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Home My WebLink AboutAgenda Packet 1993/08/27 S.D. County Supervisors Friday, August 27, 1993 12:00 (noon) ". declare under penalty of perjury that I am employed by the City of Chula Vista In the Office of the City Clerk and that I posted C cil Chambers this Agenda/Notice on the Bulletin Board at P bl' soun B '1 ding th P bl' 'B 'Id' d C' H II u lC emces ill e u IC rvlees UI Ing an at .ty a pn DATED '.J." 9 SIGNED ~~ ~..-'\.- . Special Meeting of the City Council of the City of a Vista CAll. TO ORDER 1. ROIl. CAll.: Councilmembers Fox, Horton, Moore, Rindone, and Mayor Nader BUSINESS 2. Purpose of the meeting is to discuss all matters involving solid waste including, but not limited to, discussion of whether or not to join the Interim Commission and/or sign the Interim Flow Control Agreement and/or continue the litigation among other things. 3.A. RESOLtmON 1n33 APPROVING THE SECOND AMENDED SOUD WASTE INTERIM AGREEMENT IN REUANCE ON CERTAIN REPRESENTATIONS AND OPINIONS OF THE COUNTY, UNDER PROTEST AND WITH FULL RESERVATION OF RIGHTS TO SEEK A JUDICIAL DETERMINATION THAT SAID AGREEMENT IS IIJ.EGAL AND THAT OUR CONSENT WAS OBTAINED UNDER DURESS - The City Attorney recommends that neither resolution be approved. APPROVING THE SECOND AMENDED SOUD WASTE INTERIM AGREEMENT IN REUANCE ON CERTAIN REPRESENTATIONS AND OPINIONS OF THE COUNTY B. RESOLtmON 1n33 ORAL COMMUNICATIONS This is an opportunity for the general public to address the City Council on any subject matter within the Council's jurisdiction that is not an item on this agenda. (State law, however, generally prohibits the City Council from taking action on any issues not included on the posted agenda,) If you wish to address the Council on such a subject, please complete the yellow "Request to Speak Under Oral Communications FornI" available and submit it to the City Clerk prior to the meeting, Those who wish to speak, lease give your name and address for record purposes and follow up action. Your time is limited to three minutes per speaker. 4. CI1Y MANAGER'S REPORT(S) 5. MAYOR'S REPORT(S) 6. COUNCIL COMMENTS ADJOURNMENT The City Council will meet in a closed session immediately following the Council meeting to discuss: Instructions to negotiators pursuant to Government Code Section 54957.6 - Chula Vista Employees Association (CVEA) , Western Council of Engineers (WCE) , Police Officers Association (POAl, International Association of Fire Fighters ClAPF) , Executive Managment, Mid-Managment, and Unrepresented. The meeting will adjourn to (a closed session and thence to) a Special Meeting of the City Council on Monday, August 30, 1993 at 6:00 p.m. in the Council Conference Room, and thence to the Regular City Council Meeting on Tuesday, September 7, 1993 at 4:00 p.m. in the City Council Chambers. * * * COMPLIANCE WITH AMERICANS WITH DISABILITIES ACT * * * The City of Chula Vista, in complying with the Americans with Disabilities Act (ADA), request individuals who require special accommodation to access, attend, and/or participate in a City meeting, activity, or service request such accommodation at least forty-eight hours in advance for meetings and five days for scheduled services and activities. Please contact the City Clerk for specific information at (619) 691-5041. Notke is hereby given that the Mayor of the City of Chula VISta has called and will convene a speciol meeting of the City Council on Friday, August 27, 1993 at 12:00 (noon) in the Council Chambers, 276 Fourth Avenue, Chula VISta, CA r:: ~ /Z~~ _ Tim Nader, Mayor COUNCIL AGENDA STATEMENT Item 3A&B Meeting Date 8/27/93 ITEM TITLE: REPORT-On Interim Solid Waste Participation Agreement and consideration of 3A-Resolution 17233 Approving the Second Amended Solid Waste Interim Agreement in Reliance on Certain Representations and Opinions of the County, Under Protest and With Full Reservation of Rights to Seek a Judicial Determination That Said Agreement is Illegal and That Our Consent was Obtained Under Duress or 3B-Resolution 17233 Approving the Second Amended Solid Waste Interim Agreement in Reliance On Certain RepresentatioDs and Opinions of the County ~" SUBMITTED BY: Deputy City Manager Krempl Principal Mgmt. Asst. Enos . (4/5THS VOTE: YES REVIEWED BY: City Manage~ Today is the deadline to sign the Interim Solid Waste Participation Agreement and as a result become a member of the Interim Solid Waste Commission. This report is being provided in order to reiterate some information that you may want to take into consideration in making your decision as to whether to sign the agreement. NO X) RECOMMENDATION: That Council receive and consider this report. DISCUSSION: The decision facing you today is complicated by the reality that you are making a local decision for a regional problem. The mandates of AB939 include a more involved responsibility for cities with regard to the diversion and disposal of solid waste within our jurisdiction. A key point in the decision is understanding that the City cannot choose status quo-the real question is what form the City's new and higher level of responsibility in this arena will be. While none of the information contained in this report is new to you, it is again being provided to aid you in making a decision based on the best information available at this time. Optimally, the process of developing the agreement and the Interim Commission concept should have been one of group participation. With a couple of long group sessions, it is likely that the minor concerns that the non-signatory cities still have could have been resolved. Chula Vista and the other non-signatory cities have made several unsuccessful attempts at having the Interim Participation Agreement modified to address our concerns. As you know the number of cities who have not signed the agreement, is down to three. The options available to you at this time are as follows: I) Approve the Second Amended Solid Waste Interim Agreement Under Protest 2) Approve the Second Amended Solid Waste Interim Agreement Unconditionally 3) Do not sign the agreement 3-/ Options one and two include reliance on the so called Eckis/Harmon language which opines that if cities don't agree with the permanent form of governance they can withdraw, tak i ng the i r flow with them. The caveat is un 1 ess the Inter im Commission by majority vote has recommended and the County has issued bonds. PROS Some of the positive ramifications/consequences of not signing the agreement are: The City would retain local control and not cede its waste flow to the county for 20 years unconditionally. Less expensive alternatives, with tremendous potential benefit to the Chula Vista rate payers over the long term, could be identified and implemented. On the other hand, cheaper alternatives for the City going alone or in concert with two other cities is not firm and it appears that the cities that are part of the Interim Commission are going to explore those cheaper alternatives as well. By joining the Commission, at least as it is currently constituted, the City of Chula Vista is subject to the vote of a majority of the cities but which constitute a minority of the population as well as trash flow in the County. The Harmon/Eckis opinion is just that and, in fact, outside of the actual language of the agreement. The City and its waste flow could thus be i na lterab ly commi tted for the long-term once a permanent governance structure is agreed upon by the Interim Commission (whether we support that form of governance or not). The City, by not signing, would avoid the high administrative and overhead costs of the County. There is no assurance as to how high the County is going to have to set the tipping fees if they proceed on a pay-as-you-go basis. By not signing, the City would avoid the huge debt obligation the County has incurred for the NCRRA facility. This project cost is approximately $140 million. The NCRRA commitments are a significant portion of the current $43 tipping fee, per Ernst and Young about 36%. There are a multitude of problems and issues regarding this facility. The City may still be successful at the trial level in having the surcharge which the County has imposed overturned, in which case we would continue to pay the same tipping fee as everyone else. CONS Some of the possible negative ramifications/consequences of not signing the agreement are: A decision to not sign the Participation Agreement may impact the City's ability to collect ongoing solid waste facility (host) fees. The potential revenue stream to be derived from these fees is estimated to be $6.5 to $27 million over the life expectancy of the Otay landfill. The FY 3-.2/3-1 1993/94 revenues alone were estimated to be over $1 million. Currently, the main and maybe only leverage we have is the land use Cond it iona 1 Use Permit the City is present ly process i ng for the County regarding the Otay Landfill. The Participation Agreement provides for "host fees" and representatives of other cities that are now signatory members of the Interim Commission have indicated that they would support Chula Vista's host fee request. This would make this effort of securing this revenue source a certainty. On the other hand, these are only informal indications and do not necessarily reflect what the Commissioners will do formally in a public setting. This again underscores the risk that is involved in whichever decision the City Council takes. Exclusion from the process of shaping decisions affecting all users of the County's landfills including but not limited to: whether the system will be pay-as-you go versus bonding, the structure of the permanent form of governance. The City is then faced with the uncertainty as to what the system will be and how it will function. The City is currently able to meet our AB939 diversion requirements because we are part of a county-wide system. According to the City's Recycling Coordinator if the City were to leave the system, it would be incumbent upon us to conduct allocation studies and closely monitor our activities in order to demonstrate our compliance with the program. For your i nformat i on, County staff argues that curbs i de recyc 1 i ng wi 11 only achieve 25% diversion from the waste stream, and that the main purpose for the recycling center (or so-called "dirty MURF" in San Marcos) is to ach i eve the 50% requ ired divers i on under AB 939, wh i ch wi 11 be mandatory later this decade. They further argue that the recycl ing credits from this "dirty MURF" will be spread throughout the region for those who are part of the system, but those who are not part of the system will not receive the benefits from this additional recycling. The risks of joining the Commission have been somewhat reduced by the passage of the Second Amendment (no bonding without a majority vote of the Commission) and the Harmon/Eckis opinion. A number of cities who have joined feel that they can control the agenda of the Commission and have enough support to thwart any bond issue vote. Further, that the practicality of bonds being issued is remote if there is significant City opposition as the bond underwriters would not proceed. Finally, there is the be 1 i ef that if the County goes aga i nst Harmon/Eck is' opi n ion, the entire agreement could be overturned. Other potential costs that need to be considered are: The City could potentially lose its support from Tonnage Grants (estimated to be about $40,000 per year once the mu It i -f ami ly recyc 1 i ng program begins) and other County Solid Waste System financial assistance programs. The City would need to provide its own household hazardous waste program which may require additional staff. As participants in the County system, if a particular landfill becomes 3-:3 inoperable for any reason, there are backup opportunities. Conversely, if we have a contract for out of region disposal, there mayor may not be a ready backup for our waste. FISCAL IMPACT Unknown, but potentially significant in either event. GK: mab dueday 3/Lj ) i~' .:,;-,.' RESOLUTION NO. I>) 2 33, A RESOLUTION OF THE CITY OF CHULA VISTA AP- PROVING THE SECOND AMENDED SOLID WASTE INTERIM AGREEMENT IN RELIANCE ON CERTAIN REPRE- SENTATIONS AND OPINIONS OF THE COUNTY, UNDER PROTEST AND WITH FULL RESERVATION OF RIGHTS TO SEEK A JUDICIAL DETERMINATION THAT SAID AGREE- MENT IS ILLEGAL AND THAT CITY'S CONSENT WAS OBTAINED UNDER DURESS. WHEREAS, the Board of Supervisors ("Board") of San Diego County ("County") has resolved that authority over the operation of the Solid Waste Enterprise System should be turned over to an entity which is yet to be established but which shall be composed of most of the cities in the County of San Diego ("Cities"); and, WHEREAS, the Board has tendered to the Cities an agreement entitled "Agreement By, Between and Among the County of San Diego and the Cities of the County Establishing an Interim Solid Waste Commission and Providing for the Disposal of Solid Waste ('Interim Agreement')" which title is preceded by the notation "Approved by Steering Committee, 11 May 1993, Amended for Signature by Any or All Cities" which agreement is herein referred to as the "First Amended Interim Agreement"; and, WHEREAS, the Board has thereafter tendered an amendment by letter from the Office of the County Counsel dated July 28, 1993 and signed by Lloyd Harmon, County Counsel ("Harmon"), and Steve Eckis, City Attorney, City of Poway ("Eckis"), to the First Amended Interim Agreement, which amendment is entitled, and shall herein be referred to as the "Second Amendment to Interim Agreement"; and, WHEREAS, the Second Amendment to Interim Agreement provides, among other things, that the County will not issue the bond financing referenced in the Interim Agreement, as amended, prior to June 1, 1994 without the majority vote of the members of the Interim Commission; and, flowsol4. wp August 27, 1993 Reso of Joinder Under Protest Page 1 WHEREAS, the Board has approved, by its resolution dated August 25, 1993, the inclusion of the Second Amendment to Interim Agreement in the First Amended Interim Agreement; and, WHEREAS, the First Amended Interim Agreement as amended by the Second Amendment shall, by reading same together, hereinafter be referred to as, and shall constitute, the Second Amended Interim Agreement; and, WHEREAS, the County has threatened to, and in fact has imposed, as a punitive sanction in order to coerce the consent of the Cities in general, and the City of Chula Vista in particular, to the Second Amended Interim Agreement, a surcharge on the tipping fee charged for dumping trash generated by residents and citizens of those Cities whose councils have refused to sign for such period of time that they continue to refuse to sign; and, WHEREAS, the Chula Vista City Council feels coerced to consent to the terms of the Second Amended Interim Agreement to avoid the economic pressure of the penalty surcharge that the County is unfairly imposing on its residents and citizens; and, WHEREAS, in the absence of the penalty surcharge, the City of Chula Vista would not sign the agreement; and, WHEREAS, because of the coercion of the penalty surcharge, City Council will herewith authorize and direct the execution of the agreement solely for the purpose of avoiding the penalty surcharge but does so under duress and protest, and does not intend, by the adoption of this resolution, to surrender or waive any and all rights City may have to continue to legally challenge the validity or legality of such agreement, or to subsequently assert as a defense thereto the economic coercion of the County upon the City and Cities; and, WHEREAS, Harmon and Eckis opined ("Harmon/Eckis Opinion") for the benefit of the Cities, including the City of Chula Vista, in a letter opinion dated July 28, 1993, signed by both of them and distributed to the Cities, that the Second Amended Interim Agreement provides the City can object to the form of the permanent governance structure that will control the County's Solid Waste System ("Permanent Governance"), and unless the City has agreed to the Permanent Governance by May 1, 1994, the City's flow shall revert to the City unless certain described bonding has issued upon the recommendation of the Interim Commission; and, WHEREAS, Board is aware of the Harmon/Eckis Opinion and has not objected to its provisions, and has in fact, by representations made by their members, induced Cities to rely on same in order to secure their signature to the Second Amended Interim Agreement; and, WHEREAS, in joining under protest, the City is, in part, relying on the Harmon/Eckis Opinion as a representation of the County in taking its action herein authorized, flowso14.wp August 27, 1993 Reso of Joinder Under Protest Page 2 3~? 'and in the absence of such representation/opinion, City would not even be willing to take the risks of joining the Interim Commission under protest as herein authorized; and, WHEREAS, City, with the understanding that they are joining under protest, is relying on the representation that the following matters will be given the highest level of priority as per the amended agreement: A) Alternative forms of permanent governance will be comprehensively reviewed and impartially analyzed; and B) A full range of subregional disposal alternatives will be explored and considered; and C) The operation of existing facilities including NCRRA will be examined and considered for modification or termination; and D) Tipping fees and their uniformity will be reviewed; and E) Host agencies such as Chula Vista and San Marcos will be paid facility fees defined in the Interim Agreement; and F) Affected agencies such as Santee will be paid mitigation fees defined in the Interim Agreement; and WHEREAS, City, in joining under protest, is relying on the representation of the County, also contained in the Second Amended Interim Agreement, that Chula Vista will receive the Host Fee for the Otay Landfill; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES HEREBY FIND, DETERMINE, ORDER AND RESOLVE AS FOLLOWS: Section 1. The City Council does hereby object to the terms, risks and provisions of the Second Amended Interim Agreement, but due to the economic duress to eX(lCute same to avoid the continued imposition of the penalty surcharge on the dumping at the County landfills of trash generated within Chula Vista, does take the following action under duress and protest and does not intend hereby to surrender or waive any and all rights City may have to continue to legally challenge the validity or legality of such agreement, or to subsequently assert as a defense thereto the economic coercion of the County upon the City and Cities. Section 2. The City Council does hereby authorize and direct the Mayor to execute same prior to close of business August 27, 1993. flowso14. wp August 27, 1993 Reso of Joinder Under Protest Page 3 3/7 Section 3. Pursuant to the discretion vested in the City by the Second Amended Interim Agreement, the City does hereby commit only fifty (50%) of its Acceptable Waste Flow to the County at this time. Section 4. Although not made a condition of approval of the Second Amended Interim Agreement or a condition of joinder of the Interim Commission, the City does not waive its right to assert and litigate the invalidity of the provision of the agreement requiring the City to pay a surcharge that may be imposed on any trash that remains uncommitted to the County in excess of 50%, and does hereby protest any attempt to impose said surcharge. Section 5. City Council appoints Councilmember Jerry Rindone as the City's representative to the Interim Commission, and Mayor Tim Nader as the City's alternate representative to the Interim Commission. Section 6. City Council relieves the City Attorney from any duty to opine that the Second Amended Interim Agreement is legally binding and a valid obligation of the City. To the extent same may be necessary to comply with the contract, City will determine if alternate counsel is available to issue such opinion. . Presented by and approved as to form by, but without the recommendation of: Bruce M. Boogaard, City Attorney (F:\Homc\Attomey\Flowso14.wp) flowso14. wp August 27, 1993 Reso of Joinder Under Protest Page 4 J~~ 08 Revised Joinder without Protest Reso. 1. Doubleunderlined to show revisions from Original Joinder without Protest Reso RESOLUTION NO. Il~ A RESOLUTION OF THE CITY OF CHULA VISTA APPROVING THE SECOND AMENDED SOLID WASTE INTERIM AGREEMENT IN RELIANCE ON CERTAIN REPRESENTATIONS AND OPINIONS OF THE COUNTY'S COUNSEL. WHEREAS, the Board of Supervisors ("Board ") of San Diego County ("County") has resolved that authority over the operation of the Solid Waste Enterprise System should be turned over to an entity which is yet to be established but which shall be composed of most of the cities in the County of San Diego ("Cities"); and, WHEREAS, the Board has tendered to the Cities an agreement entitled "Agreement By, Between and Among the County of San Diego and the Cities of the County Establishing an Interim Solid Waste Commission and Providing for the Disposal of Solid Waste ('Interim Agreement')" which title is preceded by the notation "Approvde by Steering Committee, 11 May 1993, Amended for Signature by Any or All Cities" which aforereferenced agreement is herein referred to as the "First Amended Interim Agreement"; and, WHEREAS, the Board has thereafter tendered an amendment by letter from the Office of the County Counsel dated July 28, 1993 and signed by Lloyd Harmon, County Counsel ("Harmon"), and Steve Eckis, City Attorney, City of Poway ("Eckis"), to the First Amended Interim Agreement, which amendment is entitled, and shall herein be referred to as the "Second Amendment to Interim Agreement"; and, WHEREAS, the Second Amendment to Interim Agreement provides, among other things, that the County will not issue the bond financing referenced in the Interim Agreement, as amended, prior to June I, 1994 without the majority vote of the members of the Interim Commission; and, WHEREAS, the Board has approved, by its resolution dated August 25, 1993, the inclusion of the Second Amendment to Interim Agreement in the First Amended Interim Agreement; and, flowsol3. wp August 27, 1993 Reso of Joinder without Protest Page 1 3---/ WHEREAS, the First Amended Interim Agreement as amended by the Second Amendment shall, by reading same together, hereinafter be referred to as, and shall constitute, the Second Amended Interim Agreement; and, WHEREAS, Harmon and Eckis opined ("Harmon/Eckis Opinion") for the benefit of the Cities, including the City of Chula Vista, in a letter opinion dated July 28, 1993, signed by both of them and distributed to the Cities, that the Second Amended Interim Agreement provides the City can object to the form of the permanent governance structure that will control the County's Solid Waste System ("Permanent Governance"), and unless the City has agreed to the Permanent Governance by May 1, 1994, the City's flow shall revert to the City unless certain described bonding has issued upon the recommendation of the Interim Commission; and, WHEREAS, Board is aware of the Harmon/Eckis Opinion and has not objected to its provisions, and has in fact, by representations made by their members, induced Cities to rely on same in order to secure their signature to the Second Amended Interim Agreement; and, WHEREAS, City is relying on the Harmon/Eckis Opinion as a representation of the County in taking its action herein authorized, and in the absence of such representation/opinion, City would not be willing to execute said Second Amended Interim Agreement; and, WHEREAS, City is relying on the representation that the following matters will be given the highest level of priority: A) Alternative forms of permanent governance will be comprehensively reviewed and impartially analyzed; and B) A full range of subregional disposal alternatives will be explored and considered; and C) The operation of existing facilities including NCRRA will be examined and considered for modification or termination; and D) Tipping fees and their uniformity will be reviewed; and E) Host agencies such as Chula Vista and San Marcos will be paid facility fees defined in the Interim Agreement; and F) Affected agencies such as Santee will be paid mitigation fees defined in the Interim Agreement; and flowso13. wp August 27, 1993 Reso of Joinder without Protest Page 2 3'/tJ WHEREAS, City is relying on the representation of the County, also contained in the Second Amended Interim Agreement, that Chula Vista will receive the Host Fee for the Ota y Landfill; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES HEREBY FIND, DETERMINE, ORDER AND RESOLVE AS FOLLOWS: Section 1. The City Council does hereby authorize and direct the Mayor to execute the Second Amended Interim Agreement prior to close of business August 27, 1993. Section 2. Pursuant to the discretion vested in the City by the Second Amended Interim Agreement, the City does hereby commit only fifty (50%) of its Acceptable Waste Flow to the County at this time. Section 3. Although not made a condition of approval of the Second Amended Interim Agreement or a condition of joinder of the Interim Commission, the City does not waive its right to assert and litigate the invalidity of the provision of the agreement requiring the City to pay a surcharge that may be imposed on any trash that remains uncommitted to the County in excess of 50%, and does hereby protest any attempt to impose said surcharge. Section 4. City Council aoooints reoresentative to the Interim Commission. and reoresentative to the Interim Commission. as the City's as the Citv' s alternate Section 5. City Council relieves the City Attornev from any duty to ooine th.<I! the Second Amended Interim Ae:reement is lee:ally bindine: and a valid oblie:ation of the City. To the extent same may be necessary to comolv with the contract. City will determine if alternate counsel is available to issue such ooinion. by an~~~pr v lili'jC ruce M. Boogaard, (F:\Home\Attorney\Flowsol3 .wp) flowsol3. wp August 27, 1993 Reso of Joinder without Protest Page 3 3/// " . ~~f? :-....::-: ......~-..;~ ......~............ "'"~~...... . CllY OF CHUlA VISTA ~\11 OFFICE OF THE CITY ATTORNEY August 17, 1993 FROM: The Honorable Mayor and city council John Goss, city Manager George Krempl, Deputy city Manager Teri Enos, Principal Management tJ~stant Bruce M. Boogaard, City Attorney~ Solid Waste TRO Hearing TO: RE: As a result of the city's Application for a Preliminary I and an Order Shortening Time for a Hearing on the pr Injunction this morning, August 17, 1993 in Department 7 at 8:30 a.m., the Honorable Ronald Johnson granted an Order Shortening Time for a Preliminary Injunction hearing to be held on August 27, 1993 at 8:30 a.m. previously, we had hoped that the court, wi thout any advance communication with the court, could have held the Preliminary Injunction hearing on August 25, 1993 and, accordingly, we asked the Council to set a special meeting for August 26, 1993 which would give us a one-day period within which to decide whether or not to join the Interim Commission and sign the Interim Agreement. However, the Court could not accommodate us on either August 25 or August 26 and instead set the matter for the morning of August 27. I hope that the Council can meet after the hearing which should easily be concluded by noon in order to take whatever action the council deems appropriate. Therefore, I am requesting that the ayor call a special meeting at noon on August 27, 1993 for the ur os~of discussing all matters involving solid waste including, bu not limited to, discussion of whether or not to join the Interim Commission and/or sign the Interim Flow cztrol Agreement and/or continue the litigation among other things. council should cancel the special meeting previously set for Aug st 2~, 1993. As an alternative to meeting on August 27 at noon, the council may wish to meet on August 2.6 without knowing how the. court is going to react and to give the City Manager authority to respond appropriately based on the judge's ruling on August 27. The city Attorney prefers to have the council meet on the 27th. BMB:lgk ;J -!-2 276 FOURTH AVE/CHULA VISTA, CALIFORNIA 91910/(619) 691-5037 FRlJ1:JlW)crIT l<<RIlEN . TO: 425 6184 FU3 17. 1993 11:43AM P.B2 . ~ltt" "^W UlIIOtl' nr !>;~~~~~trr ~~~~J't fAULOt.M.C OA.,..,^" rJl4M.,..,..,t. U12 KC'JII........... "..A.(:II, (:^"II UItl'<<1\ WU/. lU""70to'~ . ,"'fll..,.,..,...,n FAX 10101?Dn. r,198 U bWlC)H1 W()hIn.N TrVlC'" pt. nlOHMONO W. SCOlI wtLLV\MR JAMES H. ELLIS III TI;MIIW N 'u..~ ORYRTN. cAlrWrOAb MI~1. ~l!!:"t<<.'f\N KBK~RAN!)tJJI DATE: Ron Ball, Frank Mannen, Dave Chapman, Jaok And.erllon, Dan Hentschke, Lynn MCDougal, Bruoe Boogard () II I. D. Dwight Worden, special Counsel Solid Waste ~ AUgust 17, 1993 Chula vista Litigation: Injunction hearing 8\27\93 8:30 a.ln. Dept 32 '1'0: l;'ROM: RE: We had our TRO hearing this morning, 8\17\93 before Judge Ron Johnson. The county filed opposition, copies of which are being mailed. to you. you already have our moving papers. Judge Johnson listened to some argument and gave no indioation of his thinking, other than he overrode the oounty's objection and set an expedited preliminary injunct) on hearing for Friday August 27, 1993 to accommodate Chula Viata t S request in this regard. Chula vista will be scheduling a special city council meeting immediately thereafter, to deoide what to do before the 27th signing deadline e~pires. ! would encourage each of you and your oities to oonsider sUbmitting an amious letter or brief to Judge Johnson before the decision in support of Chula vista if you feel comfortable doing so. PPW/ 3-/3 - , " August 27, 1993 TO: Mayor & Councilmembers city of Chula vista FROM: Kris Murphy RE: Should you sign or not Unfortunately, Judge Johnson did not grant your request for an injunction against the County's imposition of a surcharge on your solid waste. After years of paying for the cost of construction and operation of the County landfill system, the County now wants to deny you access to the system which you have already paid for. I would respectfully suggest that you not commit you flow to the ~OU'~ until certain issues are resolved; 'V'I First, how will the system be funded and how much will that cost Chula vista ratepayers. Second, what exactly will the County "system" be? Third, will the South and East County cities have to fund the operations of the NCRRA facility? Fourth, are their less expensive alternatives for Chula vista? Fifth, are their less expensive alternatives for the County system? Sixth, what will the final form of governance be for the new regional solid waste system? Seventh, are all of the cities in the county going to stay in the regional system? If North County cities depart the system, what are the impacts to the cities which remain? On September 2, 1993 the Interim Solid Waste Commission will again be asked to consider the issuance of bonds to replenish the depleted County coffers. This in effect will bind the signatory cities by having their committed waste flows used as security for the bonds. Bonding means a 20 year commitment! Bonding for all intents and purposes will preclude any signatory city from taking any remaining waste out of the system. Please wait until the Interim commission again hears the County's request for bonding before you decide on whether to join or not. J~/Lj '-'<;' .;..' ."'~~. ..;;,7 ~Rorl .. "'..,:. < 00 .0 T (I 74 7"63~ P. e 1 ~ ,- BRIAN R BILBRAY CHAIRMAN '.,.,Clb"O" 1J'!U1 '~'''''''' .... 0..<10 ,.,.,..,., _0 OI...-c._ a041rd uf Supervisors Qlllll1)' or San Dic,o 1600 Pacifi,Jriabway San Dieao, CA 92101 Re: Itom 6, Landfill Tip Fee Increase" August 2S, 1993 Dr.II' DoardMcmbcl'$: . . . 0__0.- .... I will not be Ill1Je to attend the Board of Supervisors tnc~tinj on August 25, 1993. However, I would like to comment on the issue rllferenced above. I (10 %lot s'.lpport in~reasinB the tlppi~ fee to $65.00 per ton recoDUllended by the Interim S\llld Weste Commission. While 1 do 1101 displitcthe need to rair.e the capital necessasy to ul:(lu!nke required hnprovelflcnts and expansion ,in the solid Wa$tc system, I believe we cot;lc!k('('l' the fee substantiallt lowcr if bonds were sold. This would reduce lhe Impacl Oil loc'al businesf.\..$ and re$ldent8 and sptl.'sd tbe cost out over a number of )'eari. My oWee has received n"metOUS calls from residents, milny of whom are seniors on fixed incomes, who CIMot arr(lrd the in~rca.se that was effective August I, 1993. I do not belicve Ih;!l the Interim Commission meetilli, where tbcyvoted to raise the fe~ by another $22,00 per ton, WIIS tlOliced well enough to alve the public aD OppOt1unit)' to lllld,tstand lmd c.,mmcnl. Nor do 1 believe bas this proposed' actioa on the Board ll~enda received $uffi.;icill publicity. Simllurities.to the San Die,oOty Co>>lIc:il', vote on beach parkin, fecs with\>llt publi( 8W'4tcness should not be 'gnCitcd. 1 wOIOI~ like to kt'low how man)' solid waste ptoje'l&, public or private, arc paid lor in cash U.'8)' as )'ou io) as opposed to obtaining Ion, lCml finAncing. Itaising fees to $65.00 per tOn w.ill mike OUT re.ional s)I$tem uncompetiUve and could lead to iI. break up...5omelhing we sliould all avoid. Why should tbe: Board of Supervisors continue to take the heat fOt rllisin, tipping fees? All fee irlcrel.$es sbouldbe deterred unln the p,er!J1ancnt lovcrning atructure has been deietmlned 'n~ apprOved by tho cities. Ihhe aties want the rights, tben let', give tbem lbe mJlQri~lbilh)'. locIl 3~)5' ,- 98/23/1993 11~18 FROM TO 7474639 p.e2 Board of $llPctvi~ors A\jSUSI19. '1993 !.~'o Two Final!y, 1 b<;lievc it would be .. serious nU$~ke 19 sl:lspend worle on the North County landfill 5,eII tc!1. 'rhe' Counl)'has r~cejved criticisJl11n the past tor not mo,,!ng quickly enough on thIs ~s~",e. Ten months is ten precious months. I do not believe the Board of Supervisors should be; responsible for any delay In IncreasIng cap~city in tbe North County for Nortb County trqsh, E..:pericncehas prov~l1 tbat anything having to do wilh trash wJII take years longer lh~nexpccte<l. We need to move ("rward DOW. Y~ur eOI1SI(ierallon of my comnlcnt$ lsappreclated. .....--....,....... rIan P. llilbra)' Cbainllan ..... . rsrD:cah CC: Chief Administratl"e Officer Clerk oethe BOllrd ] -It TOT~L P.02 , . MEMORANDUM DA TE: August 26, 1993 TO: FROM: SUBJECT: The Honorable Mayor and City Council John D. Goss, City Manager ~ Solid Waste Update - Results of Board of Supervisors Meeting of August 25, 1993 and Imperial Beach Proposals to Interim Commission ' Enclosed are copies of information relating to the above subjects. With regard to the County Board meet i ng, they adopted the CAD staff recommendat ions #5, 6 and 7 and deferred the balance of the items to the September 2, 1993 Interim Commission meeting for recommendations. Thus, no additional surcharge or tipping fee increase was acted on. The tipping fee remains $43 per ton and the surcharge $62 per ton for the non-signatory cities. The Imperial Beach memo contains items to be raised at the September 2, 1993 Interim Commission meeting regarding the NCRRA facility. They recommend an audit and raise a number of concerns. JDG:GK:mab Enclosures 3/)7 ~1' ~ , Thursday, August 26,1998 . . . . . THE SAN DIEGO L ~. .. "",W--'W1''''''''''- ~"t....-,.. - County board haltsPMn to boost landfill fees, orders' new review, ..., 'r. ".' .... " ., EMMET PIERCE ~Writer , County supervisors yesterday SJammed the brakes on a plan to steeply increase landfill fees that I were to protect the solvency of the : region's troubled garbage-disposal ~Mem,' , : ::"We want to avoid acting hastily arid making a decision that could cause great expense to our constit- uents," said 3rd District Supervisor Pam Slater. " . . . We wanttodo the very best thing for all concerned." _.Local trash haulers say the rate : hikes that were proposed would ! have made San Diego County's gar- I bage fees the highest in California s and among the highest in the na- il tion. 'The plan, which was offered by lJ the supervisors' administrative " staff and the advisory Interim Solid If Waste Commission, called for rais- '.1 mil the basic landfill dumping fee ,] from $43 to $65 a ton, begining () Ott. 1. Oceanside, Escondido and ::> Chula Vista, which are subject to a d landfill fee surcharge, would have B seen their rates skyrocket to $95 a )1 ton. The surcharge was imposed Aug, .L .1 on eight cities that refused to sign :1 long-term service agreements with 'I the Solid Waste Division. Five sub- ? sequently signed, leaving Ocean- " :side, Escondido and Chula Vista as ' I the only holdouts. The city of San I -Diego runs its own garbage pro- ~ gram and is not involved. In a 4-0 vote yesterday, with ~ Supervisor' Brian Bilbray absent, .the Board of Supervisors sent the q yroposed increase back to the com- " '1Ilission for an in-depth review. Su- q ~rvisors John MacDonald and Di- s .linne Jacob stressed that any fee ,i 'increase should be offset by a re- o. ,duction in expenditures. MacDonald called for a fiscal re- v ,view of the entire trash system, .' while Jacob urged the county staff)' In addition' to sending the pro- to "come forward with a bareJobonell, posed rate hike back to the interim budget." ':: . '1' commission, county supervisors The matter is expected (to lib yesterday suspended the search for before the commission next Thurs- new landfill sites in North County day and return to the Board'ofSu- and South County for up to 10 pervisors in mid-September. y.~ '" months. The delay is designed to Jacob singled out for criticism a give the interim commission time nearly completed recycling plant in: to develop a long-term plan for run- San Marcos. The $134 million faci1... . ning the Solid Waste Division. ity is a potential "boondoggle," she Supervisors also agreed to delay asserted. "I have grave concenis the planned purchase of properties about the flSCSl outlook at the costs surrounding the San Marcos dump ofthat facility." '" j until the commission has reviewed Massachusetts-based 'Thermb the issue. The properties are val- Electron is building the recycling ued at roughly $17 million. plant under a service agreement Finally, board members agreed with the county. The arrangement, '. to lift the landfill fee surcharge in in part, calls for the county to pay a affected cities that .approve trash service fee of about $26 million per service contracts by Friday. A re- year. Costs associated with the imbursement program will be set plant account for about one-third of up for cities that beat the deadline. the current $43-a-ton landfill ':The interim commission consists dumping fee. , ' of representatives from the county Outside board chambers, Bill and 14 cities that have approved Worrell, the county's solid-waste the agreement. It hasbeen charged chief, said a failure to raise rates or with developing a long-range plan reduce expenditures would leave for governing the trash program the county trash system in fiscal that will give the cities greater au- , distress. Had the rate hike been thority. ..' approved, it would have raised ap- i\ typical household in San Diego proximately $28 million during the County now pays about $17 a current fiscal year, he noted. month for garbage-disposal service. The trash program can't survive Each $10 increase in the landfill fee for long "without increasing fees or can translate into' 'a . rate hike of cutting costs," he said. '. '," about $1.20 a month, Worrell said. .... ~.jf..,.~'~t!:'J; c;.~. ';. .._~ - .'~ " J -jg/ COUNTY OF SAN DIEGO CHIEF ADMINISTRATIVE OFFICE AGENDA ITEM IIOAllD Of SUPERVI SOl<S lri., P. lilbray Di....-.e Jacob p_ st.ter Leon L.. Villi.-:s .Id1n lIacD....ld 6 SUBJECT: August 25, 1993 Board of Supervisors Amendment to Resolution No. 77 Revising the Disposal Fee Schedule ~ ~ ~~) o ~.. ". ~~ . - - .; :~.;:;. ex. .~ :5 soFct wa~e_:: ~-;! ..... __ o"".j >>- - .- :.....:.: .:::;;; r~ ...... ':..1 ~I"f ~ ~7~' ~ - C> <0 :c ~ '" DATE: TO: 8tJKMARY: :l:88m!:: Should your Board approve the recommendation of the Interim Solid Waste commission not to bond at the present ti~e, amend the Solid Waste Tip Fee Resolution accordingly to provide for a pay-as-you-go Tip Fee of $65.00 per ton for mixed waste, and defer certain capital projects? Additionally, should your Board approve the recommendation of the Interim Solid Waste commission to provide a credit program for surcharged waste from jurisdictions which have signed the Interim Solid Waste Agreement by August 27, 1993? And, should your Board increase the economic risk surcharged rate to $95.00 per ton for non- signatory jurisdiction waste? ( Recommendation(s) CHIEF ADMINISTRATIVE OFFICER: 1. Find that 'this amendment to Resolution No. 77 is exempt from the California Environmental Quality Act (CEQA), pursuant to section 15273 (Rates, Tolls, Fares and Charges) of the CEQA Guidelines, because it is a modification of charges by a public agency. This letter constitutes written findings required by section 15273, including specifically that any capital projects to be funded are necessary to maintain current levels of service. 2. Find that this amendment to Resolution No. 77 is exempt from the california Environmental Quality Act (CEQA), pursuant to section 15061(b) (3) because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. 3. Adopt the amendment to the Tip Fee Schedule - Resolution No. 77, to provide for a pay-as-you-go financed Solid Waste system, effective October 1, 1993. The amendment includes the following: $65.00 per ton for mixed waste from $43.00 per ton. J/'/j AUG 2 5 1993 .( Subject: Amendment to Resolution No. 77 Amending t~e Solid Waste Disposal Fee Schedule 6 4. Adopt the amendment to Resolution No. 77, which increases the surcharged rate on non-signatory jurisdiction waste, effective October 1, 1993. The amendment includes the following: . $95.00 per ton for mixed waste from $62.00 per ton. 5. . Suspend North and South County landfill siting efforts for a maximum of ten months until the ultimate form of governance is determined or until the Interim Solid Waste commission recommends proceeding, with the exception of continuing the rights of entry process. 6. Defer the purchase of the property 'around the San Marcos Landfill known as Tier II and Tier III until all of the legal issues att~ndant to the acquisition are clarified and the Interim Solid Waste Commission has reviewed the issue. ( 7. Agree to discontinue levying a surcharge against any waste from a city which signs the Interim Solid Waste Agreement by August 27, 1993 and approve a credit program for the surcharged waste from cities that approve the Interim Agreement prior to August 27, 1993. 8. Approve other minor technical amendments to Resolution No. 77. Fiscal Impact If approved, this request to amend the Solid Waste Tip Fee Schedule will result in additional tip fee revenues of approximately $27,720,000 for FY 93/94. The exact amount is difficult to calculate in absolute terms since we do not know which cities will decide not to sign the Interim Agreement, continue to utilize the County system and pay the economic risk surcharge. The revenues will be used to fund the Facility Reserve Fund for capital projects that are necessary to maintain current levels of service. This proposal has no impact on the County General Fund. BACKGROUND AND DISCUSSION OF RECOMMENDATIONS Recommendation 3 On May 18, 1993, the Board adopted a new tip fee schedule based on the Ernst and Young Tip Fee Study. At that the time, the cities, through their management staffs, strongly supported a Tip Fee based on bonding. Additionally, the bond financing approach for the Solid Waste System was also endorsed by the Elected Official Negotiating Committee and SANDAG, as the AB 939 Task Page 2 :? --~t7 '( Subject: Amendment to Resolution No. 77 Amending the Solid Waste Disposal Fee Schedule Force. The bond financing approach assumed that bonds would be sold in FY 93/94, providing necessary capital funds. Since that time, a shift has occurred"regarding the'approach to financing of the solid waste System. First, the Interim Solid Waste Commission voted unanimously to recommend to the Board of Supervisors an amendment to the Interim Agreement to require a majority vote of the Interim Commission in support of bonding before the Board would issue bonds. Your Board approved that amendment to the Interim Agreement on Auqust 3! 1993. At the Interim Commission meeting on Auqust 4, 1993 the Commission voted unanimously to recommend to the Board that the System be financed on a pay-as-you--qo basis, which pursuant to the Ernst & Young analysis requires a Tip Fee of $65.00 per ton on mixed waste. The amendments to the Tip Fee Resolution are included as Attachment A. 6 I \ Since the pay-as-you-go tip fee did not become effective on July 1, 1993, staff has reviewed the anticipated near-term capital expenditures. Most are mandated requlatory requirements, the most notable exceptions being the San Marcos Landfill expansion Tier II and III property purchases (which the Commission recommended deferring) and the timing of closure of inactive landfills: the gas flare systems at the inactive sites must be completed by June 1994, but placement of the clay cap atop the sites may be deferred until the following year. The Ernst & Young Pay-As-You-Go $65.00 Tip Fee model did not include the deferral of the Tier II property purchase, however it did assume a start-up date of July 1, 1993 and no funding for the Tonnage and Tap Grant programs or the Mitigation Fee program (which have been included in the Solid Waste Enterprise Fund budget). " The $65.00 Tip "Fee is needed to keep the Solid Waste Enterprise Fund solvent. The increase in both the Tip Fee and the Surcharge (see below) are necessary to meet operating expenses, meet financial reserve needs and requirements, and to obtain funds for capital projects necessary to maintain waste disposal service within the County. Staff does not recommend any change at this time on the charge for cars and pickup trucks but will work with the Commission and the hauling industry to evaluate the rate and determine if a change is necessary. Staff is also not recommending any change at this time on the charge for yard waste. With increased markets and competitive disposal programs, consideration should be given to restricting yard waste from the landfills by next July. If markets do not become available, or the volume of yard waste increases substantially which could cause problems at the landfill sites or increased administrative costs, staff will analyze the impacts of the yard waste tip fee in relation to the mixed waste fee and recommend any necessary changes. Page 3 .3 --;2) ( Subject: Amendment to Resolution No. 77 Amending the Solid Waste Disposal Fee Schedule 6 Recommendation 4 Based on the increased pay-as-you-go Tip Fee of $65.'00, staff recommends a commensurate increase in the economic ris~ surcharge rate for non-signatory jurisdiction waste to $95.00 per ton. The surcharged rate is sot over the pay-as-you-go rate (minus the host fee and mitigation fee). As previously discussed with the Board, non-participant uncommitted waste flow results in (1) a need to fund capital improvements with uncertainty of the future waste supply, (2) an acceleration of the use of the landfill for all users, thereby increasing the annual closure/post-closure trust fund deposit, and (3) an acceleration of future replacement facility costs. Each of these effects represent economic risks which have an impact on the system costs and can be..evaluated in a near term horizon, even though the cost effects may be in the future. It is critical to the long-term system planning process to know the amount of waste committed to the System in order to adequately plan and finance disposal facilities. This is the case whether the System's capital costs are financed through bonding or pay-as-you-go. The State of California acknowledges that it takes from ten to fourteen years to site and permit a new solid waste disposal facility, and it can take five to eight years to site and permit solid waste transfer facilities. Not knowing how much waste the system is going to manage over the long-term makes it extremely difficult to plan, permit and construct adequately sized necessary facilities. There is no evidence that the increase in the surcharged rate would cause any significant effects on the environment. Previous fee increases have not resulted in increased illegal dumping, increased air.pollution, or diversion of waste out-of-county. The cities can avoid paying the surcharge by signing the Interim Participation Agreement and becoming part of the inter- governmental team designing the permanent governance structure for the system or by leaving the system. Recommendations 5 and 6 The Commission also voted to recommend to the Board that the North and South County landfill siting studies be suspended for a maximum of ten months until the ultimate form of governance is determined or until the Commission requests the studies to proceed. It is essential to know the commitment of flow and the location of the participating jurisdictions prior to making any Page 4 J ---2J- ( Subject: Amendment to Resolution No. 77 Amending the Solid Waste Disposal Fee Schedule further decisions or expenditure of funds relating to the siting of new landfills. Staff is requesting that certain work regarding rights of entry continue. The Solid Waste Division and County Counsel have expended nearly nine months in tlle right-of- entry process. Staff is within 30 to 90 days of completion. Most rights-of-entry are good for three years. If work is stopped now without securing the rights-of-entry and begun again at a later date, the rights-of-entry process would have to begin again from scratch (notification, court-orders, etc.). Because of the potential savings of almost a year, with very little investment in staff time, the recommendation is being made that the right-of-entry process be completed. i 1;-,\ ~ The Commission also recommended deferring the purchase of the property around the San Marcos Landfill ~own as Tier II and Tier III until all of the legal issues attendant to the acquisition are clarified and the Interim.Solid Waste Commission has reviewed the issue. Recommendation 7 The Interim commission also voted to recommend that the Board of Supervisors approve a program to credit surcharged waste of any city that signs the Amended Interim Agreement by August 27, 1993. Staff also requests the Board to agree to discontinue levying a surcharge against any city which signs the Interim Agreement by August 27, 1993. It is anticipated that from August 1, 1993 to August 27, 1993 over 20,000 surcharged transactions have or will occur at the landfills. The bulk of the financial transactions are within the deferred accounts, which are primarily the large haulers that have accounts with the Solid Waste Division. Staff recommends providing a direct credit to those accounts for the surcharged waste amounts, if the non-signatory jurisdiction signs the Interim Agreement by August 27, 1993. Two other types of landfill customers also have paid or will pay the surcharge. One group are the small-sized haulers that may frequent the landfill, but are not on the deferred billing program. The other group is the individual citizen haulers who may have only used the landfill once during this period. Staff recommends that the landfill customers identified above be reimbursed through their individual cities, with funds appropriated through the Solid Waste Enterprise Fund. This approach would allow the city to handle the actual details and timing of the reimbursement program as they want to. This method would require that the city provide original receipts (which the fee collectors at the landfills recommended be. retained) to the Solid Waste Division and in turn, a check would be written to the City for a lump-sum reimbursement distribution. This program would eliminate the Solid Waste Division's need for overtime and temporary staff to accomplish this surcharge credit program. Page 5 J /'025 6 '( Subject: Amendment to Resolution No. 77 Amending the Solid Waste Disposal Fee Schedule Recommendation 8 This is a technical change that will allow a consolidation of the charge for a tarp into the chlU'ge for uncovered loads. .. There is also a technical typographical correction in section IV of the Tip Fee Resolution, which should have referenced Section IV rather than Section III. CONCLUSION: The Board approved Amended Interim Agreement provides for concurrence by the Commission regarding bonding before the Board of Supervisors would agr_ to bond. The Interim Commission recommended that the Board move to finance the syste.m through the pay-as-you-go approach and not to bond at this time: The resolution amendment that is before the Board provides for the pay-as you-go funding approach for the Solid Waste System and increases the economic risk surcharge commensurate with the pay- as-you-go Tip Fee. This letter also recommends a credit program for surcharged waste from jurisdictions that sign the Interim Agreement prior to August 27, 1993. ( r 2r.Il't~ .f/M.utt- i ,_J/;-'iIDAVID E." JANSSEN !' CHIEF ADMINISTRATIVE OFFICER !/ t. . Page 6 J /' 02. i FISCAL IMPACf STATEMENT 6 { level of Mandate for the ProgrM/Service level is: Publ i c "orts OeportMnt Solid Waste Prog.... o Mardoted/Mondated o Mardotod/Olscretl_ry o o Olscretl_ry/Mondated Olscretl_ry/Olscrotlonary 8udQet POIle Mo. 241-245 l..-l of Mardote for thla Propoool/$erVlce l..-l la: o MardotedlMondated 0 DIscretl_ry!Mardated o Mardotod/Olscretl_ry D Oiscrotl_ry/Olacretlonary Amenc:tnent to Res. No. T7 Revisir1G Solid \laste Dhoos8l Fee Pr_l FUTURE YEAR ESTIMATED IIIlGET (0) (b) (c) OF PROPOSAL I F ADOPTED IudQeted Propooed Change Proposed Rwlaed (d) (e) ~t For In 8udQeted Current Year 1st ~1b8~*"t 2nd W>cequent Proposel _t IudQet. (e+b) Y..r Year Olrect Coat $ 0 $27.720.000 S27.720 000 $ 0 $ 0 R....... $ 0 S27.720.000 S27. no. 000 $ 0 $ 0 !lET GEIlE1W. RlIIO alST $ 0 $ 0 S 0 $ 0 $ 0 Staff V.ars 0 0 0 0 0 Sources of Reyenue for Proposed Change and SUbsequent Years: ( I \laste T h:lO;r\Q Fee $27.no.000 $ o o $ o $ o $ $ o Space-Related I~ts: "ill this prqposal result in any additi~l spece requir~ts? [] Yes (xl No If yes, how witt these requirements be ac:c:ClftInOdated? (Attach additional sheets a. required) Support/Other Depertment Impects: (Attach additionel sheets as required) n/o Remarks: (Attach additional sheets 8S r~ired) Approval of this proposal wH l enend the FY 1993-94 Sol id Waste Entel'"pl"iH FU"d Spending PLan to authorize an estiNted 527,nO,Oao increase in the Tipping Fee fran S43aOO/ton to S6S.00/ton. This is projected on an inc:reue of $22.00 per ton effective OCtober 1, 1993. The S22.00/ton increase will be trensferred frOftl the Solid \laste Ente-rprise FU"ld's Operating FU"d (190400) to the Solid Waste Enterprise Fund'. Facilities Reserve Fund (190402) on a ~thly besi. to fund SWEF capital i~ovement costs. In addition those cities which have not signed Interi. Solid \taste Agree&aents shall be charged an Econondc Risk Surcharge of ' SO percent, .inus facilfty fees and .itigation fees or at a rete of S9S.00/ton. The amcK.nt of the SUrcharge that NY be collected is difficult to calculate in absolute term sinee we do not know which cities will decide not to sign the Interh. Agreement and yet continue to utilize the County syste.. Approval of this proposal will have no iqJact on the COW1ty General Fund. /' J --- .;2J 6 -( BOARD OF SUPERVISORS AGENDA' ITEM INFORMATION SHEET SUBJBCT: Amendment to Resolution No. 77 Revising the Solid Waste Fee Schedule. ( ) N/A () N/A SUPV. DI:ST.: All COUNTY COtJHSBL APPROVAL: Form and Legality ( ) Standard Form () Ordinance (X) eso AUDI:'rOR APPROVAL: ( ) Yes (X) No FI:NANCUL KAHAGBKBN'r RBVI:EW: CONTRACT REVIEW PANEL: ( ) (X) N/A PRBVI:OUS RELEVANT BOARD ACTION: 7/20/93 (52) Approved the Tip Fee amendment to allow non-member cities to sign the Interim Agreement and therefore be exempt from the surcharge; 6/29/93 (41) Approved the Tip Fee amendment to institute the economic risk surcharge on non-signatory jurisdiction waste; 6/8/93 (24) continued the Tip Fee Amendment to 6/29/93; 6/1/93 (44) ( continued the Tip Fee Workshop to 6/8/93; 5/18/93 (21) Amendment \ to Resolution No. 77 Revising th~ Solid Waste' Disposal Fee Schedule. BOARD POLI:CI:BS APPLICABLE: I-76 Solid Waste Disposal; B-29 Responsibility for Costs. ATTACHMENT(S): (A) Amendment to Resolution No. 77 Revising the Solid Waste Disposal Fee Schedule. 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"' ",... / t'1: .. "Ii ..... " " ,,> >.. 0 " .. t:~ J~ J)> ~3 8~ " '" ... .. " CDI;.N!)__ arlJ..~J f;f" ;.,:JI;F:;'~,"SOR:5 r.';; ;: .~; ( BRIAN P. BILBRAY CHAIRMAN AllC Zu 9 SA AH '93 6 SUPERVISOR. FlRST DISTRICT $AN DIEGO COUNTY BOARD OF SUPERVISORS i'.".~. .i. r;"1t,,'1<- !::_~'l._-: CC Tift ;to.b.fi.D ~- :,;".;j'.~'iiS"'nS August 19, 1993 Board of Supervisors County of San Diego 1600 Pacific Highway San Diego, CA 92101 Re: Item 6, Landfill Tip Fee Increase, August 25, 1993 . Dear .Board -Members:... I will not be able to attend the Board of Supervisors meeting on August 25, 1993. However, I would like to comment on the issue referenced above. ( I do not support increasing the tipping fee to $65.00 per ton recommended by the Interi.'1l Solid Waste Commission. While I do not dispute the need to raise the capital necessary to undertake. required improvements and expansion in the solid waste system, I believe we wllld keep the fee suhstantially lower if bonds were sold. This would reduce the impact '.IJJ local businesses and residents and spread the cost out over a number of years. My office has received numerous calls from residents, many of whom are seniors on fixed incomes, who cannot afford the increase that was effective August I, 1993. I do not believe' that ~he Interim Commission meeting, where they voted to raise the fee by another $22.00 per ton, was noticed well enough to give the public an opportunity to understand and comment. Nor do I believe has this proposed action on the Board agenda received sufficient publicity. Similarities)o the San Diego City Council's vote on beach parking fees without public awareness should not be ignored.. I would like to know how many solid waste projects, public or private, are paid for in cash (pay as you go) as opposed to obtaining long term financing. Raising fees to $65.00 per ton will make our regional system uncompetitive and could lead to its break up...something we should all avoid. Why should the Board of Supervisors continue to take the heat for raising tipping fees? All fee increases should be deferred until the" permanent governing structure has been determined and approved by the cities. If the cities want the rights, then let's give them the responsibility, too! ( COUNTY ADMINISTRATION CENTER 1600 PACIFIC HIGH......AY. ROOM 335 SAN DIEGO, CA 92101.2470 (619)531-5511 FAX (615) 5::-....:025 CHULA VISTA OFFICE. 4::10 DAVIDSON STREET. SUiTE 0" CHULA VIS'-" C" 92010-2411 16191691-"100 :J~ J /p AUG 2 5 IQ93 '{ Board of Supexvisors August 19, 1993 Page Two 6 Finally, I believe it would be a serious mistake to suspend work on the North County landfill search. The County has received criticism in the past for not moving quickly enough on tltis issue. Ten months is ten precious months. I do not believe the Board of Supexvisors should be responsible for any delay in increasing capacity in the North County for North County trash. Experience has proven that anything having to do with trash will take years "longer than expected. We need to move forward now. Your consideration of my comments is appreciated. Sinc1jY' } I I __ ~P,~llb~<0 .l3rian . 01 ray J'hi Chairman BPB:cah cc: Chief Administrative Officer Clerk of the Board v" ( 3/37 ;) , // (619) 423-8300 FAX (619) 429-9770 THE CITY OF' , IMPERIAL BEACH 825 IMPERIAL BEACH BOULEVARD. IMPERIAL BEACH, CALIFORNIA 91932 August 23, 1993 John Goss, City Manager City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 " Subiect: Imoerial Beach Prooosals to the Solid Waste Interim Commission Mr, Goss: Attached is a list of proposals to the Solid Waste Interim Commission. This document was approved by the City Council of the City ofImperial Beach at their meeting of August 18, 1993. It was the City Council's desire that you be provided a copy of this document for your review before the next Commission meeting. If you have any questions please feel free to contact me at 423-8300, extension 4. ly, m~ ia M. Tjarks Clerk Enclosure: ' Imperial Beach Proposals to the Solid Waste Interim Commission C0,z1~/ /J/c---L 3 ---3 ~ '. THE CITY OF" IMPERIAL BEACH (619) 423-8300 FAX (619) 429-9770 . 825 IMPERIAL BEACH BOULEVARD. IMPERIAL BEACH, CALIFORNIA 91932 Imperial Beach Proposals to the Solid Waste Interim Commission August 18, 1993 North County Resource Recovery Associates: 1. Recommend audit of NCRRA that will assure oversight by a disinterested third party. 2. Recommend field trip by the Commission"to the site. 3. Raise the following concerns: a. What is the size, structure, and operation of the "front end of the burner" which is proposed for use. b. What is the cost of the grinding process compared to the value received? compared to compacting processes? c. What is the tonnage required to operate the facility without a loss, and where in the county will that tonnage be generated? Ernst & Young reports, 550,000 tons expected at time of their 1/4/93 Management Audit. d. Considering the mixed waste operating concept of NCRRA, 1. what impact does the project have on the current coun~y mandatory recycling ordinance? 2. what are the ramifications (fiscal/political) of no longer requiring residential source separation in the North County and possibly elsewhere? Compare with the success rate for long term diversion through consumer education in regions where source separation is an integral part of recycling (eg: Seatle). e. What would be the cost of closing the NCRRA facility or options to modify it for more efficient operation? For example: removing grinding equipmenti service as transfer station with future closure of San Marcos. 1. Cost to take out existing contracti compare with projected cost savings with no 24 year operation agreement. 2. Projection of additional cost when San Marcos landfill closes and NCRRA continues to operate as the contract requires. 3. Determine cost effectiveness over life of contract considering: other proven facilities in U.S.i existing source separation programs/county ordinancei and diminishing capacity of San Marcos landfill. 8/18/93 _ Approved list of proposals and directed starr to forward this list to the County Board of Supervison and aU San Diego County incorporated cities and their Councihnemben. 3~Jl AGENDA ITEM # :1.,;1-