REPORT TO THE CITY COUNCIL
October 25, 2018
FROM: MICHAEL CARBAJAL, Director
Department of Public Utilities
BY: JERRY L. SCHUBER SR., Assistant Director
Department of Public Utilities - Solid Waste Management Division
SUBJECT
Title
Actions related to the Fourth Amendment to the Services Agreement with Orange Avenue Disposal Company, Inc.:
1. Adopt a finding of Class 1/Existing Facilities Categorical Exemption pursuant to Section 15301of the California Environmental Quality Act.
2. Approve a Fourth Amendment to the Services Agreement with Orange Avenue Disposal Company, Inc., to increase per-ton charges for transfer, processing, and disposal of waste, capturing unforeseeable costs due to change in law and economic conditions (Citywide)
Body
RECOMMENDATION
Staff recommends the City Council 1) adopt a finding of Class 1/Existing Facilities Categorical Exemption pursuant to Section 15301of the California Environmental Quality Act; and 2) approve a Fourth Amendment to the Services Agreement with Orange Avenue Disposal Company, Inc. (OAD), modifying the Services Agreement to increase per-ton rates to capture unforeseeable costs due to change in law and economic conditions.
EXECUTIVE SUMMARY
City Council entered into a Services Agreement with OAD, dated February 25, 2004, for the transfer, processing, and disposal of municipal solid waste, construction and demolition waste, and asphalt and concrete (2004 Agreement). The City and OAD amended the 2004 Agreement first on November 27, 2007 (First Amendment), again on July 28, 2011 (Second Amendment), and most recently on March 16, 2015 (Third Amendment), all of which are hereinafter collectively referred to as "Agreement."
The First Amendment added a fuel surcharge to the 2004 Agreement and agreed the City would pay $173,000 to OAD for retroactive fuel costs. The Second Amendment permitted OAD to assess a Transfer Station Surcharge on each ton of solid waste delivered to OAD, which expired March 15, 2...
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