HomeMy WebLinkAbout0502.093"
Septewber 23. 1993
THE HONORABLE ~ITY COUNCIL
Palo ~to( California
Ar.',endment to Agreement with ",asee ,~an~..s:..ement Incorpor..,.ted and
Rerolest for Authority to Expend Fynds Belat.ed t9_~apital ar.d
Operating C09t.S of SMaRT Station
Members of the Council:
Reoort in Brief
This report requests that Council app:t"ove an Amendment ..... .1 th Waste
Management Incorporated tWMI) to delay tbe start date for refuse
deliveries to Kirby Canyon Landfill from July 1, 1993 to October 1,
Hn,
This report also recommends that Counc:il authorize tbe City Mar.ager
to expend funds foz' Palo Alto's share of capital and operating
costa for the SMaRT Station, as described in the second Memorandum
of Understanding {MOU) between the citiea of Palo Alto, Mountain
View and Sunnyvale approved by Council on May 4, t992 (CMR 237:~2) .
Background,
In October 1991 1 the cities of Palo Alto, Mountain View and
Sunnyvale entered into long-term agreements with WMI for disposal
capacity at Kirby Canyon Landfill in San Jose (CMR:~39:91). The
agreements contemplated a starting date for I-efuse deliveries of
July 1, 1993. Under the agreements. each city corn.'!'.itted to
delivering a specific range of tonnage each year, through the year
2021, with options for extension under mutually agreeable terms_
DiscussioI".
WMI experienced delays in receiving L-egulatory appx:ova,ls for
construction of additional ca.pacity in the form of new "wastE
cells~ at Kirby Canyon Landfill for the three cities' refuse. Due
to the delaysr WMI requested the cities to delay the start date
from July 1, 1993 to October 1, 1993. Staff from the three cities
have met and discussed optiO!lS available as a result of the
requested delay and agreed the best option was to amend our
agreements as requested.
The at.tached first amendment t.o Palo Al to's agreement wit-h WMI
reflects the new start date of October 1. 1993. The a110cated
tonnage commitment a in the agreement have been revised to reflect
the later start date and a revision to the ending date in 2D21.
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Palo Alto's total to~n~ge commitment is unchanged fro~ the original
quantities negotiated.
The proposed amendment is continge:l!. on all three cities approving
amendments. The City of Sunnyvale ar:d t.he '=ity ot Mountain View
have approved amendments with ~'MI in June 1993 and Au-c,'ust 1993.
AuthQrity to Expend FUnds Related to SMaRT Station
Council approved the second Memorar:!.dum of Understanding {CMR:
237:92} between the cities of Palo Alto, Mountain View and
Sunnyvale. The second MOU became effective when the Sunnyvale City
Co~mcil decided to build the SMaRT St.ation as a City capital
improvement proj eet. rather than as a "t::urnkey" project to be
delivered by \\11'11. It provided that certain conditions be met in
order for palo Alto and Mountain View to participate in a project
built by Sunnyvale. The primary conditicn in the MOU provided that
Palo Alto would share in tne capital ar.d ope~ating costs of the
project. The anticipated capital costs, as well as estimates of
first year operating costs. were detailen ir-the MOD. Another
provision in the MOU was that if some or all of the capital costs
were not financed, but ra~her be paid direcLly by Sunnyvale~ then
Mountain View and Palo Alto would reimburse Sunnyvale their
proportionate share. Estimates of thp.. percent of each city's
proportionate share were included in the second MOU. In June 1992.
the sunr~yvale City Council opted to build the SMaRT Station, and as
a result of the second MOU, becam~ effective.
The motion under which th-s! Palo Alto City Council adopted the
second MOU provided the City Manager only with the authority to
execute the document. The Council action did not expressly provide
the Manager with the authority to expend funds under the second
MOU. Now that the SMaRT Station has been completed. certain
payments will be required to reimburse SUI!Ilyvale for sp~cific
expenses and ongoing capital and opera~ing payments.
Staff is requesting that Cit~t' Council authorize the City Manager to
expend funds to satisfy the obligations detailed in the se;:ond MOU.
Staff has received an invoice from the City of Sunrlyvale 'Which
requests payment of $219,367.1-4. This is for-reirr.bursement for
both Capital costs relat.e:i to the cO:1st.ruction of the. station and
for other costs sunn}~ale paid, ~hich were not financed through
bonds fo~ the station construction or ot.her cost.s ~hich '«ere
incurred prior to the resolution of intent and are therefore flot
reimbu'[-sable from the bond pl"oceeds>
Staff of Public Works and the Attorney's offi~e have reviewed the
invoice, as \IIIell as the language of the second MOU, to determine if
all cost.S related to t-his invcice from Sunnyvale are Palo Al to's
responsibility. Public Works staff has estimated that $165.319 of
che invoice is clearly related to Capital costs for the station'S
construction, but the balance of '[he amO'..mt reauested from
Sunnyvale may not meet the criteria used for reimbursement as
defined in the second MOU. Discussions a:re with SunnY" .... ale
regarding the $5~.OOO difference.
CMR:502:93 -2-
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i-When the SMaRT station b€gins operation on October L 1993"
Sunnyvale will invoice Pale Alto on ~ monthly basis our
proportionate share of operating costs from the processing and
transfer of Palo Alto' 5 garbage. Additionally, Sunnyvale is
preparing an invoice for Palo Alto's first payment of debt service
for the bonds used to construct the SMaRT station. Staff has
budgeted fundS for these cbligati~ns in the 1993-~4 Refuse Fund
operating budget.
~ommendations
staff recommends that Council:
1. Authorize the
between the
Incr.rporated,
Mayor
City
and
to sign Amendment #1 to the Agreement
of Palo Alto and ~aste Management
:2. Authorize the City ,"1al"lager to expend funds related to the
SMaRT Sta!::.ion construction and operating expenses as descriced
in the Memorandum of Understanding between the cities of Palo
Alto, Mmlntain View and Palo Al(.o.
Respectfully submitted,
MICHAEL H. MiLLER
Deputy Director, Public Works Operations
GLENN S. ROBERTS
Director of Public Works
LLI~ :k~
Assistant City Manager
Attachment: Amendment No.1
Related
453,93
243,92
237,92
200,32
439,91
CMP.'S:
CMR,S02,93
8/5/93
4/30/92
4/30/92
4/02/92
10/07/91
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ill'ST AME:lDMENT TO AGREEMENT
THIS FIRST AMDiDMENT to Agreement is made as ~f the
day of September, 1993 by and between the CITY OF PALO
ALTO, a municipal corporation (hereinafter referred to a~ the
·City") ~~d WASTE MANAGEMENT OF CALIFORNIA, INC., a california
corporation (hereinafter ref~rred to as Wcontractor").
WHEREAS, the City and Contractor entered into an
Aqreement for Long Term Disposal of Solid Waste dated as of
OCtober 7, 1991 CMAqreement·);
WHEREAS, the Agreement contemplated that the City of
sunnyvale ,-Sunnyvale") would construct a Materials Recovery and
Transfer Station (-station-) to which Municipal Solid Waste
collected within the City and the cities of Mountain View and
sunnyvale would be delivered and from which the Municipal Solid
Waste which is not r€cycled would be delivered to the Kirby
Canyon sanitary Landfill {-landfill-) for disposal; and
WHEREAS, the Agreement contemplated that the Station
would be completed and that deliveries of Municipal Solid Waste
to the landfill 'Would commence on July ... , 1993; and
WHEREAS, Sunnyvale has completed the Station; and
WHEREAS, Contractor has advised City that it will be
unable to accept MunicIpal Solid waste at the landfill Until
October 1, 199) and has requested that the delivery of Municipal
Solid W~ste be delayed until October 1, 1993; and
WHEREAS, the city is willing to accommodate this
request on the terms set out in this First Amendment to
Agreement.
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NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:
1. Section 1.02 is modified to ~ead "The tel~ of this
Agreement shall end (a} Decembe~ 31, 2021 or (b) upon the full
utilization of city's Allocation Quantity, whichever occurs first
,the "Term")."
2. Section 2.01.S of the Agreement is amended by
chanqinq the references to "July 1, 1993" in the second and third
p~ragraphs to "October 1, 1993",
3. Section 2.02 of the Agreement is amended hy
changing -J"u,ly 1, 1993" to "October 1, 1993".
4. Section 3.01 of the Agreement is amenced by
changing both references to "July 1, 1993" ,to IItOctober 1, 1993-,
S. Section 3.02.6 of the A9re~ment is am~nded by
changing the references to ".July 1, 199)" -to "October 1, 1993"
and the references to "January 1, 199'" to "April 1. 1994-.
6~ Section 4.02.A of the Agreement is amended by
changing -July l~ 1993-to ~October 1, 1993·~
7. The Allocation ~Jantities for 1993, as set forth
on Exhibit A to the Agreement, are changed to the following
amounts, in order to reflect the reduced period of time in which
del i ver ielS will be made to the landfill in 1993 :
Mountain Palo
SYDD~val~ View t..l.!;Q Total
41~ 063 22,328 14,740 78,131
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8. The Allocation Quantities for 2021, as set forth
on Exhibit A to the Agreement, are changed to the following
amounts, in order to reflect the three month e~tension of the
Term:
sunnYVale
157,475
MO!Jntain
ViC ....
69,122
Palo
All.2
61 /331
9. Exhibit A, as modified, is attached~
287,928
10. city does not agree that the delay in contractor's
acceptance o,f Municipal Solid Waste at the landfill is excused
under section 9.12 o~ the Agreement. However, p~ovided that
Contractor is ready. willinq and able; without fail, to accept
Municipal Solid Waste from the Station at the landfill on October
1, 1993 (or, if it is prevent~Q from doing so by permit
requirements outside its control, it arranges tor disposal in an
alternative landfill in accordance ~ith Section 3.05 of the
Agreement), City agrees that it will make no claim against
Contractor, under the Aqreement or oth~rwise, for the delay in
acceptinq Municipal Solid waste at the landfill from July 1, ~99J
to october l~ 199J~
11~ This Aqreement is conditioned upon the City of
Mountain View and the city of Sunnyvale each enterinq into
amendments to their Agreements with contractor, on or before
September 1, 1993, agreeing to the delay and to the extension of
the Tenn.
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12~ Except as ~xpressly provided herein, in all other
respects the Agreement is unchanqed and ratified.
IN WITNESS WHEREOF 1 the parties hereto have executed
this First Amendment to Agreement as of the day and year first
above writ ten ~
CITY OF PALO ALTO
By:
M~a~~·o~r~----------------
ATTEST: city Clerk
By:
nD~ep~u·ty~~c~>·ty~c~le~r~k~--
APPROVED AS TO FORM:
city Attorney
APPROVED AS TO CONTENT:
oirector of PubllC Works
"m:.l
WASTE MANAGEMENT OF
CALI FO~Y,,,.....TI";;
Date:
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"",,"'S!l..IO !.>'ISlE 0 Tr.F 41'5 5..::il 9366 .~ le. 19'93
" , EXHISl1 A
!.lS! QF e,!.l.QQATIQN QyANTm.~, It:! TON!>
\ SUNNYV.o.l.E MOUNT.o.tN VIEW PALO Al.TO TOTAt,
XW'!
199~ a a 0 a
19$3 • 4~.063 22.328 14.740 78, f31
19lM 159.07& 75,885 59.1st ts4,129
I!1SS 153,794 76,4e;s 59.472 289.131
1996 '50,589 ".381 57,142 285,712
1997 147,2411 78,309 55.911 281,528 ,-143,B"$ 79,249 5<,159 217.253
,999 '40.319 S3.'sa ~304 246,171:
2000 136,94B 54.1'2 50.408 241,3611
2001 ' 1:)5,5.'13 SO.4llO 50,912 24Q,905-= 136.438 54,850 51.':?' 2J!2.107
200l 137.365 55,224 S1,935 <:44,524
2004 13MOI 55,600 52',4.55 246.356 = 139.243 S5.aao S2.WlI 248.=
2006 140. ,91 $8,381 ~.S09 250.061 = 14'.146 $6,7" 54.0« 251.934
2008 142,107 51,130 5 •• 585 2S3.sZ!
2009 "3.075 57.518 55.130 255.723
2010 144,049 57,S09 5S.~ 257.640
20.11 HS,03G 58,303 SS.239 259.572
2012 148.018 58.100 56,801 281.519
2013 'S41.0r.3 59.099 57.'389 263 .• 9.
2014 148,014 59,501 51,943 265 •• sa
2015 149,022 59.905 58.522 257.449
2016 150.03? 60.312 59.107 26~.45S
2017 15'.CS9 50.723 S9.511S 271.480
2018 152.0S1 61.'36 60,2gS :?73,51a
20.9 153,123 61,551 60.898 2?5.S72
2020 lS'.166 6urro 8'.501 277.64.
2021 ~ 15'.475 69.12%. 6 .. j,33~ 287,926
TO'TAL 4.123,310 '.1_9,333 1.SSG.S26 7.4S8.910
.. A.s.m.wcs <lefl1I0f)c$ be9«1 OctOber-\. 1$9:).
M Assumes dcftverie:$ eoC' Oecember 31,2021, 1113/93-