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HomeMy WebLinkAbout10-17-1990 City Council agendaORIGINATING-`'DEPT: Public-Services SUBJECT: Agreement between Campbell, Monte Sereno, Los Gatos, and Saratoga to Establish Joint Solid Waste Management Program Recommended Motion: Approve agreement authorizing the City Manag- er to execute the agreement in the City's behalf. Report Summary: As the City Council may recall, the Cities of Saratoga, Monte Sereno, Campbell, and Town of Los Gatos have been working together since January of this year to develop a joint solid waste management program to comply with the provisions of State Assembly Bill 939 while coordinating solid waste activities between the cities. The West Valley cities share a common waste hauler and landfill, and the program will improve coordination while relieving some duplication of effort between the cities:, The agreement would create a mechanism whereby the cities would collectively hire a solid waste programs coordinator who would' work with the Rate Review Committee and City Managers on a broad spectrum of solid waste issues. Saratoga would be the "host city" for the contract position, and will be reimbursed for its share of all direct and indirect expenses it incurs in that capacity. The costs for the program, which are already included in each city's budget, would be shared between the jurisdictions based on each city's percentage of population. The budget for the program's f irst year is attached as Exhibits A and B to the agreement. The agreement automatically terminates for any juris- diction which fails to appropriate funds to support it for the upcoming fiscal year. Fiscal Impacts: Saratoga's share of start up costs will not exceed $2,297.53; on -going costs for the balance. -of this fiscal year are estlma;ted4a.t$16,992.58. Therefore, Saratoga's share of costs for t1;1is :fiscal year should not exceed $19,289. Funds for this purpoA','n ave` already been allocated within the City's cur - 4 ti rent fiscaA . yeer budget. Attachments, ;2 1. Agreement to'-Provide Solid Waste Management to. -the West Valley Cities, including Exhibits A and B. Motion and Vote: y AGREEMENT TO PROVIDE SOLID WASTE MANAGEMENT TO THE WEST VALLEY CITIES THIS AGREEMENT is made and entered into this S lrDUr c�T� r� Y of 1990 U r� yq CR 47,0 day of OfiF cL' 1990, by and between the CITY OF CAMPBELL, a municipal corporation, the TOWN OF LOS GATOS, a municipal corporation, the CITY OF MONTE SERENO, a municipal corporation, and the CITY OF SARATOGA, a municipal corporation (hereinafter collectively referred to as "West Valley Cities "). RECITALS WHEREAS, each of the West Valley Cities has identified a need to provide expanded solid waste management services within their communities; and WHEREAS, the West Valley Cities have determined that it is in their best interest to cooperate in the implementation and operation of a Solid Waste Management Program (hereinafter "Solid Waste Management Program "); and WHEREAS, those costs of the Solid Waste Management Program will be allocated among the parties to this Agreement on the basis of each party's percentage share of the total population of all parties to this Agreement; and WHEREAS, a committee known as the "West Valley Rate Review Committee" (hereinafter "Rate Review Committee "), has been established, which is currently composed of a representative of each of the parties to this Agreement; and WHEREAS, the West Valley Cities have determined that the Solid Waste Management Program office should be located at the City of Saratoga; and WHEREAS, each of the West Valley Cities desire to enter into an Agreement for the implementation and operation of the Solid Waste Management Program for the benefit of the citizens of their jurisdictions, and to participate in the Program, and to declare their commitment to share financially in the Program; NOW, THEREFORE, IT IS MUTUALLY AGREED AS FOLLOWS: f 0 1. Purgose. The purposes of this Agreement are as follows: a. To establish the Solid Waste Management Program within the West Valley Cities which will provide a coordinated and comprehensive Solid Waste Management Program to assist the West Valley Cities in meeting State and Federal requirements, as well as local objectives regarding solid waste; b: To hire Solid Waste Management staff; c. To authorize the City Managers to implement Solid Waste Management activities including, but not limited to, requests for proposals, issuance of fees, contracts, preparation of Solid Waste Rate Review, and hiring of consultants; d. To allocate equitably among the parties the costs of establishing and maintaining the Solid Waste Management Program. 2. Parties to Agreement. Each of the West Valley Cities agrees to be a party to this Agreement. 3. Term. The term of this Agreement shall commence upon the date of execution of this Agreement by all parties and shall terminate on unless terminated earlier as provided herein. It is anticipated, however, that the parties will renew this Agreement. 4. Rate Review Committee. The Rate Review Committee shall make recom- mendations to City Managers on the following: a. Policies and procedures necessary to implement the purposes of this Agreement; b. A budget consistent with the terms of this Agreement; c. Any procedures necessary to regulate the ongoing administration of the Solid Waste Management Program, adhering to the policy guidelines and procedures adopted by the City Managers. 2 5. City Managers. The City Managers of each of the four West Valley Cities shall: a. Establish policies and procedures necessary to implement the purposes of this Agreement; b. Establish a budget and approve expenditures consistent with the terms of this Agreement; c. Administer the Solid Waste Management Program within the West Valley Cities which will provide a coordinated and comprehensive Solid Waste Management Program to assist the West Valley Cities in meeting State and Federal requirements, as well as local objectives regarding solid waste; d. Oversee the hiring of Solid Waste Management staff; e. Implement Solid Waste Management activities including, but not limited to, requests for proposals, issuance of fees, contracts, preparation of Solid Waste Rate Review, and hiring of consultants. 6. Funding. It is agreed that equipment purchase cost and all other costs of the Solid Waste Management Program shall be paid by the parties to this Agreement as per Exhibits A and B. 7. Payments. a. Allocation of Costs. Cost components of the Solid Waste Management Program include: (i) start -up, implementation, and equipment costs; and (ii) annual operating costs. All costs of the Solid Waste Management Program shall be allocated among the parties based on each party's percentage share of the total population of all agencies participating in the Program. The population figures used for allocating these costs shall be established by the most recent State of California Department of Finance Population Estimates. ki • t b. PaXM nts. All payments referenced herein shall be made to the City of Saratoga and delivered to the following: To City of Saratoga: City Manager 13777 Fruitvale Avenue Saratoga. CA 95070 c. Start -up. Implementation. and Equipment Costs. 1. Definition. For purposes of this Agreement, "start -up, implementation, and equipment costs" shall include, but not be limited to, the required share of the following costs: initial personnel, training, supplies and materials; and other costs incurred in the start -up, implementation and equipping of the Solid Waste Management Program Office. 2. Contributions. Each party shall contribute its fair share of original start -up, implementation, and equipment costs for the Solid Waste Management Program. These costs and each party's share of these costs, are set forth in Exhibit "A ", attached hereto and incorporated herein by this reference. Payments required to be paid under this Subsection 7.b.2. shall be paid to the order of the City of Saratoga and delivered to the City of Saratoga. d. Annual Operating Costs. 1. Definition. For purposes of this Agreement, "annual operating costs" shall include, but not be limited to, the costs of personnel, supplies, materials, utilities, maintenance, repair, training and other costs incurred in the annual operation of the Solid Waste Management Program. 4 .+ t • 2. Annual Operating Costs - Fiscal Year 1990 -91. The annual operating costs for Fiscal Year 1990 -91 and each party's share of those costs are set forth in Exhibit "B ", attached hereto and incorporated herein by this reference. Payments required to be paid under this subparagraph 7.c.2. shall be paid to the order of the City of Saratoga and delivered to the City of Saratoga. 3. Annual Operating Costs - Succeeding Fiscal Years. Prior to the commencement of any succeeding fiscal year, the City of Saratoga shall estimate the annual operating expenses for that fiscal year. The Rate Review Committee shall, develop an operating budget for approval by the City Managers. On or before April 1 of the preceding fiscal year, the City of Saratoga shall notify each party of its share of the estimated annual operating expenses for the succeeding year which shall be allocated among the parties in the manner prescribed in Subsection 7:a., above. Payments required to be paid under this Subsection 7.d.3. shall be paid quarterly to the order of the City of Saratoga and delivered to the City of Saratoga. Payments for each quarter are due within thirty (30) days following the beginning of that quarter. e. Adjustment in Costs. 1. Start -uR. Implementation. and EquiRment Costs. If the projected startup, implementation, and equipment costs set forth in Exhibit "A" are inadequate, the Rate Review Committee shall determine the additional amount needed. Each party shall contribute its share of such additional amount, which share 5 t f shall be based on the party's percentage share of the total population of all agencies participating in the Solid Waste Management Program, upon approval of the City Managers. The additional payments shall be paid to the order of the City of Saratoga and deliv -ered to the City of Saratoga City Manager's Department within thirty (30) days of billing. If the start- up, implementation, and equipment costs set forth in Exhibit "A" exceed what is actually needed, the excess amount shall be applied against operating expenses for Fiscal Year 1990- 91. 2. Operating Costs. If, in any fiscal year, the projected opera- ting costs are higher than as previously approved by the City Managers, the Rate Review Committee shall determine the addi- tional amount needed to meet the operational costs for that fiscal year. Each party shall contribute its share of the additional amount, determined in the manner prescribed in subsection 7.a. above, upon approval by the City Managers. The additional payments shall be paid to the order of the City of Saratoga and delivered to the City of Saratoga within thirty (30) days of billing. f. IrreRarable Damage to Equipment. In the event that any Solid Waste Management Program equipment is destroyed or damaged beyond repair, purchase of replacement equipment shall be recommended to the City Managers. If approved by the City Managers, the cost of replacement equipment shall be allocated among all parties based upon each party' s percentage of the total population of all parties to this Agreement; excepting such damage resulting from the willful 6 0 0 misconduct of the City of Saratoga, their officers, agents and employees, in which event, the replacement cost shall be borne by the City of Saratoga. g. Non- Refundable Payments. Payments made pursuant to this Agreement shall be non - refundable and shall not be returned to any party unless all parties agree to terminate this Agreement and to discontinue the Solid Waste Management Program. 1. Account Funds. If all parties agree to terminate this Agreement and to discontinue the Program, any remaining funds shall be distributed to the then - current parties to this Agreement. Such distributions shall be distributed on the basis of each party's percentage share of the total population of the then - current parties to this Agreement. Distributions shall not be made until all outstanding expenses of the Program have been paid or otherwise provided for. 2. Proceeds From Sale or Transfer of System Equipment. If all parties agree to terminate this Agreement and to discontinue the Program, and if the City Managers sell or transfer all or any portion of the Program equipment pursuant to Section 10, below, any such proceeds received from such sale or transfer shall be distributed in the manner specified in Section 10, below. 8. Insurance. Liability insurance coverage shall be provided by one of the participating West Valley Cities as determined by the City Managers. Any West Valley City can provide liability insurance coverage for all operations of the Solid Waste Management Program, insuring the cities and the Solid Waste Management Program against 7 a the acts and omissions of the program staff and /or volunteers related in any way to the operation of the Solid Waste Management Program. The liability insurance coverage can be procured through the purchase of an insurance policy directly insuring the Solid Waste Management Program, or the addition of the Solid Waste Management Program to a City's existing insurance policy, or a contractual liability endorse- ment to a City's existing insurance policy or any other arrangement approved by the Rate Review Committee. In all events, the insurance coverage shall include cross liability endorsements and will provide that the carrier will not have rights of indemnity or contribution from the West Valley Cities including their officers, agents and employees. If the insurance coverage secured by the city has a deductible provi- sion, that deductible amount shall be treated as a program expense as stated in this paragraph. 9. Hiring, of Employees. The operation of the Solid Waste Management Program requires the filling of up to two new positions by the City of Saratoga. The City of Saratoga will recruit and hire these persons. However, the City of Saratoga will consult with the Rate Review Committee prior to offering employment. The persons hired by the City of Saratoga pursuant to this Section will be employees of the City of Saratoga. The salary and all fringe benefit costs incurred by the City of Saratoga in the employment of the persons hired pursuant to this Section shall be paid for out of the Solid Waste Management Program funds contributed by the parties pursuant to Section 7 of this Agree- ment at the time these costs are due and payable. 10. OwnershiR of EquiRMS.Ut. Ownership of the Solid Waste Management Pro- gram equipment purchased pursuant to this Agreement, which is more 8 41 6 fully described in Exhibit "A ", attached hereto and incorporated herein by this reference, or any replacement equipment, shall be vested as follows: a. Ownership of all equipment described in Exhibit "A" or replacements of such equipment, shall be vested in the City of Saratoga, which shall not have the right to sell, transfer or otherwise dispose of such equipment without the prior written approval of the City Managers. b. In the event that this Agreement is terminated by all parties and the Solid Waste Management Program is discontinued, the Rate Review Committee shall sell, transfer or dispose of machines or equipment referred to in Exhibit A in any manner allowed by law. To the extent permitted by law, any proceeds received by the Rate Review Committee shall be distributed among the past and present parties to this Agreement who contributed to the cost of acquiring such machines or equipment based upon each party's percentage contribu- tion to the acquisition of such machines or equipment. 11. Administration. a. Fiscal ResRonsibilities. The City of Saratoga agrees to be the general administering agency for the Solid Waste Management Pro- gram. In addition to providing access to and use of the Solid Waste Management Program by the other parties, the City of Saratoga will act as the general administering agency and the fiscal agent for the Solid Waste Management Program pursuant to the direction of the Rate Review Committee. The City of Saratoga shall provide fiscal management of the Program fund and expenditures, including, but not limited to: (1) properly account for all monies received 9 under this Agreement and from which shall be paid all costs and expenses incurred under-this Agreement; (2) billing each party for that party's share of the costs under this Agreement; (3) providing each of the parties and the Rate Review Committee with quarterly reports and an annual financial report at the end of each fiscal year; and (4) payment of all West Valley Solid Waste Management Program expenses. When program operation requires payments to be made, including reimbursements, the money used will be, and will be limited to, the Solid Waste Management Program money contributed to the program by the cities, or provided by other sources as shown in Exhibits A and B. The Solid Waste Management Program and /or the City of Saratoga shall keep good and detailed records of its operations, financial transactions and payroll. b. The City of Saratoga will be reimbursed from the Solid Waste Management Program money for its expense incurred in performing those services that directly relate to the provision of Solid Waste Management Program service(s), and, if it elects to request reimbursement, for providing the office space. Reimbursement for materials used will be at cost. Reimbursement for providing the office space will not exceed the reasonable rental value of the space. Reimbursement for services rendered in the operation of the Solid Waste Management Program which are under the terms of this Agree- ment reimbursable, will not exceed the cost of direct labor, including fringe benefits, insurance, and general or administra- tive expense or supervision. 10 To City of Campbell: City Manager 70 North First Street Campbell, CA 95008 To Town of Los Gatos: Town Manager P.O. Box 949, 110 E. Main Street Los Gatos, CA 95031 To City of Monte Sereno: Chief Administrative Officer 18041 Saratoga -Los Gatos Road Monte Sereno. CA 95030 To City of Saratoga: City Manager 13777 Fruitvale Avenue Saratoga. CA 95070 16. Indemnification. Each party shall contribute to the cost of any claim, loss, liability or defense costs arising out of or resulting in any way from the operation of the Solid Waste Management Program by the City of Saratoga, their officers, agents and employees, excepting acts of willful or wanton misconduct by the City of Saratoga, its officers, agents and employees. Such costs shall be allocated among the parties, based upon each party's percentage of the total population of all parties to this Agreement. 13 V w WITNESS THE EXECUTION HEREOF the day and year first hereinabove written. CITY OF CAMPBELL APPROVED AS TO FORM: CITY OF CAMPBELL ATTEST: City Attorney TOWN OF LOS GATOS APPROVED AS TO FORM: Town Attorney CITY OF MONTE SERENO APPROVED AS TO FORM: City Attorney CITY OF SARATOGA APPROVED AS TO FORM: City Attorney CSOO ♦:A: \CONTRACT \VESTVALL.SWM City Manager City Clerk TOWN OF LOS GATOS ATTEST: Town Manager Town Clerk CITY OF MONTE SERENO ATTEST: City Manager City Clerk CITY OF SARATOGA City Manager 14 ATTEST: City Clerk