Joint Special Council/BFPD
06/20/22 07:00 PM
Environmental Services
Jessica Reed
Contract
Doc ID: 5030
COUNCIL AGENDA ITEM
AGENDA MATTER:
AMENDMENT NO. 8 TO WASTE DISPOSAL AGREEMENT (WDA) SETTING A RATE CAP EXECUTIVE SUMMARY:
In order to maintain a buffer between the WDA rate and the County landfill gate rate, the County is proposing a cap to the WDA rate via Amendment No. 8 to the Waste Disposal Agreement with San Bernardino County.
DISCUSSION:
As a result of concerns raised by some of the Waste Disposal Agreement (WDA) cities regarding the contractual rate increase of 14% for FY 2022-23, the County Administrative Office and Public Works evaluated the rate methodology and financial needs of the County waste system to determine whether an adjustment was possible.
A recommendation was made that the County propose a cap to the WDA rate in order to maintain a buffer between the WDA rate and the County’s posted gate rate (the rate paid at the landfill). The County believes this solution addresses the current rate, as well as puts a mechanism in place for the future to prevent compaction with the standard gate rate that self-haulers pay.
An analysis of the WDA rate compared to the gate rate since the inception of the WDAs showed an average difference of approximately 15%. Therefore, the County proposes that the annual WDA rate be adjusted so it cannot exceed 85% of the Board approved gate rate for the proposed rate year. Currently, the posted gate rate is $47.94 for 2022-23. Thus, the WDA rate would be capped at $40.75 for the same 2022-23 rate year. The WDA amendment, once approved by all City Councils and Board of Supervisors, would reduce the current calculated 2022-23 WDA rate of $43.41 to $40.75.
In exchange for capping the WDA rate, the County is requesting that the WDA cities/towns commit to remaining in the WDA with no provision to terminate without cause, for the remainder of the WDA term. In order to implement this timely, they are asking for Council approvals before July 1, 2022.
Attached is a copy of the WDA Amendment No. 8, along with a redline version showing the change made. During the preparation of the amendment, it was discovered that page 2 of the contract, Item #2 which amended Section 4.2 of the Agreement, contained an error. It was brought to the County’s attention that the Escalating Portion of the Contract Rate should be $17.63 instead of $27.13. This mistake was also in last year’s amendment, and the intent was to leave the calculation of the escalation the same as was in the original contract. This Amendment, however, caps that rate and lowers the original calculated rate for FY 2022-23 to $40.75. This correction will ensure that future rate adjustments are correct according to the contract language.
FISCAL IMPACT:
Estimated revenue for FY 2022-2023 is $30,000 as a result of the shared revenue received from InCounty Non-WDA users.
RECOMMENDED ACTION:
Joint Special Council/BFPD
06/20/22 07:00 PM
Environmental Services
Jessica Reed
Contract
Doc ID: 5030
COUNCIL AGENDA ITEM
Approve Amendment No. 8 to the Waste Disposal Agreement with the County of San Bernardino and authorize the City Manager to execute the same.