Loading...
San Bernardino County Waste Management-2022-24 THE INFORMATION IN THIS BOX IS NOT A PART OF THE CONTRACT AND IS FOR COUNTY USE ONLY i Contract Number 98-107-A-9 SAN BERNARD1N0 COUNTY SAP Number 4400010751 PubliC Works - Solid Waste Management Division Department Contract Representative Darren J. Meeka, Depu4.Director Telephone Number (909) 387-4701 Contractor City of Grand Terrace Contractor Representative Konrad Bolowich, City:Manager_ Telephone Number (909)'824-6621 x240 Contract Term :2/24/1998—6l30/2026 Original Contract Amount -Various Amendment Amount _ - Total Contract Amount Cost'Center 6700004250 Briefly describe the general nature of the contract: The Waste.Disposal Agreement (WDA) that is.the subject of this amendment is an agreement between the County and the City of Grand Terrace for use of the County landfill system. Amendment No. 1 corrected the designated disposal facilities for the City of Grand Terrace. Amendment No. 2 was to implement the "Article 19 Solid Waste"component of the County's waste management system and define the City's'share of that revenue.Amendment No. 3 was to increase the annual maximum limits'of"Article 19-Solid Waste"in the County landfill system. Amendment.No. 4 allowed the County to charge the fee of$10.00 per ton(prorated) for identified controllable waste of the.City(e.g., roll off container trucks and other County/City.vehicles such as pickups and dump trucks)and have such waste subject to being processed in the recycling program.Amendment No. 5 allowed the County to calculate the annual cost of living, adjustment earlier in the calendar year.Amendment No. 6 extended the end date of the WDA to June 30, 2016: Amendment No. 7 allowed the Parties to extend the end date of the WDA to June 30, 2021, apply an annual fixed WDA renewal discount adjustment of$0.82 per ton for the term of the'WDA, and allow the County to enter into agreements to accept in-County waste from non-WDA users of.the Disposal System at a rate lower than - the WDA Contract Rate in exchange for'the sharing of the net revenue generated from those agreements.. Amendment No. 8 extended the end date of the WDA to June 30, 2026 and reset the WDA Contract Rate to $38.00 per ton, effective July 1, 2021. This Amendment No. 9 will cap the WDA Contract Rate in order to maintain a 15% buffer between the WDA Contract Rate and the County's posted gate rate. FOR COUNTY-USE ONLY Approved as r C to Legal Form Reviewed foontr Compliance Reviewed/App ved by Department IIN- Jolena: " Deputy county Counsel -- AndyMao,P.E. nn Brend Biggs,Director Da w Xaa/o�®�• Date 2 Date (9 Revised 3/14/19 Non-Standard Contract Coveisheet AMENDMENT NO. 9 TO THE WASTE DISPOSAL AGREEMENT NO. 98-107 On February 24, 1998, the City of Grand Terrace ("City") and the County of San Bernardino ("County") entered into a Waste Disposal Agreement ("WDA"). The parties hereby amend the WDA, on the Effective Date as provided herein, by their respective execution of this agreement (hereinafter"Amendment'). Recitals A. The parties have previously entered into the following amendments to the WDA. Amendment No. 1 to the WDA was to correct the designated disposal facilities for the City.Amendment No. 2 was to implement the "Article 19 Solid Waste" component of the County's waste management system and define the City's share of that revenue. Amendment No. 3 was to increase the annual maximum limits of"Article 19 Solid Waste" in the County landfill system. Amendment No. 4 allowed the County to charge the fee of$10.00 per ton (prorated) for identified controllable waste of the City (e.g., roll off container trucks and other County/City vehicles such as pickups and dump trucks)and have such waste subject to being processed in the recycling program. Amendment No. 5 allowed the County to calculate the annual cost of living adjustment earlier in the calendar year. Amendment No. 6 extended the end date of the WDA to June 30, 2016. Amendment No. 7 extended the term of the WDA to June 30, 2021, applied an annual fixed WDA renewal discount adjustment of$0.82 per ton for the term of the WDA, and allowed the County to enter into agreements to accept in-County waste from non-WDA users of the Disposal System at a rate lower than the WDA Contract Rate in exchange for sharing the net revenue generated from those agreements. Amendment No. 8 reset the WDA Contract Rate and extended the term for five (5)years to June 30, 2026. B. In connection with the ongoing administration of the WDA, the parties have determined it is now in their best interests to cap the WDA Contract Rate in order to maintain a 15% buffer between the WDA Contract Rate and the County's posted gate rate. C. This change will assist both the City and the County in planning for future fiscal years' budgeting of solid waste disposal services and costs by putting a mechanism in place for the future to prevent compaction with the County's posted gate rate. NOW THEREFORE, in consideration of the forgoing recitals and the following covenants and promises the Parties agree as follows: 1. Amended Section 4.2 CONTRACT RATE. (A) Generally. This section is amended in its entirety to read: SECTION 4.2. CONTRACT RATE. (A) Generally. Effective July 1, 2022, the Contract Rate payable by each Franchise Hauler shall be $40.75 per ton, subject to potential adjustment necessary to reflect the circumstances set forth below: (i) increased costs incurred by the County (in excess of available insurance proceeds) due to the occurrence of one or more Uncontrollable Circumstances, including Changes in Law; and (ii) escalation during the Term of this Agreement calculated in accordance with Section 4.2(B). In no case will the calculation of escalation exceed 85% of the County approved general public gate rate (currently $59.94 minus the current CDSDP recycling fee of $12.00), as such fees may be amended. Prior to adjusting the Contract Rate as a result of any of the circumstances described in Section 4.2(A)(i), the County shall utilize the following remedy: reduce the costs of operating the Disposal System to the extent practicable. Any adjustments to the Contract Rate permitted by Section 4.2(A)(i) shall be calculated by the County to reflect the actual costs or expenses of addressing the circumstance or circumstances pursuant to which the adjustment is authorized, and shall also reflect, where applicable, the then remaining capacity in the Disposal System. Such adjustment may not reflect circumstances other than the circumstances described in Section 4.2(A)(i). 2. Amended Section 4.2. CONTRACT RATE. (B) Calculation of Escalation. This section is amended in its entirety to read: SECTION 4.2. CONTRACT RATE. (B) Calculation of Escalation. For purposes of Section 4.2(A)(ii), the Contract Rate shall be adjusted in accordance with the formula described in this Section each July 1 during the term hereof, commencing July 1, 2022. The adjustment shall be calculated in accordance with the following formula: Contract Rate = Fixed Portion + [Escalating Portion x Index] Where, Fixed Portion = $10.87 Escalating Portion = $27.13 Index = Price Index, which shall be determined in accordance with the following formula: I = .7[PP[1/PP12] +.3[E1l/E12] PPI, = The Producer Price Index, Industrial Commodities Commodity Data, as published at the United States Department of Labor, Bureau of Labor Statistics web site, Series ID WPU03 thru 15 for the month of September in the year prior to the year for which the adjustment is being made (e.g., the adjustment effective July 1, 2011 will use the September 2010 value) PP12 = Producer Price Index, Industrial Commodities Commodity Data for the month of September, 1997 Ell = Employment Cost Index, Total Compensation, Private Industry All Workers, as published at the United States Department of Labor, Bureau of Labor Statistics web site, Series ID: CIU20100000000001 for the last quarter of the year preceding the year for which the adjustment is being made (e.g., the adjustment effective July 1, 2011 will use the third quarter, 2010 value) E12 = Employment Cost Index, Compensation, Private Industry All Workers, as published at the United States Department of Labor, Bureau of Labor Statistics web site, Table 3, established for the third quarter of 1997. 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. In no case will the adjustment to the Contract Rate exceed 85% of the County's approved general public gate rate (without the current CDSDP recycling fee of $12.00), as such fees may be amended. For example, the current County's posted gate rate is $47.94($59.94 minus the $12 CDSDP fee). Therefore, the WDA Contract Rate cannot be more than 85% of that rate, which is $40.75. However, if the County adjusts its posted gate rate in any future year of the term of the WDA, the WDA Contract Rate will be adjusted according to the above calculation formula, including the renewal discount adjustment of$0.82 per ton, up to the maximum of 85% of the newly posted gate rate. If the calculated annual adjustment of any year would exceed the 85%, then the capped maximum amount of 85% will be used. If, however, the posted gate rate does not change, and the WDA Contract Rate is already at the capped 85% amount, the WDA Contract Rate will remain the same for the calculated fiscal year. Any decrease in the calculated adjustment to the Contract Rate, calculated according to the above formula, including the renewal discount adjustment, will be applied to the then WDA Contract Rate. Please note that, due to timing, in future years where the gate rate is recommended to be increased, the WDA rate notification letter may be delayed until final approval of the gate rate by the Board of Supervisors. If at any time either the Employment Cost Index or the Producer Price Index is no longer published, or are otherwise unavailable, then the COLA shall be determined by using standard official statistics measuring changes to, respectively, labor costs and cost of materials, as the parties shall mutually agree. 3. Amended Section 5.2 CITY CONVENIENCE TERMINATION. This section is amended in its entirety to read: SECTION 5.2. CITY CONVENIENCE TERMINATION. In exchange for capping the WDA Contract Rate, the City agrees to commit to remaining a WDA City, with no provision to terminate without cause, for the remainder of the WDA Term. 4. Effective Date. This Amendment shall be effective if and only when all fifteen cities/towns listed on Exhibit A have each adopted and executed a counterpart of this Amendment No. 9 (the amendment number may differ for each city/town listed on Exhibit A) and such amendment has been adopted and executed by the County on or before June 30, 2022. In all events, the conditions in the forgoing sentence shall occur otherwise this Amendment No. 9 shall be null and void and without any effect whatsoever. 5. This Amendment may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, and such counterparts shall together constitute one and the same Amendment. The parties shall be entitled to sign and transmit an electronic signature of this Amendment (whether by facsimile, PDF or other email transmission), which signature shall be binding on the party whose name is contained therein. Each party providing an electronic signature agrees to promptly execute and deliver to the other party an original signed Amendment upon request. 6. Except as modified in this Amendment (or in any prior Amendment(s)) all other terms and conditions of the WDA shall remain in full force and effect. IN WITNESS WHEREOF,the parties have caused this Amendment to be executed by their duly authorized officers or representatives as of the day and year first above written. SAN BERNARDINO COUNTY City of Grand Terrace (Print or type name of corporation,company,contractor,etc.) B � Y ,&��rd of upervisors (Authorized signature-sign in blue ink) Dawn M. Rowe Yti OVAi Y Dated: AIN 2 g M,- Name KoA-)&A-A�- I0[d L&1 C'H SIGNED AND CERTIFIED THAT A COPY OF THIS (Print or type name of person signing contract) DOCUMENT HAS BEEN DELIVERED TO THE CHAIRMAN O Title TLj A Aj O� S ti ell (Print or Type and of Supervisors o County Qj couxr By y uek ►,�, Dated: o"1Da 2- Dep y c-1 Address 22795 Barton Road Ott' Grand Terrace, CA 92313 4Idd96tia�'� Approved as to Legal Form Reviewed for Contract Compliance Reviewed/Approved by Department Jolena Grider,Deputy County Counsel Andy Silao,P.E. Brendon Biggs,Director Date Date Date EXHIBIT A CITIES/TOWNS WITH A WASTE DELIVERY AGREEMENT WITH THE COUNTY OF SAN BERNARDINO OFFERED THIS AMENDMENT JUNE 2022 FOR AN AGREEMENT END DATE OF JUNE 30, 2026 1. ADELANTO 2. APPLE VALLEY 3. BARSTOW 4. BIG BEAR LAKE 5. COLTON 6. FONTANA 7. GRAND TERRACE 8. HESPERIA 9. HIGHLAND 10. LOMA LINDA 11. RIALTO 12. TWENTYNINE PALMS 13. VICTORVILLE 14. YUCAIPA 15. YUCCA VALLEY 1 r^ REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS OF SAN BERNARDINO COUNTY AND RECORD OF ACTION June 28, 2022 FROM BRENDON BIGGS, Director, Department of Public Works—Solid Waste Management SUBJECT Amendments to Revenue Generating Waste Disposal Agreements RECOMMENDATION(S) Approve amendments to the revenue generating Waste Disposal Agreements for 15 cities and towns listed below to cap the Waste Disposal Agreement Contract Rate in order to prevent compaction between the Contract Rate and the County's posted gate rate, effective July 1, 2022 through June 30, 2026. 1. City of Adelanto; Amendment No. 5 to Waste Disposal Agreement No. 04-321 2. Town of Apple Valley, Amendment No. 8 to Waste Disposal Agreement No. 98-48- 3. City of Barstow, Amendment No. 8 to Waste Disposal Agreement No. 98-590 4. City of Big Bear Lake, Amendment No. 8 to Waste Disposal Agreement No. 98-744 5. City of Colton, Amendment No. 8 to Waste Disposal Agreement No. 98-302 6. City of Fontana, Amendment No. 8 to Waste Disposal Agreement No. 98-106 7. City of Grand Terrace, AmendmeritYNo:94ta Waste DisposaF�Agreement-N.o. 98-107 8. City of Hesperia, Amendment No. 8 to Waste Disposal Agreement N 98=959 9. City of Highland, Amendment-,No. 8 to Waste Disposal Agreement No. 01-735 10. City of Loma Linda, Amendment No. 8 to Waste Disposal Agreement No. 98-745 11. City of Rialto, Amendment No. 8 to Waste Disposal Agreement No. 97.-1043 12. City of Twentynine Palms, Amendment No. 8 to Waste Disposal Agreement No. 98-642 13. City of Victorville, Amendment No. 7 to Waste Disposal Agreement No. 97-1052 14. City of Yucaipa, Amendment No. 8 to Waste Disposal Agreement No. 98-679 15. Town of Yucca Valley, Amendment No. 8 to Waste Disposal Agreement No. 98-288 (Presenter: Brendon Biggs, Director, 387-7906) COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES Operate in a Fiscally-Responsible and Business-Like Manner. Pursue County Goals and Objectives by Working with Other Agencies. FINANCIAL IMPACT Approval of this item will not result in the use of Discretionary General Funding (Net County Cost) as the Department of Public Works — Solid Waste Management Division (SWMD) is funded by fee revenue. SWMD establishes fees that are charged to the public and other agencies for utilization of the County's Waste Disposal System. The proposed amendment would cap the Waste Disposal Agreement (WDA) rate so that it cannot exceed 85% of-the current approved general public gate rate., Currently, the general public gate rate, without the Comprehensive Disposal Site Diversion Program (CDSDP) Item 68 Page 1 of 4 Amendments to Revenue Generating Waste Disposal Agreements June 28, 2022 recycling fee of $12.00, is $47.94 per ton. Thus, the WDA rate would be capped at $40.75. If approved, the amendment would reduce the current 2022-23 WDA rate of $43.41 to $40.75, effective July 1, 2022, reducing revenue by approximately $1.8 million. Annual Cost of Living Adjustments (COLA) are applied to the WDA rate throughout the term of the WDA. The anticipated revenue has been included in SWMD's 2022-23 budget and estimated future revenue will be reflected in future recommended budgets. BACKGROUND INFORMATION The proposed amendments to the WDAs (Amendments) will cap the WDA Contract Rate so that it cannot exceed 85% of the County's approved general public gate rate (minus the CDSDP fee) for the remainder of the term of the WDAs, which currently expire on June 30, 2026, while guaranteeing that all of the waste, is delivered to the County's Disposal System. The WDAs were originally 15-year agreements with 16 cities and towns within San Bernardino County that obligated the cities and towns to deliver their controllable waste to the County's Disposal System in exchange for a reduced contract rate for disposal at a designated, disposal facility for each city and town. In 1997, the Board of Supervisors (Board) approved the first WDAs with the cities of Rialto, San Bernardino, and Victorville. Over the following years, a total of 16Jcities and towns entered into WDAs, with Adelanto being the last city to sign in 2004. In December 2012, the City of San Bernardino's WDA expired and their City Council took action not to extend its WDA. On December 18, 2012 (Item.No. 62), the_Board approved extending the end date .of 1-4 WDAs to June 30, 2016, under the same terms and conditions. The City of Adelanto's WDA expired on April 26, 2019. On June 14, 2016 (Item No. 93), the Board approved extending the WDAs for all of the WDA cities and towns to June 30, 2021. On June 22,. 2021 (Item No. 62), the Board approved extending the term of the agreements to June 30, 2026, and reset the WDA Contract Rate to $38.00 per ton, adjusted annually according to the agreements. As a result of concerns raised by some of the WDA cities/towns regarding their calculated rate for 2022-23 resulting in an increase of 14%, SWMD and the County Administrative Office evaluated the rate methodology and financial needs of the County's Waste Disposal System to determine whether an adjustment was possible. An analysis of the WDA rate compared to the gate rate (the rate paid by the general public at the landfill) since the inception of the WDAs showed an average difference of approximately 15%. The proposed amendment addresses the current rate and puts a mechanism in place for the future to prevent compaction with the standard gate rate paid by the general public at the landfills by capping the WDA rate so that it cannot exceed 85% of the standard gate rate paid by the public (minus the CDSDP recycling fee). In exchange for capping the rate, the WDA cities/towns agree to commit to remaining a WDA city/town, with no provision to terminate without cause, for the remainder of the WDA term. This amendment would reduce the calculated 2022-23 WDA rate of $43.41 per ton to $40.75 per ton due to the cap. If the County adjusts the standard rate gate rate in any future year of the term of the WDA, the WDA rate will be adjusted according to the agreement, up to a maximum of 85% of the newly posted gate rate. All of the cities, except Grand Terrace and Big Bear Lake, have approved the WDA amendment. The WDA amendment is scheduled to be considered by the City of Grand Terrace at its City Council meeting scheduled for June 28, 2022 at 6:00 p.m. and the City of Big Bear Lake is scheduled on June 29, 2022. Should any revisions be requested to the WDA amendment by Grand Terrace and/or Big Bear Lake, SWMD will return to the Board to present the revised amendment for approval. Item 68 Page 2 of 4 Amendments to Revenue Generating Waste.Disposal Agreements June 28, 2022 These recommended actions support the goals and objectives of the County and Chief Executive Office by operating in a fiscally-responsible and business-like manner and working with other agencies by ensuring the continued waste stream from the WDA cities/towns to the County's Waste Disposal System. PROCUREMENT Not applicable. REVIEW BY OTHERS This item has been reviewed by County Counsel (Jolena Grider, Deputy County Counsel, 387- 5455) on June 6, 2022; Finance (Carl Lofton, Administrative Analyst, 387-5404) on June 10, 2022; and County Finance and Administration (Paloma Hernandez-Barker, Deputy Executive Officer, 387-5423) on June 14, 2022. Item 68 Page 3 of 4 Amendments to Revenue Generating Waste Disposal Agreements June 28, 2022 Record of Action of the Board of Supervisors San Bernardino County APPROVED (CONSENT CALENDAR) Moved: Janice Rutherford Seconded: Col. Paul Cook (Ret.) Ayes: Col. Paul Cook (Ret.), Janice Rutherford, Dawn Rowe, Joe Baca, Jr. Absent: Curt Hagman Lynna Monell, CLERK OF THE BOARD BY 3n DATED: Aldne 28, 20 2 i.\IIL'Nti hNf111(1 NO. cc: PW/SWM- Meeka w/agree QC t actor=rC/O~Pj,W/SWM,wrgree il';k/agree- LA 07/13/2022 Item 68 Page 4 of 4