HomeMy WebLinkAboutRCC AGENDA PK 1999/07/12
·f - -
,..} "~:'.'-Jl~
,I' COUNCIL AGENDA STATEMENT
~
Item
Meeting Date June 22. 1999
ITEM TITLE: Public Hearing - To Consider Granting A Waste Management Franchise
Renewal through September 4, 2007 with an Option to Extend Until the Year
2015 Subject to Satisfactory Performance, and Potential Additional
Extensions at City's Sole Option until the Year 2031
Ordinance 02792 Granting a Waste Management Franchise Renewal to
Pacific Waste Services through September 4,2007 with an Option to Extend
Until the Year 2015 Subject to Satisfactory Performance, and Potential
Additional Extensions at City's Sole Option until the Year 2031 In
Accordance with the Terms and Conditions of the Franchise Agreement, and
Authorizing Mayor to. Execute Same (FirS! Reading)
Resolution 19501 Approving in Concept a Landfill Agreement with Otay
Landfill, Inc. Regarding City Trash Flow and Landfill Mitigation
SUBMITTED BY: Conservation fð5ilirurtor ~
Reviewed By: City Manager
(4/5ths Vote Yes _ No Xl
The current solid waste and recycling Franchise Agreement expires on September 4, 2002. In
anticipation of the end of that agreement, staffhas worked with the City's current service provider
Pacific Waste Services (PWS) to negotiate the terms and conditions for a proposed solid waste
management Franchise renewal. The timing of the presentation is designed to take advantage of a
unique opportunity to get Pacific's hest offer for a franchise at a time when Pacific's affiliate Otay
Landfill, Inc., is relying on the City's solid waste flow and support in connection with a pending
landfill expansion. Staff believes that the proposed franchise agreement offers tremendous benefits
to ratepayers in terms of rate stability and enhanced performance-including a guarantee that Chula
Vista residential ratepayers and small businesses with curbside services will continue to have the
lowest contract rate in San Diego County. The City revenues shall also increase but without any
resulting increase in rates. A companion landfill agreement also provides benefits that will help
mitigate the expected impacts of a pending landfill expansion before the County of San Diego.
Before Council can consider action on the possible renewal of a Solid Waste Franchise, the City
Charter requires that a resolution of intention be adopted and a public hearing be scheduled.
Council adopted a resolution of intention on June 8, 1999 and set a public hearing for the first
reading of the Ordinance for June 22, 1999. The following report summarizes the terms of the
proposed agreements.
RECOMMENDATION: Approve on first reading the Ordinance to grant a franchise renewal for
solid waste and recycling services, and find that Pacific's performance under the current Franchise
is hereby deemed satisfactory for the purpose of such franchise. Staff is also requesting that
Council provide conceptual approval of the Resolution outlining the terms of a companion landfill
agreement that contemplates a long-term disposal agreement, stable disposal rates and targeted
mitigation related to a pending expansion.
/7-/
..-
- -
-
.,
BOARDS/COMMISSIONS RECOM1vfENDA TION: The proposal addresses a number of service
issues recommended by the Resource Conservation Commission and a full report regarding their
response can be made following the Commission's June 21, 1999 meeting.
BACKGROUND: The current Agreement with Pacific Waste Services ends on September 4,2002.
On August 4, 1998 City Council approved the assignment of the current Franchise Agreement to
Pacific Waste Services (pacific) and the remainder of the final five-year extension to the
Agreement The agreement to extend the Franchise included a number of service and program
improvements that were designed to improve customer satisfaction, keep City streets cleaner and
assist with state mandated solid waste and recycling goals. The primary objectives of that
agreement were to:
· Offer ratepayers the service and price options they need to meet state mandated recycling goals,
· Assure that all occupied properties have at least weekly collection service,
· Establish better communication between Pacific and their customers,
· Require Pacific to resolve customer service issues promptly through measurable and enforceable
performance standards,
· Provide Pacific with a financial incentive to improve service quality,
· Stabilize rates for residential, commercial and industrial ratepayers.
DISCUSSION: Providing Council with a proposal from the current service provider at this time
was important for two reasons: 1) The current franchise expires on September 4, 2002 and City
staff would need eighteen to twenty-four months to prepare a request for proposal and provide a
successful respondent with adequate time to purchase vehicles and implement a new service
program. 2) Staff believes that current market conditions, the proposed landfill operational changes,
and a long-term commitment of the City's waste have made it possible to develop a unique package
of benefits for ratepayers, residents and City programs. This package of benefits has not been
available in the past, is not likely to be available through an alternate service provider and will not
continue to be available in the future.. A full copy of the proposed Franchise Agreement is attached
as Exhibit A.
The primary objectives of the proposal before Council today are to:
· Guarantee that ChuJa Vista residential ratepayers and small businesses with curbside waste and
recycling services will continue to have the lowest contract rate in San Diego County,
· Stabilize all rates and assure that they remain competitive throughout the life of the Agreement,
· Provide a variety and level of service options that allow ratepayers to control their future rates,
· Provide the variety and quality of services that encourage residents and businesses to meet State
environmental mandates,
· Make recycling participation as convenient and easy as possible,
· Reduce or eliminate the illegal disposal and litter problems in the City,
· Provide solid waste and recycling collection, processing, marketing and waste disposal services
that will keep up with the City's growth,
· Maximize the limited resources of the library, recreation, parks, street maintenance, street tree,
and other general funded programs by reducing their solid waste management costs, and
· Utilize the City's Franchise relationship with Pacific as leverage to develop mutually agreeable
mitigation measures and benefits to offset those potential impacts from the landfill that can be
mitigated.
/7 - 2
- -
The recommendation before Council incorporates the objectives stated above into a new agreement
by making certain adjustments to the business points and service standards contained in that current
agreement, and by establishing a complimentary landfill agreement (see Attachment B). The
primary changes to the existing agreement are :
1. Term.
The initial term of the Franchise adds five years onto the remaining three-year term of the current
agreement for a total of eight years, and would expire on June 30, 2007. The initial term may be
extended by Pacific (or City) on the same terms and conditions for an additional eight year term
provided that the City Manager reasonably determines that Pacific (a) has satisfactorily performed
under the Franchise, (b) is then in full compliance with all Franchise terms, and (c) has the ability to
satisfactorily perform its Franchise obligations throughout the 8 year extension. The City may, at
its sole discretion. extend the agreement for one additional eight-year tenn, and one additional term
with a minimum of five-years and a maximum of eight years, depending upon the availability of
Otay Landfill capacity.
2. Consideration for Grant of Franchise.
a. Percentage of GToss Receipts.
1. Franchise Fees: In consideration of City's grant of the Franchise, Pacific shall continue to pay to
the City a ttanchise fee in an amount equal to eight percent (8%) of Pacific's "gross receipts"
throughout the term. That continues the current franchise fee that is built into the existing rate.
2. Commencing on July 1,2000, and thereafter, Pacific shall pay the City an additional Franchise
Fee of 2%. There will be no increase to any of Pacific's Chula Vista ratepayers as a result of this
adjustment. Furthermore the 2% increase will not be a factor in calculating future rate adjustments.
b. Additional Fixed Annual Payments.
AB additional consideration for the grant of the Franchise, in addition to the above-described 2%
payment, Pacific shall make a payment of $618,000 to the City in the first fiscal year of the
agreement That payment to the City will increase annually by three per cent (3%) per year and
continue through the term and any extensions of the agreement. As with the 2% franchise fee, these
annual payments are not part of the rate structure, there will be no increase to any Pacific Waste
Services customers in Chula Vista as a result of the payments and the payments will not be a factor
in future rate adjustments.
3. Free Disposal
a. Residential Dwellings and small businesses
. Pacific will provide each Chula Vista customer with curbside solid waste and recycling service
up to two free annuals passes to the landfill at no additional charge.
. Pacific will also provide each Chula Vista customer with yard waste service up to (2) two free
green waste passes to the compost facility in addition to their (5) five cans of yard waste per
week at no additional charge.
b. City Maintenance and Improvement Projects
/1- 3
- -
,'¡ .
Pacific has also agreed to extend its previous short-term agreement to provide the City with free
disposal each year. The disposal is limited to City crews and/or subcontractors on City business for
up to 5% of the City's total disposal tonnage for the previous calendar year or approximately 6,500
tons. The existing agreement was for 10% of City's total annual tonnage, but staff accepts the
reduction to 5% as it more accurately reflects actual City use over the past two years and is more
c0V1i7Jmt of the fact that this renewal is a longer tenn deal. Free disposal at the landfill can save the
City up to $200,000 per year and allows the City to stretch limited maintenance and repair funds on
street maintenance, tree trimming costs, facility improvements and other projects that require solid
waste disposal and recycling. This benefit is not part of the rate structure, there will be no increase
to any Pacific Waste Services customers in Chula Vista as a result of this benefit and this benefit
will not be a factor in future rate adjustments.
4. Free Collection and Disposal or Recycling Services
a. Pacific will provide all apartment and condominium complexes with free bulky pick-up.
Free collection will be arranged through apartment managers or aSsociation representatives and will
keep discards such as mattresses and appliances off City streets while making disposal of large
items easier for Chula Vista residents. Staff believes that Chula Vista multi-family housing owners
and residents are the first in San Diego County to receive this service for free.
b. City Facilities. Pacific has also agreed to provide the City with free solid waste, yard waste
and recycling services at all current and future City facilities during the tenn of the agreement. That
service is expected to save City programs such as libraries, parks, recreation and senior centers, and
the animal shelter up to $65,000 per year in costs that will redirect resources from trash fees back
into building maintenance and programs. This benefit is not part of the rate structure, there will be
no increase to any Pacific Waste Services customers in Chula Vista as a result of this benefit and
the benefit will not be a factor in future rate adjustments.
c. Solid Waste and Recycling Operational Issues.
The major adjustments to operational terms and conditions in the current agreement are:
· Pacific will begin residential service at 7 a.m. instead of 6 a.m. as soon as the landfill hours are
expanded under the new permit or Council approves an automated variable rate program
· Pacific will complete the color coding of residential and commercial solid waste recycling and
green waste bins by July I, 2000
· Pacific will increase the recycling education program fund by approximately $25,000 per year
· Pacific will make a good faith effort to produce and locally distribute its billing and other
correspondence on post-consumer content recycled paper
· Pacific will upon replacement convert all supervisor vehicles and on-site power sources to a
clean fuel source
· Pacific will subscribe to a California Green E source of electricity
· Pacific will develop and implement a pilot program to replace collection vehicles with vehicles
using a clean fuel source.
· Pacific and City staff will develop an "Automated Variable Rate" program for Council review
as outlined in Section 6.d of this document that will reduce the monthly rate for approximately
80% of the City's residential and small business customers, provide each customer with a sturdy
/7- 4
"'~.c._ - -
.. ~..
cart with wheels and lid that will help reduce litter, scavenging and injury to collection
personneL
Pacific will further assist the City and Chula Vista businesses to control their solid waste costs and
help them meet state mandated recycling goals by providing one of the best business recycling
packages and service rates available in California. Pacific will provide:
· free rigid bottle and can recycling service for Chula Vista hospitality businesses upon request
· free mixed paper service for apartments and condominiums (up to 40% of their current waste)
· the lowest rates for mixed paper/cardboard collection in the county for other businesses
· Funding for the recycling education program and two employees to promote business recycling
and reduce or eliminate recycling theft.
The later collection hours, color coding of bins, reduce program costs, recycling education,
environmental improvements and other service enhancements are designed to improve ratepayer
convenience, value and service levels. The program adjustments will also help provide residents and
businesses with the tools to conveniently increase their recycling participation and control or reduce
their own solid waste costs in the future.
The Municipal Code requires that the prior to approving any renewal of a waste management
franchise that the City determines that the franchisee has performed satisfactorily under the
franchise. Staff believes that Pacific's performance under the current franchise has been
satisfactory for the purpose of renewing such franchise pursuant to 1þe terms and conditions of the
new franchise presented by City staff. Council's action to approve the renewal would include
Council's finding of satisfactory performance.
- d. Rates.
Chula Vista residential ratepayers and small businesses have had the first or second lowest rate in
the County for the past several years. This proposal guarantees that Chula Vista residential
ratepayers and small businesses with curbside waste and recycling services will continue to have the
lowest contract rate in San Diego County. The proposed adjustments are designed to offer Pacific
Waste Services a reasonable increase for legitimate cost increases over the life of the agreement.
The proposal also reduces some rates initially, stabilizes the remaining rates in their relative
position to other county ratepayers, protects ratepayers against economic inflation with a CPl
capped at 66.6% and creates an opportunity for local residents and businesses to receive rate
reductions if Pacific ever offers lower rates to other San Diego County franchises.
a. In General.
Pacific's current residential rates are the lowest in the county. Chula Vista has the best value in
total available services and over 1,200 seniors receive a 45% discount on that package of services.
As a result of this proposal approximately 650 small business or 40% of the total commercial
customers in the City will receive a $4.25 per month discount from the $77.75 rate effective July I,
1999. That new $73.50 rate is approximately $2.50 below the county average. Apartment and
condominium operators and associations will also receive a reduction in monthly recycling fees
from $1.50 per month per unit to $$0.74 per month per unit for complexes of 9 units or less.
In addition to reducing those rates, Pacific's annual consumer price index increases for all rates are
limited throughout the term of the Franchise as follows:
/7- 5
- -
July I, 1999 - July I, 2002 50% of Annual CPI
July 1,2003 - Term and any extensions thereof 66.6% of Annual CPI
b. Market Adjustments.
In addition to receiving only a partial CPl adjustment each year the proposal guarantees that Chula
Vista residential ratepayers will continue to have the lowest (contract) rate in the County for years
to come. The proposal limits Pacific's future CPI increases at any time residential rates for single
family homes, dwellings of four units or less and small businesses with curbside/manual collection,
are not at least 10% below the County average for the same service. The proposal also limits major
adjustments to rates for large business generators to 95% of the County average.
Beginning July 1,2007, and at each 4 year interval thereafter throughout the Franchise term, Pacific
shall be eligible for "market adjustment" to its maximum rates, commercial mixed paper rates, and
commercial green waste rates. The maximum market adjustmen~(s) shall be up to 90% of the
corresponding San Diego County average rate(s) published by SANDAG. Beginning July 1,2015
the maximum upward adjustment applicable to commercial rates excluding 3-yard bin or
smaller/once per week service shall be increased to 95% of the corresponding San Diego County
average. The benchmark for small commercial businesses using the 3 cubic yard bin/once per week
rate will be the lower 10% below county average.
c. Most Favored Nation Clause.
If anytime during the term of this agreement Pacific or its affiliates provide a franchise rate which is
- lower than the Chula Vista rate to, the ratepayers in San Diego County, or a city within the County,
the Chula Vista rate payers shall immediately receive the lower rate. Pacific also guarantees that
residential and small businesses with curbside waste and recycling service will always pay the
lowest contract rate in San Diego County.
d. Variable Rate S1ructure for Residential/Small Generators.
The City and Pacific Waste Services will develop a mutually agreeable rate structure for Small
Generator solid waste customers based on volumes of waste generated ("Variable Rate S1ructure").
The Variable Rate S1ructure shalt to the extent possible (1) establish new rates that do not increase
revenues above the current revenue rate base, (2) give Pacific the benefit of operational efficiencies,
and (3) give the City/ratepayers the benefit of avoided disposal net savings. Pacific and City staff
will develop and present such a Variable Rate structure by no later than May I, 200 I, and sooner if
possible. The fmal decision to implement a Variable Rate Structure shall be at Council's sole
discretion.
e. Financial Incentive to Improve Performance
The proposed Franchise retains the concept the revenue from the sale of recyclables shall be shared
between the City and Pacfic except that the formula has been simplified. Pacific's annual share of
re""enue from recycling profits will increase when the state fmds that the City has met or exceeded
state mandated recycling goals for the previous calendar year. Pacific may also share in avoided
disposal revenue and reduce their exposure to financial penalty under the Liquidated Damages
Clause (7.b.) if they meet specific performance standards that address customer satisfaction and
reward quality of service.
17- 6
- -
-
The City's share of avoided disposal revenue, increase in revenues from the sale of recyclables and
other savings accrued to the City may be used to improve program service, invest in recycling
programs to meet state mandates or be rebated back to ratepayers at the City"' s discretion.
e. Legal Provisions.
Miscellaneous legal provisions of the Franchise remain substantially unchanged. The few changes
worthy of note are summarized below.
a. Uncontrollable Circumstance.
The Franchise shall include language that excuses temporary non-performance in the event of an
"Uncontrollable Circumstance'" (to be defined therein) provided that best efforts are exercised to
minimize the duration of such non-performance and to resume full Franchise compliance as quickly
as possible. This section clarifies Pacific's responsibility to return to full service as soon as
possible, even under the most severe circumstances such as earthquake or flood. It also recognizes
Pacific's good faith effort to provide service under such circumstances and provides relief from
penalty or termination under conditions that are legitimately beyond their reasonable control.
b. Liquidated Damages.
The liquidated damages enforcement provisions have been retained from the existing Franchise.
These provisions are designed to give Pacific a financial incentive to provide the Chula Vista
residents and businesses with the highest possible level of reliable service. The individual and
-~ cumulative financial impacts for each occurrence have been reduced., however staff believes the
current value of the damages or fines are sufficient to encourage quality performance, and the
connection to termination for cause remains.
c. Mediation.
This new section provides both parties with an opportunity to mediate all disputes (excluding the
imposition of liquidated damages) prior to commencing legal action.
d. Environmental Indemnity
Landfill and illegal disposal site costs have become an increasing liability to cities and their
generators. This section provides the City and its taxpayers with a significantly greater level of
protection from that liability than has been provided in the past. Pacific (and its Affiliates) shall
indemnify, defend and hold harmless the City from and against any and all claims, losses, damages,
liabilities and costs arising from the past, present or futtire existence or disposal of Municipal Solid
Waste and the hazardous materials it may contain at disposal sites to which Pacific or its Affiliates
have taken City solid waste. That coverage shall survive the terms of this agreement and run with
the extended life and maintenance of the affected landfills. While it is difficult to place a financial
value on this provision, indemnification does provide local taxpayers with insurance against future
liability that can translate into potentially exorbitant costs.
8. Site Manager.
/1- 7
.- -
.. .'
The City shall have prior reasonable approval with respect to the appointment of the general market
manager for San Diego County or the operations manager for San Diego County who shall be
responsible for the oversight and implementation of the Franchise. This section of the agreement is
designed to assure that the City and the Chula Vista ratepayers continue to benefit ttom a
consistently high quality of management regardless of the mergers and acquisitions that continue to
take place in the solid waste industry.
9. No Parking Signs.
City staff will submit for City Council consideration., a program for the posting of signs prohibiting
parking on streets during trash collection days in new major development areas within the City.
City staff, including but not limited to Recycling Rangers, shall support adherence to the program
with public education and enforcement measures to be developed and implemented at the City's
sole discretion.
10. Other Provisions.
The Franchise contains additional provisions that are consistent with the above teImS and the
current levels of performance and standards required in the current agreement.
Landfill Agreement
Staff is also asking for City Council approval of the Landfill Agreement Pacific/Allied has made a
condition to their agreement to sign the Franchise on the terms prepared. The Landfill Agreement
provides long-term disposal, stabilizes disposal costs, provides indemnification from landfill
liability and addresses local impacts. A summary is attached as Exhibit B. Specifics of the
mitigation measures are currently being finalized. The final agreement and a more detailed report
will be presented on June 29, 1999. The request before council currently is merely for conceptual
approval.
The Competitive Bid Alternative
Staff would need at least six months to develop at least one, and perhaps two packages to duplicate
the proposal currently before Council. One of the proposals would address solid waste and
recycling collection, as well as processing services. The other would address long-term disposal,
stable disposal rates and indemnification from landfill liability. The cost for a consultant to assist
with the development and an independent review typically costs between $30,000 and $50,000. The
successful respondent(s) would need a year to order vehicles, develop an operational plan, a routing
scheme and obtain processing, marketing and related support services. The disposal contract
respondents mayor may not need time to develop transfer vehicle and facility arrangements.
The primary goal of a competitive bid is to obtain the best rate for local ratepayers. Typically, a
complimentary objective of the competitive process is to assure the public that the process was
developed in a manner that produced the best rate the market has to offer at that time. One of the
most important factors in considering a competitive bid process is assessing the current market
place. Five years ago San Diego County had six major companies providing services to (18)
franchised jurisdictions. Today, largely due to the continuing cycle of mergers and acquisitions in
the solid waste industry we have three companies serving the same eighteen jurisdictions with two
of those companies holding sixteen franchises. Chula Vista and the rest of San Diego county's
franchise cities only have two alternate bidders competing in the local market place. Our ability to
11-8
- -
implement a successful bid process would be highly dependent on attracting new service providers
to San Diego to make competitive bids. The ability to attract competitive bidders in a public solid
waste process is as important if not more important than actually implementing a competitive
process. Even when an adequate number of competitive bidders respond, it does not guarantee that
the process will produce the intended result, lower rates and better service.
Poway and Impeñal Beach are the only cities in San Diego County that have ever gone to bid.
Poway's residential rate as of July 1, 1999 will be $15.13; Chula Vista's is $13.37. Imperial Beach
has just completed their competitive bid process this month and their rates now range from $14.40
for 3D-gallon containers, $14.54 for a 64-gallon container, to $14.96 for a 90-gallon container.
Chula Vista's rate remains $13.37 for unlimited service.
Under the proposal before Council, Chula Vista's commercial rate for a 3 cubic yard bin collected
once a week will be reduced to $73.50 per month. The same service in Poway and Imperial Beach
under their new rates will be $83.09 and $79.96 respectively. Additionally, the Chula Vista service
includes at least one free 3 cubic yard bin for mixed paper and free bulky pick-up for all apartments
and condominiums and free bottle and can collection for restauraÌ1ts and other hospitality
businesses. Chula VISta has negotiated a better price and a better value for its ratepayers by using
the right to go to bid as one tool in the negotiating process.
Additional Reasons to Extend the Existing Franchise in Lieu of Waiting to the End of the
Agreement in September 4. 2002 to Go Out to Bid
· Unique opportunity to take advantage of franchise and private landfill owned by an affiliate
· The landfill operators need our solid waste and are trying to do the right things environmentally
at the landfill in exchange for a solid waste commitment
· City has negotiated a below market deal
· Staff anticipates further consolidation that will produce even less qualified bidders in 2002
· By waiting until 2002 the City and residents give up: lower rates, lowest rate guarantees,
improved City recycling services, general fund savings, increased recycling education funding,
enhanced business services, park land donation, a donation of up to 4 million dollars in park
development funds, and the only guaranteed landfill mitigation measures.
· Recent bids have produced: reduced recycling programs, less service options and less revenue to
their City's at higher rates and no rate stability.
FISCAL IMP ACT:
There will be no cost to the general fund as a result of Council's approval of the Ordinance as to
first reading and conceptual approval of the landfill agreement. If after having reviewed and
considered the full proposal, Council elects to approve the Ordinance and adopt the Resolution on
June 29, 1999 it will have the following financial impacts: The rates for the average small business
in Chula Vista will be reduced from approximately $77.00 to $73.50 per month. Residential and
other small generator rates will be limited to an annual CPI increase of nor greater than 66.6% and
shall at no time be greater than 90% of the San Diego County average for similar rates. City
residential and small business curbside rates will be guaranteed to be the lowest contract rates in the
county throughout the term of the agreement. The City General fund will save an estimated
$75,000 per year in disposal and recycling costs and will receive an estimated $825,000 in
additional revenue in the next fiscal year.
PWS-B-6-22
/1- 9
- - EXHffiIT A
· Upon issuance of the conditional use pennit by San Diego County for the expansion of the Otay
Landfill ("Expansion), Otay will donate a 54-acre parcel adjacent to the Otay Landfill to the
City.
· Upon issuance of the final permit of the Expansion, Otay will pay the City a development fee of
$4,000,000 payable in annual installments of $1,000,000. This amount shall be subject to
reduction to the extent the final Expansion is for less than 725 feet, such formula to be mutually
agreed upon by City and Pacific.
· Otay will assist the City in annexation of the donated parcel at the City's cost.
· Otay will grant the City an easement, at not cost, for the extension of Paseo Ranchero Road. To
the extent that easement property could be used as mitigation land for the landfill expansion
project, the City shall cooperate with Otay in identifying potential alternative mitigation sites or
mechanisms for satisfying such obligations.
· Otay will grant the City an easement at no cost to allow emergency access to Maxwell Road
from the donated parcel.
· Otay will collect litter and perform sweeping on certain roads near the Otay Landfill.
· Otay will develop and implement mutually agreed upon dust, noise and bird mitigation plan.
· Otay will develop and implement a phased landscape plan approved by the City designed to
mitigate the visual impacts of the landfill and to compliment Wolf Canyon vegetation.
· Otay will develop and implement a contouring plan approved by the City that compliments the
landscape plan and is designed to mitigate visual impacts of the landfill.
· Otay agrees that soil stockpiles shall not at anytime exceed the final allowable height of the
landfill.
· Otay shall exercise good faith efforts to increase its existing gas recovery or develop a new gas
recovery with respect to methane production in an effort to eliminate the need for a flare system.
· Otay agrees to protect vernal pools at the Otay Landfill
· Otay shall convert certain vehicles and equipment to a clean fuel source, subscribe with a
California E rated clean fuel energy provider for its on site electrical power needs, and provide a
price preference for future sub-contracts that encourages the use of CA E rated clean fuel
sources for equipment, fuel and energy.
· Otay will develop and implement a gate check procedure designed to avoid improper
designation of waste to Chula Vista from outside the jurisdiction, commingling of Solid Waste
with that of other jurisdictions, litter and improper or illegal disposal.
· The City agrees to meet and confer with Otay Landfill Inc.,! Allied outside of the project
permitting process in order to address City Concerns regarding visual impacts of the proposed
landfill expansion.
/7 b-¿
I