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HomeMy WebLinkAboutMINUTES - 02271996 - C81 TO: BOARD OF SUPERVISORS - Contra Costa FROM: VAL ALEXEEFF, DIRECTOR County GROWTH MANAGEMENT & ECONOMIC DEVELOPMENT AGENCY DATE: February 27, 1995 SUBJECT: AMENDMENT #2 TO THE KELLER CANYON LANDFILL FIRST AMENDED FRANCHISE AGREEMENT SPECIFIC REQUEST(S) OR RECOMMENDATIONS) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS 1 . APPROVE Amendment #2 to the Keller Canyon Landfill First Amended Franchise Agreement to conform the County fees applicable to direct haul wastes with the fees applicable to wastes received at the landfill via a transfer station. 2. AUTHORIZE the Chair of the Board of Supervisors to execute such an amendment. FISCAL IMPACT The establishment of a uniform fee vastly reduces ambiguity and accounting requirements. The amount of the 25%County Surcharge is.dependant on the facility's proprietary gate rate. BACKGROUND On December 12, 1995 the Board of Supervisors directed GMEDA staff and County Counsel to draft amendment #2 of the Keller Canyon Landfill First Amended Franchise Agreement to conform the County fees applicable to direct haul wastes with the fees applicable to wastes received at the landfill via a transfer station. Amendment #2 has been prepared and a copy signed by the Keller Canyon Landfill Company is attached. \� CONTINUED ON ATTACHMENT: X YES SIGNATURE. \ ` RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON February 27 , 1996 APPROVED AS RECOMMENDED x OTHER VOTE OF SUPERVISORS x 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 cc: Community Development Department GMEDA ATTESTED February 27 , 1996 County Counsel PHIL BATCHELOR, CLERK OF THE BFI/Keller Canyon Landfill BOARD OF SUPERVISORS AND City of Pittsburg CO NTY ADMINISTRATOR By AAA, -, DEPUTY DD10:kc1-amd2.bo Board Order` 7VC Keller Canyon Landfill Franchise Agreement - Amendment #2 February 27, 1995 -Page 2- BACKGROUND (CONT'D) On November 1, 1994 the Board of Supervisors established a new fee structure for the BFI Transfer Station and the Keller Canyon Landfill. The fees were established as new franchise agreements for both facilities were being finalized. The new fee structure is applied per ton to incoming wastes processed through the Transfer Station and disposed in the Landfill. The County fees applicable to incoming wastes received at the landfill via a transfer station became: 25% County Surcharge (calculated from the facilities' proprietary base rates), LEA fee (currently 51 .00/ton), and AB 939 fee (currently $0.15/ton). These new fees are not the same as the fees applicable to wastes hauled directly to the Landfill. The fees which were imposed on direct haul wastes, under the First Amended Franchise Agreement for Keller Canyon Landfill, are as follows: "The surcharge on special handling and/or direct haul waste received at the landfill other than via a transfer station shall be 10% of the base rate plus all other then-applicable mandated fees." The then-applicable mandated fees pertinent to direct haul wastes include the following: 1 . State Eastin Bill (CIWMB) 51 .34/ton (paid directly to the State) 2. County Franchise/Surcharge 10% . 3. Mitigation Fee $3.00- 54.00/ton 4. LEA 51 .00/ton 5. AB 939 $0.15/ton 6. Household Hazardous Waste 52.12/ton* * this fee ceased being collected from solid waste facilities effective 7/1/95 Staff recommends that the Landfill Franchise Agreement be amended to establish equal County fees which would be applicable to waste received at the Landfill regardless of whether it has first been processed through a transfer station. The County fees for direct hauled wastes would become the same as the fees currently charged on waste received via a transfer station. The uniform County fees would resolve current ambiguities. The amount of County fees will vary dependant on the facility's proprietary base rate, as the base rate lowered so would the 25% County Surcharge. Upon Board's approval of Amendment #2 and the new County fees applicable to direct haul wastes, the landfill operator will pay the amount due to the County for direct haul wastes received since November 1, 1994 based on the new uniform County fees. If problems are created by incoming special wastes, additional studies and measures may be warranted and would be based on need rather than current revenue and would be funded on a true time and materials basis. Prior to approval of the First Amended Franchise Agreement and Amendment #1, the landfill operator paid annual lump sum amounts towards the County Resource Recovery Management Program (LUP Condition 31 .9) & Resource Recovery Fee (LUP Condition 35.4) which funded resource recovery activities. These have not been imposed since the changes to the fee structure and Franchise Agreement approximately a year ago, due in part to the ambiguities regarding these particular fees as well as the potential inequity in imposing this fee only for direct haul wastes received at Keller Canyon Landfill. There are additional costs (not fees) the landfill operator has been and will continue to be required to pay associated with the Landfill Land Use Permit (LUP) 2020-89 Conditions of Approval. These costs include but are not necessarily limited to: funding the Implementation and Mitigation Monitoring Program (Condition 11 .6) which covers staff costs, funding for the Development Coordinator (Condition 11 .5) which covers engineering consulting costs, and funding the Property Valuation Compensation Program (Condition 35.3). These costs are not based on incoming waste amounts but instead vary dependant on factors such as project activity, billable staff hours and amount of service required from the consultants. DD 10:kcl-amd 2.bo BRUEN & GORDON A PROFESSIONAL CORPORATION 1990 NORTH CALIFORNIA BOULEVARD SUITE 940 WALNUT CREEK, CALIFORNIA 94598 (510) 295-3131 FAX(510) 295-3132 February 15, 1996 VIA MESSENGER Mr. Val Alexeeff GMEDA 651 Pine Street, 2nd Floor, North Wing Martinez, CA 94553 Re: Proposed Amendment to Franchise Agreement Between Contra Costa County and Keller Canyon Landfill Company re County Fees on Direct Haul Loads Dear Val: Enclosed please find a copy of the Amendment No. 2 to First Amended Franchise Agreement for the Keller Canyon Landfill, which has been duly executed by the Keller Canyon Landfill Company. Because your proposed form of amendment uses the phrase"fees for County programs" in section 6.4.b., I would like to take the opportunity to make sure that there is a clear understanding between the County and KCLC regarding the uniform fee structure which will be applied upon signing of the enclosed'amendment to both direct haul waste, and "transferred" waste received at the landfill via transfer vans. It is our understanding that waste received at the Keller Canyon Landfill either via a transfer station or on a direct haul basis shall be subject to the following County fees: 1. The 25% County surcharge--which is an umbrella fee covering all Keller Canyon mitigation fees and County programs, except for the Local Enforcement Agency and the AB 939 program; 2. The Local Enforcement Agency program fee, currently at $1.00/ton; and 3. The AB 939 County Program fee, currently at $0.15/ton. C -SI Mr. Val Alexeeff February 15, 1996 Page 2 The foregoing fees are the only County fees payable by KCLC which are based on the amount of tonnage or tonnage revenues(in the case of the 25% surcharge) received at the landfill. In addition, the Keller Canyon Landfill Company will be charged the following fees for County oversight of the Keller Canyon Conditional Use Permit: 1. A Mitigation Monitoring Plan fee, which is for reimbursement for the time spent by County staff in oversight of the use permit (which is based on a per hour charge for staff time-- currently, primarily you and Chuck Zahn)-- CUP section 11.6; and 2. Reimbursement of the County's costs to hire an outside consultant such as Brown & Caldwell to review construction, design or operating plans for the Keller Canyon Landfill (the Development Coordinator fee)-- CUP section 11.5. We recognize that there is a pending issue between the County and KCLC regarding the property compensation study, and this letter is not intended to affect either the County's or KCLC's positions on that matter. Also, we recognize that the County has the right under the amended franchise agreement to adjust the County's percentage surcharge under certain circumstances, and to adopt new County-wide mandated programs and fees to fund such. This will further confirm that as of the date of this letter, there are no outstanding payments owed to the County by the Keller Canyon Landfill Company for the resource recovery program fee(CUP Conditions 31.9 and 35.4), and that if this program is reinstituted by the County in the future, the fee for this program will be included within the percentage franchise surcharge. Assuming that the foregoing is consistent with your understanding of the County fee structure,which will be in effect for all waste received at the Keller Canyon Landfill from and after the effective date (November 1, 1994) of the enclosed amendment, you are authorized to present the enclosed amendment to the Board of Supervisors for approval and execution. However, if the foregoing does not accurately and completely reflect the County's understanding on this subject, you should promptly return the enclosed agreement to me, since KCLC's approval of this amendment is conditioned on our understandings set forth in this letter. Very truly yours, ,--z" fto.,2" Thomas M. Bruen TMB:jcf cc: Dennis P. Fenton, BFI Michael A. Caprio, KCLC Lillian Fujii, Deputy County Counsel C .71 COUNTY OF CONTRA COSTA, STATE OF CALIFORNIA AMENDMENT NO. 2 TO FIRST AMENDED FRANCHISE AGREEMENT FOR THE KELLER CANYON LANDFILL THIS AMENDMENT NO. 2 to the FIRST AMENDED FRANCHISE AGREEMENT FOR THE KELLER CANYON LANDFILL is made and entered into this 1996, by and between the COUNTY OF CONTRA COSTA (hereinafter "County") and KELLER CANYON LANDFILL COMPANY, a California Corporation, (hereinafter referred to as "Operator"). RECITALS WHEREAS, on September 13, 1994, the Board of Supervisors of County took action adopting a first amended franchise agreement with Operator, and WHEREAS, on November 1, 1994, the Board of Supervisors of County and Operator entered into Amendment No. 1 to the first amended franchise agreement with Operator, and WHEREAS, for administrative convenience the County has requested, and Operator agrees, to amend the provisions in the franchise agreement regarding County surcharges and fees for special handling and/or direct haul waste, so that County surcharges and fees on these types of waste will be the same as County surcharges and fees on transferred solid waste, 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 Amend No.2 to First Amended Landfill Franchise,February,1996. consideration, the receipt and sufficiency of which is hereby acknowledged, do mutually agree as follows: SECTION I. AMENDMENT. Subsection b. Of Section 6.4, Initial Surcharge, of the First Amended Franchise Agreement is hereby amended as follows (by adding ..................... ..................... shaded language and deleting the sttiehefl language): ................................................................... ................................................................... "b. Special (direct haul) Wastes. The Surcharge '°'"::rceni a en:d facts fa 9 .:........:....:.9.:....:...:.........:...:..:........... ................................................ coin#y:pCogram's on special handling and/or direct haul waste received at the Landfill other than via a transfer station shall be ten percent of the Base Rate Pld3 8" athef then applicable mandated. the.samo as are charged under this francn�se agreemrit anranferred sold waste pursuant to subsectan a of this Sectsor 4 " SECTION II. OPERATION. This amendment shall apply to special handling and/or direct haul received at the Landfill from and after November 1, 1994. SECTION III. EFFECT. This amendment is entered for administrative convenience, and is not a redetermination of the surcharge within the meaning of Section 6.2. Amend No.2 to First Amended Landfill Franchise,February,1996. 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: mAa.LL Vice-President COUNTY OF CONTRA COSTA By: Chair, Board of Supervisors ATTEST: By: Clerk of the Board APPROVED AS TO FORM: By: County Counsel Amend No.2 to First Amended Landfill Franchise,February,1996. S COUNTY OF CONTRA COSTA, STATE OF CALIFORNIA AMENDMENT NO. 2 TO FIRST AMENDED FRANCHISE AGREEMENT FOR THE KELLER CANYON LANDFILL THIS AMENDMENT NO. 2 to the FIRST AMENDED FRANCHISE AGREEMENT FOR THE KELLER CANYON LANDFILL is made and entered into this February 27 , 1996, by and between the COUNTY OF CONTRA COSTA (hereinafter "County") and KELLER CANYON LANDFILL COMPANY, a California Corporation, (hereinafter referred to as "Operator"). RECITALS WHEREAS, on September 13, 1994, the Board of Supervisors of County took action adopting a first amended franchise agreement with Operator, and WHEREAS, on November 1, 1994, the Board of Supervisors of County and Operator entered into Amendment No. 1 to the first amended franchise agreement with Operator, and WHEREAS, for administrative convenience the County has requested, and Operator agrees, to amend the provisions in the franchise agreement regarding County surcharges and fees for special handling and/or direct haul waste, so that County surcharges and fees on these types of waste will be the same as County surcharges and fees on transferred solid waste, 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 Amend No.2 to First Amended Landfill Franchise,February,1996. consideration, the receipt and sufficiency of which is hereby acknowledged, do mutually agree as follows: SECTION I. AMENDMENT. Subsection b. Of Section 6.4, Initial Surcharge, of the First Amended Franchise Agreement is hereby amended as follows (by adding ..................... ..................... f language and deleting the s-trieken language): b. Special direct haul Wastes. The Surcharge 60060&460"" ................................................. ................................................ crt ro'ga on special handling and/or direct haul waste received at the Landfill other than via a transfer station shall be ten pereent of the Base Rate plus a" othe,r then applicable mandated. tle same as are charged und-6--Ar his franchisegremrit n. ranrrd salad wat pursuant tp subseetcn a'vf:ths Sec#or :5:4. SECTION II. OPERATION. This amendment shall apply to special handling and/or direct haul received at the Landfill from and after November 1, 1994. SECTION III. EFFECT. This amendment is entered for administrative convenience, and is not a redetermination of the surcharge within the meaning of Section 6.2. Amend No.2 to First Amended Landfill Franchise,February,1996. 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. /`/A President By: &"I Vice-President COUNTY OF CON COSTA By: February 27 , 1996 C a' , Board of Supervisors ATTEST: By: CI rk of the Board . APPROVED AS TO FORM: By: County Counsel Amend No.2 to First Amended Landfill Franchise,February,1996. COUNTY OF CONTRA COSTA, STATE OF CALIFORNIA AMENDMENT NO. 2 TO FIRST AMENDED FRANCHISE AGREEMENT FOR THE KELLER CANYON LANDFILL THIS AMENDMENT NO. 2 to the FIRST AMENDED FRANCHISE AGREEMENT x FOR THE KELLER CANYON LANDFILL is made and entered into this February 27 , 1996, by and between the COUNTY OF CONTRA COSTA (hereinafter "County") and KELLER CANYON LANDFILL COMPANY, a California Corporation, (hereinafter referred to as,"Operator"). RECITALS WHEREAS, on September 13, 1994, the Board of Supervisors of County took action adopting a first amended franchise agreement with Operator, and WHEREAS, on November 1, 1994, the Board of Supervisors of County and Operator entered into Amendment No. 1 to the first amended franchise agreement with Operator, and WHEREAS, for administrative convenience the County has requested, and Operator agrees, to amend the provisions in the franchise agreement regarding County surcharges and fees for special handling and/or direct haul waste, so that County surcharges and fees on these types of waste will be the same as County surcharges and fees on transferred solid waste, 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 Amend No.2 to First Amended Landfill Franchise,February,1996. V consideration, the receipt and sufficiency of which is hereby acknowledged, do mutually agree as follows: SECTION I. AMENDMENT. Subsection b. Of Section 6.4, Initial Surcharge, of the First Amended Franchise Agreement is hereby amended as follows (by adding ..................... ..................... t c language and deleting the stricken language): ...... "b. Special (direct haul) Wastes. The Surcharge ` sirafe 'fQ 9 P ::: : ......:._::::.:.........: ................................................. ................................................ .urtprograi on special handling and/or direct haul waste received at the Landfill other than via a transfer station shall be ten percent of the Base Rate plus 8" othe,r then applicable mand fhe lame s are charged finder fhis ff.na s.e agreement vnranterrsd said waste.pursuant fia subssctran a T1his 5ectvr ." SECTION II. OPERATION. This amendment shall apply to special handling and/or direct haul received at the Landfill from and after November 1, 1994. SECTION III. EFFECT. This amendment is entered for administrative convenience, and is not a redetermination of the surcharge within the meaning of Section 6.2. Amend No.2 to First Amended Landfill Franchise,February,1996. r 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 CON CO TA By: February 27 , 19 9 6C ir, Board of Supervisors ATTEST: By: OL OJJAA . ' CI rk of the Board APPROVED AS TO FORM: By: County Counsel Amend No.2 to First Amended Landfill Franchise,February,1996. JU�� a' a�