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HomeMy WebLinkAbout2019-10-15; City Council; Resolution 2019-203RESOLUTION NO. 2019-203 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING AMENDMENT NO. 4 TO THE AGREEMENT FOR TRANSFER STATION AND DISPOSAL SERVICES BETWEEN THE CITY OF CARLSBAD AND PALOMAR TRANSFER STATION, INC. TO COMPOST THE CITY'S GREEN WASTE AT AGROMIN -OC, LLC (AGROMIN), EFFECTIVE JAN.1, 2020. WHEREAS, an agreement dated June 1, 2002, was made by and between the City of Carlsbad and Palomar Transfer Station, Inc., (a wholly owned subsidiary of Republic Services, Inc.) for transfer station and disposal services (Agreement); and WHEREAS, the city is required by the Agreement to deliver all solid waste generated in the City of Carlsbad to the Palomar Transfer Station until June 30, 2022, unless the Agreement is otherwise extended or amended by the City Council; and WHEREAS, pursuant to Section 4.01 of the Agreement, all city source separated green waste materials accepted at the Transfer Station are currently delivered to the Otay Landfill, the Designated Processing Facility under the Agreement, for use as Alternative Daily Cover (ADC); and WHEREAS, beginning on Jan. 1, 2020, pursuant to Assembly Bill (AB) 1594, the city will not receive diversion credit for its green waste that is used as ADC at landfills; and WHEREAS, the city currently relies on ADC diversion credit to meet the 50% citywide diversion rate requirement under AB 939; and WHEREAS, Section 3.29 of the Agreement allows the city to deliver, or cause to be delivered, source separated recyclable materials such as green waste, which are collected from city residents or businesses by designated hauler(s), to the Transfer Station for consolidation and transfer and transport to a processing location or off-site location designated by the city; and WHEREAS, under Section 3.29, the city has designated Agromin as the processing location for composting of all source separated organic materials that are delivered to the Transfer Station by the city's designated hauler; and WHEREAS, Agromin is a commercial compost facility that is co-owned by Republic Services, Inc., and permitted to accept 200 tons per day of local green waste, and Agromin has capacity to divert all the city's green waste volume through composting, which will ensure the city's continuing compliance with AB 939; and WHEREAS, under Section 3.29, the Parties negotiated a change in the contractor's scope of work and compensation to incorporate the new composting services, effective Jan. 1, 2020. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. 2. That the above recitations are true and correct. That the mayor of the City of Carlsbad is hereby authorized and directed to sign Amendment No. 4 to the Agreement with Palomar Transfer Station, Inc., attached hereto as Attachment A. October 15, 2019 Item #2 Page 5 of 15 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 15th day of October 2019, by the following vote, to wit: AYES: Hall, Blackburn, Bhat-Patel, Schumacher. NAYS: None. ABSENT: None. ~ Hutor ~me-z, P<p•':J -{~(BARBARA ENGLESON, City Clerk C,+J {SEAL) ,,,11111111111111t,, ,S,''~o'''~ CAJ:1/111❖❖• ,:,; ,T~,-~~ ~~ .. -··~·-... u~ [~/~··· .. ~ lot~y~) J ~ ·· .... -,,., ...... ·· ~ ~"·· ' .. -..~ ~ '-~, ·············...\,~-,$' -❖❖1t,/-IFO~~,,,"~ l/////lilllllllll\\l CIU~ October 15, 2019 Item #2 Page 6 of 15 ATTACHMENT A PSA20-872ENV AMENDMENT NO. 4 TO AGREEMENT FOR TRANSFER STATION AND DISPOSAL SERVICES REPUBLIC SERVICES, INC., dba PALOMAR TRANSFER STATION, INC. This Amendment No. 4 is entered into and effective as of the /£ fl,, day of OcfabeC , 2019, amending the agreement dated June 1, 2002, (the "Agreement") by and between the City of Carlsbad, a municipal corporation, ("City"), and Republic Services, Inc., dba Palomar Transfer Station, Inc., a California corporation, ("Contractor") (collectively, the "Parties") for transfer station and disposal services. RECITALS A. WHEREAS, on May 30, 2011, the Parties executed Amendment No. 1 to the Agreement to extend the deadline for the City to deliver written notice to Contractor of the City's election to send some or all of the City's waste to the Palomar Transfer Station (PTS) during the Subsequent Operating Period pursuant to Section 6.03; and B. WHEREAS, on November 8, 2011, the Parties executed Amendment No. 2 to the Agreement to further extend the deadline for the City to deliver written notice to Contractor of the City's election to send some or all of the City's waste to the PTS during the Subsequent Operating Period pursuant to Section 6.03; and C. WHEREAS, on February 15, 2012, the Parties executed Amendment No. 3 to the Agreement to extend the Initial PTS Operating Period for ten (10) years and one (1) month, with one (1) three (3) year extension option at the mutual agreement of the Parties; and D. WHEREAS, pursuant to Section 4.01 of the Agreement, all City source separated organic materials (currently defined as green waste) accepted at the Transfer Station are currently delivered to the Otay Landfill, the Designated Organics Processing Facility under the Agreement, for use as Alternative Daily Cover (ADC); and E. WHEREAS, beginning on January 1, 2020, pursuant to Assembly BIii 1594, the City will not receive diversion credit for its green waste that is used as ADC at landfills; and F. WHEREAS, the City currently relies on ADC diversion credit to meet the 50 percent citywide diversion rate requirement under Assembly Bill 939; and G. WHEREAS, Section 3.29 of the Agreement allows the City to deliver, or cause to be delivered, source separated recyclable materials such as green waste, which are collected from City residents or businesses by designated hauler(s), to the Transfer Station for consolidation and transfer and transport to a processing location or off-site location designated by the City; and H. WHEREAS, under Section 3.29, the City has designated Agromin -OC, LLC (Agromin) as the processing location for composting of all source separated organic materials that are delivered to the Transfer Station by the City's designated hauler; and I. WHEREAS, under Section 3.29, the Parties have negotiated a change in the Contractor's scope of work for the new composting services and changes to Contractor's October 15, 2019 Item #2 Page 7 of 15 PSA20-872ENV compensation for the PTS Organic Fee -Compost, effective Jan. 1, 2020, as reflected in the amended City-Regulated Service Fees which are attached to and incorporated by this reference as Exhibit "A". NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, City and Contractor agree as follows: 1. The following shall be added after the last paragraph in Section 3.29: Contractor shall Transfer and Transport to Agromin for composting all Source Separated Organic Materials that are collected from City residents or businesses by the City's Designated Hauler(s) and Delivered to the Transfer Station. Contractor shall apply the PTS Organic Fee -Compost to the City's Source Separated Organic Materials, as that fee may be adjusted from time to time under Section 8.06. 2. The attached Exhibit "A" shall serve as the fee schedule for the PTS Organic Fee -Compost. 3. All referenced amendments to the Agreement shall be effective beginning on January 1, 2020. 4. All other provisions of the Agreement, as it may have been amended from time to time, will remain in full force and effect. 5. All requisite insurance policies to be maintained by Contractor pursuant to the Agreement, as may have been amended from time to time, will include coverage for this Amendment. Ill Ill Ill Ill Ill Ill Ill City Attorney Approved Version 9/27/16 2 October 15, 2019 Item #2 Page 8 of 15 PSA20-872ENV 6. The individuals executing this Amendment and the instruments referenced in it on behalf of Contractor each represent and warrant that they have the legal power, right and actual authority to bind Contractor to the terms and conditions of this Amendment. CONTRACTOR Republic Services, Inc., dba Palomar Transfer Station, Inc., a California Corporation ~ By: -✓ ::. -2: (sign here) --rr;, ol} J/V)<;/'), 1/u. ~\ Je~\:- (print name/title) CITY OF CARLSBAD, a municipal corporation of the State of California By: ATTEST: By~ ~ here) ~ 1 fltc1K 6omn, Dq;,;"!j ,{1,,r Barbara Engleson, C ity Clerk CitJ G \een :;B.6C)-\vl:e(r ~-9,«.W~ (print name/title) If required by City, proper notarial acknowledgment of execution by Contractor must be attached. If a corporation, Agreement must be signed by one corporate officer from each of the following two groups: Group A Chairman, President, or Vice-President Group B Secretary, Assistant Secretary, CFO or Assistant Treasurer Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation. APPROVED AS TO FORM: CELIA A BREWER, City Attorney BY: ~~/ __ D_e_p-'u•tyc::;C;._i_ty_A_tt.....,oaar_n--'eo"""-,---- City Attorney Approved Version 9/27/16 3 C/pliC October 15, 2019 Item #2 Page 9 of 15 EXHIBIT "A" CITY-REGULATED SERVICE FEE FOR COMPOST EFFECTIVE JANUARY 1, 2020 PSA20-872ENV PTS Organic Fee -COMPOST Component Per Ton Charges Base $61.02 Fuel $4.77 Government Fees $2.50 Total Rate $68.29 per ton City Attorney Approved Version 9/27/16 4 October 15, 2019 Item #2 Page 11 of 15