REPORT TO THE CITY COUNCIL
September 25, 2014
FROM: THOMAS C. ESQUEDA, Director
Department of Public Utilities
BY: JERRY L. SCHUBER SR., Assistant Director
Department of Public Utilities, Solid Waste Management Division
SUBJECT
Title
Authorize the City Manager or designee to enter into a month to month successor agreement with the County of Fresno to deliver and dispose of municipal solid waste during the negotiations of a successor agreement to American Avenue Landfill
Body
RECOMMENDATION
Staff recommends that City Council authorize the City Manager or designee to enter into an agreement with the County of Fresno to continue to deliver solid waste materials to Fresno County American Landfill on a month to month Agreement.
EXECUTIVE SUMMARY
The Department of Public Utilities and the City Manager's Office continue negotiations with the County of Fresno concerning the City/County American Avenue Landfill contract, which expired on June 30, 2014. As part of these discussions the parties have agreed to retain the current solid waste disposal agreement. This agreement will constitute a month to month assignment with the City requiring commercial and residential solid waste to be transported and disposed of in the American Avenue Landfill.
The overall cost of this agreement varies depending on material tonnage collected. Tipping fees during the course of these discussions will be locked in at the same rate which was in place at the end of the contract (currently $23.00 per ton). Funding is being provided by the City's Residential Solid Waste Operating Funds.
BACKGROUND
In 1992, the City of Fresno, having closed its own sanitary landfill, negotiated a contract with the County of Fresno to bring all municipal solid waste to the American Avenue Landfill for disposal. The agreement was reached in an effort to help the County identify a sustainable funding source so that bonds could be obtained and expansion of the location could be made. The Landfill was subsequently expanded and all bonds have since been paid in full. However, there are other costs associated with operating a landfill, such as the ongoing costs associated with a closure, that need to be evaluated to ensure that funding levels are appropriate.
Over the last several months the Department of Public Utilities and the City Manager's Office have been in discussions with the County of Fresno concerning the American Avenue Landfill contract, which expired on June 30, 2014. The parties have agreed to continue to deliver material to the American Avenue Landfill while working with the outside third party consultant.
Ongoing negotiations for a successor agreement to the American Avenue Landfill contract will continue until such time they do not progress. At this time the City may initiate an RFP for Landfill services, once awarded the 30 day notice to cancel the agreement would be issued.
It should be noted that the American Avenue Landfill agreement is one of three agreements that will either expire and/or change over the next year that will directly affect the cost of providing residential solid waste services. Any changes to these agreements could potentially help to mitigate the projected increases in solid waste rates that will occur over the next five years. It is anticipated that staff will be initiating the process to increase residential solid waste rates depending on the outcome of the negotiations later this year.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378, the award of this contract does not qualify as a "project" and is therefore exempt from the CEQA requirements.
FISCAL IMPACT
The City's agreement with the County for the American Avenue Landfill is subject to tonnages hauled and disposed of at $23.00 per ton. The current per ton charge of $23.00 was included in the Division's FY16 Operating budget.
Attachments:
Fresno County Agenda Item 36
Amendment No. 1 to Landfill Agreement