REPORT TO THE CITY COUNCIL
April 9, 2015
FROM: THOMAS C. ESQUEDA, Director
Department of Public Utilities
SUBJECT
Title
Approve the substantive terms of a recommended Third Amendment to the Agreement with Orange Avenue Disposal Company, Inc. ("OAD") dated February 25, 2004 ("2004 Agreement"), for a Transfer Station Surcharge of $4.73 per ton for transfer station operations and hauling of the City's municipal solid waste.
Body
RECOMMENDATION
Staff recommends Council approve a Third Amendment to the 2004 Agreement with OAD, to be developed with the assistance of, and approval as to form by, the City Attorney's Office, and authorize the Director of Public Utilities to execute the completed documents.
EXECUTIVE SUMMARY
On August 26, 2003, the Fresno City Council awarded an Agreement to OAD to receive, process, transfer, and dispose of the City's municipal solid waste at the American Avenue Landfill using the OAD Transfer Station. The initial 20-year term of the Agreement is February 25, 2004, through February 25, 2024. Subsequent to awarding the 2004 Agreement to OAD, Council approved two amendments. The First Amendment allows OAD to assess a Fuel Surcharge on each ton of solid waste delivered to the OAD Transfer Station. The Second Amendment, which expired March 15, 2015, allowed OAD to assess a Transfer Station Surcharge on each ton of solid waste delivered to the OAD Transfer Station.
The Transfer Station Surcharge rate associated with the Second Amendment is no longer in effect at this time. As specified in the Second Amendment, the City is not obligated to extend the duration of the Transfer Station Surcharge rate beyond March 15, 2015. Accordingly, the current rate for OAD to receive, process, transfer, and dispose of the City's municipal solid waste at the American Avenue Landfill using the OAD Transfer Station is $26.45.
OAD has communicated to City staff that returning to a compensation plan based solely on the 2004 Agreeme...
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