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HomeMy WebLinkAboutMINUTES - 09131994 - 2.3.� r Item 2.3 TO: BOARD OF SUPERVISORS - C,pntra FROM: Ad Hoc Solid Waste Committee` Costa Supervisor Gayle Bishop (�ru,.�,}, , Supervisor Jeff Smith ^` Coun ���/ DATE: September 13, 1994 SUBJECT: , ACCEPT REPORT FROM AD HOC SOLID WASTE COMMITTEE SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND,JUSTIFICATION RECOMMENDATIONS Accept Report from Ad Hoc Solid Waste Committee; and, - Consider the following: Direct staff to work with the Crockett-Valona Sanitary District in developing a Memorandum of Agreement which continues franchising of solid waste and recyclable collection and disposal by the District and, in keeping with the District's Recycling Ordinance and current activities, assures that attainment of the AB 939 diversion goals; 2. Consider Franchise Agreements for Keller Canyon Landfill and for the Permanent Transfer Station; 3. Consider options, outlined in the attached report, for the levels of local government fees (franchise, program, LUP fees) to be established for Keller Canyon Landfill and for the Permanent Transfer Station; 4. Consider requesting membership in the Central Contra Costa Solid Waste Authority with specific conditions. CONTINUED ON ATTACHMENT: X YES SIGNATURE RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): Supervisor Gayle Bishop pe isor Jeff Smith ACTION OF BOARD ON September 13 , 1994 APPROVED AS FfECOMMENDED x OTHER x See ADDENDUM A for Board motions and votes?..; VOTE OF SUPERVISORS UNANIMOUS (ABSENT I HEREBY CERTIFY THAT THIS IS A TRUE AND AYES: NOES: CORRECT COPY OF AN ACTION TAKEN AND ABSENT: ABSTAIN: ENTERED ON THE MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. Contact: Val Alexeeff (510) 646-1620 ATTESTED September 13 , 1994 cc: Growth Management& Economic Development PHIL BATCHELOR, CLERK OF THE Agency BOARD OF SUPERVISORS-AND County Counsel C TY ADTIOU TRATOR Browning Ferris Industries c/o Tom Bruen BY: , DEPUTY LA:rw RLAI:ADHOC-SMBOD 1 Board Order, September 13, 1994 Ad Hoc Solid Waste Committee - Page 2 - FISCAL IMPACT: Reductions to County General Fund may occur depending on the selection of an option, as outlined in attached report or other option, for government fees. REASON FOR RECOMMENDATION/BACKGROUND: On September 6, 1994 the Ad Hoc Solid Waste Committee met to consider collection franchising in the Crockett area; new drafts of the Keller Canyon franchise and Permanent Transfer Station franchise; and franchising in unincorporated areas of Central County in relation to the Central Contra Costa Solid Waste Authority. Participating in the meeting were representatives from the Crockett-Valona Sanitary District; the Central Contra Costa Solid Waste Authority; Keller Canyon Landfill and the Permanent Transfer Station; and Garaventa Enterprises. , The representatives from the Crockett-Valona Sanitary District pointed out that they have recently adopted a District Recycling Ordinance mandating recycling of specific materials, that they intend to establish a mini can program which will reward those who recycle, that they have reached about a 20% to 21% recycling rate, ,and that the District believes it can continue its single truck collection service more efficiently and at a lower cost to ratepayers than if the County took over the franchise. Based upon the report from the Sanitary District and the progress it has made in reaching the AB 939 goals, the Ad Hoc Committee recommends that the full Board direct staff to work with the District in developing a Memorandum of Agreement, as provided for by AB 939, which allows the District to continue franchising and assures the County that the District will meet the AB 939 goals. The Ad Hoc Committee reviewed new drafts of the franchise agreements for Keller Canyon Landfill and for the Permanent Transfer Station (attached as Items # 1 AND #2 and included as a part of this report to the Board) along with a staff report containing various options related to government fees. On pages 19-21 of the Keller Franchise (attached) are outlined three (3) options for government fees; the staff report (ATTACHMENT #3) delineates additional options for Board consideration regarding { government fees. The Ad Hoc Committee recommends approval of the two franchise agreements and selection of an option for government rates to be included in the franchise agreements. The Ad Hoc Committee discussed franchising alternatives and possible County membership with representatives from the Central Contra Costa Solid Waste Authority (CCCSWA). Under the Joint Powers Agreement for the CCCSWA each member has two votes without regard to population or solid waste tonnage. Funding of the Authority is divided among the members equally. The Authority's goal is to provide collection, transfer, and disposal at the lowest cost to rate payers. The individual members of the Authority will continue to determine jurisdictional programs;rates may vary from jurisdiction to jurisdiction depending upon the additional programs and the differences in commercial and residential customer base within each jurisdiction. The Ad Hoc Committee believes it is appropriate for the full Board to consider whether the County should pursue membership in the CCCSWA. Attachment #4 is a copy of the current Joint Powers Agreement governing membership in the CCCSWA. LA:rw RLA1:AdHoc-SW.bod ADDENDUM A Val Alexeeff, Director, Growth Management and Economic Development Agency, presented the staff report from the Ad Hoc Solid Waste Committee and he explained the four attachments, the proposed Franchise Agreements for Keller and Acme, the franchise options staff report identifying alternatives in the rate structure and the Joint Exercise of Powers 'Agreement which is the potential agreement with the Central County Solid Waste Authority. He commented on the matters before the Board to direct staff to work with the Crockett-Valona Sanitary District in developing a Memorandum of Agreement which continues franchising of solid waste and recyclable collection and disposal by the District, consideration of the franchise agreements for Keller and Acme, to consider the options outlined in the report for the levels of local government fees, and to consider membership in the Central Contra Costa Solid Waste Authority with specific conditions . Mr. Alexeeff commented on numerous meetings with City Managers and tours and the results of those. Supervisor Bishop commented on the first priority for the County, the Board, should be to provide a safe place to dump trash at a reasonable rate. She advised that as of last week the City of San Ramon has opted to direct its wastestream to Altamont and the County is currently losing $3 , 000 a day as a result of that action. Supervisor Bishop commended the staff for their hard work in writing the documents before the Board, and that the document before the Board was good but it needs numbers and only the Board can provide the numbers . Supervisor Smith encouraged the Board to take action to develop a MOU with the District to exercise our franchise requirements . He also advised that it would be wise to participate in the JPA in order to exercise the County' s franchise authority in the unincorporated areas . He also requested that a letter be sent formally acknowledging the County' s interest in participating. Supervisor Smith also commented on the franchise agreements for the transfer station and the landfill, advising that the committee had honed the language but that there were still policy issues and rate or fee setting issues, and in the transfer station franchise agreement, the issues of self-haul charges, host community mitigation fees and the possibility of addressing closure and post-closure costs . Supervisor Powers commented on two correspondence items also on the agenda, a letter from Supervisor Powers to Browning Ferris Industries last week asking for-a commitment in writing to a tipping fee (Item 1 . 156) , and a letter from Garaventa Enterprises relative to a rate of $41 . 50 per ton at .the gate which does include fees ( Item 1 . 157) . Supervisor Torlakson requested information on the issues of the valuation study, the interim transfer station versus the permanent transfer station (status, cost, money collected) . Supervisor Powers requested response to his memo to Victor Westman, County Counsel, dated August 22, 1994 . The following persons appeared and gave testimony: Tom Bruen, 1990 California Boulevard, Walnut Creek, representing Browning Ferris Industries, Inc . , commented on various issues and a letter he presented dated September 12 , 1994 relative to the proposed Keller Canyon Disposal Agreement . Nancy Fanden, P.O. Box 70, Martinez, spoke in opposition to the mitigation fees, and she commented on rates being based on volume and having a state of the art landfill . Robert Schroder, former Contra Costa County Supervisor, urged the Board to do what is reasonable in the Board' s mind relative to franchise fees and extractions to allow the use of the County landfill and prevent export to other parts of the Bay Area. Michael Woods, City Attorney, City of Pittsburg, commented on the Board preserving and reserving its jurisdiction over being able to impose the fees that are necessary to mitigate impacts from the landfill and fairly treat the citizens of the areas most impacted by the landfill, and he commented on issues of timing relative to the franchise agreement and the land use permit . Frank Aiello, 1734 Bridgeview, Pittsburg, representing Citizens United, commented that the proposed amended franchise agreements are a violation of the spirit of CEQA and a violation of the General Plan Amendment that provided for the construction of Keller Canyon Landfill and he requested that the Board keep the fees in place. Lance Dow, 2232 Concord Drive, Pittsburg, spoke on the fiduciary duty to the citizens and taxpayers of Contra Costa County, and commented that the franchise agreement allows for the exclusion of Contra Costa County trash so the capacity could be sold to others . Richard Norris, 3260 Blume Drive, Richmond, representing Potrero Hills Landfill, Inc . , commented on a proposal from his client, that is before all the cities in Contra Costa County, for a disposal fee of $33 . 62 per ton for direct haul inclusive of all fees and costs pending completion of the Pittsburg Transfer Station and when that opens, the fee there inclusive of all fees will be $41 . 50 . Phyllis Roff, Walnut Creek, spoke in support of the Board' s best judgement . Barbara Woodburn, 621 Brackman Lane, Martinez, spoke on relief to rate payers . Reverend Curtis A. Timmons, P.O. Box 8213 , Pittsburg, spoke on the obligation of the cities to stand behind the landfill for which they had expressed a need. David Tam, P.O. Box 711, Berkeley, representing the San Francisco Bay Chapter of the Sierra Club, spoke on community responsibility for the management of wastes, and he commented in opposition to the export of waste; and he reiterated the Sierra Club' s opposition to the road and open space fees . Mr. Alexeeff responded to Board inquiries on AB 939, the valuation study, and a copy of comments on Acme which he had provided to the Board. Charles Zahn, Community Development Department, commented that the thrust of the staff report on the proposed changes to the conditions of approval is to afford the Board the discretion to set fees through other instruments at other levels not to have the fees as they are now locked in to specific amounts by the land use permit . Supervisor DeSaulnier requested clarification on the amount collected in fees by Alameda County and Solano County on our garbage . Supervisor Bishop responded with the amounts. Supervisor Powers commented on fees being handled by the can and looking at the entire spectrum of fees . Supervisor Torlakson inquired as to whether the Household Hazardous Fee of $2 . 12 was a part of the discussion to be reduced. Val Alexeeff responded that the Household Hazardous Waste fee is by special agreement with the jurisdictions and is only by contract and not part of the County collection system, and that it had not been included as one of the fees for analysis on the chart he would be providing. Supervisor Torlakson commented on the history of the mitigation fees, especially the host community mitigation, the proposals for reduced rates, and the valuation study costs being borne by the landfill in its location not as a surcharge on the rate payer. Supervisor Bishop commented on the Household Hazardous Waste fee and she moved to reduce our mandated fees and surcharge to be all inclusive at $8 . 34, $1 . 34 for the Eastin Fee, the remaining $7 . 00 to be allocated with number one priority going toward mitigation, host mitigation, the second being the $2 . 12 Household Hazardous Waste which at some future point may be assumed by the cities, the next tier to involve the transportation and open space mitigation fees under the land use permit and with the final tier being a County surcharge or franchise out of which LEA and AB 939 are paid. There was no second to the motion. Supervisor Smith moved to have Acme a party to the permanent transfer station franchise agreement . The vote on the motion was unanimous . Supervisor Torlakson moved to direct staff to add language in the Keller Canyon Franchise agreement to make the cost of the valuation issue a BFI obligation. Supervisor Smith seconded the motion and clarified that it would be a part of the proprietary rate. The vote on the motion was unanimous . Supervisor Smith moved that in the Acme Transfer Station Franchise Agreement under the issue of self-haul rates, should be something similar to alternative two which says that essentially the self-haul customers will be charged no more than the market rate and modifying the language to say notwithstanding 6 . 1, the gate rate charge to customers delivering less than one ton of solid waste per day shall not exceed the average of the charges of all other landfills and or transfer stations providing the same service in Contra Costa County with similar customers . Supervisor DeSaulnier seconded the motion. Supervisor Smith clarified that he just excluded Solano and Alameda counties and included transfer stations in addition to the landfills so that it' s saying it has to be the average or in the market for self-haulers going ,to other landfills or transfer stations in Contra costa County. , The vote on the motion was unanimous . Supervisor Smith suggested that at Keller, the $1 . 34 Eastin fee should be charged separately as a dollar per ton fee and at Acme the LEA fee of $1 . 00 and the AB 939 fee of $ . 15 be charged separately as $1 . 15 per ton fee and that the Household Hazardous Waste fee and all other programs which are currently paid for by different fees in addition to the $2 . 00 for the host mitigation be coupled into the franchise and that franchise percentage be 25 percent for both proprietary fees at Acme and Keller with a total in fees of $12 . 24 if BFI really reduces it to $39 . 00 and he suggested that five percent of that or $1 . 95 be reserved in a trust fund by the County to assure funding for potential costs of litigation and closure and if that is not needed it would be able to be refunded to the rate payers and he so moved. The Board discussed the motion. Supervisor Smith clarified his motion is that the $1 . 34 stay at Keller, the $1 . 15 stay at Acme, that the rest of all of the programs be paid for out of a franchise which is set as a percentage surcharge of both the proprietary rate at Keller and the proprietary rate at Acme and that that be 25 percent which will end up if they reduce their proprietary rate to $39 . 00 will end up being $9 . 75 and that all the other programs, mitigations, be paid for out of that money and that we reserve 5 percent of that for potential costs of closure and litigation and if that is not needed it could be refunded to the rate payers . Supervisor Bishop indicated she could not support the motion. Supervisor Powers seconded the motion for purposes of discussion. Supervisor Bishop again indicated she would not be supporting the motion, expressing that the amount is not low enough. The Board discussed the motion. Supervisor DeSaulnier concurred with Supervisor Bishop that it was not low enough. Supervisor Torlakson advised that he was concerned in the current motion of the lack of specificity regarding the various mitigation fees . The Board discussed the funding of the Household Hazardous Waste Program. Supervisor Smith recommended a one year commitment at this point and committing to find another funding source for the program after the end of the year. Supervisor Powers clarified that that was an amendment to the motion. Supervisor Smith advised that it was not . The Board discussed the fees further. Supervisor Smith clarified that his motion was that $1 . 34 per ton at Keller, $1 . 15 per ton at Acme to pay for 939 and LEA plus 25 percent of the base proprietary rate of both Acme and Keller, all of that combined is $12 . 24 if BFI rate is really $39 . 00 and then in six months we can eliminate $1 . 95 and $2 . 12 if we can find alternate funding for those revenue streams . Supervisor Powers clarified that that was an amended motion. Supervisor Powers clarified that the $2 open space, the $2 transportation and the $2 mitigation were not being eliminated. Supervisor Torlakson advised he could support the motion in that context . The vote on the motion was as follows : AYES : Supervisors Smith, DeSaulnier, Torlakson, Powers NOES : Supervisor Bishop ABSENT: None ABSTAIN: None Supervisor Smith moved to send a formal letter signed by the Chair of the Board requesting membership on the Contra Costa Solid Waste Authority in a membership status equal to the other members, advising not to franchise in the unincorporated areas without the County. Sue Rainey, 160 Bixley Place, Walnut Creek, invited the County to join the small JPA. Mr. Westman clarified that with the action today the notices that the County gave some years ago that all the franchises in the unincorporated area would expire in 1995 or 1996 remains in force and that the Board is not varying that . Supervisor Powers concurred and clarified that the motion was requesting to be a member and not to have franchises in the unincorporated areas executed without Board participation and approval . The vote on the motion was unanimous . Mr. Westman further clarified that the prior action was to approve the franchise agreements with all the amendments and changes the Board had asked for together with the Board' s discussion and approval of Supervisor Smith' s proposal as to the fees and the direction to staff to put that in final form and have that executed. Supervisor Powers concurred. The Board discussed and agreed on the inclusion of additional language concerning the issue of the destination of various types of waste going through the transfer station. Supervisor Smith moved approval of the franchises with the modifications and all of Mr. Westman"s comments . Supervisor Torlakson seconded the motion. The vote on the motion was as follows : AYES : Supervisors Smith, DeSaulnier, Torlakson and Powers NOES : Supervisor Bishop ABSENT: None ABSTAIN: None Supervisor Torlakson requested a report in two weeks on the three disposal proposals on tipping fees and the status of the JPA, and he also requested that the memo that the Board has dated August 17, 1994 on information on rates for the Acme Interim Transfer Station and the Acme Landfill be reagendaed in two weeks . BRUEN & GORDON OCT 1 O 1994 A PROFESSIONAL CORPORATION 1990 NORTH CALIFORNIA BOULEVARD COUNTY fO11NS L SUITE boa MARTINEZ,CALIF. WALNUT CREEK,CALIFORNIA 94596 (510)295-3131 FAX(510)295-3132 October 10, 1994 VIA MESSENGER Lillian Fujii, Esq. Assistant County Counsel Contra Costa County 651 Pine Street, 9th Floor Martinez, CA 94553 Dear Lillian: Enclosed please find two fully-executed original copies of both the Acme Permanent Transfer Station Franchise Agreement and the Amended Keller Canyon Landfill Franchise Agreement, along with two fully-executed original Guarantys of the aforesaid franchise agreements by Browning-Ferris Industries, Inc. I understand that you will send us one executed copy of the enclosed original documents after they have been signed by the Chairman of the Board of Supervisors. Very truly yours, Thomas M. Bruen TMB:dcr Enclosures { i i BOARD OF SUPERVISORS September 13, 1994 GARBAGE ACTIONS (Item 2.3) STAFF SUMMARY 1. Valuation Study If valuation study results in recommendation that compensation be made to certain property owners, and County requires BFI to make such compensation, such cost shall not be reflected in County surcharge. If an adjustment to tipping fee is made, it must be made to BFI's proprietary rate. Approved 5-0 2. Acme Transfer Station Franchise Agreement (pp. 22-23) a) Approve Alternative No. 2 for self-haul rate: Average of charges of other transfer stations or landfills in Contra Costa County. Approved 5-0. b) Approve modification to franchise agreement to include Acme Fill Corp. as a party. Approved 5-0 3. County Fees a) Charge the following separately: 1) At Keller, $1.34 (Eastin Bill Fee) 2) At Acme, $1.15 (LEA & AB 939) Total: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2.49 b) Couple cost of all current programs, including HHW &host mitigation fee at Keller and Acme Transfer Station, into a flat, combined 25% surcharge, of which 5% is to be deposited in a trust fund for closure and post-closure or related litigation expenses. At a $39.00 proprietary rate, the County's surcharge will total: . . . . . . . . . . $9.75 GRAND TOTAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.24 c) After six months, County Board will re-evaluate HHW fee and 5% component of surcharge to determine whether either should be modified, reduced, or eliminated. Approved 4-1 i I - 4. Franchising Collection a) Apply to the Central County JPA for membership; request it not to franchise unincorporated areas without the County's participation. Approved 5-0 b) Crockett-Valona Sanitary District: Approved action as recommended in Ad Hoc Committee report. Approved 5-0 5. Implementation County Counsel to make implementing and other, non-substantive, changes to proposed franchise agreements. t2 4f" FIRST AMENDED LANDFILL FRANCHISE AGREEMENT BETWEEN THE COUNTY OF CONTRA COSTA AND KELLER CANYON LANDFILL CORPORATION FOR THE KELLER CANYON SANITARY LANDFILL Dated: September . , 1994 1 � TABLE OF CONTENTS - FIRST AMENDED LANDFILL FRANCHISE AGREEMENT RECITALS 1 ARTICLE 1. INTRODUCTORY PROVISIONS 3 Section 1.1 RECITALS INCORPORATION. . . . . . . . . . . . . . . . . . . . . . . 3 Section 1.2 EFFECTIVE DATE. EFFECT. . . . . . . . . . . . . . . . . . . . . . 3 Section 1.3 CONDITIONS OF APPROVAL. . . . . . . . . . . . . . . . . . . . . . . 3 Section 1.4 OPERATOR ACKNOWLEDGMENT. . . . . . . . . . . . . . . . . . . . 4 Section 1.5 COUNTY DISCRETION AND INTEREST. . . . . . . . . . . . . . . 4 Section 1.6 USE PERMIT OPERATIVE. . . . . . . . . . . . . . . . . . . . . . . . . 5 Section 1.7 NO PREFERENTIAL TREATMENT. . . . . . . . . . . . . . . . . . . . 5 ARTICLE 2. DEFINITIONS 5 Section 2.1 AGREEMENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Section 2.2 ACTIVITIES REPORT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Section 2.3 ANALYSIS PERIOD. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Section 2.4 BASE RATE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Section 2.5 COMMENCEMENT DATE. . . . . . . . . . . . . . . . . . . . . . . . . 6 Section 2.6 COUNTY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Section 2.7 DIRECTOR. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Section 2.8 EMERGENCY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Section 2.9 GATE FEE COLLECTION SYSTEM. . . . . . . . . . . . . . . . . . . 7 Section 2.10 GATE RATE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Section 2.11 HOURS OF OPERATION. . . . . . . . . . . . . . . . . . . . . . . . . . 7 Section 2.12 HOURS OF ACCESS. . . . . ... . . . . . . . . . . . . . . . . . . . . . . 7 Section 2.13 LANDFILL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Section 2.14 MANDATED FEES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Section 2.15 OPERATOR. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Section 2.16 PERMITS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Section 2.17 POST-CLOSURE MAINTENANCE. . . . . . . . . . . . . . . . . . . . 8 Section 2.18 REbULATORY AGENCIES. . . . . . . . . . . . . . . . . . . . . . . . 8 Section 2.19 SCHEDULE OF DISPOSAL CHARGES. • • 9 Section 2.20 SITE CLOSURE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Section 2.21 SOLID WASTE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Section 2.22 SOLID WASTE PROGRAMS. . . . . . . . . . . . . . . . . . . . . . . . 10 Section 2.23 SPECIAL HANDLING WASTE. . . . . . . . . . . . . . . . . . . . . . 10 Section 2.24 SURCHARGE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Section 2.25 SURCHARGE PAYMENTS. . . . . . . . . . . . . . . . . . . . . . . . . 11 Section 2.26 USE PERMIT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 ARTICLE 3. TERM OF AGREEMENT 11 August 30, 1994 -i- DRAFT ARTICLE 4. PERFORMANCE OF OPERATOR 12 Section 4.1 OPERATION OF LANDFILL. . . . . . . . . . . . . . . . . . . . . . . . 12 Section 4.2 WASTE STREAM. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Section 4.3 WASTE TYPES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Section 4.4 UNACCEPTABLE WASTE. . . . . . . . . . . . . . . . . . . . . . . . . . 12 Section 4.5 INSPECTION, INVESTIGATION, AND EVALUATION OF SITE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Section 4.6 PERMITS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Section 4.7 STATUS OF TITLE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Section 4.8 GATE FACILITIES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Section 4.9 OPERATION OF GATE FEE COLLECTION SYSTEM. . . . . . . . 15 Section 4.10 FEE COLLECTION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Section 4.11 PAYMENT TO COUNTY. . . . . . . . . . . . . . . . . . . . . . . . . . 16 Section 4.12 HOURS OF ACCESS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Section 4.13 NONDISCRIMINATORY SERVICE. . . . . . . . . . . . . . . . . . . 17 Section 4.14 ACCESS ROADS HAUL ROADS AND SERVICE ROADS. . . . 17 Section 4.15 LITTER MANAGEMENT. . . . . . . . . . . . . . . . . . . . . . . . . . 17 Section 4.16 ENVIRONMENTAL MITIGATION. . . . . . . . . . . . . . . . . . . . 17 Section 4.17 RECYCLING/RESOURCE RECOVERY PROGRAMS. . . . . . . . 18 Section 4.18 ACTIVITIES REPORT. . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Section 4.19 PENALTY SCHEDULE FOR NONCOMPLIANCE. . . . . . . . . . 18 Section 4.20 RECORDS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 ARTICLE 5. PERFORMANCE OF COUNTY 19 Section 5.1 GATE FEE COLLECTION SYSTEM. . . . . . . . . . . . . . . . . . . 19 Section 5.2 INSPECTION OF SCALES. . . . . . . . . . . . . . . . . . . . . . . . . . 20 ARTICLE 6. RATES 20 Section 6.1 BASE RATE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Section 6.2 SURCHARGE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Section 6.3 GATE RATE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Section 6.4 INITIAL SURCHARGE. . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Section 6.5 DISPOSALCONTRACTS. . . . . . . . . . . . . . . . . . . . . . . . . . . 23 . ..... . . .:....... azo >H Q >R ' PSSw . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 ARTICLE 7. PERSONNEL 25 ARTICLE 8. LANDFILL GAS 26 ARTICLE 9. CLOSURE AND POST CLOSURE 26 Section 9.1 CLOSURE RESPONSIBILITIES. . . . . . . . . . . . . . . . . . . . . . . 26 Section 9.2 FINANCIAL ASSURANCES. . . . . . . . . . . . . . . . . . . . . . . . . 26 Section 9.3 PERFORMANCE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Section 9.4 SIGNING OF INSTRUMENTS AND DOCUMENTS. . . . . . . . . . 27 August 30, 1994 -ii- DRAFT Section 9.5 FAILURE TO MEET CLOSURE AND POST-CLOSURE OBLIGATIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 ARTICLE 10. UNINTERRUPTED OPERATION 28 Section 10.1 ASSURANCE OF UNINTERRUPTED OPERATION. . . . . . . . . 28 Section 10.2 LABOR DISPUTES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 ARTICLE 11. DEFAULT, REMEDIES 29 Section 11.1 FAILURE TO PROSECUTE WORK. . . . . . . . . . . . . . . . . . . 29 Section 11.2 CONVICTION OF CERTAIN CRIMES. . . . . . . . . . . . . . . . . 30 Section 11.3 CONDEMNATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Section 11.4 RIGHT TO TAKE/RIGHT TO POSSESSION. . . . . . . . . . . . . . 31 Section 11.5 FORCE MAJEURE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Section 11.6 SPECIFIC PERFORMANCE. 32 Section 11.7 NONEXCLUSIVE REMEDIES. . . . . . . . . . . . . . . . . . . . . . . 32 ARTICLE 12. INSURANCE AND BONDS 32 Section 12.1 WORKERS' COMPENSATION. . . . . . . . . . . . . . . . . . . . . . 32 Section 12.2 PUBLIC LIABILITY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Section 12.3 OTHER INSURANCE PROVISIONS. . . . . . . . . . . . . . . . . . . 34 Section 12.4 FAITHFUL PERFORMANCE SURETY. . . . . . . . . . . . . . . . . 34 ARTICLE 13. GENERAL PROVISIONS 35 Section 13.1 GUARANTY BY PARENT OR AFFILIATE. . . . . . . . . . . . . . 35 Section 13.2 ATTORNEY'S FEES. . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Section 13.3 INDEMNITY AND HOLD HARMLESS AGREEMENT. . . . . . . 35 Section 13.4 ASSIGNMENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Section 13.5 COMPLETE AGREEMENT. . . . . . . . . . . . . . . . . . . . . . . . . 38 Section 13.6 NO THIRD PARTY BENEFICIARY ENFORCEMENT. . . . . . . 38 Section 13.7 ARBITRATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Section 13.8 CONFLICT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Section 13.9 CAPTIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Section 13.10 DELEGATION BY BOARD. . . . . . . . . . . . . . . . . . . . . . . . 40 Section 13.11 SEVERABILITY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Section 13.12 MASCULINE GENDER USED. . . . . . . . . . . . . . . . . . . . . . 41 Section 13.13 GOVERNING LAW. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Section 13.14 NOTICES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 August 30, 1994 -iii- DRAFT Al COUNTY OF CONTRA COSTA STATE OF CALIFORNIA FIRST AMENDED LANDFILL FRANCHISE AGREEMENT THIS FIRST AMENDED LANDFILL FRANCHISE AGREEMENT (the "Agreement") is made and entered into this , by and between the COUNTY OF CONTRA COSTA (hereinafter "County") and YELLER CANYON LANDFILL COMPANY (hereinafter "Operator"). RECITALS WHEREAS, the legislature of the State of California has adopters the Nejedly-Z'berg- Dills Solid Waste Management and Recovery Act of 1972 and now has adopted the California Integrated Waste Management Act of 1989, both of which assign certain responsibilities for the County's solid waste planning, management, implementation, and regulation to the Contra Costa County Board of Supervisors; and WHEREAS, on July 24, 1990, the Board of Supervisors of Contra Costa County approved the Keller Canyon Sanitary Landfill Use Permit No. 2020-89 subject to the Conditions of Approval, the Special Land Use Conditions of Approval and the Findings Relative to the Landfill Site Land Use Permit pursuant to the California Environmental Quality Act ("CEQA") and Adoption of a Mitigation Monitoring Program, each of the same date; and WHEREAS, the County adopted Ordinance No. 88-81, which provides that a solid waste disposal facility may be operated within the County only upon the approval of a August 30, 1994 -1- DRAFT t franchise agreement by the County or upon the operator of a landfill entering into a contract with the Contra Costa County Board of Supervisors to prepare the site and operate such facility; and WHEREAS, on 4 December 1990 County and Operator entered a LANDFELL FRANCHISE AGREEMENT ("Landfill Franchise Agreement") in accordance with the requirements of County Ordinance No. 88-81, and to implement the requirements of Land Use Permit No. 2020-89, which Landfill Franchise Agreement has been amended by Amendments Nos. 1 through 10, inclusive, thereto; and WHEREAS, recent United States Supreme Court cases decided under the Commerce Clause of the United States Constitution generally prohibiting states and their political subdivisions from erecting barriers to the free flow of solid waste (and thereby discriminating against interstate commerce) significantly affects the solid waste industry, and affects the parties hereto in that some of the provisions of the Landfill Franchise Agreement, particularly the provisions regarding the County's regulation of rates, may no longer be appropriate or necessary given the current competitive nature of the solid waste industry as a result of said recent Supreme Court decisions; and WHEREAS, the parties now desire to amend certain provisions of the Landfill Franchise Agreement; NOW, THEREFORE, the County and Operator, for and in consideration of the covenants and agreements as hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, do mutually agree as follows: August 30, 1994 -2- DRAFT ARTICLE 1. INTRODUCTORY PROVISIONS Section 1.1 RECITALS INCORPORATION. The Recitals set forth above, and all defined terms set forth in such Recitals and in the introductory paragraph preceding the Recitals, are hereby incorporated into this Agreement as if set forth herein in full. Section 1.2 EFFECTIVE DATE. EFFECT. This Agreement is effective on the date mentioned in the first paragraph of page one hereof, and as of the effective date, replaces and supersedes the Landfill Franchise Agreement, but does not nullify the Landfill Franchise Agreement for the period preceding the effective date of this Agreement. Section 1.3 CONDITIONS OF APPROVAL. Operator acknowledges and agrees that all of the terms and conditions of the Use Permit's Conditions of Approval and any amendments thereto, are reasonable, legal and valid and that Operator is barred from any action or proceeding or any defense of invalidity or unreasonableness of said Conditions of Approval and any amendments thereto, and related County decisions. Further, Operator agrees during the period(s) that the Use Permit (and its Conditions of Approval and any amendments thereto) or this Agreement are in effect, Operator will not attack or otherwise assail the reasonableness, legality or validity of any terms and conditions of said documents, or of any provisions required to be included in this Agreement by the said Conditions of Approval and any amendments thereto. The parties acknowledge that the agreement by Operator in this section is a material consideration for County's approval of this Agreement. Section 1.4 OPERATOR ACKNOWLEDGMENT. Operator acknowledges and agrees that this Agreement and the Use Permit (by the incorporation herein of the Use Permit) provide for and allow (among other things) funding for mitigation, provision of August 30, 1994 -3- DRAFT 4 closure and post-closure costs, payment to County of annual franchise revenue fees, and otherwise payment to County and reimbursement of County costs for its governmental administration of the project entitlements. It is understood that, among other things, this Agreement provides for Operator's establishment of its proprietary rates to enable Operator to compete in a solid waste disposal market that has become highly competitive as a result of recent United States Supreme Court decisions. This Agreement also acknowledges that sub-county service areas have not been established. Section 1.5 COUNTY DISCRETION AND INTEREST. Notwithstanding any other provision of this Agreement, Operator acknowledges that County's discretion to grant, approve or deny one or more nonexclusive or other franchises or similar agreements for others is not limited or abridged in any manner by this Agreement; and that this Agreement does not require the approval of any such other franchises or agreements by Operator. County reserves the rights as part of the negotiation and entry of any such other franchise or agreement to enter a public-private or public-public partnership with other landfill owners and/or to pursue any rights of the County to require ownership of those landfills or this Landfill. _ Section 1.6 USE PERMIT OPERATIVE. Upon the effective Date of the Landfill Franchise Agreement, the Use Permit became operative pursuant to the conditions of the Use Permit, entitling Operator to all rights and privilege thereunder. Section 1.7 NO PREFERENTIAL TREATMENT. With respect to material terms of the relationship between the County and Operator, the County shall offer to Operator terms August 30, 1994 -4- DRAFT at least as favorable as those agreed upon by the County with the operator of any other landfill within the County with whom the County is currently negotiating or may negotiate within the Term of this Agreement. If any such material terms are determined for such other operator subsequent to their determination with respect to Operator, the County shall offer to amend such terms with respect to operator. ARTICLE 2. DEFINITIONS Section 2.1 AGREEMENT. "Agreement" shall refer to this Agreement and is synonymous for purposes of this Agreement with the word "Contract". Section 2.2 ACTIVITIES REPORT. The "Activities Report" is a summary document reporting Operator's activities and overall performance during the preceding Analysis Period or over such period of time as set by the County. The Activities Report shall summarize landfill related activities, including, but not limited to: compliance with the provisions of this Contract and all applicable Permits and Regulatory Agency Requirements, complaints and corrective actions taken, litter management, landfill gas project update, wastestream volumes and analysis, operations and safety training, recycling/resource recovery efforts, Closure Trust Fund status and balance. Section 2.3 ANALYSIS PERIOD. "Analysis Period" refers to the twelve (12) consecutive calendar months beginning the first day of January of each year throughout the term of this Agreement. The first Analysis Period, for the purposes of this Agreement shall begin on January 1, 1994. Section 2.4 BASE RATE. "Base Rate" shall mean the proprietary fees charged by Operator to dispose of Solid Waste or any other waste at the Landfill. August 30, 1994 -5- DRAFT Section 2.5 COMMENCEMENT DATE. "Commencement Date" shall mean the date upon which the Landfill first accepted Solid Waste for disposal under the terms of the Landfill Franchise Agreement and the Use Permit. Section 2.6 COUNTY. "County" shall mean the County of Contra Costa, a political subdivision of the State of California. Section 2.7 DIRECTOR. "Director" shall mean the County Administrator or his designated deputy, other County officer or employee. Section 2.8 EMERGENCY. "Emergency" shall mean a sudden, unexpected occurrence involving a clear and imminent danger, demanding immediate action to prevent or mitigate loss of, or damage to, life, health, property, or essential public services. Emergency includes such occurrences as fire, flood, earthquake, or other soil or geologic movements, as well as such occurrences as riots, accident and sabotage. Section 2.9 GATE FEE COLLECTION SYSTEM. "The Gate Fee Collection System" shall consist of all equipment, hardware, and software utilized for purposes of assessing, collecting, and accounting for Tipping Fees for the disposal of Solid Waste at the Landfill. Section 2.10 GATE RATE. "Gate Rate" shall mean the fee charged per ton to dispose of Solid Waste, or other waste at the Landfill. The Gate Rate shall be the Base Rate plus Surcharge and Mandated Fees, if any. "Gate Rate" shall be synonymous with "Landfill Tipping Fee" and "Tipping Fee." Section 2.11 HOURS OF OPERATION. "Hours of Operation" shall be those times during which the use of heavy equipment and other machinery necessary for operation of the August 30, 1994 -6- DRAFT Site in compliance with the Use Permit, the Solid Waste Facilities Permit and this Agreement will be allowed. Section 2.12 HOURS OF ACCESS. "Hours of Access" shall be those times during which Solid Waste may be delivered to the Landfill for disposal. Section 2.13 LANDFILL. "Landfill" shall mean the Landfill described in Exhibit A where the disposal of Solid Waste will occur. For purposes of this Agreement, "Landfill" shall be synonymous with "Site." Section 2.14 MANDATED FEES. "Mandated Fees" shall be those monies required from Operator from time to time by any Regulatory Agency for the purpose of funding (a) Federal, State or regional programs, (b) programs required by the Land Use Permit, or (c) other County established fees. Section 2.15 OPERATOR. "Operator" shall mean the holder of the Use Permit or its assignee. Section 2.16 PERMITS. "Permits" shall mean any and all governmental approvals, entitlements, clearances or classifications, including but not limited to, the Use Permit, general plan amendments, environmental impact reports, zoning approvals, conditional use permits, waste discharge permits and requirements, facilities permits, permits to operate, permits to construct, closure plans, building permits, encroachment permits, grading permits, tree removal permits, tract/parcel maps and all other governmental permits, consents or approvals as may be necessary to allow Operator to construct and operate the Landfill. Section 2.17 POST-CLOSURE MAINTENANCE. "Post-Closure Maintenance" shall mean those activities as required by law to be undertaken at the Landfill, following Site August 30, 1994 -7- DRAFT Closure to maintain the integrity of containment features and/or to monitor compliance with applicable performance standards as specified by law. Section 2.18 REGULATORY AGENCIES. "Regulatory Agencies" shall mean Federal, State and local agencies responsible for regulating the operation and maintenance of sanitary landfills, such as, but not limited to, California Integrated Waste Management Board, California Regional Water Quality Control Board, California Department of Health Services, the Contra Costa County Department of Health Services as Local Enforcement Agency for handling and disposal of Solid Waste, the Bay Area Air Quality Management District and the County. Section 2.19 SCHEDULE OF DISPOSAL CHARGES. The "Schedule of Disposal Charges" shall mean a list of waste types and corresponding fee amounts to be charged at the Landfill for disposal of waste types. Section 2.20 SITE CLOSURE. "Site Closure" shall be the cessation of Solid Waste disposal at all or portions of the Landfill and subsequent operations necessary to prepare the Site for Post-Closure Maintenance in accordance with law, Regulatory Agency requirements and Permits. Section 2.21 SOLID WASTE. "Solid Waste" shall have the meaning set forth in Section 40191 of the California Public Resources Code as it may be amended from time to time, as follows: "40191(a) Except as provided in subdivision (b), 'solid waste' means all putrescible and nonputrescible solid, semisolid, and liquid wastes, including garbage, trash, refuse, paper, rubbish, ashes, industrial wastes, demolition and August 30, 1994 -8- DRAFT construction wastes, abandoned vehicles and parts thereof, discarded home and industrial appliances, dewatered, treated, or chemically fixed sewage sludge which is not hazardous waste, manure, vegetable or animal solid and semisolid wastes, and other discarded solid and semisolid wastes. "(b) 'Solid wastes" does not include hazardous waste or low-level radioactive waste regulated under Chapter 7.6 (commencing with Section 25800) of Division 20 of the Health and Safety Code. "(c) 'Solid Waste' does not include medical waste which is regulated pursuant to the Medical Waste Management Act (Chapter) 6.1 (commencing with Section 25015) of Division 20 of the Health and Safety Code). Untreated medical waste shall not be disposed of in a solid waste landfill, as defined in Section 46027. Medical waste which has been treated and which is deemed to be solid waste shall be regulated pursuant to this division." Section 2.22 SOLID WASTE PROGRAMS. "Solid Waste Programs" shall mean those programs directly related to solid waste which may include: transfer stations, household hazardous waste programs, recycling and resource recovery programs, Agreement and Use Permit administration costs (including legal, engineering, and accounting and other costs of the County). Section 2.23 SPECIAL HANDLING WASTE. "Special Handling Waste" shall mean certain Solid Waste materials permitted for disposal at the Landfill which, because of their volume or type, will require special handling by Operator such as, by example only, sewage sludge, tires, fencing, large appliances, large dead animals, concrete and asphalt. All Special August 30, 1994 -9- DRAFT r Handling Wastes accepted at the Landfill shall be specifically identified in the Schedule of Disposal Charges. Section 2.24 SURCHARGE. "Surcharge" shall mean a special charge as required by the County and this Agreement, for funding of Solid Waste Programs, closure of landfills in operation prior to 1990 and for franchise fees and other costs as deemed appropriate by the County. Section 2.25 SURCHARGE PAYMENTS. "Surcharge Payments" shall mean those monies received by Operator as a Surcharge and remitted to the County in accordance with the terms of this Agreement and of the Permits. Section 2.26 USE PERMIT. "Use Permit" shall mean Contra Costa County Land Use Permit No. 2020-89, together with all Conditions of Approval applicable thereto, including any amendments thereof. ARTICLE 3. TERM OF AGREEMENT This Agreement shall remain in effect until 38.4 millions tons of waste have been disposed of in the Landfill, or such lesser time as may be prescribed by law. It is the parties intent that the term of this Agreement shall be the estimated life of the landfill expressed in terms of capacity as of this date: 38.4 million tons less the tonnage of waste disposed of prior to the effective date of this Agreement. ARTICLE 4. PERFORMANCE OF OPERATOR Section 4.1 OPERATION OF LANDFILL. Operator shall operate the Landfill, in strict compliance with, and subject to, the terms and conditions of this Agreement, the Permits and other applicable requirements of Regulatory Agencies. August 30, 1994 -10- DRAFT Section 4.2 WASTE STREAM. Nothing iri the terms and provisions of this Agreement shall be construed to grant rights of exclusivity with respect to Solid Waste generated in any geographical portion of the County;`nor shall this Agreement preclude or in any way restrict the County from entering into substantially similar agreements with other parties for Solid Waste disposal operations at other locations; provided that the terms and conditions of such other agreements shall not be substantially more favorable to the other operators than the provisions of this Agreement. Section 4.3 WASTE TYPES. Operator shall operate the Site in strict compliance with the Permits and laws; provided, however, Operator may refuse to allow the disposal of certain categories of Solid Waste after obtaining approval by the County, which approval shall not be unreasonably withheld. Operator shall provide sixty (60) days' notice to all affected parties prior to proposing County approval of Operator's tentative decision to disallow disposal of the affected Solid Waste. Section 4.4 UNACCEPTABLE WASTE. Operator shall not allow disposal at the Site of material other than waste allowed by and subject to the terms of all Permits and laws. It is recognized that some non-approved materials, including certain hazardous wastes, may occasionally be unloaded at the Site by users thereof. Operator shall train its on-site employees to recognize such unacceptable wastes and materials. In the event that unacceptable waste is deposited at the Site, it shall be handled and removed by Operator in accordance with procedures which shall be developed by Operator and submitted to the County for approval prior to the Commencement Date. Nothing herein is intended to relieve the person or persons depositing or causing to be deposited such unacceptable waste from August 30, 1994 -11- DRAFT any liability. Operator retains the right to use all legal means to recover costs of removal and alternate disposal or treatment from such person or persons. Section 4.5 INSPECTION, INVESTIGATION, AND EVALUATION OF SITE. Operator acknowledges that it has and shall continue to inspect, investigate, and evaluate the Site regarding its suitability as a Solid Waste disposal site. The Site shall be immediately accessible at all reasonable times to Regulatory Agency officials for any reasonable, lawful and proper purpose. County officials shall usually give reasonable notice to Operator of their intention to visit the Site or if such notice is not given, shall notify Operator's on-site personnel of their presence on the Site. County shall not incur liability arising from the discharge of its inspection responsibilities, either by commission or by omission, except for its tortious conduct or breach of duty resulting in death, injury or property damage while engaged in its inspection responsibilities. The inspection of the work shall not relieve Operator of any obligation to perform under this Agreement. Operator shall remove and replace or repair any work not in compliance with those Permits, laws, ordinances or regulations applicable to the Site. Section 4.6 PERMITS. Operator shall obtain and maintain in force all necessary Permits and/or other approvals from the Regulatory Agencies for the Landfill. Upon receipt of each such Permit or approval, a copy thereof, together with all conditions or requirements attached thereto, shall be delivered by Operator to the Director. Section 4.7 STATUS OF TITLE. Prior to the Commencement Date, Operator shall provide to the County reasonable evidence sufficient to establish that Operator is in possession of and/or has the right to use the Site for the purpose contemplated. August 30, 1994 -12- DRAFT Section 4.8 GATE FACILITIES. Operator shall supply, construct and thereafter maintain gate fee collection facilities. The facilities shall be designed and located as necessary so as to expedite the fee transactions and shall be attractively finished and landscaped. The facilities shall be consistent with the Use Permit for the Site. Operator shall supply,., construct, and maintain truck scales as necessary to expedite the fee transactions, prevent traffic back-up, and allow for occasional maintenance and repair. The scales shall be compatible with the Gate Fee Collection System approved by the County, in accordance with Section 5.1 of this Agreement. The scales shall be open and in working order during all Hours of Access at the Landfill. The sole access to the Site for vehicles carrying solid waste shall be the Landfill entrance, and all waste disposal vehicles shall be recorded by the Gate Fee Collection System. Operator shall make provisions for quick repairs of the scales by competent technicians to minimize downtime. The scales shall meet all State requirements for design approval and accuracy for State certified scales. Only those scales functioning in accordance with all applicable regulations shall be used. Operator shall obtain the State of California certification for scale accuracy. Operator shall supply, deliver and maintain utilities to the Site and shall be responsible for all on-site and off-site costs and service charges in connection therewith. .Section 4.9 OPERATION OF GATE FEE COLLECTION SYSTEM. Operator shall operate the Gate Fee Collection System, including the providing of all labor and materials necessary with respect thereto. Such operation shall be for all Hours of Access. August 30, 1994 -13- DRAFT Section 4.10 FEE COLLECTION. Operator shall collect, count and account for all Landfill Tipping Fees and waste quantities from each user at the Site. Said fees shall be collected in accordance with the rates applicable pursuant to Article 6 of this Agreement. In the event that no scale is operable at any given time, vehicles will be charged based upon the weight certified by the originating transfer station or based upon a flat fee or volume fee schedule established by the parties in advance. Operator shall furnish the County with monthly reports on the number and types of vehicles and waste tonnages and/or volumes, as appropriate, of the various types and Gate revenue. Section 4.11 PAYMENT TO COUNTY. Operator shall pay the Surcharge Payments required by Article 6 to the County monthly in arrears. Operator shall pay the Surcharge Payments to County within thirty (30) calendar days after the close of the prior month in which they are collected. Section 4.12 HOURS OF ACCESS. For purposes of this Agreement, unless otherwise required by the terms of the Permits, Hours of Access shall be those specified in the Solid Waste Facilities Permit. Should the Director declare that an emergency exists, Operator shall keep the Landfill open as instructed to allow for the orderly disposal of Solid Waste generated or created by such emergency conditions at no additional charge or increase in the Gate Rate. The scheduled Hours of Access may be changed in a manner consistent with permit requirements. Operator may, in its sole discretion, observe the following holidays and close the Landfill: New Year's Day, Easter Sunday, Memorial Day, Independence Day, Labor Day, August 30, 1994 -14- DRAFT Thanksgiving Day and Christmas Day, or other major holiday as approved by the Director. Section 4.13 NONDISCRIMINATORY SERVICE. Operator shall provide nondiscriminatory service for Solid Waste disposal to all users, and shall abide by all Federal, State and local laws and the Land Use Permit. Section 4.14 ACCESS ROADS, HAUL ROADS AND SERVICE ROADS. It shall be Operator's responsibility to provide and maintain all roads required on the property for purposes of transporting refuse to the actual point of disposal, or transporting earth materials for fill within the Site, and such other roads as may be constructed for its convenience. Haul roads shall be well maintained. The surface shall be reasonably free from potholes and depressions. A safe, all weather access to a disposal area shall be provided at all times. Section 4.15 LITTER MANAGEMENT. Operator shall maintain and keep the Site and its access road reasonably free of litter and other refuse. Operator shall be solely responsible for maintaining the Site in a clean and sanitary condition, and shall be responsible for any public nuisance created as a result of its operations. Operator shall control on-site and off-site litter or debris in accordance with the Use Permit and the Solid Waste Facilities Permit. Section 4.16 ENVIRONMENTAL MITIGATION. Operator shall comply with all environmental mitigation measures reasonably and lawfully imposed by Regulatory Agencies including those imposed by the Use Permit. Section 4.17 RECYCLING/RESOURCE RECOVERY PROGRAMS. Operator shall cooperate with the County and reasonably participate in satisfying the ancillary waste needs of the County, including participation in a County sponsored recycling/resource recovery August 30, 1994 -15- DRAFT plan and litter program, and/or any other activity which the County deems is appropriate for inclusion in the County Solid Waste Programs. Section 4.18 ACTIVITIES REPORT. Operator shall, by the first day of January of each year, assemble and provide to the County the Activities Report for the most recent Analysis Period. The Board may direct, upon ninety (90) days written notice to Operator, that the report provided in the Activities Report be made semi-annually. Section 4.19 PENALTY SCHEDULE FOR NONCOMPLIANCE. In the event that noncompliance by Operator with any condition or provision of this Agreement, or any applicable Permits or Regulatory Agency requirements is determined by the County, County shall notify Operator of the identified noncompliance. Following notification of noncompliance, the Director may impose penalties per noncompliance upon three (3) days notice to Operator in accordance with the following penalty schedule until such time as compliance is achieved: $ 500.00 per day during the first week of noncompliance $ 750.00 per day during the second week of noncompliance $1,000.00 per day during the third week of noncompliance $1,250.00 per day for each day thereafter. At the time the Director imposes any penalties, the amounts due for each day of noncompliance shall be the above amounts subject to annual CPI adjustments, the applicable index to be reasonably selected by the Director. August 30, 1994 -16- DRAFT f .b Notwithstanding the above three paragraphs;'rio monetary penalties will be imposed by the County in the event that Operator and/or said Regulatory Agency are diligently pursuing the process of correction or mitigation of the event(s) causing noncompliance. Operator shall have the right to arbitrate any action taken by the County under this provision in accordance with Section 13.7 of this Agreement. Section 4.20 RECORDS. Operator shall keep separate and accurate records for the Landfill as provided in the Use Permit. The County may, at its own expense (which may be recovered as a Solid Waste program cost), at any time during the term of this Agreement, have the books and records of the Operator examined for the sole purpose of verifying Operator's compliance with the requirements of this Agreement. County shall give thirty (30) days written notice to the Operator in advance of such examination date. ARTICLE 5. PERFORMANCE OF COUNTY Section 5.1 GATE FEE COLLECTION SYSTEM. The computerized Gate Fee Collection System, which shall be provided by Operator in accordance with Section 4.9 of this Agreement, shall be approved by the County, which approval shall not be unreasonably withheld. Section 5.2 INSPECTION OF SCALES. The County may, from time to time during regular business hours, inspect the scales and test the accuracy of same. ARTICLE 6. RATES Section 6.1 BASE RATE. The Base Rate shall be determined and established by Operator at its sole discretion. Notwithstanding section 4.13, it is understood that the August 30, 1994 -17- DRAFT Operator need not charge a uniform Base Rate to all customers, but may vary the Base Rate as between different customers based on various factors determined by Operator, including, but not limited to, the quantity and type of waste delivered by each customer to the facility and whether each customer has entered into a disposal agreement with the Operator in which the customer agrees to dispose of some or all of the customer's future waste stream at the Landfill. Opefuter shaH at aH times maintain oft file %ith the Gounty, a sehedule of Base Rfttes Stftfiefi NAefne n pfopfietart or- Base Rate. The sehedule may inelude a standafd Bme and Gate Rate whieh sehedul"F Base and Gate Rates shall be updated within ten days of matefial fnedifieatie • MatefW madifiealiefis inelude, but afe fiet lifnited to, Base and-Gate Rate, and entefing ef a dispesal agr-eement of ethef agmement with flew ettstefner-. The pufpese of this seetien is te ensure that the fates ehafged by Gpei:ater- as weR —es fees %J st-r-eharges imposed by County as well as ethef gevemmentd ageneies are a matter- > the Gounty, August 30, 1994 -18- DRAFT Section 6.2 SURCHARGE. The County may determine and establish at least once every two years, effective on the date determined by the Board of Supervisors, the Surcharge, which shall be added to the then applicable Base Rate, and collected as part of the Gate Rate. Operator will be provided at least ninety (90) days' written notice of any newly established Surcharge. In the absence of the County establishing a particular Surcharge amount, the Surcharge to be collected by the Operator for the County shall be thirty percent (30%) of the then applicable Base Rate. Section 6.3 GATE RATE. The Gate Rate shall consist of the Base Rate, Mandated Fees, and Surcharge. Section 6.4 INITIAL SURCHARGE. Effective on the effective date of this Agreement, the Surcharge shall be: ................................................................. ................................................................. ................................................................. a. % of the Base Rate less the amount of all Mandated Fees imposed and received for use by the County with the exception of Mandated Fees imposed for 1) any household hazardous waste program, 2) any fee imposed pursuant to Public Resources Code section 41901, as said section is amended from time to time, for preparing, adopting and implementing a countywide integrated waste management plan ("AB 939 Fee"), or any future similar waste management fee, and 3) fees imposed pursuant to sections 35.1 and 35.2 of the Use Permit. (It is the parties' intent that the fees described in the preceding sentence shall August 30, 1994 -19- DRAFT not be a "credit" towards the % surcharge.) The parties understand that any fee which may be required in accordance with Section 35.3 of the Land Use Permit (Property Value Compensation Program) are Mandated Fees. ��«�:�:�:::�►ares:::�����:��> �:::�ec�� d::::�o .:.: .:.:�c ?.�e�r.��r€:'� ir�r ♦.:.v..}i,:i:3:.;}}....�::..�.: .............:.:ti:{::{:i :.....::::i.,:.:::.:::r::...i.:::...:•i:•ii:•i::..::?{•i:??•ii:.:i:.i:.::.i:.ii:?•i:?.i...::vn�i:f:.:{::.i•.i,.::.v::::...i,:{.:{.... �:??•:f{{:4:{{.%.:J..:??�:•i::'{??•:?{{n:.i::v.?{:....:v:r:::::::::.:::::vx ?r.�:{.}....:v:.:::::..::::::::•{.vr...v:v:...iii:v::::iiii:?.?:.....i:?{{.:v:r:'v:::::...v.:�:xiiiii:.i:.i:.ri???moi"•ii'{':•i:{.i:i"ii:.:?i::•v . .. .:<�n:�c�::. �•:::: �h :::: . ::<: :::�c��r:::�et�:::��<::��>: �::::T;ram' 5��:��< d<� � :dx.�� •:v:v;.;...•n:4h::ni}ihiiii:iis3iiii:.????{h}:r?^:trii:Li"ppii}i"::i::...::::::::::::...:v:....;,:....:.........:w::::::::nw:.v::.::.....:•::::.::r::w::r:v..........................:....v..??:ry:? i:::'{::::i n:i:�:i ...:..n:......... .....:.i.........i:::........i..:v...;:.: ::vi:.:::::F •:i'i{:i:::<}::}i}i:::iii::i +:v::::::v::::::::::.�::..':::i':.i:::'::.:{....::n}i':liii:.:::::i::. .:::�- ;..i:........y:'.:::::. :..• {><kY ::>n:.:.: .. _.: :y.. :::>:: Imo:::: ::>�(:n2 ;::� � :;:: ::>:<: o�......as���.....�.�e�x............i ...... �..............e.....+��e �::'�`rangy.+ .. �€ >:::: � ::: ...:::> N..r;: :....}:. ..:......:i ....:..::::'...::::..".:i.:.':i' i::...:....is.:..:...:i...:...:....:.r...ii:.iii. .i. .:...ii ...:...::{, ... ....i......ii........:..:� ...i. � .:...:. :�:: ...:..•*'i;: .:'::: : :.:. b. For Solid Waste received at the Landfill via the Acme Facility, the Keller Surcharge and any other Keller Mandated Fees shall be collected at the Acme Facility together with the Acme Surcharge and any other Acme Mandated Fees. August 30, 1994 -20- DRAFT � n Section 6.5 DISPOSAL CONTRACTS. For all contracts for the disposal of Solid Waste entered by Operator, the Surcharge applicable at the time of the disposal contract shall apply for the life of said disposal contract. The parties agree that any later established surcharge amounts shall not apply to waste received pursuant to such Solid Waste disposal contract for the life of said disposal contract. Operator shall advise County of any disposal contract subject to the privileges of this section immediately upon execution. Operator shall provide County with any and all information requested by County concerning any such Contract, including providing County with copies of such contracts upon request. Y?•:M:i•}:•}s:''•'F.•}::x iw,•.irr:: O}}?tt?:?....,}:??n:?•}:4:•i::n}ti??;xn'f..}'f.?n:{.}}};n:':^}:??ry:??:-}}:•}}}:?GY:'}}}:4::2::}:::??::?.v.r:.....:.::........:.w_::::.:.v:::r v.:..:.:-.r:..:v:v: '�}� � �-�:S:S��R:L.t:::}�XT�[A�=..Z4�??}:��Z-:v��S: �i�':.:{r.:}y.[.y;•:�].:�y}h: - :}��:.Xl.�Y1.f![{XA1�iX�(•i: %}-:i'i.....•.��••: G}h:+}Y.'f.::vnv:::x::•r•:•t•v:x•::::w::nv:::.v::.v:::w:•.v:.:::::::::::::::.v:::::::::::...::::::::xv:::r::.v:::.:.w::::..::::::::::v......::::::::::w:::v:.:v..::::.v::.v.v::.::::::w:..vnv:::::::............ .......:'.. t}'::.:;:0.?/..r}. ..:�:}':nr::::.::::::::::.i':{:} ::: X.::::::w:.:j::::.�:.}v.w.:ii:.X.:::n}':: :?:.:J--::::Y :.r':::} is}..:..:}•. :L:::::::_�_::::v.::. .?::::::Y..�:..::'i:}'.:n.1:.v..::.::::}:: :i::i:4} v}}}}:}}:??.:{,..: :::.�:::::: .:..::}}:4i}}: '.}}}}:,::...::::::::::::::.�•:.::.::::::.:::::i}}}}:: ::i:::ilii :isi:::iiii viiiiisv:::�::iii:fi::i::i::ii:}..?i}i::Y 1:}:::i:-iiiisi:....:iiiiiiiii::iiiiiiiti::i::ii:::j;-i::ii::i::i::ii::i:•::::•::i::ii .f ^' s- :> ' �:ll .<:s: T�<#3�th' '::.; :. f ::::: I�:' :. :•:' : '`t�::d� <: .'L•,Ra--�L:?::i��i�Y:f7�d :::�e:::�:L�:ti::�X�I{FNI:::.ti.�Fli+W.::: Ri� J:'. . ��:::��� '�{7i::�i �(47A'�::::�:v'#Xif ' ..................................................................................................................... Sti?{4}}}}%?y:.}::{:{::?::::::?::::::::v.v:.v:::::..::::::::.v::::::..:::::::::::::::::::.v::::::::::::.v::::::::nv::::::.:.::::::::.:..v:::v v:0}'?L::}:n}}:•:v::i':::::::.:....:::::::?:?i<?:v.:::.::•:...:}:-::i}}}}...:i'.::::::::. ..r:.:}}i..�.':.:..::..:....: :::i:::`.::..::......:..:..}...v......:..:..::v..:v.:...v:::{.vv..: :..giii;:.':•:�: :ii ... .:. .v...:}}..v r.........v?:: .r ?.: r, .. .. ........................... :::?'}i}:;"':i!'?i.}:::i:}:i:i;.;i y'i}:;Yi,}::}":::i':i:}:<:-:'::?::{.}:tii::i:•i}}}}}}"}i>;;ry}}}ii:Y"4}}}}}}}i'.}}}}X'4'+'}}}}}}}}}}}Y':�":•:^�?:•ti?.}}}}i}}}�:}}}}}}}N}}}}"}}i}i:'f"•::?•:}}}}::'.}::':4}:^i:?.}}}::•::":}}}}i::?Fi}i:-}}}}: �::b�::. : �t ::�r.�th�tt€<:t��<.. .::�:• `'•��#tt�fit���:••' :- �tiri��: :.:..:�:••�><l�.i�t€Al �il:�i >::i:}:::i:::;::-:}:...::::iii}:::;;:;:::i::i.:i.}:.:}:?;.;'.:i::::::i:;:::�ii::i:::<:::i:;:::>::i::::::•::ii::iiii:::isi:.i:}:}'.:::i:::i::i::isi::isi;:>:::<:>i::i'::}':;:::isi:>i:}::::<::�i':;:;:':'.::::::>i�::>:}:ii::>���::>�:>�::>:'i<:::::-:�':;:;::::><:::::>�i»::i>:�:<.:>'>::<i::,:i:>::i�;:>:i::> 3r1ud ::>bit:: oiited:>li>: ha e: ::tb<:ate:.:<:cuslor::: :> id::: ath:> tat n ' .............................::::::::. 4 ak sposai agreemenf�r other agreement € .:n zs om�r August 30, 1994 -21- DRAFT ;...yY:K'.--:•: :yb:r.;..?:-}'i}�;}.n i.......:ri::.nM...:ry�..?. :.:: v.;::::-?.;:..:.... ..n%-:ix.4.}:;i.?:.. :}�J�:�1j��{� p}� yes:> c��s��rc� e�:>> :.. �:� ..:��.:. �� �� >• .•..:.:........... ��:;. p�-�...::!:. -.:� ..7i1'T:::'. .�.;.....•::...••+.•::•'.•�.. �'YiLi.��':�Al:�'3:iii:3#ili:::��'eF:� .;.xT.i�:'}?:} .�'J.':'.-`',.::::.+.. .:::t ?;.,..;v:..v:}:::..::.:.h.;v-..;:::;;.:::...:::::::::n4:::.}:::::::•�:w._.,-.v.;v.;.........Y.;:�....•.,•;•S•,.:.•.O:in:.:.:}::.;.:::x:..::.:r:..v..;w..v::::_...;:.}i}::.w::::::::::w::::::w.:{::::ii::iLC:i::;v::.. ;.:::.;._.••?v.:•i•}:4:n}};.::.}..::--•::v:.v::...v:::::::is nv:•.v w:::•:v:.v:.\nay;•.:::y...}i:;6:-::•}::..;.}:4i?}}ii:?L}:ib}:4}:4?iT:h:iti^}`}}:4}}}:'.-i?::.;;..;w::-:::.:::::nv:::::-w::.....:....:w:..:v::?:i i:rii?: .,�� } :` .... .:ice....... .#��;9:..�.:.: ..�.................. . ARTICLE 7. PERSONNEL Operator shall assign qualified personnel to operate the site as may be required to assure a smooth and efficient operation in compliance with all applicable Permits. The County has the right to request, in writing, administrative action, including the removal of any employee of Operator who violates any provision of this Agreement, or who in the opinion of such requesting party is unsafe, negligent, or discourteous to the public or others in the performance of his/her duties. Upon receipt of such a request, Operator shall immediately take whatever administrative action, which, in its judgment, is necessary to resolve the situation. Such action may include removal of that employee from the Site. A Site Supervisor employed by Operator shall be present at the Site at all times that any operations are being conducted thereon. Operator shall file with the Director the names, addresses, and telephone numbers of the Operator representatives who can be contacted at any time in case of emergency. These representatives shall be fully authorized to respond so as to resolve the emergency. ARTICLE 8. LANDFILL GAS If at any time Operator voluntarily pursues the sale of gas produced from the Landfill or the sale of electricity produced by burning said gas, County may require the payment of a August 30, 1994 -22- DRAFT Surcharge thereon. ARTICLE 9, CLOSURE AND POST CLOSURE Section 9.1 CLOSURE RESPONSIBILITIES. Operator shall be responsible for Site Closure and Post Closure Maintenance of the Landfill according to all Permits and requirements of the Regulatory Agencies. Operator will hold the County harmless for the performance of its duties under this Article. The County and Operator recognize the inevitability of Site Closure. Both parties also recognize the existing uncertainties yet to be resolved which may impact the date and total cost of Site Closure and the need to commence closure activities promptly upon cessation of disposal activities in a discrete portion or phase of the Landfill. The parties intend to provide for the public interest by assuring that the appropriate financial mechanisms are put in place by Operator to provide funds to pay the costs incurred for Site Closure and Post-Closure maintenance as required by law. Section 9.2 FINANCIAL ASSURANCES. Operator shall provide all financial assurances necessary to satisfy the provisions of Public Resources Code Section (formerly Section 66796.22 of the California Government Code), Title 14, California Code of Regulations, Division 7, Chapter 5, Article 3.5 and all other applicable provisions of California and Federal law. The financial assurances shall include the establishment of a trust fund or equivalent financial arrangement as evidence of financial ability to provide for the cost of closure and post-closure maintenance as required by law. Operator shall consult with the County with respect to proposals to be made to the State regarding the financial assurance to be provided. Operator shall provide the County with adequate notice of any August 30, 1994 -23- DRAFT filings with the State or hearings with respect to such proposals sufficient to allow the County to participate in and provide input to the State on the State's determinations on closure and post closure requirements, including financial assurances to be imposed on the Site. Section 9.3 PERFORMANCE. Operator acknowledges that under State and Federal law, Operator shall have the responsibility to perform both closure and post closure activities in a timely, cost-effective manner. Performance by Operator shall be determined in accordance with State and Federal statutes. The County and Operator agree that, to the extent site closure and postclosure activities are funded from the Landfill rates, it is in the local public interest to assure timely, cost-effective closure and postclosure activities. The County shall have the right to conduct such technical and financial review as it deems necessary to protect the local public interest. Section 9.4 SIGNING OF INSTRUMENTS AND DOCUMENTS. From time to time, either party shall at the request of the other party and without further consideration, execute and deliver such instruments and documents as may be reasonably necessary in order to effectuate the purposes of this Article 9. Section 9.5 FAILURE TO MEET CLOSURE AND POST-CLOSURE OBLIGATIONS. In the event that Operator fails to perform its obligations as set forth in this Article 9, or to enter upon performance of same with due diligence after the determination of an event of default in a manner described below in Article 11, the County may enter the Landfill and perform the Site Closure and Post-Closure activities required to remedy the default and expend Site Closure funds for the costs involved. August 30, 1994 -24- DRAFT ARTICLE 10. UNINTERRUPTED OPERATION Section 10.1 ASSURANCE OF UNINTERRUPTED OPERATION. Operator, in entering into this Agreement, assures that it will provide from the Commencement Date for the operation of a Solid Waste disposal facility at the Landfill in an uninterrupted manner for as long as the Site is useful and usable, except as provided in Section 11.4 below. Operator acknowledges the hardship that would occur if the Landfill is not operated properly or is prematurely closed. The County and Operator recognize that in the ordinary course of events, certain unexpected events may result that may place a burden on the requirement of uninterrupted operation. However, it is the purpose of this Article 10 to establish that it is Operator's obligation to avoid any interruption of operations except for those that are outside of Operator's control, as provided by Section 11.5 of this Agreement. Section 10.2 LABOR DISPUTES. In the event of a labor dispute, Operator shall use its best efforts to keep the Landfill open and to operate it in accordance with this Agreement unless a mutually acceptable disposal alternative is agreed upon by Operator.and the County. ARTICLE 11. DEFAULT, REMEDIES Because of the complex nature of this Agreement and the work to be performed hereunder, together with the need for close cooperation and coordination between the parties, it is not anticipated that either party will declare the other in default under the terms and conditions of this Agreement except as a last resort. However, in the event of any such necessity, the following provisions are made a part hereof. Section 11.1 FAILURE TO PROSECUTE WORK. Should Operator fail to prosecute the work or any severable part thereof in conformity with the requirements of this August 30, 1994 -25- DRAFT Agreement, the Director shall provide written notice to Operator specifying in detail the defect or default in performance (the "First Notice") and Operator shall have the right to cure same within a reasonable period of time. If after the First Notice is provided to Operator, the work is not performed in accordance with the Director's specified time frame and a reasonable time to cure so as to ensure its completion in accordance with this Agreement, the Director shall serve further notice (the "Second Notice") upon Operator of the County's intention to take further action as provided by law. The Director shall make appropriate and detailed written findings of fact which specify the event of default. No earlier than thirty (30) days after the Second Notice, County shall have the power and ability, if Operator is still in default, to take such actions as provided in law for remedying the same, including the termination of this Agreement. Should the County fail to perform any of its obligations under this Agreement, Operator may declare the County in default after following the same two notice and findings provisions required of the County above. Thereafter, Operator shall have the power and ability, if the County is still in default, to take such actions as provided in law for remedying the same, including bringing suit in a court of appropriate jurisdiction for equitable or legal relief or both. The foregoing notwithstanding, neither party may bring an action seeking money damages unless it has first provided the other party with 30 days notice of its intention to do so together with written notification of the specific actions which the other party may take to remedy the default which will form the basis for the claim for monetary damages. If the August 30, 1994 -26- DRAFT other party in good faith commences the actions specified within the thirty (30) day period, the first party shall not bring the action for damages. Section 11.2 CONVICTION OF CERTAIN CRIMES. Operator agrees that a single conviction of Operator, its parent, subsidiaries or operators, or their officers or employees at the level of Site operations manager or above, acting within the scope of their employment, of bribery, antitrust, corruption or theft relating to or involving directly the Landfill Site shall constitute an event of a breach of this Agreement subject thereupon to the provisions of this Article unless Operator, promptly initiates and follows through with appropriate disciplinary procedures and action considering the nature of the offense and resolution by the courts. Section 11.3 CONDEMNATION. In addition to any other remedy available to the County, it has the right and authority under law to condemn the Site. Section 11.4 RIGHT TO TAKE/RIGHT TO POSSESSION. In the event that Operator chooses to no longer operate the Site, Operator agrees that it will give County notice of its intention to cease operation ninety (90) days prior to the cessation. If, after receiving such notice, County initiates eminent domain proceedings to acquire the Site, Operator agrees that it will not object to or contest County's right to take, or right of possession of, the Site. Nothing contained herein shall constitute a waiver of the right to contest valuation at any stage of the proceedings. County and Operator agree that the provisions of this paragraph may be enforced by means of the remedy of specific performance. Section 11.5 FORCE MAJEURE. Operator shall not be liable for a default if the August 30, 1994 -27- DRAFT t failure to perform under the terms and conditions of the Agreement arise out of causes beyond the control or without the fault or negligence of Operator. Such causes may include, but are not limited to, acts of God, or the public enemy, acts of the County in either its sovereign or contractual capacity, fires, floods, earthquakes, epidemics, quarantine restrictions, suppliers' and vendors' strikes and all other labor disputes, freight embargoes, and unusually severe weather; but in every case the failure to perform must be beyond the control and without substantialdefault or negligence of Operator. Operator shall make every reasonable effort to mitigate the effects of said causes. . Section 11.6 SPECIFIC PERFORMANCE. Notwithstanding any other available remedies, the obligations duties and rights of each party under this Agreement shall be specifically enforceable by the other party. Section 11.7 NONEXCLUSIVE REMEDIES. The rights and remedies of either party to this Agreement as provided for in this Article 11 shall not be exclusive, and are in addition to any other rights and remedies provided by law or under this Agreement; except that the right of either party to seek monetary damages is limited as provided in Section 11.1 above. ARTICLE 12. INSURANCE AND BONDS Section 12.1 WORKERS' COMPENSATION. Operator hereby acknowledges that it is aware of the provisions regarding Workers' Compensation, Section 3700 of the Labor Code. Operator shall comply with the provisions of such Section as amended from time to time with regard to its employees and shall supply to the County forthwith upon execution of this Agreement, and annually thereafter, evidence of such compliance. August 30, 1994 -28- DRAFT Section 12.2 PUBLIC LIABILITY. If a willing company can be located by either party hereto, and the premium for the policy or policies required hereunder is reasonable in the opinion of County, Operator shall obtain from a good and responsible company or companies doing insurance business in the State of California, and pay for, maintain in full force and effect for the duration of this Agreement and any extension, a policy or replacement policy of comprehensive liability insurance for the Landfill, in which the County is named as an additional insured with Operator. Operator shall furnish a Certificate of Liability Insurance to the Director before execution of this Agreement by the County. Notwithstanding any inconsistent statement in the policy described by the Certificate of Liability Insurance or any subsequent endorsement attached thereto, the protection offered by the policy shall: (a) Include the County, its officers, employees and agents while acting within the scope of their duties under this Agreement, the Use Permit, or any other County ordinance, resolution or other rule relating to the operation, maintenance or closure of the Landfill, as an additional insured covering said duties against all third party claims for negligence; and for indemnification of the County as provided by this Agreement. (b) Provide for a combined single limit policy not less than $10,000,000 per occurrence, combined bodily injury and property damage; such policy may exclude liability for bodily injury and property damage caused by toxic wastes. At every fifth year of this Agreement, this $10,000,000 minimum limit shall be increased as directed by the County but not more than 30% for each such five year period. Section 12.3 OTHER INSURANCE PROVISIONS. All insurance policies required August 30, 1994 -29- DRAFT by this Agreement shall bear an endorsement, whereby it is provided that, in the event of expiration, or proposed cancellation of such policy for any reason whatsoever, the Director shall be notified in writing not less than thirty (30) days before expiration or cancellation is effective. Expiration, reduction or cancellation of any insurance policy required by this Agreement without obtaining a replacement policy pursuant to Section 12.2 to meet the requirements herein shall be considered a breach of this Agreement by Operator. Operator shall also carry such other insurance as may be required by law. Operator shall be solely liable for any claims or liabilities caused by its failure to maintain insurance required by law. Section 12.4 FAITHFUL PERFORMANCE SURETY. Operator shall, prior to acceptance of waste at the Site under this Agreement, provide to the County an irrevocable Performance Surety Letter of Credit in the form set forth in Exhibit B hereto guaranteeing Operator's performance of all provisions of this Agreement (except Article 9, relating to Site Closure, for which separate financial assurances are required by applicable law) in an amount of not less than $1,000,000.00. This Letter of Credit may also be utilized to meet the security and performance requirement of the Use Permit, except as to the closure requirements which will be separately secured. If Operator or an affiliate acceptable to the Director operates a transfer or processing station in the County, from which transfer or processing station solid waste is delivered to the Landfill, the Director may allow the Performance Surety Letter of Credit required by this section to additionally guarantee Operator's performance of all provisions of said transfer station agreement or franchise. August 30, 1994 -30- DRAFT r ' ARTICLE 13, GENERAL PROVISIONS Section 13.1 GUARANTY BY PARENT OR AFFILIATE. Prior to the Commencement Date, and for all conditions and obligations of this Agreement, Operator shall provide to the Director, proof of guaranty by the parent or an affiliate of Operator acceptable to the County, of the performance by Operator of each provision of this Agreement to be performed by Operator. Proof of guaranty shall be in the form set forth in Exhibit C. Section 13.2 ATTORNEY'S FEES. In the event of litigation between the parties arising hereunder, each party shall pay and bear its own litigation expenses, including attorney's fees. Section 13.3 INDEMNITY AND HOLD HARMLESS AGREEMENT. (a) All work and performances by Operator covered by this Agreement shall be at the risk of Operator (b) With respect to third-party claims, Operator agrees to save, indemnify and keep harmless the County, its officers, employees, agents and assign against any and all liability, claims, judgments, or demands, including demands arising from injuries or deaths of persons and damage to property, arising directly or indirectly out of the obligations herein undertaken by Operator, save and except claims or litigation arising through the sole negligence or willful misconduct of the County, and will make good to and reimburse the County for any expenditures, including reasonable attorney's fees, that the County may make by reason of such matters and, if requested by the County, shall defend any such suit at the sole cost and expense of Operator. August 30, 1994 -31- DRAFT (c) With respect to third-party claims, the County agrees to save, indemnify and keep harmless Operator, its officers, employees, agents and assigns against any and all liability, claims, judgments, or demands, including demands arising from injuries or deaths of persons and damage to property, arising directly or indirectly out of the sole negligence or willful misconduct of the County, and will make,good to and reimburse Operator for any expenditures, including reasonable attorney's fees, that Operator may make by reason of such matters and, if requested by Operator, shall defend any such suit at the sole cost and expense of the County. (d) Should any party successfully challenge the validity of this Agreement or the procedure by which this Agreement was entered into or the validity of any County action which authorizes the County to enter into this Agreement, then in such case the Operator shall have no cause of action for damages or any other relief against County as a result of such successful challenge. In the event of any such legal challenge, Operator shall defend such action or proceeding at its sole expense and Operator shall save and hold County harmless from any claims or awards for third party attorneys' fees and costs. Section 13.4 ASSIGNMENT. (a) VolunIM. Operator shall not sell, assign, subcontract or transfer this Agreement or any part hereof, or any obligation hereunder, without the written consent of County; provided, however, that Operator may assign this Agreement without the County's consent to any company which it controls, is controlled by, or which is under common control with Operator. As used in this Section, the term "control" with respect to a company, means the beneficial ownership of more than 50% of the voting stock of the company. August 30, 1994 -32- DRAFT The term assignment shall include any dissolution, merger, consolidation or other reorganization of Operator, which results in change of control of Operator, or any sale or other transfer of a controlling percentage of Operator's capital stock. Any attempted assignment not provided for above without such consent shall be void ab initio. (b) Involuntary. Except as may be permitted by paragraph (a) above, no interest of Operator in this Agreement shall be assignable by operation of law. Any such nonpermitted assignment and any of the following acts, each of which are deemed an involuntary assignment, shall provide County with the right to elect to terminate the Agreement forthwith, without suit or other proceeding: (1) If Operator becomes insolvent, or makes an assignment for the benefit of creditors; (2) If Writ of Attachment or Execution is levied on this Agreement or other property of Operator such that would have a materially adverse effect on Operator's ability to perform its duties and obligations under this Agreement; (3) If in any proceeding to which Operator is a party, a Receiver is appointed with authority to take possession of Operator's property such that would have a materially adverse effect on Operator's ability to perform its duties and obligations under this Agreement. Section 13.5 COMPLETE AGREEMENT. No verbal agreement with any officer, agency, or employee of the, County or of Operator nor any contract either before, during, or after the execution of this agreement shall affect or modify any of the terms or obligations herein contained unless a written agreement, signed by both parties, specifically provides that August 30, 1994 -33- DRAFT same is an amendment to this Agreement. Section 13.6 NO THIRD PARTY BENEFICIARY ENFORCEMENT. While this contract benefits the public interest throughout Contra Costa County, it is an Agreement between only Operator and the County and, accordingly, only Operator and the County may enforce same. No claims, demands, or causes of action by any entity, party, or person claiming to be a third party beneficiary hereunder shall be enforceable. Section 13.7 ARBITRATION. Any controversy or claim submitted to arbitration pursuant to the express provisions of this Agreement, or by mutual subsequent agreement, and arising out of or relating to this Agreement, or the breach thereof, shall be governed by the provisions of Part III., Title 9 of the Code of Civil Procedure, sections 1280 et seq. as amended from time to time. The arbitration shall be de novo and subject to a de novo appeal or challenge brought in the Contra Costa County Superior Court as to any alleged error of law or as to the admissibility of evidence. California judicial rules of evidence shall apply to the arbitration proceedings. The arbitration decision shall be decided under and in accordance with California law, supported by a preponderance of evidence and in writing in the form of a Statement of Decision pursuant to Code of Civil Procedure Section 632. Section 13.8 CONFLICT. (a) This Agreement is intended to implement prior Landfill approvals, including the Use Permit (and Ordinance No. 88-81 if applicable to the Landfill). In the case of any apparent or potential conflict between the provisions of this Agreement and the provisions of the Use Permit or any involved development agreement, the provisions of this Agreement, the Use Permit and/or development agreement shall be read together and August 30, 1994 -34- DRAFT 1 ` harmonized to the maximum extent possible to effectuate the intentions of the parties. In the case of any unresolved conflict between the provisions of this Agreement and the provisions of the Use Permit or any involved development agreement, the provisions of the Use Permit and/or development agreement shall control. Notwithstanding any other provision in this Agreement or in the Use Permit, importation of waste not originating in Contra Costa County shall be allowed as required by recent U.S. Supreme Court cases. (b) Operator has entered into an agreement with Contra Costa Water District ("CCWD") the relevant portions of which are attached hereto as Exhibit D, which Exhibit is incorporated herein by this reference. If there is any conflict between this Agreement and Exhibit D, this Agreement shall prevail with respect to the relationship between Operator and the County. Section 13.9 CAPTIONS. The captions and headings used in this Agreement are for convenience and reference only and are not to be construed as controlling over the text of this Agreement. Section 13.10 DELEGATION BY BOARD. The Board may, in its discretion, delegate to a County employee or hearing officer any of its functions expressly or impliedly arising from this Agreement provided that in such case any decision made by such Board, County employee or officer may be appealed de novo to the Board. Section 13.11 SEVERABILITY. If any term, provision, covenant or condition ("provision") of the Agreement or the application of any provision of this Agreement to a particular situation is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions of this Agreement, or the application of this August 30, 1994 -35- DRAFT i Agreement to other situations, shall continue in full force and effect. Notwithstanding any other provision of this Agreement, if any provision of this Agreement in itself or as applied in any particular situation is held to be invalid, void or unenforceable, it is the intention of the parties that the remaining portions of this Agreement shall be continued in full force and effect and that the invalid, void or unenforceable provision be severed therefrom. Section 13.12 MASCULINE GENDER USED. The masculine gender is sometimes used in this Agreement and is so used for convenience only and is not otherwise intended. Section 13.13 GOVERNING LAW. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Section 13.14 NOTICES. All notices or other communications ("Notice") to be given pursuant to this Agreement, including the notices required in Articles 6 and 10 hereof, shall be in writing and shall be deemed given when mailed by registered or certified United States mail, addressed to the parties as follows: To County: County of Contra Costa Attn: County Administrator To Operator: Keller Canyon Landfill Company Attn: Boyd M. Olney, Jr. 441 North Buchanan Circle Pacheco, California 94553 With Courtesy as designated by Browning-Ferris Industries of California. A change in address or a change in the person or title to which Notice is to be given shall be effectuated by Notice to the other party. IN WITNESS WHEREOF, this Agreement is effective on the date first provided on page one hereof. August 30, 1994 -36- DRAFT • `n 1 OPERATOR Keller Canyon Landfill Company a California corporation By: Boyd M. Olney, Jr. President By: Vice-President COUNTY OF CONTRA COSTA By: Chair, Board of Supervisors ATTEST: By: Clerk of the Board APPROVED AS TO FORM: By: bf: 12.ee,a3o.44 County Counsel August 30, 1994 -37- DRAFT FRANCHISE AGREEMENT BETWEEN THE COUNTY OF CONTRA COSTA AND BFIC, INC. FOR THE ACME FILL WASTE RECOVERY AND TRANSFER STATION Dated: September , 1994 TABLE OF CONTENTS - ACME WASTE RECOVERY AND TRANSFER STATION RECITALS 1 ARTICLE 1. INTRODUCTORY PROVISIONS 2 Section 1.1 RECITALS INCORPORATION. . . . . . . . . . . 2 Section 1.2 EFFECTIVE DATE, EFFECT. . . . . . . . . . . 2 Section 1.3 CONDITIONS OF APPROVAL. . . . . . . . . 2 Section 1.4 OPERATOR ACKNOWLEDGMENT. . . . . . . . . . 3 Section 1.5 COUNTY DISCRETION AND INTEREST. . . . . 4 ARTICLE 2. DEFINITIONS 4 Section 2.1 AGREEMENT. , 4 Section 2.2 ACTIVITIES REPORT. . . . . . . . . . . . . 4 Section 2.3 ANALYSIS PERIOD. . . . . . . . . . . . 5 Section 2.4 COUNTY. . . . . . . . . . . . . . . . 5 Section 2.5 DIRECTOR. . . . . . . . . . . . . . . . . . 5 Section 2.6 EMERGENCY. . . 5 Section 2.7 GATE FEE COLLECTION SYSTEM. . . . . . . . . 5 Section 2.8 GATE RATE. . . . . . . . . . . . . . . . . . 6 Section 2.9 HOURS OF OPERATION. . . . . . . . . . . . . 6 Section 2. 10 HOURS OF ACCESS. . . . . . . . . . . . . . 6 Section 2. 11 KELLER LANDFILL. . . . . . . . . . . . . . 6 Section 2.12 MANDATED FEES. . . . . . . . . . . . . . . 6 Section 2. 13 OPERATOR. . . . . . . . . . . . . . . . . 7 Section 2.14 PERMITS. . . . . . . . . . . . . 7 Section 2.15 REGULATORY AGENCIES. . . . . . . 7 Section 2. 16 SCHEDULE OF CHARGES. . . . . . . . . . 7 Section 2.17 SOLID WASTE. . . . . . . . . . . . . . . . 7 Section 2. 18 SOLID WASTE PROGRAMS. . . . . . . . . . . 9 Section 2. 19 SURCHARGE. . . . . . . . . . . . . . . . . 9 Section 2.20 SURCHARGE PAYMENTS. . . . . . . . . . . . 9 Section 2.21 TRANSFER STATION. . . . . . . . . . . . . 9 Section 2.22 TRANSFER STATION PROPRIETARY RATE. . . . . 9 Section 2.23 USE PERMIT. 10 ARTICLE 3. TERM OF AGREEMENT 10 ARTICLE 4. PERFORMANCE OF OPERATOR 10 Section 4.1 OPERATION OF TRANSFER STATION. . . . . . . 10 Section 4.2 UNACCEPTABLE WASTE. . . . . . . . . . . . . 10 Section 4.3 INSPECTION, INVESTIGATION, AND EVALUATION OF SITE. 11 Section 4.4 PERMITS. . . . . 12 Section 4.5 STATUS OF TITLE. ... . . . . . . . . . . . 12 Section 4. 6 GATE FACILITIES. . . . . . . . . . . . . 12 Section 4.7 OPERATION OF GATE FEE COLLECTION SYSTEM. 13 Section 4 .8 FEE COLLECTION. . . . . . . . . . . . . . . 13 Section 4.9. PAYMENT TO COUNTY. . . . . . . . . . . . . 14 August 30, 1994 -i- DRAFT t. Section 4.10 HOURS OF ACCESS. . . . . . . . . . . . . 14 Section 4.11 NONDISCRIMINATORY SERVICE. . . . 14 Section 4.12 ACCESS ROADS, .HAUL ROADS AND SERVICE ROADS. 14 Section 4.13 LITTER MANAGEMENT. . . . .. . . . . . . . 15 Section 4.14 ENVIRONMENTAL.MITIGATION. . . . . 15 Section 4.15. RECYCLING/RESOURCE RECOVERY PROGRAMS.. . . . 15 Section 4.16 ACTIVITIES REPORT. . . . . . . . . . . . 15 ' Section 4.17 PENALTY SCHEDULE FOR NONCOMPLIANCE. . . . 16 Section 4. 18 RECORDS. . . . . . . . . . . . . .. . . . 17 Section 4.19 HOST COMMUNITY. . . . . . . . . . . . . . 17 ARTICLE 5• PERFORMANCE OF COUNTY 17 Section 5.1 GATE FEE COLLECTION SYSTEM. . . . . . . . . 17 Section 5.2 INSPECTION OF SCALES. . . . . . . . . . . . 17 ARTICLE 6. RATES 18 Section 6.1 BASWA RATE. . . . . . . . . 18 Section 6.2 SURC2G:E .::`.::`: .;::.. . . . . . . . . . . 19 Section 6.3 GATE RATE. . . . . . . . . • . . . . . . . 19 Section 6.4 INITIAL SURCHARGE. • . • . . • • . . . 19 Section 6.5 CONTRACTS. . . . . . . . . . . 21 • }° 21 Imn'll Yl:}:;;% i►.:.F:: i7L`.:: ;lSL.iS::� • • • • • • • • • • • • • 22 ARTICLE 7. PERSONNEL 23 ARTICLE 8• UNINTERRUPTED OPERATION 24 Section 8.1 ASSURANCE OF .UNINTERRUPTED OPERATION. • . • 24 Section 8.2 LABOR DISPUTES. o • • • . • . . . . 24 ARTICLE 9. DEFAULT, REMEDIES 24 Section 9. 1 FAILURE TO PROSECUTE WORK• . . • . • • 25 Section 9.2 CONVICTION OF CERTAIN CRIMES. . . . . . . . 26 Section 9.3 CONDEMNATION. . . • . • o o 26 Section 9.4 RIGHT TO TAKEJRIGHT TO POSSESSION. 27 Section 9.5 FORCE MAJEURE. . . . . • • . . . . . . . . 27 Section 9. 6 SPECIFIC PERFORMANCE. • . . . . . . . 28 Section 9.7 -NONEXCLUSIVE REMEDIES. . . . . • . . . 28 ARTICLE 10. INSURANCE AND BONDS 28 Section 10.1 WORKERS' COMPENSATION. . . . • . . • . . . 28 Section 10.2 PUBLIC LIABILITY. . . . . . . . • • . . . 28 Section 10.3 OTHER INSURANCE PROVISIONS. • . . . o 29 Section 10.4 FAITHFUL PERFORMANCE SURETY• . . • . . . . 30 ARTICLE 11. GENERAL PROVISIONS 30 Section 11.1 GUARANTY BY PARENT OR AFFILIATE. . . . . . 30 Section 11.2 ATTORNEY'S FEES. . . . . . . . • • 31 Section 11.3 INDEMNITY AND HOLD HARMLESS AGREEMENT. . . 31 Section 11.4 ASSIGNMENT. . . . . . . . . . . . . . . . 32 August 30, 1994 -ii- DRAFT Section 11.5 COMPLETE AGREEMENT. . . . . . . . . . . . 34 Section 11.6 NO THIRD PARTY BENEFICIARY ENFORCEMENT. 34 Section 13.7 ARBITRATION. . . . . . . . . . . . . . . . 34 Section 13.8 CONFLICT. . . . . . . . . . . . . . . . . 35 Section 11.9 CAPTIONS. . . . . . . . . 35 Section 11.10 DELEGATION BY BOARD. 35 Section 11.11 SEVERABILITY. . . . . . 36 Section 11. 12 MASCULINE GENDER USED. . . . . . . . 36 Section 11. 13 GOVERNING LAW. ' . . . . . . . . . . . . . 36 Section 11.14 NOTICES. . . . . . . . . . . . . . . . . . 36 August 30, 1994 -iii- DRAFT COUNTY OF CONTRA COSTA STATE OF CALIFORNIA FRANCHISE AGREEMENT FOR THE ACME FILL WASTE RECOVERY AND TRANSFER. STATION THIS FRANCHISE AGREEMENT FOR THE ACME WASTE RECOVERY AND TRANSFER STATION (the "Agreement") is made and entered into this by and between the COUNTY OF CONTRA COSTA (hereinafter "County") and BFIC, Inc. , a California Corporation (hereinafter "Operator") . RECITALS WHEREAS, the legislature of the State of California has adopted the California Integrated Waste Management Act of 1989, which assigns certain responsibilities for the County's solid waste planning, management, program implementation, and regulation to the Contra Costa County Board of Supervisors; and WHEREAS, on 15 December 1987, the Board of Supervisors of Contra Costa County approved Land Use Permit No. 2122-86 for the Acme Fill Waste Recovery and Transfer Station ("Transfer Station") subject to the applicable conditions of approval, subject to subsequent amendments thereto by the Board of Supervisors; and WHEREAS, the County adopted Ordinance No. 88-81, which provides that a solid waste facility may be operated within the County only upon the approval of a franchise agreement by the August 30, 1994 -1- DRAFT County or upon the operator of a solid waste facility entering into a contract with the Contra Costa County Board of Supervisors to operate such facility; and WHEREAS, Operator has requested that ,the County enter a franchise Agreement with Operator pursuant to Ordinance No. 88- 81; and WHEREAS, recent United States Supreme Court cases decided under the Commerce Clause of -the United States Constitution generally prohibiting states and their political subdivisions from erecting barriers to the free flow of solid waste (and thereby discriminating against interstate commerce) significantly affects the solid waste industry, and affects the parties hereto; NOW, THEREFORE, the County and Operator, for and in consideration of the covenants and agreements as hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, do mutually agree as follows: ARTICLE 1. INTRODUCTORY PROVISIONS Section 1.1 RECITALS INCORPORATION. The Recitals set forth above, and all defined terms set forth in such Recitals and in the introductory paragraph preceding the Recitals, are hereby incorporated into this Agreement as if set forth herein in full. Section 1.2 EFFECTIVE DATE, EFFECT. This Agreement is effective on the date mentioned in the first paragraph of page one hereof. Section 1.3 CONDITIONS OF APPROVAL. Operator acknowledges August 30, 1994 -2- DRAFT r , and agrees that all of the terms and conditions of the Use Permits Conditions of Approval and any amendments thereto, are reasonable, legal and valid and that Operator is barred from any action or proceeding or any defense of invalidity or unreasonableness of said Conditions of Approval and any amendments thereto, and related County decisions. Further, Operator agrees during the period(s) that the Use Permit (and its Conditions of Approval and any amendments thereto) or this Agreement are in effect, Operator will not attack or otherwise assail the reasonableness, legality or validity of any terms and conditions of said documents, or of any provisions included in this Agreement. The parties acknowledge that the agreement by Operator in this section is a material consideration for County's approval of this Agreement. Section 1.4 OPERATOR ACKNOWLEDGMENT. Operator acknowledges and agrees that this Agreement and the Use Permit (by the incorporation herein of the Use Permit) provide for and allow, among other things, funding for mitigation, provision of closure and post-closure costs, payment to County of annual franchise revenue fees, and otherwise payment to County and reimbursement of County costs for its governmental administration of the project entitlements. It is understood that, among other things, this Agreement provides for Operatorfs establishment of its proprietary rates to enable Operator to compete in a solid waste disposal market that has become highly competitive as a result of recent United States August 30, 1994 -3- DRAFT Supreme Court decisions. Section 1.5 COUNTY DISCRETION AND INTEREST. Notwithstanding any other provision of this Agreement, Operator acknowledges that County's discretion to grant, approve or deny one or more nonexclusive or other franchises or similar agreements for others is not limited or abridged in any manner by this Agreement; and that this Agreement does not require the approval of any such other franchises or agreements by Operator. County reserves the rights as part of the negotiation and entry of any such other franchise or agreement to enter a public- private or public-public partnership with other owners and/or to pursue any rights of the County to seek ownership of solid waste facilities. ARTICLE 2 . DEFINITIONS Section 2.1 AGREEMENT. "Agreement" shall refer to this Agreement and is synonymous for purposes of this Agreement with the word "Contract10. Section '2.2 ACTIVITIES REPORT. The "Activities Report" is a summary document reporting Operator's activities and overall performance during the preceding Analysis Period or over such period of time as set by- the County. The Activities Report shall summarize transfer station related activities as directed by County and may include, but shall not be limited to: compliance with the provisions of this Contract and all applicable Permits and Regulatory Agency Requirements, complaints and corrective actions taken,and any other matter the Board may reasonably August 30, 1994 -4- DRAFT - ' t require for the proper administration of this Agreement, including, but not limited to, .reports relating to resource recovery goals and requirements in connection with the Integrated Waste Management Act of 1989 or any other law, regulation, plan or program. Section 2.3 ANALYSIS PERIOD. "Analysis Period" refers to the twelve (12) consecutive calendar months beginning the first day of January of each year throughout the term of this Agreement. The first Analysis Period, for the purposes of this Agreement shall begin on the effective date of this Agreement and shall continue to December 31, 1995. Section 2.4 COUNTY. "County" shall mean the County of Contra Costa, a political subdivision of the State -of California. Section 2.5 DIRECTOR. "Director" shall mean the County Administrator or his designated deputy, other County officer or employee. Section 2.6 EMERGENCY. "Emergency" shall mean a sudden, unexpected occurrence involving a clear and imminent -danger, demanding immediate action to prevent or mitigate loss of, or damage to, life, health, property, or essential public services. Emergency includes such occurrences as fire, flood, earthquake, or other soil or geologic movements, as well as such occurrences as riots, accident and sabotage. Section 2.7 GATE FEE COLLECTION SYSTEM. The "Gate Fee Collection System" shall consist of all equipment, hardware, and software utilized for purposes of assessing, collecting, and August 30, 1994 -5- DRAFT accounting for Tipping Fees for the receipt of Solid Waste at the Transfer Station. Section 2.8 GATE RATE. "Gate Rate" shall mean the per ton fee charged by Operator for Operator's receipt of Solid Waste at the Transfer Station. The Gate Rate shall be the Transfer Station Proprietary Rate plus Surcharge and Mandated Fees, if any and disposal costs. "Gate Rate" shall be synonymous with "Tipping Fee." Section 2.9 HOURS OF OPERATION. "Hours of Operation" shall be those times during which the use of heavy equipment and other machinery necessary for operation of the Site in compliance with the Use Permit, the Solid Waste Facilities Permit and this Agreement will be allowed. Section 2.10 HOURS OF ACCESS. "Hours of Access" shall be those times during which Solid Waste may be delivered to and received at the Transfer Station. - Section 2.11 KELLER LANDFILL. "Keller Landfill" or "Landfill" shall mean the Keller Canyon Landfill, approved and operating pursuant to County Land Use Permit No. 2020-89, Solid Waste Facilities Permit No. 07-AA-0032 and other County and other governmental approvals as of the effective date of this Agreement. Section 2.12 MANDATED FEES. "Mandated Fees" shall be those monies required from Operator from time to time by any Regulatory Agency for the purpose of funding (a) Federal, State or regional programs, (b) programs required by the Land Use Permit, or (c) August 30, 1994 -6- DRAFT- other County established fees. Section 2.13 OPERATOR. "Operator" shall mean the holder of , the Use Permit or its assignee. Section 2.14 PERMITS. . "Permits" shall mean any and all governmental approvals, entitlements, clearances or classifications, including but not limited to, the Use Permit, general plan amendments, environmental impact reports, zoning approvals, conditional use permits, waste discharge permits and requirements, facilities permits, permits to operate, permits to construct, closure plans, building permits, encroachment permits, grading permits, tree removal permits, tract/parcel maps and all other governmental -permits, consents or approvals as may be necessary to allow Operator to construct and operate the Transfer Station. Section 2.15 REGULATORY AGENCIES. "Regulatory Agencies" shall mean Federal, State and local agencies responsible for regulating the operation and maintenance of transfer stations or sanitary landfills, such as., but not limited to, California Integrated Waste Management Board, California Regional Water Quality Control Board, California Department of Health Services, the Contra Costa County Department of Health Services as Local Enforcement Agency for handling and disposal of Solid -Waste, the Bay Area Air Quality Management District and the County. Section 2.16 SCHEDULE OF CHARGES. The "Schedule of Charges" shall mean a comprehensive list of Tipping Fees charged at the Transfer Station. August 30, 1994 -7- DRAFT Section 2.17 SOLID WASTE. "Solid Waste," "solid waste" or "waste" shall have the meaning set forth in Section 40191 of the California Public Resources Code as it may be amended from time to time, as. follows: "40191(a) Except as provided in subdivision (b) , 'solid waste' means all putrescible and nonputrsecible solid, semisolid, and liquid wastes, .including garbage, trash, refuse, paper, rubbish, ashes, industrial wastes, demolition and construction wastes, abandoned vehicles and parts thereof, discarded home and industrial appliances, dewatered, treated, or chemically fixed sewage sludge which is not hazardous waste, manure, vegetable or animal solid and semisolid wastes, and other discarded solid and semisolid wastes. " (b) 'Solid wastes" does not include hazardous waste or low-level radioactive waste regulated under Chapter 7.6 (commencing with Section 25800) of Division 20 of the Health and Safety Code. 11 (c) 'Solid Waste' does not include medical waste which is regulated pursuant to the Medical Waste Management Act (Chapter) 6.1 (commencing with Section 25015) of Division 20 of the Health and Safety Code) . Untreated medical waste shall not be disposed of in a solid waste landfill, as defined in Section 46027. Medical waste which has been treated and which is August 30, 1994 -8- DRAFT deemed to be solid waste -shall be regulated pursuant to this division. " Section 2.18, SOLID WASTE PROGRAMS. . ."Solid Waste. Programs" shall mean those programs directly related to solid waste which may include: transfer stations, household hazardous waste programs, recycling and resource recovery programs, Agreement and Use Permit administration costs (including legal, engineering, and accounting and other costs of the County) . Section 2.19 SURCHARGE. "Surcharge" shall mean a special charge as required by the County and this Agreement, for funding of Solid Waste Programs, closure of landfills in operation prior to 1990 and for franchise fees and other costs as deemed appropriate by the County. Section 2.20 SURCHARGE PAYMENTS. "Surcharge Payments" shall mean those monies received by Operator as a Surcharge and remitted to the County in accordance with the terms of this Agreement and of the Permits. Section 2 .21 TRANSFER STATION. "Transfer Station" or "Site" shall mean the Acme Fill Waste Recovery and Transfer Station, commonly referred to as the "Acme Permanent Transfer Station, " the operation of which is approved and authorized by, and subject to, County Land Use Permit No. 2122-86, as amended, this Agreement, Solid Waste Facilities Permit No. 07-AA-0027, and other County and other .regulatory agency requirements as of the effective date of this Agreement. August 30, 1994 -9- DRAFT I Section 2.22 TRANSFER .STATION PROPRIETARY RATE. "Transfer Station Proprietary Ratel' shall mean the proprietary fees charged by Operator for the receipt and acceptance of Solid Waste at the Transfer Station. - Section 2.23 USE PERMIT. "Use Permit" -shall mean Contra Costa County Land Use Permit No. 2122-86,- together with all Conditions of Approval applicable thereto, including any amendments thereof. ARTICLE 3. TERM OF AGREEMENT The term ef this Agreement shall be 25 years frem the e€€eetive-date of this Agreement, subjeet te-renewal €er an adi-trenal-25 year term, provided the Aperater is in substantial- eeapllan.ee with the terms e -this-Agreement, the Permits and ............... other appieab-le-lie 3- -ements of Regu atery Agene a S„1h > •'M:n;hof-,f.^tttt<4'AC!VC}JC^:t N.!f'tt•}f"':::n:+- }};S^:tt t' 'C:'^i}:.v::{::it•.:i}iv{:n}:t'-}}i}i}::::t•i nfi tvii}:':. � �. .:: :...:.:::�-.:w. ...z:.:.:...::..................................:......... ;:.tit>. :.:x.::::::::::::> .:}}.::::....::..:.::::::. ARTICLE 4. PERFORMANCE OF OPERATOR Section 4.1 OPERATION OF TRANSFER STATION. Operator shall operate the Transfer Station for the receipt, processing and transfer of Solid Waste in strict compliance with, and subject to, the terms and conditions of this Agreement, the Permits and other applicable requirements of Regulatory Agencies. Section 4.2 UNACCEPTABLE WASTE. Operator shall not allow the receipt of material other than Solid Waste at the Transfer Station unless specially approved in writing by the Director and otherwise allowed by law. It is recognized that some non- approved materials, including hazardous wastes, may occasionally August 30, 1994 -10- DRAFT be unloaded at the Transfer Station by users thereof. Operator shall train -its on-site employees to recognize such unacceptable wastes and materials. In the event that unacceptable waste is deposited at the Transfer Station, it shall be handled and removed by Operator in accordance with procedures which shall be developed by Operator and submitted to the County for approval prior to any receipt of Solid Waste at the Transfer Station. Nothing herein is intended to .relieve the person or persons depositing or causing to be deposited such unacceptable waste from any liability. Operator retains the right to use all legal means to recover costs of removal and alternate disposal or treatment from such person or persons. Section 4.3 INSPECTION, INVESTIGATION, AND EVALUATION OF SITE. The Site shall be immediately accessible at all reasonable times to Regulatory Agency officials for any reasonable, lawful and proper purpose. County officials shall usually give reasonable notice to Operator of their intention to visit the Site or if such notice is not given, shall notify operator's on- site personnel of their presence on the Site. County shall not incur liability arising from the discharge of its inspection responsibilities, either by commission or by omission, except for its tortious conduct or breach of duty resulting in death, injury or property damage while engaged in its inspection responsibilities. The inspection. of the work shall not relieve Operator of any obligation to perform under this Agreement. Operator shall remove and replace or repair any August 30, 1994 -11- DRAFT work not in compliance with those Permits, laws, ordinances or regulations applicable to the Site. Section 4.4 PERMITS. Operator shall obtain and maintain in force all necessary. Permits and/or other approvals from the Regulatory Agencies for the Transfer Station. Upon receipt of each such Permit or approval, a copy thereof, together with all conditions or requirements attached thereto, shall be delivered by Operator to the Director. Section 4.5 STATUS OF TITLE. Operator shall provide to the County reasonable evidence sufficient to establish that Operator is in possession of and/or has the right to Operate the, Transfer Station. Section 4.6 GATE FACILITIES. Operator shall supply, construct and thereafter maintain gate fee collection facilities. The facilities shall be designed and located as necessary so as to expedite the fee transactions and shall be attractively finished. The facilities shall be consistent with the Use Permit for the Site. Operator shall supply, construct, and maintain truck scales as necessary to expedite the fee transactions, prevent traffic back-up, and allow for occasional maintenance and repair. The scales shall be compatible with the Gate Fee Collection System approved by the County, in accordance with Section 5.1 of this Agreement. The scales shall be open and in working order during all Hours of Access. All waste disposal vehicles shall be recorded August 30, 1994 -12- DRAFT by the Gate Fee Collection System. Operator shall make provisions for quick repairs of the scales by competent technicians to minimize downtime. The scales shall meet all State requirements for design approval and accuracy for State certified scales. Only those scales functioning in accordance with all applicable regulations shall be used. Operator shall obtain the State of California certification for scale accuracy. Operator shall supply, deliver and maintain utilities to the Transfer Station and shall be responsible for all on-site and off-site costs and service charges in connection therewith. Section 4.7 OPERATION OF GATE FEE COLLECTION SYSTEM. Operator shall provide and operate the Gate Fee Collection System, including the providing of all labor and materials necessary with respect thereto. Such operation shall be for all Hours of Access. . Section 4.8 FEE COLLECTION. Operator shall collect, count and account for all Tipping Fees and waste quantities from each customer or user- of the Transfer Station. Said fees shall be collected in accordance with all applicable requirements, including Article 6. In the event that no scale is operable at any given time, vehicles will be charged based upon a flat fee or volume fee schedule established by the parties or by Operator in advance. Operator shall furnish the County with monthly reports on the number and types of vehicles and waste tonnages and/or August 30, 1994 -13- DRAFT volumes, as appropriate, of the various types and Gate revenue. Section 4.9. PAYMENT TO COUNTY. Operator shall pay the Surcharge Payments required and received in accordance with Article 6 to the County monthly in arrears. Operator shall pay the Surcharge Payments to County within thirty (30) calendar days after the close of the prior month in which they are collected. Section 4.10 HOURS OF ACCESS. Unless otherwise required by the terms of other Permits, Hours of Access shall be those specified in the Solid Waste Facilities Permit. Should the Director declare that an Emergency exists, Operator shall. keep the Transfer Station open as instructed to allow for the orderly receipt, processing and transfer of Solid Waste generated or created by such emergency conditions at no additional charge or increase in the Gate Rate. The scheduled Hours of Access may be changed in a manner consistent with permit requirements.. Operator may, in its sole discretion, observe the following holidays and close the Transfer Station: New Year's Day, Easter Sunday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day, or other major holiday as approved by the Director. Section '4.11 NONDISCRIMINATORY SERVICE. Operator shall provide nondiscriminatory service for Solid Waste receipt, processing and transfer to all users, and shall abide by all Federal, State and local laws and the Land Use Permit. Section 4.12 ACCESS ROADS, HAUL ROADS AND SERVICE ROADS. It shall be Operator's responsibility to provide and maintain all August 30, 1994 -14- DRAFT roads required in connection with the operation of the Transfer Station. Haul roads shall be well maintained. The surface shall be reasonably free from potholes and depressions. Section 4.13 LITTER MANAGEMENT. Operator.-. shall maintain.. . and keep the Transfer Station and its access road reasonably free of litter and other refuse. Operator shall be solely responsible for maintaining the Site in a clean and sanitary condition, and shall be responsible for any public nuisance .created. as a result of its operations. Operator shall control on-site and off-site litter or debris in accordance with the Use Permit and the Solid Waste Facilities Permit. Section 4.14 ENVIRONMENTAL MITIGATION. Operator shall comply with all environmental mitigation measures reasonably and lawfully imposed by Regulatory Agencies including those imposed by the Use Permit. Section 4.15 RECYCLINGJRESOURCE RECOVERY PROGRAMS. Operator shall cooperate with the County and reasonably participate in waste reduction programs of the County, including participation in a County sponsored recycling/resource recovery plan and litter program, implementation of programs in conformance with any County recycling or resource recovery program, plan or element, and/or any other activity which the County deems is appropriate for inclusion in the County Solid Waste Programs. Section 4. 16 ACTIVITIES REPORT. Operator shall, by the August 30, 1994 -15- DRAFT first day of January of each year, assemble and provide to the County the Activities Report for the. most recent Analysis Period... The Board may direct, upon ninety (90) days' written notice to Operator, that the report provided in the Activities. Report be made semi-annually. Section 4.17 PENALTY SCHEDULE FOR NONCOMPLIANCE. In the event that noncompliance by Operator with any condition or provision of this Agreement,. or any applicable Permits or • Regulatory Agency requirements is determined by the County, County shall notify Operator of the identified noncompliance. Following notification of noncompliance, the Director may impose penalties per noncompliance upon three (3) days notice to Operator in accordance with the following penalty schedule until such time as compliance is achieved: $ 500. 00 per day during the first week of noncompliance $ 750.00 per day during the second week of noncompliance $1,000.00 per day during the third week of noncompliance $1,250.00 per day for each day thereafter. At the time the Director imposes any penalties, the amounts due for each day of noncompliance •shall be the above amounts subject to annual CPI adjustments, the applicable index to be reasonably selected by the Director. Notwithstanding the above three paragraphs, no monetary penalties will be imposed by the County in the event that August 30, 1994 -16- DRAFT Operator and/or said Regulatory Agency are diligently pursuing the process of correction .or mitigation of the event(s) causing noncompliance. Operator shall have the right..to arbitrate any action taken by the County under this provision in accordance with Section 11.7 of this Agreement. Section 4.18 RECORDS. Operator shall keep separate and accurate records for the Transfer Station as reasonablydirected by County for purposes of administering this Agreement. The County may, at its own expense (which may be recovered as a Solid Waste program cost) , at any time during the term of this Agreement, have the books and records of the Operator examined for the sole purpose -of verifying Operator's compliance with the requirements of this Agreement. County shall give thirty (30) days' written notice to the Operator in advance of such examination date. Section 4.19 HOST COMMUNITY. Operator shall collect and remit to the County, a host community mitigation fee in the amount of as part of the Surcharge on all solid waste delivered to the Transfer Station. ARTICLE 5. - PERFORMANCE OF COUNTY Section 5.1 GATE FEE COLLECTION SYSTEM. The computerized Gate Fee Collection System, which shall be provided by Operator in accordance with Section 4. 6 of this Agreement, shall be approved by the County, which approval shall not be unreasonably withheld. August 30, 1994 -17- DRAFT Section 5.2 INSPECTION OF SCALES. The County may, from time to time during regular. business hours, inspect the scales and test the accuracy of same. ARTICLE 6. RATES.. . Ef:.<'�nw::ar.;,,:: ::•.:err rama:'foi{`C4`•7 '+`52 .`•: Section 6.1 BAS RATE. � � ^;-�t:� �r �:. �• ` '< .,,....,.,.... ....,.............. .........:.... :<•x:2:,saXs•:cu.::..:::t:.r:;w.::M cwY:.::a+iY:siti.:.�:`Y:%f q{•,wxum;�•r:pru.»u"acs YVK . :? ; the Transfer Station Proprietary Rate shall be determined and established by Operator at its sole discretion. Notwithstanding section 4.11, .it is understood that the Operator need not charge a uniform Transfer Station Proprietary Rate to all customers, but may vary the Transfer Station Proprietary Rate as between different customers based on various -factors determined by Operator, including, but not limited to, the quantity and type of waste delivered by each customer to the facility and whether each customer has entered into an agreement with the Operator in which the customer agrees to deliver some or all of the customer's future waste stream to the Transfer Station. Opera-ter shall-at time_mai-nta-in en file with the Oeunty, a sehedule-of--Transfer Preprietary Rates and Gate Rates, ineluding dispesal rates, eharged-te eaeh eustemer. The sehedul 31ude-a--standard-Transfer Sta-tien Pr-eprietarynit= and Gate Rate-whieh--Aperater ehar-ges- nleos an-agreement-i-s Gate Rates shall be-updated-within ten days ef material net—riaiced—te, ehanges-to- ate-estemers-and Transfer Stazren August 30, 1994 -18- DRAFT Preprietary Rate and Gate Rate, Wad en-iEerring ef an agreement wi The-sehedule shall speeify and distinguish .,...ween the Trans fer--Statien Preprietary Rate and the Gate Rate, and shall: The-purpose-of this-seetien is-te enure-that therates eharged by operater as well as fees and sureharg �d by Publie Reeerd,---so asr-tom--premete eeeperatien an truss. ,._tween the Operaterithe GeuAty, infemat-ienreasenably neeessa-ry te-e€€eetuate- he this-seetien. Section 6.2 SURCHARGE. -.The County may determine and establish at least once every two years, effective on the date determined by the Board of Supervisors, the Surcharge, which shall be added to the then applicable Transfer Station Proprietary Rate, and collected as part of the Gate Rate. Operator will be provided at least ninety (90) days written notice of any newly established Surcharge. In the absence of the County establishing a particular Surcharge amount, the Surcharge to be collected by the Operator for the County shall be thirty percent '(30%) of the then applicable Transfer Station Proprietary Rate. Section 6.3 GATE RATE. The Gate Rate shall consist of the Base Rate, Mandated Fees, Surcharge and disposal costs. August 30, 1994 -19- DRAFT Section 6.4 ' INITIAL SURCHARGE. Effective on the effective date of this Agreement, the Surcharge shall be: of the Transfer Station Proprietary Rate less the amount of all Mandated Fees imposed and received for use by the County with the exception of Mandated Fees imposed for 1) any household hazardouswaste program, and 2) any fee imposed pursuant to Public Resources Code section 41901, as said section is amended from time to time, for preparing, adopting and implementing a countywide integrated waste management plan ("AB 939 Fee")., or any future similar waste management fee. The Sureharge-established by this-seetlen shall remain- is e€€eet for--six-menths-€ the-e€€eetive date-e€-tris-Agreement after hieh time-the-Boma establish different Suaeharge The-6ureharge-established-b is-s•eetien shall apply e Transfer Station Preprietary Rate enly. #3t ;::: eIerlaaidf 'iM.iiiiii:•i;:i•{:::'!tiry::`i�!<!':iifG!;•:<J;'::<::<•iii..-i:0i:<viiiTiii•viii"':ii%vi:i':.iiiii':ni•}L.ii•i i<:::iv!<i4: ...<...v...... .. :: :' :::.::vtii.'<•'::i:;...tin-:v...:..:.Y.}:.....:..... .:./::�.:.:..r. .::.. .......:...�.... �..�...v.:: ....... ..:.ii..v:••{iin ..... .......A.:... ....v...x...v:......:..:...:.:.....:...: .:-:.:>::.::r::.;:.:;:.:::::.ii:.i:.;:.ii:.i;iii:.;'.i;;:;•:.:i:.;:.i;::.iii:iiiiii>.»::'.:�::;:;;:.::;::;;;;....i::.i:::.i:.;i;i';.:::.i;:.ii;;;;i::i::.;iii:.:.iii:;;;::;::�;;:.;:<::«:::::;;;i::.:;i:.::.;;:.i:.i::...;':.ii:.;;;'.ii>'.> ::i':i-:<•<:�i.:n::iii:::<iiii:C<::i.isi::Y:i::i::i::::ij:"isii::::•:?<L::i::i::ii::i::ii:::is:ii::i::iii::i':.:;:'iiTii:'ii:1'Ti2vv:i::i:::::n::=:::i:'^.iii:iiiiiii:::niii:!-iiiiiiiiii:::'piii::.iiii:�':ii:�ii: :•:iY,.4?ilii:iii;i':.:f.<iLiih:::':::::::::::::::'::..:;...:Ci: .:••: r�:.:f.:::::.'�':',.". ::�::y::iji:::: i•L::i:::: :. iv::" ' `::i�::•:.!.. is i:::j::i. }v':.:: .i <:i:::: .::::. August 30, 1994 -20- DRAFT ;cassw'_::?;:%x?.rY<s+?:a;-,;r'%;?:o;;-:::sY%•'.sx::as;;r�?::- ??•:?: _ ;,:<.,.;,::ar:.,- ,,: <:iiiii•r-r? q:•.r.f::',:ri:r.yY.,r..x:?:�::::.r:,y.;.'•;;Y:i fi?:'.`.'<•f?`•:"fi•:f ••«: ".?4Q.. ..,�?: ..r.. .;.?.: .:R;:?'y'r: „rY,..+F+^+v. f 3`.. ..i:?^ :? ::<?� :+�-�'3:;z::�.� �'':�.,� :..,' '`�#�..:: �`� :L�TI:r•' t7€�3fr.?�:.Eiff%l�F.f . lt: fv.+.o.,?:-}..-.u,?R: ?`�Y)fX„??,?•.<,?:•.:.:.............:..pf;?:;:::-:::.::::::.•?:•::•'?::i:r ::??u;-ss::::.Y.s-.: ::,:.:: �,itktha:.i'+k:'G:;M''h�w .�..L:::R+,L::C<C:6iiti:.:?..w.af,+f6.u';:ar:G'.'fo-i.:?:"vi:?::'? }7.Q?'if.PK'...Y .> .:: fY;..:. .;Y..... a. :`3' ?. vr« :.: :rft••,MwoapA..,FpF<�+�ipngrt'4c c�,47'K+.... .::.olAif�?'.. iii7. FIN :Wi ��9,,vvC•'+Y_j"� }Y�fjffr ^W"Y`..'•QY•/Y'(�:f��g4ri•:N f:;f..:�AiT�' Yf�",1, f'ti%`:< jyy� f •�}+ WF n? W .YM11�{' \{rr:•�.f'� iiii •. : :�I-: {F.�{':".�LI:.7w... .. ?..' fi..: : .. v.•:::::::-:-:::,•::.}};r�•.-•V•:Z`�• :�'.,..�::::::::::?••:i•w:::::::::.... } v......:..r.....••�fr• .•:::x:::•:w::•::..v'�j..... ....... .•:•tG4.-.?�.•.'.:N ..v..?...r..• yF.; >>wvs-.-::.s-.-.:.'}.,.'..r.:o-:axuss:abs.•:.•:.,a...,..•r.•::r:rtir:::..-:r::.,•.,•:?:::R�R:s:S:•.-:s:-s:?Srv;'•:;:w:•}?Y::,x;.:.:sssx,G.:a??.vr::r,.-r.:vti•.,•.+•.:,s.'r.+�f'rxhSx=. ��•,}�����,>} :.isa..::•rr:r.•r.,�.:?.,�,,.,.Nrr,v�;:�'�Yk-' rr'r'n/+:•xx �� •'''{":�'v+<•}•+v+i v."1?i'Y.$n�`v+q���rn4%•Y ,+:;?•?}}M?.:i;;-%•}:•:?v'.`•i:':i??:???????4}?:•:-:;tr:-:ii?•:fii:%:.riniivC4:iv4:i:::.::nS:A'C4n:\\?•:v+�.'�n�'vV.'3":'-,r�vti''.'$."4v.'Y•:O:`+"'���>rifv'�f:ir+�Lk•`r:'+ ��%W�.•.ki:?ti?{}m ':« ����Ri��.,�i.-:�w�:•�R•'•. ,�i,:''Y '• ivFi�:r� .:r::. .: ?,},.:• •::.•:,•:.:.r.� ' •f5. #d {?,:<v:.??i�tia�.: +:<Yct.-::?>:@}::,.•::::.c::x:G::?:.:;:::ff:;:r..:as::::':::?r;••}•`�r.-`.::;:i:':;?tx•:::::.a:° ;c�.d:"� `:s:�ko-?F,•:rr:r.•.•::,•::w•:`-:,�;, f;:r�':! .. f:?:� o' y:ramgp;.acvar' ?nv fn]5:::•$`?F.•r`.';i?vv�tti .ASLi'•':::�'4i''-;.,.'•.'..':W?::n\C:}:j:..:.:::'^:•:?.::?:'4}h Section 6.5 CONTRACTS. For all contracts entered for the delivery to and receipt of Solid Waste at the Transfer Station, the Surcharge applicable at the time of the contract shall apply for the term of said contract: The parties agree that any later established surcharge amounts shall not apply to waste received pursuant to such Solid Waste contract for the term of said contract. Operator shall advise County of any contract subject to the privileges of this section immediately upon execution. Operator shall provide County with any and all information .requested by County concerning any such Contract, including providing County with copies of such contracts upon request. Operator shall also provide to County upon request, copies of all contracts for the transportation (hauling) and/or disposal of .Solid Waste transferred at or processed through the Transfer Station. ??:rr•ir.?-+sY:aa-fi:?: n+YFY.??::tx....:.,-a:insc+Y:•as?»ri.Yi:%%?:x^r•:?-'??ary.•:y'?q"i?a:'^Y,;aa?%?;f-i??�+•?;? ..:.fid;•:' -::?:.:::t:rr;?:� :•.. -: :•: •' - ::t�'?�•::•::.::. Yf.^???r:%'•;:•?:•:???!•;"??ihti•%C;????•:?:p;v.;..<:::-;ri?r:,+?:4?Y:'.::nr'^:?rrri:?:n;:;r;;r;;?;':?K�?:Prr?;;r'v4?:i?:�4?;?O:?^?Y?•?:f?:::;;x:.:::y;.�:?rp'-i•??•i?;':x.;i?::.;??:vi.?•r.:;;r?:::.vmr;?:?;;i::.�p??:?S?:.r:-?"::?•?�'-: �a�nta�:n::::on><:f;..::�< >::;:w:..::��::::>::�:..::::;:�o ..:<::,. :::;»:::: :::><:�ch ;..:..';?�::�;:.>::»::?:.::.:���:.::::..r'><�t:• �>�an: ...............:..:.............:.:.:.....::.....:�...1 .:.::..:�t.��::::...:�.:�::::...:...xt�xt�..:.::.::a:::............��uZ�.�:csf..::..'.�'ra.......�:a....:.........:�:.............. 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'C:K.•:G}}'v»:}}:ti.Y}:!!4:t^:IXrfttrv,:•T::x:.v:.v::::::!::!::::::::::nv::p}TTTTT::.i..T.!.T-::!:f.^}:_'::::..vr::nvnT-:{:-:.::....}'x:nTf::':T':.:.Ty�4}'x.�.£r t:n-.w:titv.x}-:p.:::y:.:::::.r::.......::.: ' yy1� .�}�l +�;� �y,y��j. �•�.•y� •�, t:}}i:.v.:-.:.i::n.+•..i' `J.t-. �'.{is.•:•.:ii}}� "SiF1iA 'v.}�:}iiRi-��%Y. : .3M.7w1{R-�3i�.7w>ii{:��{a►��vfi.? :iS:Q::i s���•if��V: :VW��.n��ii::%ti{{�{; .....:.......:..::.:-::.::.:tt::.,..............................J..:••,-Y:_Y'.YT�,�.::::;t::t.}T}'i-;r:-T:-,:-}TT:-T::JTTT}}'•TTT'-TT`:}Y:!-:TTT:.T;:TTYYTT:_T'-,:�T:�TTT-•YT}'::::::: ....: :..�'. . �.-K,. .. ..:{ii::::s}:{.:{::tti•TL;:;•;-:;.:::, ...:..}•:?:T:.::t•:JT. ..}�... j{��j :{A!;�( ��rr, �y �f y� y�Q?-}%:{+t+:?{�•.Yr'i}+}•::{- ��;j ;y{-�,�yiK:L:e;�} may. may, /}{ }�. ii:�i•V�:+IM � r{•:��V�1F7�7.3.���+:ji:::.i:i.iY��J17.i7 }.i;}.:::}M!M4'%:ti:��:�w.�'A.�i!:W.SI[���ifx�i3:`,l}'..:...•�...'i1✓�?W!�f� :.".:fi:SS::i:<>'{:':.>::}:}}'�n:t{•�TT>r:.;...TT::J>:.>:.:::::.>T:}}:}}'-:>}f•T K!!•>}:}}T:{•T>:{:::T:i{•}}»{::•T:::.w:.:}>:::{i{{y:vT;.}:.:_:{:::{.T:J{{:{•T: :-}::::!.T}:.T.}:.:i-T:_TTYT':.T�>T}'.TT:�T: - :Qit::i:?•_�_:•:x�:.ti{`;�'}•::vti.-:I�::i:�i::�:::Fii:��1:?CLLL"::?:i`:::i}}::?{:ij:'':::::::.'.:•.:F}i:y ::�:i:::}::iCj:}v:.?:x}.::T'::?:...:::::::�•'..•:.::::. f:}f?.:n!IrY"�:':'is�ii::f:i:?ij�:j:[)ii::::'::}} L}�.'_y:::.•.: Ith �::>?-:;:»<;•::>::.> ;x:::<L:?:•:;:>_:;:z;:r>::::::::<;::;:>:� :`;:;:}::::;:::';::.;'::<:>::>::>T':.<:;::}�'�:T-Lzt«;;<:>:}::{<::;:>::>:z<;:>:«:>`::T:z;<}:{:{:>:;:<<{LLL:;::`{»::>:`::>::}::>:::»:>`<::::>::>::>::>:::;><»>::.::.:::<:»»»»::>:;'::::.::::::>:»>;::r;;:::>::>::>:}':.:: .�.... s August 30, 1994 -22- DRAFT w:.;x;;^:::;}:;::rc• q..w .iix•:<:vaxa:r:.}:c:q}k?Ti%.r.:Y4::':r':::}.'•::9•:,'xyi.•�'<;`x: YtAv\::moi\v+vvv{v�{+:v i:'-::::::.. LiFv.:v::•:v.••••••;,-::A\•"••v.::.nkS::ttti2i}}}1tC:•Nv{:[�LC.�:�vv�`LhtGM':%�V{JJ3:v'tCIX `!•' 'ifs. . r.r:a„ru . x>:- }"-:-vsm; •'•sa+.. fsw,.i-r�+ov �, i0�ri�bvt4�'G'•i0�•�bb'vC�•:Yv tk�+tKR.Qi:•-r{jv�i:�SCC.'>.v �Vv::ti`vi� PwtGM•triiX:$� Si 'CCifi::]L{: . ryy �"'+�,Y,,,�y1. t},} .y;.io a .+y�;:.:. /..5�.,x{.�.+{m�1.2"m'y, •;:= __ _ :� ,�Xr .M,..?f,Yet.-Sia}":�.y<'•}`.•:YJi.Y}'<:Y!•:� ?�+}"�,!•ry il'�}. S+ � :�.2f�'li� V.�",r-':: •� .�/Y�.MM1F:-Y'}`C��� � ��. ••VS'MFS�i;�i1.��' 'YYF • •+ ••' ••• y • •••••�tiQv+•• ��• . ••nAri�:•Yv'iv.'"v�i'•:C:��iiVG4S •�A"d`GwhviK�:i«vC.' ^KOv• �Yt•.tOiv: -'}}}T•vi}"."{. f:�i}'hi}}'.m}:�v..;fA,ti"•y'r}ti:::Y:ji itC:;riviiiiiiii fit+ifi .. N:... `TaTin:•`:i}::iG}f::w3a tK• 'f.'Tit:wir S:ri••ri.A;ii:Ya,:}:f;}::n..naY;w.:::;•.Y.:}};5. <x ARTICLE 7. PERSONNEL Operator shall assign qualified personnel to operate the site as may be required to assure a smooth and efficient operation in compliance with all. applicable Permits. The County has the right to request, in writing, administrative action, including the removal of any employee of Operator who violates any provision of this Agreement, or who in the opinion of such requesting party is unsafe, negligent, or discourteous to the public or others in the performance of his/her duties. Upon receipt of such a request, Operator shall immediately take whatever administrative action,' which, in its judgment, is necessary to resolve the situation. Such action may include removal of that employee from the Site. A Site Supervisor employed by Operator shall be present at the Site at all times that any operations are being conducted thereon. Operator shall file with the Director the names, addresses, August 30, 1994 -23- DRAFT and telephone numbers of the Operator representatives who can be contacted at any time in case of emergency.. These representatives shall be fully authorized to respond so as to resolve the emergency. ARTICLE 8. . UNINTERRUPTED OPERATION Section 8.1 ASSURANCE OF UNINTERRUPTED OPERATION. Operator, in entering into this Agreement, assures that it will provide for the operation of. the Transfer Station in an uninterrupted manner for as long as the is useful and usable, except as provided in Section 9.4 below. Operator acknowledges the hardship that would occur if the Transfer Station is not operated properly or is prematurely closed. The County and Operator recognize that in the ordinary course of events, certain unexpected events may result that may place a burden on the requirement of uninterrupted operation. However, it is the purpose of this Article 8 to establish that it is Operator's obligation to avoid any interruption of operations except for those that are outside of Operator's control, as provided by Section 9.5 of this Agreement. Section 8.2 LABOR DISPUTES. In the event of a labor dispute, Operator shall use its best efforts to keep the Transfer Station open and to operate it in accordance with this Agreement unless a mutually acceptable alternative is agreed upon by Operator and the County. ARTICLE 9. DEFAULT, REMEDIES Because of the complex nature of this Agreement and the work August 30, 1994 -24- DRAFT to be performed hereunder, ' together with the need for close cooperation and coordination between the parties, it is not anticipated that either party will declare the other in default under the. terms. and conditions of this Agreement except as a last resort. lHowever,. in the event of any such necessity, the following provisions are made a part hereof. Section 9.1 FAILURE TO PROSECUTE WORK. Should Operator fail to prosecute-the work or..any. severable -part thereof in conformity with the requirements of this Agreement, the Director shall provide written notice to Operator specifying in detail the defect or default in performance (the "First Notice") and Operator shall have the right to cure same within a reasonable period of time. If after the First Notice is provided to Operator, the work is not performed in accordance with the Director's specified time frame and a reasonable time to cure so as to ensure its completion in accordance with this Agreement, the Director shall serve further notice (the "Second Notice") upon Operator of the County's intention to take further action as provided by law. The Director shall make appropriate and detailed written findings of fact which specify the event of default. No earlier than thirty (30) days after the Second Notice, County shall have the power and ability, if Operator is still in default, to take such actions as provided in law for remedying the same, including the termination of this Agreement. Should the County fail to perform any of its obligations August 30, 1994 -25- DRAFT under this Agreement, Operator may declare the County in default after following the same two notice and findings provisions required of the County above: Thereafter, Operator shall have the power and ability, if the County is still in default, to take such actionsas provided in law for remedying the same, including bringing suit in a court of appropriate jurisdiction for equitable or legal relief or both. The foregoing notwithstanding, neither party may bring an action seeking money damages unless it has first provided the other party with 30 days notice of its intention to do so together with written notification of the specific actions which the,other party may take to remedy the default which will form the basis for- the claim for monetary damages. If the other party in good faith commences the actions specified within the thirty (30) day period, the first party shall not bring the action for damages. Section 9.2 CONVICTION OF CERTAIN CRIMES. Operator agrees that a single conviction of Operator, its parent, subsidiaries or operators, or their officers or employees at the level of Site operations manager or above, acting within the scope of their employment, of bribery, antitrust, corruption or theft relating to or involving directly the Transfer Station shall constitute an event of a breach of this Agreement subject thereupon to the provisions of this Article unless Operator, promptly initiates and follows through with appropriate disciplinary procedures and action considering the nature of the offense and resolution by August 30, 1994 -26- DRAFT the courts. Section 9.3 CONDEMNATION. In addition to any other remedy available to the County, it has the right and authority under law to condemn the Site. Section 9.4 RIGHT TO TAKE/RIGHT TO POSSESSION. In the event that Operator chooses to no longer operate the Site, Operator agrees that it will give County notice of its intention to cease operation ninety (90) days prior to the cessation. If, after receiving such notice, County initiates eminent domain proceedings to acquire the Site, Operator agrees- that it will not object.to or contest County's right to take, or right- of possession of, the Site. Nothing contained herein shall constitute a waiver of the right' to contest valuation at any stage of the proceedings. County and Operator agree that the provisions of this paragraph may be enforced by means of the remedy of specific performance. Section 9.5 FORCE MAJEURE. Operator shall not be liable for a default if the failure to perform under the terms and conditions of the Agreement arise out of. causes beyond the control or without the fault or negligence of Operator. Such causes may include, but are not limited to, acts of God, or the public enemy, acts of the County in either its sovereign or contractual capacity, fires, floods, earthquakes, epidemics, quarantine restrictions, suppliers' and vendors' strikes and all other labor disputes, freight embargoes, and unusually severe weather; but in every case the failure to perform must be beyond August 30, 1994 -27- DRAFT the control and without substantial default or negligence of Operator. Operator shall make every reasonable effort to mitigate the effects of said causes. Section 9.6 - SPECIFIC PERFORMANCE... .. Notwithstanding any other available remedies, - the obligations duties and rights of each party under this Agreement shall be specifically enforceable by the other party. Section. 9.7 NONEXCLUSIVE REMEDIES.. The rights and remedies of either party to this Agreement as provided for in this Article 9 shall not be exclusive, and are in addition to any other rights and remedies provided by law or under this Agreement; except that the right of either party to seek monetary damages is limited as provided in Section. 11.1 above. ARTICLE 10. INSURANCE AND BONDS Section 10.1 WORKERS' COMPENSATION. Operator hereby acknowledges that it is aware of the provisions regarding Workers' Compensation, Section 3700 of the Labor Code. Operator shall comply with the provisions of such Section as amended from time to time with regard to its employees and shall supply to the County forthwith upon execution of this Agreement, and annually thereafter, evidence of such compliance. Section 10.2 PUBLIC LIABILITY. If a willing company can be located by either party hereto, and the premium for the policy or policies required hereunder is reasonable in the opinion of County, Operator shall obtain from a good and responsible company or companies doing insurance business in the State of California, August 30, 1994 -28- DRAFT and pay for, maintain in full force and effect for the duration of this Agreement and any extension, a policy or replacement policy of comprehensive liability insurance for the Transfer Station, in which- the County is named as an additional insured with Operator. Operator shall furnish a Certificate of Liability Insurance to the Director before. execution of this Agreement by the County. Notwithstanding any inconsistent statement in the policy described by the Certificate of Liability Insurance or any subsequent endorsement attached thereto, the protection offered by the policy shall: (a) Include the County., its officers, employees and agents while acting within the scope of their duties under this Agreement, the Use Permit, or any other County ordinance, resolution or other rule relating to the operation of the Transfer Station, as an additional insured covering said duties against all third party claims for negligence; and for indemnification of the County as provided by this Agreement. (b) Provide for a combined single limit policy not less than $10, 000,000 per occurrence; combined bodily injury and property damage; such policy may exclude liability for bodily injury and property damage caused by toxic wastes. At every fifth year of this Agreement, this $10,000,000 minimum limit shall be increased as directed by the County but not more than 30% for each such five year period. Section 10. 3 OTHER INSURANCE PROVISIONS. All insurance policies required by this Agreement shall bear an endorsement, August 30, 1994 -29- DRAFT whereby it is provided that, in the event of expiration, or proposed cancellation of such policy for any reason whatsoever, the Director shall be notified in writing not less than thirty (30) days before expiration or cancellation is effective. Expiration, reduction or cancellation of any insurance policy required by this Agreement without obtaining a replacement policy pursuant to Section 12.2 to meet the requirements herein shall be considered a breach of this Agreement by Operator. Operator shall also carry such other insurance as .may be required by law. Operator shall be solely liable for any claims or liabilities caused by its failure .to maintain insurance required by law. Section 10.4 FAITHFUL PERFORMANCE SURETY. Operator shall, prior to acceptance of waste at the Site -under this Agreement, provide to the County an irrevocable Performance -Surety Letter of Credit in the form set forth in Exhibit B hereto guaranteeing Operator's performance of all provisions of this Agreement in an amount of not less than $1,000,000.00. This Letter of Credit may also be utilized to meet the security and performance requirement of the Use Permit. The Director may allow the Performance Guarantee Letter of Credit required pursuant to a franchise between the County and Operator for the operation of the Keller Landfill to additionally guarantee Operator's performance of all provisions of this Agreement. ARTICLE 11. GENERAL PROVISIONS August 30, 1994 -30- DRAFT Section 11.1 GUARANTY BY PARENT OR AFFILIATE. Prior to the Commencement. Date, and for all conditions and obligations of this Agreement, Operator shall provide to the Director, proof of guaranty by the parent or an affiliate of .Operator :acceptable to the County, of the performance by Operator of each provision of this Agreement to be performed by Operator. Proof of guaranty shall be in the form set forth in Exhibit C. Section 11.2 ATTORNEY'S FEES: In the event of litigation between the parties arising hereunder, each party shall pay and bear its own litigation expenses, including attorney's fees. Section 11.3 INDEMNITY AND HOLD HARMLESS AGREEMENT. (a) All work and performances by Operator covered by this Agreement shall be at the risk of Operator (b) With respect to third-party claims, Operator agrees to save, indemnify and keep harmless the County, its officers, employees, agents and assign against any and all liability, claims, judgments, or demands, including demands arising from injuries or deaths of persons and damage to property, arising directly or indirectly out of the obligations herein undertaken by Operator, save and except claims or litigation arising through the sole negligence or willful misconduct of the County, and will make good to and reimburse the County for any expenditures, including reasonable attorney's fees, that the County may make by reason of such matters and, if requested by the County, shall defend any such suit at the sole cost and expense of Operator. August 30, 1994 -31- DRAFT /4 (c) With respect to third-party claims, the County agrees to save, indemnify and keep harmless Operator, its officers, employees, agents and assigns against any and all liability, claims, judgments, or demands, including demands arising from injuries or deaths of persons and damage to property, arising directly or indirectly out of the sole negligence or willful misconduct of the County, and will make good to and reimburse Operator for any expenditures, including reasonable attorney's fees, that Operator may make by reason of such matters and, if requested by Operator, shall defend any such suit at the sole cost and expense of the County. (d) Should any party successfully challenge the validity of this Agreement or the procedure by which this Agreement was entered into or the validity of any County action which authorizes the County to enter into this Agreement, then in such case the Operator shall have no cause of action for damages or any other relief against County as a result of such successful challenge. In the event of any such legal challenge, Operator shall defend such action or proceeding at its sole expense and Operator shall save and hold County harmless from any claims or awards for third party attorneys' fees and costs. Section 11.4 ASSIGNMENT. (a) Voluntary. Operator shall not sell, assign, subcontract or transfer this Agreement or any part hereof, or any obligation hereunder, without the written consent of County; provided, however, that Operator may assign this Agreement August 30, 1994 -32- DRAFT without the County's consent to any company which it controls, is controlled by, or which is under common control with Operator. As used in this Section, the term "control" with respect to a company, means the beneficial ownership of more than 50% of the voting stock of the company. The term assignment shall include any dissolution, merger, consolidation' or other reorganization of Operator, which results in change of control of Operator, or any sale or other transfer of a controlling percentage of Operator's capital stock. Any attempted assignment not provided for above without such consent shall be void ab initio. (b) Involuntary. Except as may be permitted by paragraph (a) above, no interest of Operator in this .Agreement shall be assignable by operation of law. Any such nonpermitted assignment and any of the following acts, each of which are deemed an involuntary assignment, shall provide County with the right to elect to terminate the Agreement forthwith, without suit or other proceeding: (1) If Operator becomes insolvent, or makes an assignment for the benefit of creditors; (2) If Writ of Attachment or Execution is levied on this Agreement or other property of Operator such that would have a materially adverse effect on Operator's ability to perform its duties and obligations under this Agreement; . (3) If in any proceeding to which Operator is a party, a Receiver is appointed with authority to take possession of August 30, 1994 -33- DRAFT Operator's property such that would have a materially adverse effect on Operator's ability to perform its duties and obligations under this Agreement. Section 11.5 COMPLETE AGREEMENT. No verbal agreement with any officer, agency, or employee of the County or of Operator nor any contract either before, during, or after the execution of this agreement shall affect or modify any of the terms or obligations herein contained unless a written agreement, signed by both parties, specifically provides that same is an amendment to this Agreement. Section 11.6 NO THIRD PARTY BENEFICIARY ENFORCEMENT. While this contract benefits the public interest throughout Contra Costa County, it is an Agreement between only Operator and the County and, accordingly, only Operator and the County may enforce same. No claims, demands, or causes of action by any entity, party, or person claiming to be a third party beneficiary hereunder shall be enforceable. Section 13.7 ARBITRATION. Any controversy or claim submitted to arbitration pursuant to the express provisions of this Agreement, or by mutual subsequent agreement, and arising out of .or relating to this Agreement, or the breach thereof, shall be governed by the provisions of Part III. , Title 9 of the Code of Civil Procedure, sections 1280 et seq. as amended from time to time. The arbitration shall be de novo and subject to a de novo appeal or challenge brought in the Contra Costa County Superior Court as to any alleged error of law or as to the August 30, 1994 -34- DRAFT admissibility of evidence. California judicial rules of evidence shall apply to the arbitration proceedings. The arbitration decision shall be decided under and in accordance with California law, supported by a preponderance of evidence and in writing in the form of a Statement of Decision pursuant to Code of Civil Procedure Section 632. Section 13.8 CONFLICT. This Agreement is intended to comply with Ordinance No. 88-81. In the case of any apparent or potential conflict between the provisions of this Agreement and the provisions of the Use Permit or any involved development agreement, the provisions of this Agreement and the Use Permit shall be read together and harmonized to the maximum extent possible to effectuate the intentions of the parties. In the case of any unresolved conflict. between the provisions of this Agreement and the provisions of the Use Permit, the provisions of the Use Permit shall control. Notwithstanding any other provision in this Agreement or in the Use Permit, importation of waste not originating in Contra Costa County shall be allowed as required by recent U.S. Supreme Court cases. Section 11.9 CAPTIONS. The captions and headings used in this Agreement are for convenience and reference only and are not to be construed as controlling over the text of this Agreement. Section 11.10 DELEGATION BY BOARD. The Board may, in its discretion, delegate to a County employee or hearing officer any of its functions expressly or impliedly arising from this Agreement provided that in such case any decision made by such August 30, 1994 -35- DRAFT Board, County employee or officer may be appealed de novo to the Board. Section 11.11 SEVERABILITY. If any term, provision, covenant or condition ("provision") of the Agreement or the application of any provision of this Agreement to a particular situation is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions of this Agreement, or the application of this Agreement to other situations, shall continue in full force and effect. Notwithstanding any other provision of this Agreement, if any provision of this Agreement in itself or as applied in any particular situation is held to be invalid, void or unenforceable, it is the intention of the parties that the remaining portions of this Agreement shall be continued in full force and effect and that the invalid, void or' unenforceable provision be severed therefrom. Section 11.12 MASCULINE GENDER USED. The masculine gender is sometimes used in this Agreement and is so used for convenience only and is not otherwise intended. Section 11. 13 GOVERNING LAW. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Section 11.14 NOTICES. All notices or other communications ("Notice") to be given pursuant to this Agreement shall be in writing and shall be deemed given when mailed by registered or certified United States mail, addressed to the parties as August 30, 1994 -36- DRAFT y f o l lows: To County: County of Contra Costa Attn: County Administrator To Operator: BFIC, Inc. C/O: Boyd M. Olney, Jr. 441 North Buchanan Circle Pacheco, California 94553 With Courtesy as designated by Browning-Ferris Industries of California. A change in address or a change in the person or title to which Notice is to be given shall be effectuated by Notice to the other party. IN WITNESS WHEREOF, this Agreement is effective on the date first provided on page one hereof. OPERATOR Keller Canyon Landfill Company a California corporation By: President By: Vice-President COUNTY OF CONTRA COSTA By: Chair, Board of Supervisors ATTEST: By: Clerk of the Board APPROVED AS TO FORM: By: August 30, 1994 -37- DRAFT CONTRA COSTA COUNTY GROWTH MANAGE AND ECONOMIC DEVELOPMENT AGENCY DATE: September 2, 1994 TO: Ad Hoe Solid Waste Committee FROM: Val Alexeeff, Director SUBJECT: FRANCHISE OPTIONS OPIiONS RELATED TO FRANCHISE AGREEMENTS FOR KELLER AND ACME Intent: Ta assist BFI in becoming more competitive The following items appear to be issues that need to receive Board majority in order to enable this round of landfill issues to be resolved: 1. Rates: a. On June 7, the Board of Supervisors allowed rates at Acme/Keller to float with the market rather than be set with a ceiling and floor through a rate setting process. No action has been taken by BFI to reduce rates, but it is presumed that BFI will do so in the near future and that the County will not reestablish its efforts to regulate rates. In public testimony,BFI's representatives indicated that the possible $39 proprietary rate for transfer and disposal may no longer be feasible; however, no definitive proprietary rate has been provided to the County. Without a precise dollar amount from BFI, setting a County franchise fee as a percentage of base rate (proprietary rate) remains ambiguous. Additionally, proposals from other solid waste companies regarding transfer and disposal are not definitive with regard to proprietary rates and/or government fees. b. Regulation has been proposed for self-haul. The County has not regulated this area and there have been complaints about how high the rates are. Should a rate be established? What should determine this rate? 2. Fee Options: Several proposals have been made to determine which fees will be collected and at what rate. The approach to this should occur in two steps. Step one should consist of selecting the overall method; step two should clarify specifics within the method selected. Ad Hoc Committee r Franchise Options Page 2 September 2, 1994 Overall Approach A. Fee based on percentage of base rate, e.g., 25%. B. Fee rate based on flat fee ranging from $8 to $10. C. Fee based on percentage of base rate including minimum and maximum parameters. Step two considerations: Should alternative A be selected, the base rate percentage can be handled as outlined in the Staff Report of August 16. Separate costs for current mandate; (i.e., Eastin Fee, AB 939 Fee, LEA Fee, LUP Mitigation Fees) and set % cap for base rate. Percent target would yield in the range of$6. Should alternative B be selected the flat fee should take into account basic fee components that can be determined through a budgetary process that identifies priorities for funding within the overall capped amount which can be adjusted for CPI. As follows: Landfill/Transfer related fees ' LEA .752 Resource Recovery .752 AB 939 .152 Host Mitigation 4.00' Franchise 2.65` $8.00 State Fee at landfill Eastin State Fee 1.34 EMrams funded at landfill Household Hazardous Waste 2.12 'Costs directly related to permit administration as a direct cost of operation rather than fees. 2 To fund State mandated programs a LUP/Franchise criteria County solid waste programs .r r PP r Ad Hoc Committee Franchise Options Page 3 September 2, 1994 Should alternate C be selected a percentage shall be used; however, the amount collected, as a result of the percentage, shall not be less than SIM per year nor more than $3M per year. 3. Host Community Mitigation-Keller What should be the tonnage or fixed amount for the Keller Landfill host community mitigation? Should all the mitigation categories for Keller landfill be combined as host community mitigation? 4. Host Community Mitigation-Acme Shall there be host community mitigation relating to Acme permanent transfer station and what should that amount be? Either in percentages or dollar amount. S. Franchise Fee-Acme Should Acmebe collecting an additional franchise fee for closure? How shall jurisdictions that have collected their share of the fee be treated? VA;dra/gms 939uTmn-Opt.mem ' t r , N 8 $ $ 88 y U � z •- �� +n o w w x w ° tPy N • N *-� a� pppp opp CiQQ 80 N p� O � 401) a � .t � 8N 88 � � W �M.•+ "� .•+ tri t�f N � � z cn ". .0 w •� to E c � o• .aC ';t �' H d � 44 JOINT EXERCISE OF POWERS AGREEMENT CENTRAL CONTRA COSTA SOLID WASTE AUTHORITY ARTICLE 1: PURPOSE A. Purpose of Agreement: It is the purpose of this Agree- ment to establish, pursuant to the Joint Exercise of Powers Act, a public entity separate from each of the agencies. This public entity is to be known as the Cen- tral Contra Costa Solid Waste Management Authority, hereinafter referred to as the "Authority". B. Purpose of Authority: The purpose of the Authority shall be to exercise certain powers set forth below, in a manner which will (1) assure the citizens of the member agencies that certain solid waste transfer station(s) and/or regional resource recovery facility(ies) , and/or recycling facility(ies) and/or household hazardous waste facility(ies) , and/or landfill(s) and related programs will be operated in the most cost effective manner possible consistent with the proper concern for the environment; and (2) allow for the public ownership and/or management of said facilities, and (3) allow for such other joint efforts concerning the handling and disposal of the solid waste stream as may be beneficial to constituents of the member agencies. C. Members of Authority: This Agreement is entered into by and between the cities of Walnut Creek and San Ramon and the Central Contra Costa Sanitary District (hereinaf- ter "Initial Members") , as individual public entities which mutually promise and agree as hereinafter set forth. Membership in the Authority is open to any public entity that franchises the collection and/or disposal of garbage in Central Contra Costa County. Membership in the Authority is granted upon a 2/3 vote of all members of the Authority Board as then constituted, approving the application for membership, and upon compliance with the terms and conditions of membership set forth by the Board and/or in force at that time. D. Apportionment of &Menses: It is the intention of the Authority to collect revenues to cover the costs of Authority operations, through solid waste stream operations including, but not limited to, the operation of transfer facility(ies) , reclamation facility(ies) , recycling facility(ies) , household hazardous waste facility(iss) , and/or landfill facility(ies) . To the extent that operating expenses exceed revenues during any period, including the initial start up period of the Authority, the member agencies shall be responsible for providing the requisite funds to the Authority to ensure that such expenses are met in that proportion that the total tonnage of solid waste collected within the jurisdiction of each agency bears to the total tonnage of solid waste collected within the jurisdiction of all members of the Authority. Each member agency's contribution to such expenses is dependent upon such member agency's governing body's yearly approval of such contribution, provided, however, that if such member agency's governing body does not approve such contribution, such member agency shall be deemed to have withdrawn from the Authority and subject to the provisions of Article 4 D. Sections 1 and 3, exccpting such unapproved contribution resulting in such deemed withdrawal. Within one hundred twenty (120) days of the effective date of this Agreement the Initial Members shall formulate a budget for the first fiscal year of Authority operations, and, in conjunction therewith, shall assign each member a proportionate funding obligation to meet the budget agreed upon. If the Initial Members do not so formulate such a budget and assign such funding obligation within such one hundred twenty (120) day period, or within such other time agreed to in writing which is executed by such Initial Members, this Agreement shall be null and void. ARTICLE_ 2: POWERS OF THE AUTHORITY A. General Powers: 1. The Authority shall have all pow- ers common to its member agencies, and such general powers shall further include, but not necessarily be limited to the following: a) To advise the member agencies on issues related to solid waste collection and disposal; b) To advocate the interests of the member agencies related to solid waste management issues with local, state and federal officials; c) To plan for transfer station(s) , resource recovery facility(ies) , recycling facility(ies) , household - 2 - Joint Exercise of Powers Agreement/CCC Solid Waste Authority hazardous waste facility(ies), landfill(s) ,, any other solid waste facility(ies) and programs, and/or any related closure and post-closure thereof; d) To develop transfer station(s) , resource recovery facility(ies) , recycling facility(ies) , household hazardous waste facility(ies) , landfill(s) , any other solid waste facility(ies) and programs) and/or any related closure and post-closure thereof; e) To acquire and/or operate and/or contract for the operation of transfer station(s) , resource recovery facility(ies) , recycling facility(ies) , household hazardous waste facility(ies) , landfill(s) , any other solid waste facility(ies) and programs) and/or any related closure and post-closure thereof; f) To regulate rates of transfer station(s) , resource recovery facility(ies) , recycling facility(ies) , household hazardous waste facility(ies) and landfill(s) ; g) To advise on matters of solid waste coll:ction and disposal rates and charges; h) To advise public entities as to market conditions af- fecting the marketability of recyclable commodities; and i) To market and sell recyclable commodities. J) To conduct joint studies and/or institute joint programs as may be required by law or appropriate regarding solid waste collection and disposal including, but not limited to, such efforts as may be required regarding reduction of the waste stream directed to landfills. 2. Notwithstanding Article 2, Section A(1) above, the Authority is not authorized to in any manner impair or interfere with a member agency's franchising of solid waste collection and/or disposal, except as otherwise set forth in this Agreement or except as specifically agreed by such member agency. B. Snecific Powers: In carrying out its general powers, the Authority is hereby authorized to perform all acts necessary or proper for the exercise of said powers which may include, but are not limited to, the following: 1. To make and enter into contracts; 2. To apply for and accept grants, advances, and contri- butions; - 3 - Joint Exercise of Powers Agreement/CCC Solid Waste Authority 3. To employ or contract for the services of agents, employees, consultants and such other persons or entities as it deems necessary; 4. To conduct studies; 5. To review the Contra Costa Integrated Waste Management Plan and other such public planning documents as may be developed, and recommend revisions or amendments thereto; 6. To acquire, construct, manage, maintain, operate and control any buildings, works or improvements; 7. To acquire, hold or dispose of property; S. To acquire by condemnation proceedings such real and/or personal property and/or rights of way as in the judgment of the Authority are necessary or prop- er to the exercise of its powers; 9. To incur debts, , liabilities or obligations subject to limitations herein set forth; 10.. To levy and collect fees and charges to the extent permitted by law; il. To assess and collect, subject to Article 5, Section A and Article 1, Section D, of both Initial Members and future agency members, fees for membership in the Authority, so as to provide moneys for the financing of its activities, operations, and expansion which are not adequately funded by the revenues collected for services provided by the Authority; 12. To issue bonds, subject to the provisions and limita- tions of the laws of the State of California; and 13. To adopt annually, by April 1 of each fiscal year, a budget setting forth all administrative, operational and capital expenses for the Authority, together with the apportionment of such expenses by levy against each member agency to the extent necessary, subject to Article 1, Section D. ARTICLE 3: ORGANIZATION OF AUTHORITY A. Board of Directors: The Authority shall be governed by a Board of Directors, hereinafter "Board", which shall exercise all powers on behalf of the Authority. The Board shall have the authority to carry out all duties and functions within the power of the Joint Exercise of Powers Agreement. - 4 - Joint Exercise of Powers Agreement/CCC Solid Waste Authority The Board shall be composed of two (2) representatives from each Authority agency, who shall be elected members of such agency's governing body. . The term of Board membership is unlimited except as a member agency may provide for its own representatives; however, as to such member representatives, such term shall automatically expire when the representative is no longer an elected officer of the agency that he or she represents on the Board. 1. Duties of the Board of Directors: The Board shall perform all acts necessary or, proper to carry out the purposes of this Agreement and to execute the General and Specific Powers of the Authority, which acts include but are not limited to the following: a) Conduct Board meetings pursuant to a schedule adopted by the Board; b) Consider, modify and approve the annual work program and budget; C) Levy, fix, set and/or impose fees, assessments and charges to the extent permitted by law and by this Agreement; d) Authorize, review and accept reports and studies; e) Review, recommend, approve and/or regulate rates for services provided by the Authority or over which the Authority has regulatory power through contract or otherwise; f) Recommend action to member agencies and other public bodies on: i) The Contra Costa County Integrated Waste Management Plan and any other such public planning documents as may be developed and revisions or amendments thereto; and ii) The planning, financing, development and operation of Authority activi- ties; g) Accept agencies as subsequent parties to the Agreement and members of the Authority, and their representatives as Board members; h) Authorize the hiring and/or engagement of Authority staff; 5 - Joint Exercise of Powers Agreement/CCC Solid Waste Authority i) The Board may, from time to time, declare one of the member agencies as the lead agency for specific purposes as may be set forth by the Board or for the general purpose of staffing the Authority and carrying out the Authori- ty's functions; j) Establish committees to carry out Authority purposes, and appoint committee members from the Authority Board, the legislative bodies or administration of member agencies, Authority, staff, and/or staff of the member agencies. The Authority shall reimburse agency members for personnel costs associated with the staffing of committees with member agency personnel; k) Establish policies governing the compensation of staff employed by the Authority, which policies are subject to approval of the governing bodies of the agency members by 2/3 vote thereof. 1) Delegate duties to Authority or Board staff and/or members, appointed committees and committee members, the City Councils, and/or staff, or the sanitary District Board and/or staff. 2. Voting Requirements: All actions of the Board may be undertaken by majority vote of the Board members present, provided a quorum exists, except for such Board actions requiring a 2/3 vote as may otherwise be set forth herein. Each Board member shall have one vote. 3. Board of Directors Members: Upon execution of this Agreement, the governing body of each agency shall, by resolution, appoint• a member to serve as a member of the Board in conformity with the requirements of Article 3, Section A. 4. subsequent Authority Members: Any agency which franchises solid waste collection in Central Contra Costa County, including cities incorporated and districts formed after the effective date of this Agreement, may become members of the Authority, and its representatives may become voting members of the Board by presenting an adopted resolution to the Board which includes a request to become a member of the Authority, and upon a 2/3 vote of all members of the Board to accept the new member, and upon payment of any charges and execution of all documents as may be required by the Board as a prerequisite for voting membership. such charges may include such - 6 - Joint Exercise of Powers Agreement/CCC Solid Waste Authority IN . d) es: The Board Chairperson shall cause minutes of all meetings to be kept and shall, as soon as, possible after each meeting, cause a copy of the minutes to be forwarded to each member of the Board. 7. Staffing: Each of the member agencies shall use its best efforts to provide staff to the Authority as may be necessary initially for the Authority to execute its powers and duties and as may be request- ed by the Board thereafter. Staff may be drawn from member agencies or agency staff. Additionally, the Authority may contract with or employ entities and/or individuals not associated with member agency staff, as permitted by Article 2, Section B(3) . 8. Officers: The Board has the power to appoint as staff to the Board the following officers: a) Executive Director: There may be an Execu- tive Director appointed who will serve as the chief administrative officer of the Authori- ty. He or she shall be responsible to the Board for the management and administration of all Authority affairs pursuant to the Board's direction. Until such time as the Board may determine to appoint an Executive Director who is not a staff member of a member agency, and for such other times as there is no Executive Director serving, the Board may appoint an interim Executive Director, who shall have such powers and duties as are set forth in this section. An interim Executive Director shall be the chief administrative officer of one of the member agencies, or such other agency staff member as the Board deems appropriate. b) Treasurer and Controller: There shall be a Treasurer and Controller to be the custodian of all Authority funds, to pay demands and to make or contract for an annual audit. C) Secretary: There shall be a Secretary who shall be responsible for the noticing of meetings and recording of minutes of meet- ings as required by the Brown Act and the Rules of Procedure. - 8 - Joint Exercise of Powers Agreement/CCC Solid Waste Authority items as compensation to the existing Authority Wil; members for previously expended costs in furtherance of Authority purposes, including staffing expenses, capital expenses, financing expenses, and assessments for losses in prior Authority operations. These examples are purely illustrative, however, and are not intended to limit the power of the Authority or the Board to fix whatever buy in, capitalization or other equalization charges deemed necessary or proper. Payment of such charges may be made in any manner deemed necessary or proper by the Board, including, but not limited to cash payment, a differential rate structure at Authority facilities, future capital contributions, surcharges or by other plan which might include appropriate security. 4. Board Officers: The Board shall by a majority vote elect from its members . a Chairperson and a Vice Chairperson. The Chairperson and Vice Chair- person shall have one year terms and maybe reelect- ed so as to serve a maximum of two (2) consecutive one year terms, unless the Board unanimously approves additional consecutive term(s) as to a particular Chairperson or Vice Chairperson: The Chairperson shall preside over all meetings according to the Rules of Procedure adopted by the Board. The Board Chairperson shall represent the Authority and execute any contracts and other documents when required by the Rules of Procedure. 5. Board Rules: The Board is empowered to establish its own Rules of Procedure to the extent those rules are not inconsistent with the laws of the State of California governing the operations of this Authori- ty. 6. Meetings of the Board: a) Regular Meetings: The Board shall hold scheduled public meetings at a location se- lected by the Board. b) Special Meetings: Special meetings of the Board may be called in accordance with the provisions of Section 54956 of the Califor- nia Government Code. C) Notice of Meetings: All meetings of the .Board shall be held subject to the current provisions of the Ralph M. Brown Act, being Sections 54950 et sea, of the California Government Code, and other applicable laws of the State of California requiring public meetings. 7 Joint Exercise of Powers Agreement/CCC Solid Waste Authority 9. Funds. Excenditures and Audits: Each and every expenditure of moneys shall be author- ized or approved by the Board or by a person desig- nated by the Board to authorize expenditures. The Treasurer shall draw warrants to pay demands so au- thorized for payment by the Board. Before the Authority may expend any moneys or incur any financial obligation it shall adopt a budget showing proposed expenditures for the Fiscal Year and the proposed means of financing such expendi- tures. The budget shall be for the ensuing Fiscal Year, beginning on July 1 of each calendar year and ending on June 30 of the following calendar year. The Board shall periodically cause an audit to be performed with regard to the financial operations of the Authority. ARTICLE 4: TERMS OF AGREEMENT A. Effective Date: This Agreement shall become effective on the date of its execution by all the agencies identi- fied in Article 1, Section C. B. Amendments: This Agreement may be amended by a two-thirds (2/3) vote of all members of the Board. Any such amendment shall be effective upon the day of such action. C. Undertaking of Specific Projects: Although it is the intent of this Agreement, and therefore the purpose of the Authority, to cooperate jointly amongst the member agencies so as to provide the most efficient operation of solid waste facilities on a regional basis, nothing contained in this Agreement is intended to prevent the Authority from undertaking projects pursuant to separate contracts between the Authority and individual member agencies, which projects are not intended to benefit all of the member agencies. The Authority shall hold title to each project -in trust for the use of the members who participate. The members who participate in a project shall indemnify and hold harmless the members who do not participate from liability of any kind resulting from, or in any way related to, the financing, construction, acquisition, operation or maintenance of such project. The Authority shall have the power to proceed with the final acquisition and construction of a project which is not joined in by all Authority members, only when a separate project contract has been entered into which provides arrangements for obtaining funds sufficient to 9 - Joint Exercise of Powers Agreement/CCC Solid Waste Authority pay for all costs of such. project. Such a project contract shall provide for such payments as shall be agreed upon, but will be at least sufficient to pay and discharge all obligations the Authority incurred in connection with such project. D. Withdrawal: 1. Any member agency, upon written notice given by January 1 of any year, to the Chairperson of the Board of Directors, and all other member agencies, may withdraw from the Authority effective no earlier than July 1 of that year; provided, however, that the withdrawal of such member agency shall not terminate such member agency's responsibility under any obligation of such member agency or the Authority or any action taken in connection therewith, and further provided that the withdrawing agency must pay to the Authority on the effective date of withdrawal, all money owing to the Authority, and as to those capital expenditures that the withdrawing agency has agreed to participate in by contract or otherwise, its share of such capital expenditures. Such financial obligations of such withdrawing agency may be assumed by another entity upon 2/3 vote of the Board, absent the participation of the representative of the withdrawing agency. 2. Notwithstanding Subsection 1, above, a member shall not be permitted to withdraw from the Authority unless the Board determines by majority vote, absent the participation of the representatives of the withdrawing agency, that as of the effective date of withdrawal the Authority will have a waste stream sufficient to meet all Authority operating expenses and obligations outstanding as of the effective date of withdrawal, whether capital, operational, maintenance related or otherwise, and to ensure that all Authority operations will not be adversely affected to a material extent by the withdrawal of the withdrawing member. 3. The withdrawing agency shall also continue to be liable for its share of Authority obligations including, but not limited to operations and maintenance costs and the General Budget until the effective date of its withdrawal. E. Expulsion of Member: The Board may, by. 2/3 vote of the Board members, terminate a member agency's membership in the Authority for a material breach of this Agreement after a six (6) months notice to such member agency. A member agency so expelled shall be responsible for capital expenditures and non capital obligations of the Authority as set forth in Article 4, Section C above. - 10 - Joint Exercise of Powers Agreement/CCC Solid Waste Authority F. Reinstatement: An agency, subsequent to its withdrawal, or subsequent to expulsion, may seek reinstatement as a Member of the Authority. Application for reinstatement shall be made in writing to the Board. An agency shall be reinstated upon a 2/3 vote of all members of the Board as then constituted. The Board may require an agency seeking reinstatement to meet any terms and conditions which the Board deems appropriate. G. Division of Property and Obligations on Dissolution: Upon dissolution of the Authority as a legal entity, all debts and obligations of the Authority, including all bonded indebtedness, shall be paid, and the remaining property of the Authority shall be divided in proportion to the contributions made among all of the agencies who are parties to this Agreement at the time of its dissolu- tion. H. Commitment of Waste Stream: Authority members shall, to the extent they are not prohibited from doing so by a contractual or legal obligation undertaken prior to becoming members of the Authority, commit the entirety of their wasts stream to any facility owned or operated by the Authority provided such facility is designed and constructed to accommodate the waste stream from the affected member agency and provided further that such member agency has agreed to participate in the project which includes the operation of such facility. Authorization to commit less than the entirety of the waste stream 'of a member agency, other than for reason of prior contractual obligation, shall be determined by the Board based on economic, geographic and other solid waste considerations keeping in mind the purpose of the Authority. I. Acceptance of Waste Stream: The Authority must accept the entirety of the waste stream of any member agency to the extent the Authority owns or operates solid waste handling facilities designed and constructed to accommo- date the waste stream from the affected member agency and the facility or facilities have adequate capacity to serve the member agency's entire need. The Authority shall attempt to acquire, construct and/or operate Author- ity facilities in such a manner as to best accommodate the solid waste handling needs of all member agencies. J. Funding From Member Agencies: Subject to Article 1, Section D, each member agency shall provide its share of the Authority's general budgetary obligation. Each initial member's share is set forth in Exhibit A attached hereto and incorporated herein by reference and made a part hereof as if fully set forth herein. K. Liability The tort liability of the Authority, all members of the Board, and all officers and employees of - 11 Joint Exercise of Powers Agreement/CCC Solid Waste Authority said Authority shall be controlled by the provisions of :� Division 3.6 of Title I of the Government Code of the State of California. Any tort and contractual liability incurred by or imposed upon the "Authority" shall remain the sole liability of the Authority rather than the liability of the member agencies, to the full extent such allocation of liability is permitted by law. The provisions of said Division relating to the indemnification of public employees and the defense of actions against them arising out of any act or omission occurring within the scope of their employment shall apply to all Authority directors, officers and employees. Notwithstanding the specific terms of this section, the Authority and the member agencies shall retain the power to allocate liability between the Authority and the member agencies, or among the member agencies, in a manner other than as set forth above pursuant to written agreement to do same for specific projects or undertakings of the Authority. L. Term and Termination: This Agreement shall continue in force until terminated as specified by this section. This Agreement may be terminated at the and of any Fiscal Year by consent of all member agencies, however, this Agreement and the Authority shall continue to exist for the purpose of disposing of all claims, the distribution of assets, and any other functions necessary to conclude the affairs of the Authority. Upon termination, payment of the obligations and division of the property of the Authority shall be conducted pursuant to Section F of this Article. ARTICLE 5: PROJECT FINANCING A. Separate Contracts: Financing of specific capital projects, such as the acquisition or construction of solid waste facilities by the Authority shall be subject to separate contracts between the Authority and member agencies which intend to participate in the specific facility, the contracts shall set forth each agency's responsibility for capital expenditures and operating expenses as well as such other terms as may be appropriate. B. Debt: The Authority may issue or cause to be issued bond and other indebtedness, and pledge any property and/or revenues as security to the extent permitted by law. Any and all debts, liabilities, and obligations incurred by or imposed upon the Authority shall be the debts, liabilities, and obligations solely of the Authori- ty, rather than the debts, liabilities, and obligations of the individual member agencies. 12 Joint Exercise of Powers Agreement/CCC Solid Waste Authority C. Financial Contribution: For agencies joining the Au- thority after the effective date of this Agreement, the Board shall determine such agencies' proportionate finan- cial contribution, which is due upon joining the Authori- ty. D. g'y,nd It is intended that the liabilities of the Authority, to the fullest extent possible, are funded by revenues generated by facility operations. ARTICLE 6: EXERCISE OF AUTHORITY'S POWERS This Agreement is entered into under the provisions of Arti- cle 1 of Chapter 5, Division 7, Title One of the Government Code concerning Joint Powers Agreements. As to those powers vested in the Authority pursuant to Section 6508 of the Gov- ernment Code, they shall be exercised in the same manner and subject to the same restrictions as those applicable to a sanitary district pursuant to the statutes and laws of the State of California. ARTICLE 7: OBLIGATIONS OF AUTHORITY Any and all debts, liabilities, and obligations incurred by or imposed upon the Authority shall be the debts, liabili- ties, and obligations solely of the Authority and no capital or administration debt, liability, or obligation shall there- by be imposed upon any party to this Agreement or the collec- tive parties hereto. Dated: r/,/q0 CENTRAL CONTRA COSTA SANITARY DISTRICT President Board of Directors S 4ary B&ird of Directors APPROVED AS TO FORM: r 4CU District Counsel 13 Joint Exercise of Powers Agreement/CCC Solid Waste Authority Dated: CITY OF SAN RAMON Mayo w. City C4erk APPROVED AS TO FORM: Citl Counsel Dated: / .90 CITY OF WALNUT CREEK -Mayor * 0 A �2dr A.0 A -4 Cy lerk APPROVED AS TO FORM: City Counsel 14 Joint Exercise of Powers Agreement/CCC Solid Waste Authority DATE: ��/3 REgUEST To SPEAK FoRm (THREE (3) MINUTE LIMIT) I Complete this form and place it in the box near the speakers' rostrum before addressing the Board. NAME: --ITU E-�J PHONE: S I ADDRESS: 629 ! G]L0 (AL l-F-- -.!ls L V1 ! CITY: _I,t,G- I am speaking formyself OR organization: Check one: NAME OF ORGANIZNTION) I wish to speak on Agenda Item # �o My comments will be: general for against I wish to speak on the subject of I do not wish to speak but leave these comments for the Board to consider. y DATE: REgUMT TO SPEAK FORM (THREE (3) MINUTE LIMIT) a Complete this form and place it in the box near the speakers' rostrum before addressing the Board. J NAME: / 0 Z-3 PHONE: ADDRESS: CITY: I am speaking formyself OR organization: Check one: NAME OF ORGANIZIXTION) I wish to speak on Agenda Item # Z, � My comments will be: general for against I wish to speak on the subject of I do not wish to speak but leave these comments for the Board to consider. DATE: _ / 3 REQUEST TO SPEAK '' ORM THREE (3) MINUTE LIMIT �p Complete this form and place it in the box near the speakers' rostrum before addressing the Board. NAME: I-AXe 00V PHONE: I S�� 1713 ADD REss: AUC-421' 1`1-13r3 Of V5, Cny: I am speaking formyself OR organization: NAME OF ORGAN17-10 N) Check one: I wish to speak on Agenda Item # 3 My comments will be: general _Y_ for against I wish to speak on the subject of I do not wish to speak but leave these comments for the Board to consider. DATE: REQUEST To SPEAK FORM (`THREE, (3) MINUTE LIMIT) Complete this form and place it in the box near the speakers' rostrum before addressing the Board. NAME: -1 A A PHONE: ADDRESS: -40 Crry: I wn speaking formyself OR organization: (NAME OF ORGAN17-\TION) Check one: I wish to speak on Agenda Item # 57 2.3 My comments will be: general V" for against I wish to speak on the subject of I do not wish to speak but leave these comments for the Board to consider. DATE: REQUEST To SPEAK FoRm (THREE (3) MINUTE LIMIT) Complete this form and place it in the box near the speakers' rostrum before addressing the Board. NAME: PHONE: ADDRESS. Pal CITY. I 'am speaking formyself OR organization: f �((NNAAE OF OR . I7.�TIOtif ` Chi ejkone: V . I wish to speak on Agenda Item # My comments will be: general- for against I wish to speak on the subject of I do not wish to speak but leave these comments Ifor the Board to consider. DATE: 9�l 3 1� REQUEST To SPEAK FORM (THREE (3) MINUTE LIMIT) 7 Complete this form and place it in the box near the speakers' rostrum before addressing the Board. NAME: /Lf�/9 /� ,/r/r7��1 s PHONE: MU ADDRESS: 32:1�0 Ott CITY: dVY1=vetl� I am speaking formyself OR organization: Chec one: (NAME OF ORGANI7.a1'ION) `� �j VQIA— 'h7e�c 'h I wish to speak on Agenda Item # .3 My comments will be: general _/ for against I wish to speak on the subject of I do not wish to speak but leave these comments for the Board to consider. DATE: REQUEST TO SPEAK FORM (THREE (3) MINUTE LIMIT) Complete s rm and place it in the box near the speakers' rostrum before I addressing c oar NAME: y //J PHONE: ADDRESS: -J Z c--/<,- Cny: this ill I am speaking formyself OR organization: (NAME OF ORGAN17,NTION) Ch 7 one: ec I wish to speak on Agenda item # My comments will be: general X for against I wish to speak on the subject of I do not wish to speak but leave these comments for the Board to consider. DATE: '�71 REQUEST TO SPEAK FORM (THREE (3) MINUTE LIMIT) Complete this form and place it in the box near the speakers' rostrum before addressing the Board. G NAME: h rc% PHONE: ADDRESS:I CITY: 'V I am speaking formyself OR organization: Check one: (NAME OF ORGANIZATION) - I wish to speak on Agenda Item # . My comments will be: general for against I wish to speak on thes4 ect of '' � I do not wish to speak but leave these comments for the Board to consider. DATE: IrY �7." IL REQUEST TO SPEAK FORM (THREE (3) MINUTE LIMIT) Complete this form and place it in the box near the speakers' rostrum before addressing the o d. NAME:, 1 PHONE. ADDRESS: S3 CITY: o'� I am speaking formyself OR organization: Check one: (NAME of ORGAN[Z-XTION) I wish to speak.on Agenda Item # My comments will be: general for against I wish to speak on the subject of �Q I do not wish to speak but leave these comments for the Board to consider. DATE: REQUEST To SPEAK FORM (THREE (3) MINUTE LIMIT) Complete this form and place it in the box near the speakers' rostrum before addressing the Board. NAME: INiA v` PHONE: 73 ADDRESS: 1 0 V-P- CITY: —�- I am speaking formyself OR organization: (NAME OF ORGA!VlTM'IOti) Check one: I wish to speak on Agenda Item # My comments will be: general for against I wish to speak on the subject of I do not wish to speak but leave these comments for the Board to consider. DATE: �J? RE+,gtTEST TO SPEAK FORM (THREE (3) MINUTE LIMIT) Complete this form and place it in the box near the speakers rostrum before addressing the Board. NAME: PHONE: ADDRESS: I 7 ?9 T , /"!1/,>-rSJZ11e6-- _ CITY: I am speaking formyself OR organization: . (INANE OF ORGANflal'lOti) Check one: I wish to speak on Agenda Item # `• 3 My comments will be: generale for against I wish to speak on the subject of I do not wish to speak but leave these comments for the Board to consider. BRUEN & GORDON A PROFESSIONAL CORPORATION 1990 NORTH CALIFORNIA BOULEVARD SUITE 608 WALNUT CREEK,CALIFORNIA 94596 (5 10)295-3131 FAX(510)295-3132 September 12, 1994 RECEIVED SEP 1 3 1994 CLERK BOARD OF SUPERVISORS Chairman Tom Powers and CONTRA COSTA-00 Members of the Board of Supervisors Contra Costa County 651 Pine Street Martinez, CA 94553 Re: Proposed Keller Canyon Disposal Agreement Dear Chairman Powers and Members of the Board of Supervisors: The Keller Canyon Landfill Company and BFIC, Inc. (both subsidiaries of Browning-Ferris Industries of California, Inc. ) offer to enter into a solid waste disposal agreement with the County for a seventeen month term at a combined disposal rate for both the Permanent Transfer Station and the Keller Canyon Landfill of $39. 00 per ton. The language of this agreement would be simplified compared with that considered by the Board in June, since the term. of the agreement would be for approximately a year and a half. This proposal is not contingent on any settlement of the Acme CERCLA litigation, nor is it contingent on any action the Board may take on County disposal fees and taxes. The following is a brief summary of several principal terms of the proposed agreement. * The agreement is for the period which would commence on County approval of the agreement and terminate in April, 1996. * The $39. 00 per ton rate does not include County and State taxes and fees. These would be added on to arrive at a total "gate rate" at the Permanent Transfer Station. * BFI would provide the County an indemnity (in the form previously negotiated with County Counsel) for CERCLA and related environmental liabilities for solid waste disposed of under the agreement. Chairman Tom Powers and Members of the Board of Supervisors September 12, 1994 Page 2 * The agreement would contemplate a wastestream commitment by the County of the unincorporated area not already committed to the West County transfer station (IRRF) . This same proposal has been and will be made to other cities and sanitary districts in the County. We would welcome any suggestions or comments the Board of Supervisors or County Counsel/Staff have with respect to this proposal. If you would like a copy of the proposed agreement, please contact the undersigned and we would be happy to provide you with a copy. Very truly yours, Thomas M. Bruen TMB:dcr COUNTY COUNSEL'S OFF/CE CONTRA COSTA COUNTY MARTINEZ, CALIFORNIA Date: September 12, 1994 C:.^.N1=1DEN i IAL To: Supervisor Tom Powers, District I From: Victor J. Westman, County Counsel Re: Franchising Permanent Acme Transfer Station and Keller Canyon Landfill Site and Related Issues This is in response to your inquiries concerning the above-noted subject. Your slightly rewritten inquiries and our responses thereto are as follows: QUESTION NO. 1: An Acme-BFI representative has asserted that the U.S. Supreme Court's Dolan case decision suggests some of the uses of the County's waste related fees are improper and therefor unconstitutional. It was not clear which fees were being referred to and it may be a good idea to discuss this subject with that representative. RESPONSE NO. 1: This office contacted the appropriate Acme-BFI representative who indicated the concern was primarily over what the Board may do with respect to the Acme Franchise. Regarding the use of fees, concerned was indicated about the use of Recourse Recovery monies collected from Keller ($300,000 plus per year) and Acme ($100,000 plus per year) being used to fund recycling market development zone activities and related matters outside of the collector areas from which waste was being or would be received through the transfer station and to the Keller Canyon site. The Acme Transfer Station LUP 2122-86 (approved in 1987 and amended in 1990) provides in its condition No. 12.9 that when the County requests, the Transfer Station owner shall provide annual funding not to exceed $100,000 (at 1987 levels) to the County for County Resource Recovery Management Program funding. Keller Canyon Landfill LUP 2020-89 (approved 7-24-90) provides in its section 31.9 that when directed by the County the operator shall impose a tonnage surcharge to support the County's Resource Recovery Management Program not to exceed $100,000 at 1987 levels) and section 35.4 provides that the operators shall pay a $200,000 annual fee for the County's Resource Recovery Program beginning 7-1-90. Section 35.4 expressly provides that this $200,000 fee may be reconsidered as part of a franchise agreement. CONFIDENTIAL Supervisor Powers 2 September 12, 1994 Government Code section 65907 provides that any legal action shall be commenced within 90 days after the approval of a land use permit to attack the legality and reasonableness of any conditions attached to the involved permit. After 90 days, all persons are barred from such actions or proceedings concerning the invalidity or unreasonableness of such conditions. As noted above, both of the involved land use permits were approved substantially in excess of 90 days prior to this date and it now appears that the permittees would be barred by the provisions of 65907 from contesting the reasonableness and legality (constitutionality, etc.) of the subject County Resource Recovery Program fee provisions requirements. Of Course, Acme and/or BFI may question whether these funds are being spent for the said Resource Recovery Management Program or some other clearly unrelated and distinct activity. We are not aware of any specific allegation in this regard having been made to this date. Also, we are not aware of any specific request made by Acme or BFI that these fees be adjusted in some manner and their expenditure reviewed so that the benefit of the fees is directed to the collector areas from which waste is received. QUESTION NO. 2: Can the County impose a $4 non-compensatory franchise fee on the Acme Permanent Transfer Station and then spend these proceeds generally in the amount of $2.00 for local host mitigation and $2.00 to fund certain attorney fees and/or closure cost. RESPONSE NO. 2: Yes, subject to the following discussion. Condition 15.4 of the Acme Transfer Station LUP 2122-86 provides that the transfer station shall be subject to the requirement of a franchise agreement if the Board decides to franchise the facility and that the franchise agreement may require the Transfer Station owner to pay franchise fees. As noted in Response No. 1, the statute of limitations provided by Government Code section 65907 to challenge this requirement ran several years ago. Of course, the LUP condition does not specify the possible amount of the franchise fees and does not specify that the franchise fees may included a noncompensatory general fund revenue fee. For this reason and assuming a noncompensatory franchise fee is required, there may be an opportunity for the transfer station operator to attempt at this time to challenge (or more likely attempt to encourage someone else to sue or raise the issue) whether the County can impose a noncompensatory revenue franchise fee on the Acme Transfer Station. We have attempted to mitigate this risk by provisions in the proposed franchise agreement requiring the transfer station owner and operator to agree not to challenge such a fee provision and to defend against anyone so challenging it. As has been confidentially discussed in the past with Board members, there is no —..express statutory authority in California providing that general law counties may require noncompensatory general revenue fees as part of a franchise agreement with a solid waste disposal site operator or transfer station owner. In addition, there are a number of general law cities and sanitary districts in similar circumstances who do require noncompensatory franchise fees. Because a court of record have not yet addressed the extent of authority of general law counties, cities and sanitary districts in this area, we Supervisor Powers 3 September 12, 1994 have always endeavored to structure the processing of these types of entitlements (LUPs, etc.) so that any apparent statute of limitations would quickly bar the possible objections noted above. Finally, as emphasized above, Condition 15.4 of Acme's LUP 2122-86 only provides for a franchise fee "if the Board of Supervisors decides to franchise" the transfer station. To date, the Board has not decided to approve and franchise the permanent transfer station which the Community Development Department has indicated is close to completion. QUESTION NO. 3 (YOUR NO. 4): Does condition 21.2 of the Keller LUP No. 2020- 89 require amendment to the LUP before rate deregulation can occur? RESPONSE NO. 3 : First, it would appear the correct reference is to condition 12.1 of the Keller Canyon Landfill LUP 2020-90 and not 21.2. Condition 12.1 generally states that the Board shall approve all rate changes and that rates established by the Board will be not only be maximum rates but also minimum rates. As previously indicated, it is our view that the Board can adopt a minimum zero rate and still be in compliance with this LUP condition. But, to remove any possible ambiguity about this question, I understand that the Keller LUP amendments coming to you later this month will also include a modification (or for the most part) elimination of condition 12.1 from the current Keller Canyon LUP. INQUIRY NO. 4(YOUR NO. 5) & RESPONSE NO. 4: Here you ask a number of questions about Keller Canyon landfill operators compliance with condition 19.3 concerning the County Household Hazardous Waste Program. I understand the Community Development Department may also be preparing a response to this area of concern. While Condition 19.3 states the operator will develop a program, it also (later in its text) requires the operator to implement whatever household hazardous materials program is approved by the County's Board of Supervisors. I assume (because I have not been able to completely verify it) that the household hazardous waste program developed and implemented by the County's Health Department was approved in some manner by the Board of Supervisors. If this is the case, then it would appear that Condition 19.3 was generally complied with as to the development of a household hazardous waste program. I have not been advised that the household hazardous materials waste program developed by the County Health Department and upon which substantial amounts of the fees generated from the Keller and Acme operations have been spent was done without Board approval. A further inquiry is did Keller (or Acme) violate its LUP when it failed to pay the $2.12 per ton tipping fee from September 1993 to May 1994. Staff representatives of the Health Department have indicated to this office that Keller has always promptly paid its required household hazardous waste program fee for direct haul waste, without rate adjustment, or Supervisor Powers 4 September 12, 1994 requesting a rate adjustment. We've been further advised that only the Acme interim transfer station did not pay this fee during the period in question under the "impression" that it no longer had to pay this specific fee. This was a failure to comply with the provisions of Condition 19.3. As you are aware, there is some uncertainty as to whether staff with some arguable apparent authority may have participated in the creation of this "impression" upon the part of the Acme operators. I have been recently advised by the Community Development Department that Acme now is current in the payment of these fees. Finally, as noted above, the condition directs the landfill operator to develop a program or allows the County to develop and direct the implementation of such program. But it can be implied from the LUP conditions and by the County's later actions that the operation of the program is or can be funded from charges made for utilization of the Acme and/or Keller facilities. This program is a cost of operation and it is not clear why it would be expected that the operator would provided it without funding from or charges at the Acme and/or Keller facilities. INQUIRY NO. 5(YOUR QUESTION 6): Does the County have the right to withhold its franchising of the permanent Acme Transfer Station unless it dismisses its current litigation against the County and other public agency defendants concerning the Acme Landfill site. ANSWER NO. 5: In our view, the Acme Landfill site and the litigation concerning it is legally distinct from the Acme Transfer Station. In 1987 (and again in 1990) when the County was considering and approving the Acme Transfer Station LUP, it was processed as an entitlement distinct from the landfill site and no amendment of the landfill site LUP was required. Other than the current litigation concern, it is not clear why the 1987 and 1990 singular processing decisions were in error. The Acme LUP 2122-86 has already been approved and there is no express condition in it concerning compulsory funding of the cleanup of the historical Acme Landfill site. There is an express condition (15.4) in it that if it is subject to a franchise agreement, the agreement "may" allow the operators of Acme (at their discretion?) to collect charges to contribute to the closure cost of a landfill which served the transfer station's service area. It appears to this office that the imposition of such a franchise litigation requirement could subject the County to a serious civil rights action alleging that it is arbitrarily preventing the establishment and operation of the permanent Acme Transfer Station because of nonreasonably related circumstances (the "Dolan" case). Also, as already noted, Condition 15.4 of the Acme LUP provides that the transfer station is only required to obtain a franchise agreement if the Board of Supervisors decides to franchise the facility. Since the Board of Supervisors has yet to approve any franchise agreement offer to the Acme Transfer Station operator, it might be argued at some point that the Permanent Transfer Station may become operational in the absence of a franchise agreement offer Supervisor Powers 5 September 12, 1994 since the Board of Supervisors has yet to "decide to franchise the facility". Of course, a valid argument can be made that Acme must obtain a franchise or other agreement prior to permanent transfer station operation (Co.Ord. C. § 418-5.602) assuming no such agreement has already been made. If you have any questions concerning the foregoing, please advise. VJW:df -4w-mem-1: acme.m COUNTY COUNSEL'S OFF/CE CONTRA COSTA COUNTY MARTINEZ, CALIFORNIA Dace: October 28, 1994 To: Board of Supervisors From: Victor J. Westman, County Counsel Re: Franchise For Permanent Acme Fill Transfer Station The Board of Supervisors on October 25, 1994 designated an ad hoc committee (Supervisors Bishop and Smith) to met at 2:30 on October 27, 1994 to consider the franchise agreement for the above-noted matter and the revisions made to the earlier September 13, 1994 considered draft agreement as reflected in version of the agreement presented to the Board on October 10, 1994. In attendance at this public meeting (in addition to the two Supervisors) were two representatives from the Community Development Department (Louise Aiello and Charles Zahn) the County Counsel, two representatives of BFI (Tom Bruen and Dennis Fenton), an interested private attorney (Rick Norris) and a Contra Costa Times reporter (Ariel Ambruster). On October 27, the September 13, 1994 franchise agreement and the revisions to it (as presented to the Board of Supervisors on October 10, 1994) were reviewed by utilizing a September 20, 1994 draft showing strike out and overlay for insertions which this office provided to facilitate that consideration. All references hereinafter made are to pages of that September 20, 1994 draft of the subject franchise agreement. In the course of the review of the franchise document, the following revisions to the September 13, 1994 draft were focused on for further particular consideration: 1. Page 97, § 4.20 "Commitment of Transfer Station Waste." This section 4.20 is a new provision added to the agreement that was before the Board on September 13, 1994. It appears that staff may have added this provision on its mistaken view that the. Board had directed that any final agreement with BFI and Acme contain a requirement that to the extent allowed by law waste coming to the Acme Transfer Station must thereafter go to the Keller Landfill for disposal. BFI-Acme's representatives at the Thursday meeting indicated that they have no objection to striking § 4.20 from this draft. Assuming that staff misconstrued the Board of Supervisors' directions on September 13, 1994, § 4.20 may be stricken. Board of Supervisors 2 October 28, 1994 2. Page 18 and 19, § 6.2 "Surcharge." As indicated on attached pages 18 and 19, the overlayed language contained within the parenthesis (at the bottom of page 18 and the top of page 19) was added to this section and would establish an initial one-time two year period in which the County could not increase the 25% surcharge but retained discretion to reduce it during that period. Without this initial two year provision, the County under the September 13th draft could (after providing 90 days advanced written notice) every two years increase the surcharge percentage. Of course, even with this initial two year provision, after the first two years the County could increase the 25% surcharge. During the course of the Board's September 13th deliberation, no specific time period was discussed but staff assumed that since under the first sentence of the September 13 draft the surcharge percentage can only be changed once every two years that the Board did not intend to change it within the first two years of first establishing it. For that reason, the provision within the parenthesis was inserted. Assuming the staff incorrectly interpreted the Board's intent on this point, the language within the parentheses can be directed to be deleted. BFI-Acme's representatives indicated that they object to a deletion of the two year language contained within the parenthesis. 3. Pages 19 and 20, § 6.4 "Initial Surcharge." In the September 13th draft presented to the Board for this § 6.4, there were three surcharge arrangements proposed for Board of Supervisors consideration. None of these three alternatives were individually accepted by the Board. Based upon what staff believed were the Board's September 13 determinations, revised § 6.4 was developed as indicated on attached pages 19 and 20. During the course of the committee's Thursday consideration, it appeared that there was general consensus that revised § 6.4 appeared to generally reflect the Board's September 13th action with the following exception. Section 6.4b "Funding of Programs from surcharge" has been interpreted by staff and BFI-Acme's legal representative that any agreement defined mandated program fees could be established and levied at the Board's direction in excess of the 25% surcharge. But since the term "mandated fees" does not expressly appear within subsection b. of section 6.4, it was proposed and appeared to be accepted by BFI-Acme that a sentence should be added to the end of this subsection b. as follows: "Notwithstanding any other provision of this subsection or agreement, any Board of Supervisors' directed mandated fees (including among others any state fixed and required fee, local enforcement agency established fee and AB939 fee) may at the Board's direction be collected for the County in addition to any established surcharge percentage." Further concerning § 6.4a., a view was expressed during the Thursday meeting that even with a 25% surcharge on the proprietary rate charged at the Acme Transfer Station, this may not provide the amount of fees desired by the County for various programs because of assumed factors such as a significantly lower Acme charge for use of the transfer station or reduced operations. Though not expressly before the Board of Board of Supervisors 3 October 28, 1994 Supervisors on September 13, it was proposed on Thursday that some consideration should be given to providing in the franchise that should the 25 percent or other surcharge rate fail to provide a specified annual minimum sum of money than BFI-Acme would be obligated for a fixed dollar amount ($6,8,?) per ton handled. BFI-Acme representatives indicated they could not agree at this time to that concept. No discussion was conducted as to what minimum amount per ton might be appropriate. 4. Other Revisions. As noted, it appeared to staff on Thursday that as to the other revisions made to the September 13 draft and before the Board on October 10, they reflected the Board's September 13 directions. At your meeting on Monday, October 31, 1994, we will provide you with copies of the complete text of the Transfer Station franchise agreement before you on September 13th and a complete copy of the strike out and overlay revised September 20 version of it. It should be noted that the Committee on Thursday give consideration to the Keller Landfill site franchise agreement which will be reported to you at your meeting on November 1, 1994. Finally, attached is a copy of an October 27, 1994 letter from Tom Bruen which .states his client's position on the franchises current status. VJW:df attach. by the County under this provision in accordance with Section ,( 11of this Agreement. Section 4. 18 RECORDS. Operator shall keep separate and accurate records for the Transfer Station as reasonably directed by County for purposes of administering this Agreement. The County may, at its own expense .(which may be recovered as a Solid Waste program cost) , at any time during the term of this Agreement, have the books and records of the Operator examined for the sole purpose of verifying Operator's compliance with the requirements of this Agreement. County shall give thirty (30) days ' written notice to the Operator in advance of such examination date. Section 4 . 19 HOST COMMUNITY. Eemit to the Gounty, a hest eemmunity mitigation fee in the affigunt as part of the SUEGhaEge en all selld waste delivered to the TEaas_€eESt-atlw n<.::;::;<.;> :^:::.::.ii::i.iiiii`:'::Ciiii;ii}i....::•::�:::'.iiiii:•:iY.:::i:•iiiiii:i.::'.i:ii::.::.i:.i?iiiiii::is?^:^:?i::i:::::..n::::r::i:.:Y`::•::::::<'i:' i:•:;::..;F:�:.:i':,::i i::::'i:::i'i::i::i:::::ii:i':::i::i'L::�':.i:.i::'::i'::.: ::;}.: (�. �lKi::i'.: .:5::::i..' i .:}'i•.:.• .KR►.•I ..T1M .T�..:: •:.: :.::::: ...........X..:.:..... ^I,.,............::: ... ::: 11Nf.:..:.::::n...........:.............v...v.........::..::.:....... ..vv:.........:...v..............:.. ........, ......................................................................................................::.............:...............................................:.............................................................................. �' .. ....'..'�..::i:::.'�..r�::t::::•:::�'.:ii:::.�::i'i::::�:'::�yjt::Sii:i'?+::.-jaa:•:: iii:::i?i'ii...::.:i.:.::;.� i'.'�.1.'�.:y{�}��'��}.::::Ya:>.}��..�.�•�::::::::���':}Z'.:::i::::S::S:.:i:::'�'�'..::::::i. .i.�.�.��..•.�...'.�..i::i'i(iyyii�:.S>..:i.L:.':.��.:��.:•.::v�.�....�.,:{.M. . '.::i�� �.:::�#f.::�� � 1M���M• � }� �.�M[ �K���.� .:n�;MIH.�.�l{�1TlT�.:t��.v:��.ti. y� �J1'i.�.S—ifi::.'::�::-��:::3:��:���v2:. ::2;;:;j'%:;: '.:.:.is': :;;: :::;.:::.::... v:^���4:i:1I.•.��l AF7A�i��#i?:�eti:� }%t�f:�'Ss ::::::�:{!►i r: ..................... .................................................................................::.............:::::.......................................................................................................................... .................................. t ARTICLE 5. PERFORMANCE OF COUNTY Section 5. 1 GATE FEE COLLECTION SYSTEM. The computerized September 20, 1994 -17- DRAFT Gate Fee Collection System, which shall be provided by Operator in accordance with Section 4 .6 of this Agreement, shall be approved by the County, which approval shall not be unreasonably withheld. Section 5.2 INSPECTION OF SCALES. The County may, from time to time during regular business hours, inspect the scales and test the accuracy of same. ARTICLE 6 . RATES Section 6 . 1 PROPRIETARY RATE. Except as provided in Section 6.7, the Transfer Station Proprietary Rate shall be determined and established by Operator at its sole discretion. Notwithstanding section 4 . 11, it is understood that the Operator need not charge a uniform Transfer Station Proprietary Rate to all customers, but may vary the Transfer Station Proprietary Rate as between different customers based on various factors determined by Operator, including, but not limited to, the quantity and type of waste delivered by each customer to the facility and whether each customer has entered into an agreement with the Operator in which the customer agrees to deliver some or all of the customer's future waste stream to the Transfer Station. Section 6.2 SURCHARGE. The County may determine and establish at least once every two years, effective on the date ........................................................................................... determined by the Board of Supervisors, <> ....; :<» , . iyts . et Pg .thca . September 20, 1994 -18- DRAFT e; a Obi f4. t the Surcharge, which shall be added to the then applicable Transfer Station Proprietary Rate, and collected as part of the Gate Rate. Operator will be provided at least ninety (90) days written notice of any newly established Surcharge. In the absence of the County establishing a particular Surcharge amount, the Surcharge to be collected by the Operator for the County shall be thirty percent (30%) of the then applicable Transfer Station Proprietary Rate. Section 6.3 GATE RATE. The Gate Rate shall consist of the ON e e Surcharge ur Rate Mandat d Fees, S c and disposal costs. Section 6 .4 INITIAL SURCHARGE. #911000 OWEffective on the effective date of this Agreement, the Surcharge shall be ` ' . ;....... ::.:::.;.;:.;:...;:.; he<:<: b ... ...... ..a1....s c .. ...... . s.... .... . ..... u .. AW do IV ism ua IPA . ? .. ,cd..... .te u� + d::; ;:::.:::::::.�::...:.::::::;:::-.i>:,.,:w;:..>i>:.;>:� .: {,.,1� {� �w v� �y�w y �y wry '1t:r: ::::::` ':4"� .......+.... i:...:...�.......Jr.54....e!.a4:.....4!,. .����....���....�1t�i.�Q��.�n.4i..":e.:7 ...........:......... t >: #? 1 Al >:r«`. ..... September 20, 1994 -19- DRAFT .......:.:::.::. :.; ................... : ad:::pins..:. n ... q... #Gide :: :::: td... .::: u ................ ....... c , osS,dei« .; p .# t � a. .,as :::::::::g.::::::::::::.:::.:::..::X::..:.:.:..::::::.::::::.:.::::::::. .:.:::::. :.::.::::.:.. . Vii:; Agy] .�yac..::ay: t +pd. : : : .x.;:;.: + t : ::�:::.: :.:.:. : :: t,. a : .�:.:::: :4 :0.0. Section 6.5 CONTRACTS. For all contracts entered for the delivery to and receipt of Solid Waste at the Transfer Station, the Surcharge applicable at the time of the contract shall apply for the term of said contract. The parties agree that any later established surcharge amounts shall not apply to waste received pursuant to such Solid Waste contract for the term of said contract. Operator shall advise County of any contract subject to the privileges of this section immediately upon execution. Operator shall provide County with any and all information requested by County concerning any such Contract, including providing County with copies of such contracts upon request. Operator shall also provide to County upon request, copies of all contracts for the transportation (hauling) and/or disposal September 20, 1994 -20- DRAFT 1J-27-1994 12:48PM FROM TO 96461078 P.02 BRUEN & GORDON A PROFESSIONAL CORPORATION 1990 NORTH CALVORNIA uovLEvARO Su/TQ 606 WALNUT CREEK,OALIMRNIA 94$96 49103 295-3031 FAX(5101 265.313?, October 27, 1994 VI_FACSIMILE AND MAIL, Victor Westman, Esq. County Counsel County of Contra Costa 651 Pine Street, 9th Floor Martinez, California 94553 Re: BFI Permanent Transfer Station/Keller Canyon Landfill Franchise Agreements Dear Mr. Westman: The purpose of this letter is to advise you that, notwithstanding the purported resolution of the Board of supervisors on Tuesday, October 25 concerning the franchise agreement for the BFI Permanent Transfer. Station and the amended Kellar Canyon Landfill franchise agreement, it is the position of Browning-Ferris Industries that those agreements are in full force and effect and constitute binding obligations of Contra Costa County and BFI. We intend to meet with the ad hoc subcommittee of the Board of Supervisors this afternoon at 2:30 p.m. and to attend the Board of Supervisors hearing Monday morning to consider any request the County Board may wish to make regarding proposed amendments to those agreements. However, please be advised that in attending these meetings BFI in no way waives its legal right to insist on full compliance by the County with all terms and conditions of those existing franchise agreements as approved by the Board on September 13, 1994. Very truly yours, Thomas M. Bruen TMB:j c f cc: Mr. Dennis Paul Fenton TOTAL P.02 CONTRA COSTA COUNTY COMMUNITY DEVELOPMENT DEPARTMENT DATE: August 17, 1994 i TO: Val Alexeeff, Director, GMEDek FROM: Belinda Smith,"Senior Planner i SUBJECT: INFORMATION ON RATES FOR THE ACME INTERIM TRANSFER STATION AND THE ACME LANDFILL I Summary This is in response to your request, on behalf of Supervisors Torlakson and smith, for information on rates for the Acme Interim Transfer Station (Acme ITS), the amortization of the Acme ITS investment capital, and disposal at the Acme Landfill. 1. We understand that the amortization of investment capital for the Acme Interim Transfer Station, through the Acme ITS rates, concluded in December 1993. The per ton cost included for amortization remains in the rates but most likely has been offset by C.P.I., fuel costs, worker compensation, the recent increase in Household Hazardous Waste (HHW) Fee and other associated costs. 2. The Transfer Station rate structure was developed in 1989, at the time emergency export to other counties began. Due to settlement efforts for closure/post closure funding of the Acme Landfill, Acme and the County have not requested adjustments to the Acme ITS rates. 3. The County does not have mechanisms in place to rate regulate the Acme Landfill. Acme Landfill has charged "transfer station rates" since 1989. Acme Landfill has also charged a gate surcharge of$8.63 to all customers, except franchise haulers, per Board of Supervisors approval. 4. Stage 1 of the Acme Permanent Transfer Station has been completed. The transfer facility could begin operation on September 7, 1994. On June 7, 1994 the Board of Supervisors eliminated the floor on the rates for the Keller Canyon Landfill and the Acme ITS. Provided below is a summary based on file information: a brief description related to direction by the Board of Supervisors on the Acme Landfill and of the rate setting history of the Acme ITS. More detailed information on the Acme Landfill and 1 rate setting can be obtained from County Counsel. Overview: Disposal at the Acme Landfill Supervisor Smith's question related to the rates currently charged by the Acme Landfill and how those rates were established. The County does not rate regulate the Acme Landfill. Previous to Keller Canyon Landfill, franchises and rate regulation were not included as conditions of land use permits. The rates historically set at the landfills were a reflection of market demand, but beginning in the early 1980s were driven by regulatory requirements. In January of 1989, in response to new closure laws and regulations, Acme raised its rates from $25 a ton to $41 a ton to collect funds for closure. This action appeared as an item before the Board of Supervisors on April 11, 1989. The Board of Supervisors requested Acme not to make any rate changes to the rates until the completion of a study by Touche-Ross on Acme Fill closure/post-closure cost justification and payment means. On August 15, 1989 the Board of Supervisors referred to the City/County Memorandum of Understanding Committee on Export the issues of assessment and collection of closure/post-closure. The Revised November 28, 1989 Touche Ross report on the Interim Transf,;r Station Policies and Rate Review stated that the County had elected to assess each city proportional to its use of the landfill through the franchised hauler. It also stated that closure/post closure, and if applicable, landfill costs would be reported with the Acme ITS rate application. The Board of Supervisors subsequently adopted the Touche Ross recommendations. It should be noted that Condition of Approval 15.4 of the Acme Transfer Station Land Use Permit allows for closure/post closure costs to be collected through the transfer station. When the County started export of MSW to the Potrero Hills and Altamont Landfills, the rate established at the Acme ITS became the rate Acme Fill Co. charged for disposal at the Acme Landfill. The chronology of the rates at the Acme ITS is summarized below. Essentially, a lower price charged for disposal at the Acme Landfill could have resulted in cities or haulers demanding the lower rate. Rate Overview: Acme Interim Transfer Station Supervisor Torlakson's inquiry related to amortization of investment capital and' if it was included in the current rate. The last rate review of the Acme ITS occurred on November 24, 1992. At that time the amortization period was extended from June 1993 to December 1993. The rate set included amortization of$1.16 per ton. It is our understanding that the ITS is now paid-off. However, there are several other factors now affecting the rate that offset the continued collection of the per ton cost of amortization. Those factors include adjustment to CPI, increases in fuel cost, worker compensation, the recent increase in HHW fee (from $.41 to $2.12), etc. which would be considered in current and future rate reviews. Rate Review Chronology 2 v The Acme Interim Transfer Station started operations in December of 1989 as a requirement of emergency export to Alameda and Solano Counties. The initial rate set for the Acme Interim Transfer Station was approved on December 5, 1989 for $52.22 per ton. The rate methodology set a 31 month amortization for the ITS. The cost per ton of the amortization of invested capital was $4.32 per ton. The operating ratio was set at 95%. The disposal rate (including mitigation fees to Alameda and Solano Counties) included in the transfer station rate was for export to Altamont Landfill and Potrero Hills Landfill. Although included in the Acme ITS rate application, closure/post closure assessments for the Acme Landfill were not allowed as part of the rate since other options were being explored at the time to handle closure fees. Since the rate was based on projections prior to actual operations, the Board directed Acme to file a rate application in time for a one year rate review. Other fees included in the rate were the per ton AB 939 fee of$.95 and the LEA fee of$.25. The AB 939 fee had been imposed by Resolution No. 89/738 on all disposal sites and transfer stations, including the interim station. The LEA fee was already being collected at the landfills. Acme disagreed on the operating ratio and the length of amortization. On January 16, 1990 the Board of Supervisors reconsidered the Acme rate. The matter was deferred to January 23, 1990. The Board did however, impose a gate surcharge of $8.63 per ton assessed to all customers. except franchised haulers, at the Acme ITS. These customers pay a prorated rate of the per ton fees plus $8.63. The Acme ITS rate approved by the Board of Supervisors applied to the franchised haulers. Although not directly applicable to the Acme Landfill, the rate approved for the Acme ITS was applied to Acme Landfill. Although unwritten it was important that Acme not to make a distinction as to where waste was being landfilled since there were differences in tip fee at the three landfills being used. On January 23, 1990 the Board approved a change to the operating ratio and amortization of the Acme ITS. The operating ratio was set at 93.4% and the amortization was extended to 37 months. The Board also reaffirmed the previously approved rate of $52.22. As directed by the Board, Acme submitted a rate application for review proposed to be effective January 1991. On December 18, 1990 the Board of Supervisors approved a rate of$59.68 to be effective January 1, 1991. The rate increase was due to increased regulatory fees, operational costs, lower than anticipated volumes, and hauling contract changes. The rate did not include closure/post-closure surcharge for the Acme Landfill since a Pledge of Revenue Agreement for historic Acme users was being reviewed by the Internal Operations Committee. Acme was also directed to submit a mid-year rate application. A significant issue for future costs included put- or-pay requirements at the receiving landfills and resulting revenue deficiencies (the Export Agreements were sized to accommodate all Central County wastes, but not all was being sent through the Acme ITS. The export agreement with Alameda County ended December 1991. As of December 1991 the cost of disposal for Altamont in Alameda County was $21.25 per ton tip fee plus $6.10 mitigation fee. The cost for disposal at Potrero Hills in Solano County was $23.15 per ton tip fee and plus $8.25 mitigation fee. The rate used for disposal costs at the Acme ITS were a 3 Y blended rate of Potrero and Altamont. The amount of tonnage being disposed at the Acme Landfill was limited, approximately zero to 30-50 tons a day of hard to handle material while both export agreements were in effect. The rate charged for the Acme Landfill was the same rate as the transfer station, $59.22 per ton. Technically, all material passed through the transfer station, from the transfer station floor waste was sent to Altamont, Potrero, or Acme. On December 3, 1991 the Board of Supervisors approved a rate of$65.69 to be effective upon approval. Acme ITS was also directed to submit a mid year rate application. It should be noted that the rate recommended by Deloitte & Touche was $71.61. In 1992 the rates were adjusted twice for the Acme ITS: the first occurred on May 12, 1992 in response to the tipping fee set for Keller Canyon Landfill which had just opened. A subsequent rate was approved after the aforementioned rate review in November 1992. In both instances fees for closure/post-closure were not allowed. The rate set on May 12, 1992 for transfer and disposal at both Keller Canyon Landfill and Potrero Landfill was $77.07 per ton. The change in rate was to adjust for the tip fees established at Keller Canyon and to provide direction to Acme regarc:ing export to Potrero Hills Landfill. Solano County had allowed accelerated disposal after the Altamont Agreement with Alameda county expired in December, 1991. The Board directed Acme to limit the amount of export to Potrero Hills Landfill to 242 tons per day to meet the minimum put or pay. At this time the LEA fee was increased to $1.00 per ton and the Household Hazardous Waste Fee was added at $.41 a ton. The Keller Canyon Landfill interim disposal rate was set at; $33.00 per ton; County surcharge of $3.30 per ton; open space/ag, transportation, host community mitigation fees at $2.00 each; and a $.75 State Eastin Fee. Solano County had raised the rates at Potrero to $25.50 per ton tip fee and $9.65 per ton mitigation fee. The Solano County franchise fee was unknown. Since the agreement with Solano County had not yet expired, continuing export to Potrero allowed for a blended rate which lowered the overall rate. The second rate adjustment occurred on November 24,1992. The rate set after a rate review was $75.97 per ton. In the interim a rate at Keller was set for $38.40 per ton. The rate set was based solely on the Keller Canyon Landfill disposal fee since the rate was effective after termination of the inter-county agreement for export to Solano County. Export to Solano County, under the agreement, stopped on December 8, 1992 when the tonnage cap was reached. It was at this time the amortization of the capital cost of the Acme ITS was extended from May of 1993 to December of 1993. Extending the amortization period for the Acme ITS reduced the rate by $.73 per ton. The actual per ton amortization based on the extended time period, was $1.16 per ton. cc: Chuck Zahn, Community Development Louise Aiello, Community Developement County Counsel 4 CONTRA COSTA COUNTY AUG 2 6 1994 GROWTH MANAGEMENT Af "O u L NEZ CAALIF. ECONOMIC DEVELOPMENT AGENCY DATE: August 25, 1994 TO: Members-Board of Supervisors FROM: Val Alexeeff, Dir SUBJECT: Acme Fill Transfer Station Recently a number of questions have been asked about Acme Landfill temporary transfer station and permanent transfer station. Community Development staff worked with County Council to provide answers. Please review the response. Previous answers have prompted follow up questions so, if you have additional inquiry, please do not hesitate to let us know. VA:d c:acmeques.t8 ATTACHMENT cc: P.Batchelor,CAO L Fujii, County Council C.Zahn,Community Development L Aiello,Community Development S.Smith, Community Development Dr.B. Walker,Health Services It Partial Text of item 2 . 3 from September 13 , 1994 Supervisor Bishop: I would like to respond to the $2 . 12 and then some other comments . The $2 . 12 Household Hazardous Materials . I think some months ago, it was represented to us by various cities that they would assume that responsibility. I don' t think we can decide that today. I think that is something that would factor into our considerations however. I want to share with you again. I hear and I can understand Mr. Aiello' s concern when the expression by staff is we want to help BFI . I think one I don' t know what was going on in someone' s mind when we wrote that, but I think what we really want to do is two things . One, we want the most important thing we want to get the rates in this county down and that' s a bifurcated process that has to happen with Keller. It has to Keller/Acme and it has to happen with us . I think you know the comments by Miss Fanden and Mr. Schroder that we do have a landfill that is state of the art . We want to keep Keller viable and it is clear that the message has come out from the cities . One of the other reasons frankly that I want us to do something today is the Central County JPA and the cities therein have asked us to do something today. And I didn' t hear them wailing and screaming. I've heard them week after week, month after month, asking us to do something about our rates and I think we really have to act now. I am in concurrence with Miss Fanden when she says she doesn' t think the issue is particularly complex. I don' t think the issue is very complex. I think it is numbers . I think there are policy issues that require working out . As far as the mitigation fees . The six dollar mitigation. The two and two for open space and transportation. That is before the Planning Commission. I think there is legitimate, there is merit for a mitigation fee. I think it is very important . I am convinced it is a state of the art landfill but at the same time, I don' t live next to the landfill and I think we have to insure that there is something there that protects those communities, that gives us a source of revenues to mitigate those impacts . It may not be physical impacts . There are intangible involved. I frankly wouldn' t want to live next to a landfill . I think the preferable most people would say landfill in Pittsburg. If they have a landfill we should compensate for the intangibles inherent in having a landfill in their community. I think that' s very important . I agree . I think you know I hear BFI saying minimizing the risk involved as far as the valuation is concerned but I think we do need to address that . And I think if they are not very concerned about the risks that are involved with the valuation, then maybe they bear the risk. Coming back again to numbers and I must say there' s been no collusion here but it' s interesting. I had some numbers in front of me . I look at the $1 . 34 . That is not only a mandated fee but it is a fixed fee . The remaining fees can go up and down. Some of them are mandated but the amount is not mandated. I believe if we take the $1 . 34 and we make a commitment to get the remaining part of the fees down to $7 . 00 . And I want to assure Nancy Fanden that that' s just not a number that we' re throwing out there . It' s a number that I've given a good deal of thought to. The remaining $7 . Right now we have an obligation for $212 . We have an obligation for $1 . 00 on LEA. We have an obligation for $4 . 00 that the Planning Commission is going to look at tonight and then, we have the additional $2 . 00 . Quite frankly, that does not add up. I think there is no question in my mind that we can move that $2 . 12 at some future point to the cities and to Central San. That that can be moved at some point . I believe that what is left out of the pie, there is a priority for mitigation, host mitigation and if there' s someone that comes in on the short end of the pie I think it' s going to have to be the County and its franchise fee . I think the LEA fee if other counties can get by with an administration, with a fee of . 09 in one county and .47 in another county and no AB 939 because they wrap it all in together, I think we can do that as well . I think it is very important for us to look at this in the context of what is occurring now not historically. Now we have a proposal before us ,J 1 •i that we could consummate today of $39 . 00 . I see $8 . 34 which I think is reasonable and I think perhaps it becomes more reasonable and there is a benefit to the County if that $2 . 12 goes to the cities, then we can look at that and going toward the host mitigation, look at it going toward the franchise and I think at this point, I have a question, can we simply say $7 . 00 without breaking out where that $7 . 00 can go and we wait to see what happens with the Planning Commission but we can set what our priorities are, that number one priority out of that remaining $7 . 00 is host mitigation with what is remaining to be and then a $2 . 12 that we have a commitment to, the remaining amounts go toward the County and that the County will have a responsibility out of that remaining amount for LEA and 939 . Other counties are doing it that way and to me I'm not a genius at mathematics but I do know that 100 percent or 50 percent of something or $8 . 34 percent, $8 . 34 as a portion on a ton is better than $16 . 00 which is where we' re close to right now of 0 . $16 . 00 on 0 tonnage . And I think that' s where I'm coming from. I would look for support from the rest of the Board. I would prefer, I will make that a motion. I look at the franchise agreement and on page 19 under 6 .4 . This is for the Landfill . Page 19 . That we set out and I've looked over the alternatives, number one, two and three which are, Jeff, very complex. To me, the 1 . 34 to the Eastin fee with a $7 . 00 setting forth priorities that number one priority is mitigation fee, second priority being the $2 . 12 that we are . currently required to pay. The third level of priority being those mitigation fees that are considered with the land use permit and then the franchise fee so it' s incumbent upon us, that' s the end of my motion, it' s incumbent upon us to move as much as we can out of that $7 . 00 . The 2 . 12 . To reduce the transportation and the open space if not eliminating it or hopefully the Planning Commission will address that or maybe I'm understanding from Mr. Zahn that we can consider that in a different context . That it doesn' t necessarily have to be involved with a land use permit . Supervisor Powers : Did anybody write that motion down? You have it on tape . Okay, well let' s see if we get a second. Supervisor Bishop: The motion would be to reduce our mandated fees and surcharge to be all inclusive with or at $8 .34 . $1 . 34 for the Eastin Fee, the remaining $7 . 00 to be allocated as follows . Number one priority going toward mitigation, host mitigation, the second being the $2 . 12 Household Hazardous Waste which may be considered at some future point to be assumed by the cities . The next tier would involve the transportation and open space mitigation fees that are under the land use permit with the final tier being a county surcharge or franchise out of which LEA and AB 939 are paid. Supervisor Powers : Is there a second to that motion? Supervisor Smith: If I understand, that' s even more of a cut than BFI is asking for, right? Supervisor DeSaulnier: No. Supervisor Smith: Because they' re saying $8 . 00 excluding the State fees, right? $8 . 00 including the state fees? Supervisor Bishop: I think it is exactly what they asked, Jeff, because I was surprised I had it written down on my paper. Tom Bruen: The suggestion made by one of the negotiators for the Solid Waste Authority was $8 . 00 total on all County and State fees . Supervisor Powers : Okay, second to that motion? Hearing no second, let me let' s try to clarify this thing that you gave us . There are some changes across the board. $1 . 34 for the Eastin 2 fee is changed correct and that' s in all three counties . And then in our County, we eliminated the $ . 80 for the 939 to the cities already. So, that' s off . That would make a grand total in fees for Contra Costa County of $13 . 79 . That' s what I compute. I 'm trying to get feedback for you. Alameda County would be $14 . 73 and Solano County would be $9 .46 with the increased Eastin fee . Supervisor Smith: Mr. Chair, can I ask some questions? I notice Sue Rainey there and Herb from the JPA and I wanted to ask what effect San Ramon' s actions will have on the future function of the small JPA if somebody could answer that . Answer: None. Supervisor Smith: Nothing. So, am I misunderstanding then that San Ramon' s going to franchise separately for San Ramon and then the JPA' s going to franchise differently or in a separate situation. Answer: From audience. The actions taken by San Ramon and direct by Solid Waste. . . .was taken under the current existing franchise agreement . . . . Supervisor Smith: So, that' s just for 16 months . And the franchise that the small JPA is considering is to take over after that 16 months this time. Correct . Okay. Supervisor Powers : I wrote down some issues and so we can begin trying to vote yes together, I thought I would take begin with the simple issues that have arisen. One is that Mr. Bruen asked to have ACME a party to the Keller Franchise agreement . Is that a problem. Mr. Bruen asked to have ACME a party to the Keller Franchise agreement, didn' t you ask that? Vic Westman: No, BFI would still be a party in effect and would still be responsible . . . . Supervisor Powers : Maybe you can clarify that . I didn' t understand what you said Tom. Didn' t sound like a big issue but . Tom Bruen: No, it was not to the Keller Franchise, it was the permanent transfer station franchise. Because they' re the landowner, it made sense to obligate themselves to the franchise and not just obligate the tenant but rather obligate both. Supervisor Powers : Is there a problem. . . Supervisor Smith: That' s a great idea. I move that . Supervisor Powers : Okay. Motion and a second to add that . Is there any discussion. Hearing none, all in favor of the motion, signify by saying aye . Passes unanimously. And provide in the Keller Franchise agreement some provision to implement the valuation issue, that' s the least controversial one that I could find next in order. Is there some . . . Supervisor Torlakson: I would move to direct staff to add language and make it a BFI obligation if it' s a cost . . . Victor Westman: Well, first of all, could I indicate staff has not completely failed. The franchise does say that the franchisee will comply with all the conditions of the land use permit unless they' re varied somehow and the land use permit does have a condition that says when the program is adopted by the Board, the landfill operator shall comply and fund it in the manner specified by the Board. So, I mean we have covered it in that sense . Supervisor Powers : Do you think that' s strong enough to get the 3 message across or would it be better if . . . Victor Westman: Well, if you wish we can certainly provide in there they' ll fund it but I think it has to be appreciated that that will be a cost that will somehow be passed on. And I'm not arguing against the condition, but I think there' s sort of a misconception. You dropped out of rate regulation. Therefore, they will add that I'm sure at some point to their cost if that is a cost and you will remember if you were still engaging in rate regulation, you have to insure that you provide a rate that is not confiscatory, therefore that would be an item that would be reflected in determining the cost for a rate . Supervisor Smith: I think it' s important from looking through what happened before I got here . It was clearly the understanding I think from at least reading the paperwork that when rate review happened if there was some valuation detriment , that was required to be paid, it would be included in the proprietary side of the scale and set by the Board in order to pay back those people who lost value. And so it seems to me we should at least make it clear that the County is not going to set another fee in order to pay for that and that the repayment that is due based on the valuation study is considered by the Board to be a cost of doing business . Supervisor Powers : That' s a second. Supervisor Torlakson: That was my motion and I think it' s important to get that clarified because if we are in a competitive rate environment, that leaves with the language Mr. Westman read, and I'm glad we have that for the record, but it leaves an uncertainty an open endedness to the issue . Where the motion that I made and that Jeff' s clarified so well would pin that number down so it' s not an uncertaintied variable that different cities have to look at . Well maybe we' ll get hit with you know some kind of new fee sometime in the middle of any kind of term of a waste commitment or a wastestream rate allocation. Supervisor Powers : Let me just get if there' s a motion and speakers, you made the motion to include it as a part of the proprietary rate and you second that . Okay, go ahead. Supervisor Bishop: I have problems with that because I'm listening to Mr. Westman' s co you know the language sounds like we' re adding another indefinable here and there is a point which we can define it and I think the part that there' s uncertainty is over our fees not over this element of our fees . I think if we would you read the last part of that again for me, Vic, because it sounds to me it' s like at some future we will agree depending upon the appropriateness of who bears the cost . I think the appropriate of who absorbs the cost kind of is contingent on what the actual amount is and as a cost of doing business if we' re talking about $39 . 00 instead of $77 . 00, the ability and word you used was confiscatory, there' s a potential for being confiscatory, if we inject that as well as fees that are in my mind excessive, so we' re combining excessive fees with having them bear the total burden of this cost as well . Victor Westman: If I understand what Supervisor, I think the point Supervisor Torlakson was making, if I understand it correctly, is that whenever that amount is determined, it will not be borne within the County, whatever $7, $12 or $13 and it' ll be the responsibility of the operator to fund that either through the proprietary rate or otherwise is that correct . Supervisor Torlakson: Yes . Supervisor Smith: Right . And since we' re not regulating rates, they can increase their proprietary rate to pay for that but of course that' s a business judgement they will have to make . 4 Supervisor Powers : Okay, we understand the motion. All in favor of the motion, signify by saying aye. Those opposed. Passes unanimously. Okay, we did that . Did the request . There was some concern about the providing in the franchise agreement for Keller that at some point in time the Board be able to impose the $2 . 00 ag and transportation fee which we are recommending be suspended at this point in time to the Planning Commission but that and you' d raised that Tom, is there desire to add anything to that franchise agreement to insure that it' s not only in the land use permit but also in the franchise agreement which is the arrangement that regulates fees . Supervisor Torlakson: I think some reference in the franchise agreement would be appropriate . I think there' s a major question that I don' t have answered yet in my own mind and I need Counsel' s guidance on it and the benefit of the public hearing process at the Planning Commission as to whether it' s appropriate to take those out of the LUP or to restructure them in some other way that guarantees nonetheless that the community would still receive the $6 . 00 that they have currently received as mitigation. So, how that' s best done, I'm not exactly sure and what the best mechanism for that . Victor Westman: Well, if I remember correctly the LUP requires that $2 . 00 for open space and $2 . 00 for transportation be paid and there isn' t any discretion to vary that at this point and when this matter does come back to you, you're going to have the discretion to amend the Land Use Permit and that discretion could be that the fees will be whatever you fix them to be for those two items but not to exceed $2 . 00 per ton or its equivalent . I mean that discretion will be available to you when that comes back if it' s next week. Supervisor Powers : So, the idea would be to put a provision in there that we reserve the right to do it in the franchise agreement if it' s varied in the land use permit . Victor Westman: Well, the land use permit will still provide that those fees will be paid but at the amount you specify by some subsequent action, either in the franchise agreement or some other way. Part of I think your endeavor here though is at some point to fix the total parameter of what all these costs are going to be for certainty for the operator but to answer Tom' s question, you' re going to have the discretion next week or the week after. You don' t have to eliminate the ability to collect those fees completely from the LUP. You can simply give the Board discretion to be able to charge less than $2 . 00 a ton and that discretion will be exercised either as part of the if you so chose the franchise agreement whenever you fix the total amount of fees whatever they' re going to be for that . Supervisor Powers : So, is one of the alternatives in the franchise agreement sufficient to cover that . Victor. Westman: Yes, well we do say we can add something but I think we also at some point before we can finalize writing all that, we have to know what you finally do. Supervisor Powers : Right . Okay, fine very good. Supervisor Torlakson: And just to register again my concern. I am concerned about changing that $6 . 00 amount and that is an issue that we have to debate subsequent to the hearing process that comes up. . . Victor_ Westman: Well, now remember the host mitigation fee only appears in the franchise agreement . Okay. Supervisor Smith: Can I make a motion about something we might agree on. 5 Supervisor Powers : Sure . Please do. Supervisor Smith: In the transfer station franchise agreement on page 23 , well 22 and 23 , the issue of self-haul rates . I strongly believe we should use something similar to alternative two which says that essentially the self-haul customers will be charged no more than the market rate and what I would suggest is that we modify the language to say notwithstanding 6 . 1 the gate rate charge to customers delivering less than one ton of solid waste per day shall not exceed the average of the charges of all other landfills and or transfer stations providing the same service in Contra Costa County with similar customers . So moved. Supervisor DeSaulnier: Second. Supervisor Powers : There' s a motion and a second to provide that language in the self-haul section of the ACME Transfer franchise . Any further discussion. Supervisor Bishop: I do have some questions . Alternative two, you say it' s similar to alternative two. Supervisor Smith: Yeah, I just excluded Solano and Alameda counties . And included transfer stations in addition to the landfills so that essentially it' s saying it has to be the average or in the market for self-haulers going to other landfills or transfer stations in Contra Costa County. Supervisor Bishop: Their gate rate? Supervisor Smith: Um, humm. Self-haulers . Supervisor Powers : Further questions . Hearing none, all in favor of the motion, signify by saying aye . Those opposed. Okay, passes unanimously. You had mentioned Jeff also host community mitigation in relationship to the ACME situation. Supervisor Smith: Okay, that' s on page 16 of the transfer station franchise agreement and the way it' s written here, it' s an amount to be paid out of the total surcharge and I would suggest that it should be $2 . 00, so I' ll make that motion. Supervisor DeSaulnier: Discussion. I'm a little concerned that we' re going to get up past the $10 range by going taking these thing incrementally. I mean is it the point and can we get to it by doing what you' re suggesting, Jeff, but still get to a cap as Supervisor Bishop has tried to do. Supervisor Smith: Well, I have an over-all suggestion. I don' t know if people will like it . Supervisor DeSaulnier: We' re going to have to face it sooner or later. Why don' t we get to the cap now and work backwards . Supervisor Smith: The overall suggestion. Oh.Oh. Well, I think if we go back to the origin of the fees, this will at least clarify what I was thinking. I don' t know if the rest of the Board will think it' s a good idea. But at Keller the state fee, the Eastin fee, $1 . 34, should be charged separately as a dollar per ton fee . At ACME, I would suggest that the LEA fee of $1 . 00 and the 939 fee of $ . 15 be charged separately as $1 . 15 per ton as will need to be modified for future action and then I would suggest that the Household Hazardous Waste fee and all other programs which are currently paid for by different fees in addition to the $2 . 00 that I just suggested for the host mitigation be coupled into the franchise and that franchise percentage be 25 percent for both proprietary fees at ACME and Keller. That' ll end up making the total fees $12 . 24 if BFI really reduces it to $39 . 00 . I'd also suggest that 5 percent of that or $1 . 95 be reserved in a trust fund by the County to assure 6 } that we have funding for potential costs of litigation and closure . And that if that is not needed, we' ll be able to refund it to the rate payers. So, I' ll make that motion. Supervisor DeSaulnier: Since you took your calculator, what' s the base rate excluding the closure cost, the trust fund. Supervisor Smith: Well, if the base rate stays at $39 . 00 and there' s no need for the trust fund, that brings it down into $10 . 00 range total . That includes the State fees, the Eastin fee. Supervisor Bishop: 25 percent of $39 . 00 is roughly $10 . 00 . Supervisor Smith: $9 . 75 . Supervisor Bishop: Right and if $2 . 12 goes away. And then you' re talking about, we' re still talking 2 , 2, and 2 . We' re talking about 6 and then you' re saying that $4 . 00 of that, are you suggesting that when. that is reduced by the $2 . 12 if that goes away, that that 25 percent is reduced or are you just suggesting that the County get more of that 25 percent . Which is what basically what I suggested except my percentage amount was less . Supervisor Smith: Well, what I'm suggesting is that the $1 . 34 stay at Keller, the $1 . 15 stay at ACME which is a total of $2 .49 fixed dollar per ton fees, that the rest of all of the programs be paid for out of a franchise which is set as a percentage surcharge of both the proprietary rate at Keller and the proprietary rate at ACME and that that be 25 percent which will end up if they reduce their proprietary rate to $39 . 00, it will end up being $9 . 75 . And that all the other programs, mitigations be paid for out of that money. And then I made the comment and I think it' s important that we reserve a quarter of that, 5 percent essentially for potential costs of closure and litigation and that we be able to refund that to the rate payers if it' s not needed. So that turns out that isn' t a necessity, then it' ll end up in the $10 . 00 range . Supervisor Bishop: Is that a motion? Supervisor Smith: Yeah. Supervisor Bishop: Okay, at this point, I would not be supporting that motion. Supervisor Powers : Well, is there a second to the motion. We might not go anywhere with it . I' ll second the motion for purposes of discussion. Supervisor Bishop: Okay, I will not be supporting the motion. I think you know as a suggestion if I hear no interest in exploring the suggestion, my feeling is the $1 . 15, other counties do not charge an AB 939 and their LEA is much less . It' s absorbed in what the County receives . I would prefer seeing the $1 . 15 going down and being absorbed. I think what we would be doing by this action is not enough. I think I'm not in agreement with Miss Fanden. I think $4 . 00 is too little . I think there is a cost of administration of these programs . I think there is a need for mitigation but I believe I'm someplace between you two folks and it looks like Nancy we' re not going to be good guys today as you said. But I cannot support the motion. I think we are not going down low enough. I think at this number we will continue to see the Central County JPA and those jurisdictions go out of County. Supervisor Powers : Okay, now one thing I didn' t hear was how we handled the $2 . 00 and $2 . 00 on the ag and transportation and I assume that' s I mean we have to consider where to spend that money within this framework. 7 Supervisor Smith: What I was suggesting was that within the 9 . 75 that the Board will then have the responsibility of determining that, those mitigation needs within that amount . Essentially, well, right now it' s all of those numbers that I included together are $13 almost $14 so it' s a bit of a cut . Supervisor Powers : What' s almost $14 . Your motion was $12 . 24 right . Supervisor Smith: Right . It ends up being $12 . 24 if they reduce their proprietary rate to $39 . 00 . Currently it' s 5 . 25 plus 5 . 90 plus . . . Supervisor Powers : Now, is there any minimum involved in that? Supervisor Smith: Actually,we should have a minimum. I' ll leave that for the Board' s discretion. Supervisor DeSaulnier: What a coward. Supervisor Smith: Hey I took the first shot . Supervisor Powers : Okay, we got a motion on the floor. It' s got a second. Is there any discussion on that . Supervisor DeSaulnier: My only further discussion is I agree with Supervisor Bishop. I don' t think it' s enough. We' re getting closer but when you look at not being partners with BFI but looking at who we' re competing with and I realize to a certain degree, we' re comparing apples and oranges, Potrero Hills their County fees are $9 .46 . I think we at least have to be fair and get to that rate and for me I think they should be less than that . And waste is $14 . 73 and if BFI can absorb more costs maybe the charges will go even less . So, . . . 9 . 75 is we' re getting there but it' s not close enough. Supervisor Smith: Well, I would suggest that you know we reserve the right to review these fees in the future. If it' s in the right direction, maybe what we should do is implement this for a month or two months and then reevaluate it and see if we have gone low enough because it seems to me that we' re not going to be able to cut absolutely to the quick unless we know what effect this is going to have on the bottom line, the operation of County programs . Supervisor DeSaulnier: Well, I think we have to make a commitment today Jeff or we' re going to lose even more waste . I mean we can' t just go on ad nauseam like this until those kids are all in college . Supervisor Smith: Okay. Supervisor Torlakson: I think what we' re all trying to do is find a way to get legitimate reasonable approach to doing our share in terms of lowering the fees issue and some accommodation. I think it' s going, to be difficult finding the right combination, the right formula but we' re all headed in the same direction. And I just want to put in context again, the amount of the fees that our county discretion, around $11 . 00, which translates to about $1 . 10 per household per month on your average bill of $22 or $24 per month so our the fees we' re debating here are important but the big issue is the market competition out there is forcing the rates down somewhere you know over $2 . 00 and that' s going to be beneficial . We' re working on the edge that will make some difference in a couple of percent one way or another on the household garbage bill rate and it' s important to try to fine tune that . I had, I can' t support this motion, maybe I don' t understand it all together but I also think it may be a little high in terms of what' s out there that needs to be competed with and I know in several people' s discussions we said 8 the County you know didn' t get into this business originally to set up a cash register for County programs but a lot of those programs by the way are very important ones in the County and they are related to solid waste . We have crews going around in the conservation corps, welfare workers that are cleaning up the roadside dumping, cleaning up a lot of the garbage and litter problems that are part of our solid waste problem in Contra Costa County. If we eliminate some of those fees, some of those programs will disappear and that' s going to be the consequence and we' ll have messier streets and creeks and so forth as a consequence. We may find other ways innovatively to pitch together. I had scratched out on mine the Household Hazardous Waste . Let that go to cities or regional sanitation district efforts or whatever or some other mechanism. So, that was $2 . 00 . I'd taken the LEA and Resource Recovery and cut them both in half . That was another dollar and the franchise fee and rate review added up to $4 . 00 . So, I came up with $7 . 00 by that mechanism in terms of some way to eliminate fees . I guess I'm concerned in the current motion of the lack of specificity regarding the 2 , 2 , and 2 or the various mitigation fees and I understand that would be left for future discussion but I am you know not comfortable at this point with that motion and that way of doing it . Supervisor Powers : Well, Tom, one of the problems is that the LEA program dollar is the amount that is budgeted and likewise the $2 . 12 is what is budgeted, so if you want to eliminate them, be sure that you understand what' s going to happen is it' s got to come out of the mitigation fees unless we find some money elsewhere . And that' s the bottom line problem. It' s easy to eliminate a specific fee but somewhere along the line we' re going to have to put it back in if we' re going to provide the program. So, Local Enforcement Agency program and Household Hazardous Waste Program we all got to be funded. Supervisor DeSaulnier: Excuse me, we won' t have to worry about host mitigation if there' s no trash going there at all . Supervisor Powers : That' s true. Supervisor Torlakson: True the hazardous waste mitigation, well in one sense maybe and in one sense not because there is special waste that will continue to go there . The fact that the landfill is there is you know it' s a state of being, it' s a state of impact . Regardless if you could clear up every environmental issue which is always going to be hard to do, you have the reality no one wanted the landfill in their community because of the image issue and the other impacts of just having it there. and there will still be some waste going. The Household Hazardous Waste just to explore Mr. Power' s comment further. As I understand it again in the earlier discussions where the cities had agreed and supported a proposal on the BFI landfill closure to take that off of the landfill tipping fee and collect that at a different place and I know Delta Diablo is exploring a regional issue where we may collect through the sewer fees the monies to do the household hazardous program and not have it be on the tipping fee and again various counties have done it in different ways . I'm just exploring that may be one way to get $2 . 00 off the table from this discussion. Supervisor Powers : Well, if you put it on the can, then they' re paying the same amount anyway, so you know it' s just putting it from one pocket to the other. You' re putting it on the surcharge . You' re putting it, I mean it' s not like a net savings to the public . If we want the program, we've got to pay for it and if you want to pay for it on the sewer tax, you want to pay for it on the garbage can, you want to pay for it at the transfer station, it doesn' t matter but right now, there' s no other source of money for that Household Hazardous waste program other than what we budgeted in the tipping fee and nobody' s agreed, I mean 9 they talked about it but nobody' s laid anything in writing on my desk that says that, so if we reduce it and we have an overall fee, we have the choice of taking it out of Household Hazardous Waste to meet host community mitigation or anything else. So, I want you to understand that . Supervisor Torlakson: Right . I do understand that . I have discussed with Pittsburg the possibility of collecting it at their transfer station. I mean there' s different places to collect it . I guess the question is is this the appropriate place to collect it or is there a more local place to collect it whether it' s through the regional sewer district or whether it' s through a transfer station. Supervisor Bishop: Could we it would seem simple that we make the amount contingent and say it will be this amount until such time that the cities take over and then it will be reduced by that amount with the understanding that all cities would work in concert . As we've heard today, Antioch has already got that moving in that direction. I think it will happen that maybe we say rather than just saying 25 percent, maybe we put that $2 . 12 someplace else and then make a reduced percentage amount of the rest and maybe you know if you want to work on a motion Mark, have at it, okay. . . Supervisor Smith: Well I wanted to try to still argue for my proposal with respect to the Household Hazardous Waste Program. I think the reason that I think it would be best to incorporate it into the surcharge at this point is because of these uncertainties . We've talked about possibly funding it through the storm water assessment . We've talked about possibly funding it through City franchises . I know that Central San and the mini JPA have been interested in funding it possibly through franchises there or at least funding part of it . There' s a lot of debate about where it will actually end up. Seems to me that if we include it as a requirement at this point to be paid out of the franchise fee that subsequently when we finally find a way to do the program with a different funding source, we have the ability at that point to reduce the franchise or reduce the surcharge and save that money but if we eliminate it now, we' re essentially terminating the program. Supervisor Powers : Did you want to make a motion? Or did you just want to interrupt this discussion. Did anybody ask you a question or did you. . .Okay, does somebody want to ask him' a question or do you want to help us . Supervisor DeSaulnier: I move to call for the question. You've helped us enough. Supervisor Powers : Okay, let' s go a little further in this Household Hazardous Waste situation. There is a desire on the part of many jurisdictions to handle it differently. Right now, we have a County wide program that' s being operated by the County in most areas . Clearly Central San would like to operate the program in Central County from what I understand from their so if we eliminate this funding source, someone will step into the breach and provide the program that' s . . , yes . Supervisor Smith: How bout we make it a one year commitment at this point, so that we' re committing ourselves to find another funding source for the program after the end of the year. Supervisor Powers : Yeah, we do have a program going now, so if we do eliminate that fee the program goes bye, bye . And you recall the public reaction to that when it wasn' t funded or when ACME didn' t pay the bill in central County. It wasn' t very pleasant . The people like that program and they like it did you have a thought, that' s an amendment to your motion. 10 Supervisor Smith: Not . I' ll leave my motion the way it was . Supervisor Torlakson: Trying to understand on one more point . I don' t know. I think the public likes the idea of the program but it' s very, very low utilization as hard as we've tried. It' s a fraction, it' s a very dismal number actually in terms of the number of people actually utilize the program and so there are efforts to reevaluate the effectiveness of the appointment system process that I know Delta Diablo is in the midst of doing that . So, whether we keep it in place until there' s a replacement, I think that' s you know part of this discussion. If you take this out of your numbers Jeff, , what does that leave the rate to be. So, if there' s a replacement type fee put in place by some other mechanism whether it' s a sanitation district . Whether it' s a transfer station surcharge. Or some other mechanism for collection at the household you know point of origin on the haul contract . Supervisor Smith: If we don' t need to use the trust fund for closure and if we find another source for the Household Hazardous Waste, then the fees become $8 . 17 using my formula. Supervisor Bishop: I didn' t get that . Become $8 . 17 . You took the $2 . 12 out . Supervisor Powers : Okay take $2 . 12 out and $1 . 95 out and it becomes . . . Supervisor Smith: $8 . 17 . So using the formula that I suggested if we find place for Household Hazardous Waste, if we don' t need to use the closure trust fund, it' s $8 . 17 . Supervisor DeSaulnier: So if, jump in here and make it more obtuse . And if' it' s $8 . 17 and we did a timeframe where we could give the options to the jurisdictions, we could do household hazardous waste and charge it for the $2 . 12 for the 6 months and in the meantime they could try to find a way to do it . Could we make that as part of the. . 6 months . . so basically what we' re doing is we' re giving the jurisdictions the option to either include the be part of the $2 . 12 we do it for 6 months and they' re trying to find other options . Supervisor Smith: Yeah, we could say let' s do this for 6 months . At 6 months, we' ll reevaluate and adjust the surcharge as needed to address the Household Hazardous Waste and/or the closure costs . Supervisor DeSaulnier: So, it' s $8 . 17 with that added for 6 months and in the meantime, the jurisdictions are out' trying to find other alternatives if they choose . Supervisor Bishop: How did we get down from $12 . 24 to $8 . 17? Supervisor Powers : $1 . 95 and $2 . 12 minus $12 .24 equals $8 . 17 . Supervisor Bishop: Okay, what was the $1 .,95? Could you run that by me again. Supervisor Smith: that' s 5 percent for litigation and closure cost trust fund. If we don' t need it, we refund it back to the public . In reality, that' s to me if we get tagged for some closure costs, and litigation fees, public obviously is going to have to pay it . All we' re saying is let' s keep it apart for the moment until the case is resolved. So, you' re saying Mark, let me understand, you' re saying go ahead with the proposal that I suggested, reevaluate in 6 months with the intention to drop out the household hazardous waste and closure fees if we can based on new information at that time . Supervisor DeSaulnier: Closure fees aren' t going to be part of 11 it is that right? Supervisor Torlakson: Eliminate those now? Supervisor DeSaulnier: Right . Supervisor Powers : Closure fees, eliminate them. Supervisor Smith: The closure trust fund. Supervisor DeSaulnier: So, we' re at 8 . 17 plus the household hazardous waste for 6 months . Supervisor Powers : You don' t want to include the litigation fund is what we' re saying. Supervisor Smith: It just means we' re going to have to pay it out of the general fund someplace. Supervisor Bishop: That 8 . 17, does that you' re not including the $1 . 34 and you' re not including the LEA are you. Supervisor Smith: No, what I'm saying, go back to what I said. What I'm saying is $1 . 34 per ton at Keller. $1 . 15 per ton at ACME to pay for 939 and LEA plus 25 percent of the base rate of both, base proprietary rate, the proprietary rate of both ACME and Keller, all of that combined is $12 . 24 , if their rate is really $39 . 00 and then in 6 months we can eliminate $1 . 95 and $2 . 12 if we can find alternate funding for those revenue streams because otherwise if we eliminate the $2 . 12 now, we eliminate the Household Hazardous Waste Program. If we don' t plan for potential liability and lawyers fees, it' s just going to come out of the general fund. And that' s specifically allowed for us to pay those charges out of the surcharge by reason of the franchise fee and if we don' t need it, we refund it to the public. Supervisor Powers : Okay, that' s an amended motion. Is that right . Supervisor Smith: Yeah, I think that was basically it . Supervisor Powers : Now, let me just ask the question. We are not assuming that we are eliminating the $2 . 00 open space or $2 . 00 transportation. Supervisor Smith: Right . Supervisor Powers : Or the $2 . 00 mitigation. So, if you look at that it may all go to that . Supervisor Smith: Right . It might all go to that . Supervisor Torlakson: I can support it in that context . We' re not making a decision, not having that debate today. Supervisor Powers : Okay, is there any further discussion? all in favor of the motion, signify by saying aye . Those opposed. Passes 4-1 . (Supervisor Bishop voted no. ) And we have that . Now let me see if there are a couple of other things that we missed in the process . Supervisor Smith: Oh, we didn' t make the motions about the Solid Waste Authority. I move that we send a formal letter signed by the Chair of the Board requesting membership on the Contra Costa Solid Waste Authority in a membership status equal to the other members . Supervisor Powers : Now let me just raise one issue with regard to that . Do we want to also indicate to them that we are looking at undertaking the franchising of the unincorporated areas and 12 therefore they should not enter into agreements with the current franchisers until such time as we all sit down at the table and work that out . Because we had indicated that previously to but we had not given formal notice of that . Supervisor Bishop: Let me respond to that . I would prefer just going with the resolution as it' s stated because there are several unexplored issues on the takeover of franchising. We have given notice to Central Sanitary District that we may exercise our right to take over the franchising. I don' t think we want to muck this up at this point . Let's just stick with consider requesting membership and explore that as a separate . Supervisor Powers : The only reason I suggest that is that heretofore the JPA has not really been serious about considering our membership and unless we have garbage to direct and to franchise, we will not be a player in the program because we have just given up rate regulation on the landfill and there is if we do not exercise our authority that we adopted in an ordinance to take over these franchises in the unincorporated areas, there' s actually really no reason for them to invite us to the table . Supervisor Smith: Well, I think we should say don' t franchise our territory without us . Supervisor Powers : Fine . Why don' t we do it that way then. That will probably get the word across . Say that' s included in the letter. Supervisor Smith: That' s included in the letter. Supervisor Powers : Is that okay with the seconder. Fine . Supervisor Bishop: Before we vote can we hear from Miss Rainey. Supervisor Powers : We sure can. Sue. Sue Rainey: thank you. I know you've had along hearing. I will be very brief . I did want to correct one thing that Tom mentioned. Tom Torlakson on the Central San Franchise . Ours runs just about a little between one and two percent because we don' t make any money off it, just cover expenses only. So there would be nothing for us to contribute back to the pot . Having said that, first when we started the small JPA we did invite the County. We had hoped that you would join us and we have worked for the last three to four years on trying to be a cohesive unit to do some good bargaining to get the best rates for our rate payers . I think the cohesiveness of the group having all of Central San' s area, all of Walnut Creek' s and all of the City of San Ramon proves that the American process works . Competition works . When we started as a JPA, we were looking at tipping fees in the 70' s and the landfills could not live with that amount . With the competitive process, we are looking at rates in the 40 ' s wherever we go. We would hope and we are inviting the County to be an equal member within our JPA hoping that it will continue to work with us in a spirit of keeping that as a cohesive unit . Supervisor Powers : Okay, with that we have a motion that' s on the floor. Supervisor bishop: Could we add to that motion, amended to include number one with respect to the Crockett Valona. . . Supervisor Powers : We already did that . Victor Westman: Mr. Chairman, could I ask a question. With your action today though the notices which we gave some years ago that all of these franchises in the unincorporated area would expire in 95 or 96 remain in force and you' re not varying that . 13 y' 1 Supervisor Powers : Yes . Okay, then we' re asking them to be a member and we' re asking them not to execute the franchises without our participation and approval in the unincorporated areas . All in favor of the motion, signify by saying aye . Those opposed. Passes unanimously. Supervisor smith: We need to do one other thing which is we didn' t actually approve the franchise agreements . Victor Westman: Mr. Chair, that' s what I was going to speak to. I assume you' re going to clarify your prior action was to approve the franchise agreements with all the amendment and changes you had asked for together with your discussion and approval of Mr. Smith' s proposal as to the fees and the direction to staff to put that in final form and have that executed. Supervisor Powers : Very good. Supervisor Smith: One other thing to add also in the sub committee discussions and I've been operating under the presumption there was a commitment from BFI that waste that went through the transfer station would not be deposited at the ACME landfill and I understood that that was something that everybody agreed to and I don' t see it specifically stated in the transfer station agreement, so I'd like to include that . Supervisor Powers : Okay, is there any objection to that? Victor Westman: I think there' s some, well, could I just comment . There is some question under recent U.S . Supreme Court cases about that but assuming that' s your preference and after Mr. Bruen if he' s going to speak, we could put in a provision that to the extent allowed by law or something and to the extent it can be done, they will so do it . Supervisor Powers : Okay, Tom. Tom Bruen: . . . . If I could just add. . .basically specifies that with few exceptions, the waste will be transported at BFI' s direction to Keller Canyon. There are rare situations in which hard to transport loads come in that would be directed away from the transfer station to the east fill of ACME Landfill and that is really I think to everyone' s benefit to extend the life of that fill and avoid closure requirements . Large loads of concrete or something like that that might show up at the gate of the transfer station might in the future be directed to the fill . Supervisor Powers : You know, here' s one thing that seems to and it bothers me and maybe you can answer it Tom. You know, you are just about to get a franchise for Keller Canyon and for ACME but ACME still continues to accept waste at in substantial amounts at the ACME Landfill avoiding. . Tom Bruen: I don' t think that' s true, not since the .lease agreement was executed between ACME and BFI . Supervisor Powers : Okay, well at some point in time and I haven' t had the numbers and it' s been a very hard one for me to grab a handle on but I continue to hear and see trucks going to ACME Landfill and that avoids paying fees that the County has imposed upon Keller expecting certain amounts of waste there . Tom Bruen: Well, I can tell you Mr. Powers that' s not my understanding as of the date when the lease agreement was executed which I believe was in March. And that basically provides that all garbage coming into the facility is directed to the transfer station except hard to transfer loads which are very infrequent and that' s my understanding what the status quo is . 14 Supervisor Smith: Well, can I just clarify, but in the sub- committee meeting you said you'd be amenable to having this kind of language . Tom Bruen: But I thought I did discuss that exception that I'm discussing with you now. At least that' s my recollection. Supervisor Smith: Well, I guess my presumption is that for those loads they wouldn' t go through the transfer station, they would be delivered directly to the ACME Landfill and since we don' t regulate the ACME Landfill, those fees would be charged would be totally your proprietary fees . Tom Bruen: Jeff as a lawyer, you' re being precise in your phrasing and if you' re that precise then that' s fine . Certainly waste that goes through the transfer station will not go to the ACME Landfill . Supervisor Powers : Well, I guess the question Tom, then is how much waste is going to go to the ACME Landfill I mean on what' s your estimate of that and would you agree to any limits in the franchise agreements that would prevent it from going in excess of some stated amount . Tom Bruen: Well, I think we could certainly agree that any waste processed through the transfer station would be would not go to ACME but with respect to waste that might go to ACME, I think there' s a chance that ACME might have a composting project on the east parcel at some time in the future . Strictly speaking, green waste is solid waste, so I think ACME would like the opportunity if it does obtain a permit for a composting facility to have that option and I think that' s addressed in the agreement between ACME and BFI . I would expect it would be extremely infrequent that other loads would be directed from the transfer station to the landfill . I don' t think that . . . Supervisor Powers : Could we put some general language like that in either one or both of the franchises? Tom Bruen: Well, I guess we' d like, the other thing I' d like to mention is ACME' s receiving dirt to assist it in closure . Because technically speaking waste dirt is . . . Supervisor Powers : Okay, no dirt, no composting. How about so municipal solid waste. Tom Bruen: Well, MSW includes compostables and can include dirt . But . . Supervisor Powers : . . Subtract those two. Dirt is dirt and compost is compost . I mean it' s pretty clear in your business at least . What about other stuff . Tom Bruen: I think the only other possibility that I'm aware of would be hard to transfer loads that really weren' t capable of being processed through the transfer station. Supervisor Powers : Could we put that in the . . .could we put that in the Tom Bruen: You could yes . Supervisor Powers : Okay, why don' t we do that . Supervisor Smith: So, with those modifications and everything that Vic said I' ll make that motion. That we approve the franchises . Everything that Vic said. Supervisor Powers : Okay. 15 T Supervisor Torlakson: Let me also check for clarification. In the franchises does it what does it speak in terms of any commitment of wastestream? By any of our franchises like Bay Point, Discovery Bay, it doesn' t speak to that? Okay. Supervisor Smith: Doesn' t say anything about it . Supervisor Powers : Okay, then we need to vote on the franchise agreement with those modifications . Supervisor Bishop: I don' t think we've had a second to the motion. Supervisor Torlakson: Second. Supervisor Powers : Okay. Second. Supervisor Bishop: Great because I wanted to comment or a question. I did not vote on the rates, however, the policy issues that are covered in the franchise agreement, I'm in agreement generally on so I would a vote with this mean that I implicit that I also agree with the rates . So, I don' t want to vote on this okay. Great . Supervisor Powers : All in favor of the motion, signify by saying aye . Those opposed. (Supervisor Bishop voted no) Supervisor Torlakson: Mr. Chairman, there were just a couple of very small loose ends but one thing I just thought to make sure I have it summarized correctly and I think I do. Sue Rainey mentioned that their franchise fee was around 2 percent something on that scale and I wanted to say that the action that was taken today within six months or sooner if BFI wants to absorb some of the costs that the five percent that our charges had previously had in some rough impact on the garbage bill, on a household per month basis would be cut in half basically by the motion that Jeff put together and was passed and in the meantime, I think it' s going to be a challenge for each of the communities to look at this household hazardous waste . We' re not collecting that money and putting it in the County General Fund. It' s not for a County program to serve the County. It was being collected as you said earlier, Mr. Chairman, for all the rate payers including the cities for a County wide program including the cities and there seems to be some interest in looking at that or reformulating that in another way. The other issue was related to our Bay Point and Discovery Bay Franchises and any others we may have . I think we should get a report back from staff on the other alternative disposal locations and costs and have them direct them to meet with the Portrero/Garaventa, Richmond Sanitary proponents since they have submitted the letter. We've referred the letter to staff but we haven' t said when we' d like it back. I'd like to sort of get a read out back fairly soon. Both on that and the whatever Waste Management is doing in San Ramon Valley. Are they making that offer available on a wider basis so that we can have our staff report back on the details of those other agreements because there are still seems to be some very strong competition and healthy for the rate payer to consider for our rate payers for alternative proposals . Supervisor Powers : Could we do that in two weeks, Val, to have a report on sounds like the three proposals maybe there are more here to the Board. The Garaventa RSS, the BFI/ACME and the I guess Altamont/Valley Waste proposals on tipping fees and maybe at the same time if we've got can get an update if you don' t mind on what' s happening with the JPA at that point . Supervisor Torlakson: And finally, supervisor Powers, the memo we have dated August 17th on the ACME Interim Transfer Station that answers some of the questions . Not to go into it today but maybe have it rescheduled. I think the public and Citizens 16 r United have asked questions here and I'm not sure that they' re really all that clearly answered in terms of what that interim rate is still there somehow in the mix of things and that may be being used to pay for the Household Hazardous Waste Program and other programs . I to be agendaed back on since. . . Supervisor Powers : So you want this memo back on. Say two weeks from now. Okay. Fine very good. Okay, let' s try to get to some of the timed hearings that we did have. . . . . . . . 17