June 2016, Amendment No. 6 extended the end date of the WDA Agreement to June 30, 2021 and applied an annual fixed WDA renewal discount adjustment of $0.82 per ton for the term of the agreement.
ANALYSIS/DISCUSSION:
The County is requesting approval of Amendment No. 7 to the WDA (Attachment 1). Staff has reviewed the Waste Delivery Agreements between the San Bernardino County Solid Waste Division and fifteen San Bernardino County cities and towns and recommends its approval. The current Agreement terminates on June 30, 2021. This Amendment would extend the term of the Agreement for five (5) years until June 30, 2026, with each member city or town having the same termination date. The Agreement commits the City to deliver the municipal solid waste generated within its boundaries to the County Landfill System. In return for the City’s commitment, the County offers a stable rate for the term of the contract subject to CPI increases and government-imposed mandates/law changes. Both the City and County recognize that the WDA better serves the public health, safety and welfare by providing greater disposal rate stability, more predictable and reliable long-term disposal service, and the continuation of sound environmental management.
The proposed amendment provides for a number of changes to the WDA. These changes include:
Term Extension:
The WDA expires on June 30, 2021. The County proposes to extend the term of the contract until June 30, 2026. The extension will benefit the City by providing stable and predictable disposal rates for the term of the contract.
Rate:
The proposed amendment will lower the current Contract Rate for disposal from $39.12 to $38.00 per ton. The $38.00 per ton is the rate the City will pay the County for each ton of solid waste from the City’s municipal trash program that is disposed within the County Landfill System. Rialto and the other WDA cities are permitted to direct haul their waste to the landfill.
The amendment will become effective upon approval by the individual cities and adoption by the County Board of Supervisors. County staff is targeting June 22, 2021 for Board consideration.
ENVIRONMENTAL IMPACT:
The request is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. According to Section 15378(b), a Project does not include: (5) Organizational or Administrative activities of governments that will not result in direct or indirect physical changes in the environment.
GENERAL PLAN CONSISTENCY:
Approval of this action complies with the following City of Rialto General Plan Goal and Policy:
Measure 8.43: Provide Solid Waste and Recycling Programs, continue to meet the community’s needs for solid waste disposal and recycling, and provide that operations are done in an efficient and cost-effective manner.
LEGAL REVIEW:
The City Attorney has reviewed and supports this staff report and Amendment No. 7 to the Waste Disposal Agreement.
FINANCIAL IMPACT:
Operating Budget Impact:
The County’s Solid Waste Management Division accepted the WDA Cities’ proposal to reduce the WDA rate to $38.00 per ton effective July 1, 2021. This results in a $1.12 per ton decrease to the current WDA rate. Effective July 1, 2022, and each July 1 thereafter during the term of the Agreement, the Contract Rate adjustment will be calculated as provided above, except that an annual fixed WDA renewal discount adjustment of $0.82 per ton will be applied after the annual Cost of Living Adjustment (COLA) adjustment.
Capital Improvement Budget Impact:
There is no impact to the Capital Improvement Budget related to the approval of the Waste Disposal Agreement.
Licensing
The proposed action will not require payment of a business license tax.
RECOMMENDATION:
Staff recommends that the City Council approve Amendment No. 7 to the Waste Disposal Agreement with San Bernardino County Solid Waste Division, extending the term of the current Waste Disposal Agreement from June 30, 2021 to June 30, 2026.