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HomeMy WebLinkAboutReso 1993-17206 RESOLUTION NO. 17206 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, AUTHORIZING THE STAFF TO MEET AND CONFER WITH THE COUNTY OF SAN DIEGO FOR A TWENTY YEAR SERVICE AGREEMENT AT A VARIABLE PRICE NOT TO EXCEED FAIR MARKET PRICING, OR, IN THE ALTERNATIVE, FOR A TRANSFER OF AUTHORITY OVER THE SAN DIEGO COUNTY SOLID WASTE SYSTEM TO A SPECIAL ACT DISTRICT WHEREAS, the County of San Diego has offered to provide the City of Chula Vista solid waste disposal service and facilities according to the terms of an agreement commonly known as the "Interim Flow Control Agreement"; and, WHEREAS, said Interim Agreement was disapproved by the City of Chula Vista because it contained objectionable terms and conditions, including but not limited to the lack of rate increase protection and the inability to terminate sooner than 20 years; and, WHEREAS, the City of Chula Vista is interested in a solution to the regional trash crisis that allows for reasonable rate protection to our resident ratepayers and in a manner that is consistent with sound business judgment; and, WHEREAS, the City of Chula Vista's Chamber of Commerce, under the auspices of the Honorable Pat Cavanaugh, President, has made a recommendation to the City Council consistent with the provisions of this resolution; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES HEREBY FIND, DETERMINE, ORDER AND RESOLVE AS FOLLOWS: SECTION 1. The City Manager is hereby directed to offer ("Offer") to, and if accepted to engage in, meet and confer with the County according to the following business terms: 1. The County suspend enforcement of the surcharge for a period of 120 days and extend or tolls all statute of limitations within which the City is required to commence litigation to contest the imposition of the surcharge, regardless of legal theory. SECTION 2. In exchange for the suspension of the aforementioned surcharge and extension/tolling of all such applicable statute of limitations, the City will agree to meet and confer on an intensive schedule, not less than at least once every 10 days, over a period of 90 days from the date of acceptance of this Offer for the purpose of striking agreement to the solid waste disposal problem according to either of the following two solutions (Possible Solution Nos. i and 2): Resolution No. 17206 Page 2 SECTION 3. Possible Solution No. 1. Twenty Year Contract for Service at a Variable Price, with Openers based on Fair Market Prices. The City Manager is authorized and directed to meet, confer and negotiate, and to return to the Council for approval of, an agreement (Agreement No. 1) with the County, consistent with his best business judgment and the following business terms: a. Term. The Term of Agreement No. I shall be for 20 years, subject to termination as herein provided. b. Duty of County. In exchange for the payment of the Tipping Fee charged by the County as hereinbelow limited, the County agrees, for the Term, to dispose of all solid waste otherwise disposable at a Class III landfill ("Acceptable Solid Waste"), generated within the City limits of the City of Chula Vista for the Term of Agreement No. 1. c. Duty of City. City agrees, during the Term, to: (1) Duty as a Generator. Dispose of its own solid waste generation by delivery of same to such facility reasonably designated by the County, and to pay such Tipping Fee as may be established therefore by the County in effect on the date of such delivery. {2) Duty as a Permitting Authority. Require its franchised and permitted solid waste haulers ("Haulers"), to the extent legally possible without significant exposure to the City's general fund), to dispose of all Acceptable Solid Waste collected by such franchised and permitted Haulers from generators within the City, and to require such Haulers to pay such Tipping Fee as may be established therefore by the County in effect on the date of such delivery. {3) Duty as a Regulator. Require Acceptable Solid Waste generators ("Generators") within the City (except for small generation), to the extent legally possible without significant exposure to the City's general fund, to dispose of all Acceptable Solid Waste not collected by Haulers by delivery of same to such facility reasonably designated by the County, and to require such Generators to pay such Tipping Fee as may be established therefore by the County in effect on the date of such delivery. T II Resolution No. 17206 Page 3 d. Termination Rights. (1) City's Right--Tipping Fee is 104 Above Free Market. City shall have the right to terminate this Agreement not sooner than 180 days after such time as the City reasonably determines (by written notice to the County), through findings supported by competent evidence (such as market or engineering studies), or through conditional requests for competitive proposals and receipt of competitive proposals from responsible vendors, that the Tipping Fee charged by the County for the disposal of Acceptable Solid Waste to the City, its Haulers or its Generators, is greater, by ten percent (104) than the cost that an alternative vendor or group of vendors would charge for the same or similar type of service or the cost of providing the service itself, taking into full consideration transfer (station), transport and disposal costs. (2) County's Right--System Can't Support Itself. County shall have the right to terminate this Agreement not sooner than 180 days after such time as the County reasonably determines (by written notice to the City), through findings supported by competent evidence, that the County Solid Waste Disposal System is unable to support itself without significant uncompensated contribution from the County's General Fund after making reasonably prudent decisions to reduce unnecessary costs. (3) After either party issues a notice of termination as herein permitted, the legislative bodies of each party agree to meet and confer until impasse is declared, and for at least 3 meetings thereafter, for the purpose of attempting to resolve differences and conflicts with the goal of negotiating, if possible, a revocation of the notice of termination. SECTION 4. Possible Solution No. 2. Transfer of County Solid Waste Disposal System to WAD. The City Manager is also authorized and directed to meet, confer and negotiate, and to return to the Council for approval of, an agreement (Agreement No. 2) with the County, consistent with his best business judgment and the following business terms: Resolution No. 17206 Page 4 a. Formation of a WAD. County and interested cities propose state legislation calling for the formation of a Solid Waste Special Act District ("Waste Act District" or alternative "WAD") which has, once properly formed and operating, responsibility for the disposal of Acceptable Solid Waste, and at the request of a member agency, for the collection of "Acceptable Solid Waste", and which distributes authority to vote on critical issues on the basis of trash generation ("flow") from each member agency. b. Transfer of Waste System to WAD. The proposed WAD legislation shall specify the nature andC~xtent of the County's Solid Waste System, including such assets and liability thereof as may be approved by all member agencies, prior to proposal for adoption to the State Legi sl ature. c. Transfer of Facility Siting Authority to WAD. The proposed WAD legislation shall specify that the WAD shall have facility siting authority ceded thereto by each member agency, but only on a combination of supermajori ty vote based on flow volumes and membershi p, as agreeable to the member agencies. SECTION 5. This Offer may be acceptable by either of the following: (1) Suspension of any "surcharge" for a period of 120 days (which will as acceptance constitute an extension or tolling of the necessary statute of limitations); (2) a resolution from the County Board of Supervisors announcing its acceptance. If and when accepted by the County, the duties of the party are understood not to be a commitment to these business terms, but simple a duty to meet and confer with regard to them. SECTION 6. This resolution shall take and be in full force and effect immediately upon the passage and adoption hereof. SECTION 7. The City Clerk shall immediately upon signature of the necessary Officers, transmit a certified copy hereof to the Clerk of the Board of Supervisors. SECTION 8. The City Clerk shall certify to the passage and adoption of this Resolution; shall enter the same in the book of original Resolutions of said City; and shall make a minute of the Resolution No. 17206 Page 5 passage and adoption hereof in the minutes of the meeting at which the same is passed and adopted. Resolution No. 17206 Page 6 PASSED, APPROVED and ADOPTED by the City Council of the City of Chula Vista, California, this 20th day of July, 1993, by the following vote: YES: Councilmembers: Fox, Moore, Rindone, Nader NOES: Councilmember: None ABSENT: Councilmember: Horton ABSTAIN: Councilmember: None Tim Nader, Mayor ATTEST: everly ~. Authelet, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) ss. CITY OF CHULA VISTA ) I, Beverly A. Authelet, City Clerk of the City of Chula Vista, California, do hereby certify that the foregoing Resolution No. 17206 was duly passed, approved, and adopted by the City Council held on the 20th day of July, 1993. Executed this 20th day of July, 1993. Beverly A/~Authelet, City Clerk