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HomeMy WebLinkAbout1996-12-12 City Council (4)REVISED COPY City of Palo Alto City Manager’s Report TO:HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT: PUBLIC WORKS DATE:DECEMBER 12, 1996 CMR:512:96 SUBJECT:OPERATING ISSUES AT THE SMART STATION REQUEST This is an informational report and requires no action by Council. RECOMMENDATIONS Staffhas provided this report as information only as an update to the issues related to the operation of the SMART Station. Staffwill return to Council only if there are required changes to the Memorandum of Understanding (MOU) or financial impacts which Council may need to approve. POLICY IMPLICATIONS This report does not contain any change to existing policies. EXECUTIVE SUMMARY This report provides Council with information related to operating issues at the SMART Station and summarizes items discussed with Sunnyvale pertaining to the MOU between the three cities. Starting in July 1996, staff from Sunnyvale and Palo Alto Administrative Services and Public Works Departments convened a series of meetings to resolve issues predating the three city MOU, and issues relating to the start up and operation of the SMART Station. As a result of this series of meetings, the Public Works Directors of the three cities have established a quarterly meeting to address ongoing SMART Station issues; in addition, the Finance/Administrative Services staff of each city will also receive notices and agendas for the meetings, and will attend as necessary. Attached is a summary of the current status or resolution of the issues. CMR:512:96 Page 1 of 2 FISCAL IMPACT This report has no fiscal impact to the City at this time. ENVIRONMENTAL,ASSESSMENT There is no environmental assessment required in conjunction with this report. ATTACHMENT SMART Station Issues PREPARED BY: Michael Miller, Deputy Director, Public Works Operations DEPARTMENT HEAD REVIEW: GLENN S. ROBERTS Director of Public Works CITY MANAGER APPROVAL: FLEMING(., CMR:512:96 Page 2 of 2 SMART Station Issues Issue 1994-95 year end reconciliation showed incorrect recycling revenue credit 1995-96 Reconciliation Annual reconciliation process Proposed changes in definitions in the MOU and reconciliation Assignment of agreement from current contractor, WWI to USA waste. Interpretation of definition of ’yardwaste’ versus definition of municipal solid waste (MSW) in the MOU and WWI operating contract: Imported waste acceptance at SMART. Methodology for allocating recycling revenues. Expenses charged to Palo Alto by Sunnyvale prior to the effective date of the M6U. Meeting process and information sharing. Additional capital costs related to the curbside processing line to be built at the SMART Station. ~-. Status Sunnyvale credited Palo Alto with an additional $130,166 against year end balance of expenses. Draft submitted to Palo Alto for review and approval. Tentatively estimates a refund of $159,000 against original estimated expenses for 1995-96. The cities have agreed to a specific time line to review draft and final reconciliations for the previous fiscal years. Sunnyvale has agreed to incorporate certain changes related to the definitions of capital, operating and direct/indirect costs. USA Waste purchased Western Waste Industries (WWI) and the assignment of the agreement between Sunnyvale and WWI is currently under consideration. Final resolution on hold until a minimum recycling level has been negotiated with (WW]). On hold pending resolution of contract issues with WWI. Sunnyvale staff is currently working on a methodology which must be agreed to by Mountain View and Palo Alto. Resolved; charges assessed to Palo Alto were incurred prior to the MOU, but were appropriate charges for SMART Station expenses. Agreed to a minimum of quarterly meetings between Public Works Directors of the three cities and other staff as required. Pending submission and design approval, three cities have agreed to pursue the alternative of using the bond.reserve (1.8 million) for the SMART Station (Palo Alto share $325,000) by insuring the reserve with a one time policy cost of $60,000.