City Council Agenda Report
TO: Mayor Clauzel and Members of the City Council
FROM: Fernando Ulloa, City Manager
BY: Mike Willett, Public Works Director
MEETING DATE: June 17, 2025
ITEM NO: 6.10
SUBJECT: Adopt Resolution No. 2025-41 Approving the 2025 Regional Solid Waste Disposal Plan Memorandum of Understanding Between the City of Patterson and Stanislaus County
RECOMMENDATION
Adopt Resolution No. 2025-41 Approving the 2025 Regional Solid Waste Disposal Plan Memorandum of Understanding Between the City of Patterson and Stanislaus County.
BACKGROUND
Pursuant to Public Resources Code section 40976 the County and the Cities of Ceres, Hughson, Newman, Oakdale, Patterson, Riverbank, Turlock and Waterford entered into a Memorandum of Understanding, dated August 26, 1994, regarding the use and distribution of AB-939 funds to achieve the waste reduction and diversion goals specified in AB- 939 (the "AB-939 MOU").
On or about December 30, 1999, the County and the above Cities entered into Amendment No. 1 of the AB-939 MOU to provide for payment of the Cities' proportional share of the costs for services provided by the County pursuant to AB-939. On August 1, 2001, the City of Riverbank, and on March 29, 2012, the City of Waterford, each executed Amendment No. 2 to the AB-939 MOU, establishing each City’s obligation to pay their proportional share of the costs for services provided by the County pursuant to AB-939.
Revenues to fund the AB-939 and Household Hazardous Waste services provided by the County is proposed to be derived, in part, from tipping fees collected from the Fink Road Landfill.
The County, together with the Cities of Ceres, Hughson, Newman, Oakdale, Patterson, Riverbank, Turlock and Waterford formed the Stanislaus County Regional Solid Waste Planning Agency (hereinafter referred to as "Regional Agency") by entering into a Joint Powers Agreement on June 19, 2001, and the formation of the Regional Agency was approved by the California Integrated Waste Management Board on July 9, 2002.
The Regional Agency was formed to enable participating entities to share diversion credits and to prepare a single, unified planning document for the entire region. On or about June 30, 2015, the Cities comprising of the Regional Agency entered into agreements establishing a Regional Solid Waste Disposal Plan, which provides for the delivery of acceptable solid waste to the Waste-to-Energy Facility and the Fink Road Landfill, and which agreements are set to expire on June 30, 2025. On December 2, 2024, the Waste-to-Energy Facility ceased operations, resulting in the need for the Fink Road Landfill to receive an increased portion of the countywide acceptable solid waste.
ANALYSIS
The purpose of this Agreement is to enable members of the Regional Agency to implement a Regional Solid Waste Disposal Plan (the "Plan") that supports the continued operation of the Fink Road Landfill (hereinafter referred to as "Landfill") by ensuring the delivery of sufficient solid waste to the facility to maintain their economic viability, and to provide regional AB 939 and Household Hazardous Waste services. The Plan, as set forth in this Agreement and the exhibits incorporated herein, includes a ten (10) year commitment from the Regional Agency Cities to guarantee the delivery of a portion of their solid waste to the Landfill The term of this Agreement ("Term") shall begin on July 01, 2025 (the "Effective Date") and end June 30, 2035 (the "Termination Date"). In the fifth (5th) year of this Agreement, either Party may initiate a reevaluation of the tip fee and/or program fees associated with this Agreement, by providing written notice to the other Party no later than January 1, 2030. If mutually agreed upon by both Parties, this Agreement may be extended for up to an additional five (5) years for a total term not to exceed 15 years, provided the MOU continues to meet the needs of both the landfill and the participating cities.
City’s guaranteed delivery of solid waste to Fink Road Landfill annually, no less than the committed percentage of their Acceptable Solid Waste as set forth in Schedule 1 of the Agreement. "Acceptable Solid Waste" means solid waste as defined in California Public Resources Code, Division 30, Part 1, Chapter 2, Section 40191. Acceptable Solid Waste possess the general characteristics of waste collected and disposed of as part of the normal solid waste collection services in the contracting Cities. This includes but is not limited to: all putrescible and nonputrescible solid, semisolid, and liquid wastes, such as garbage, trash, refuse, rubbish, ashes, industrial wastes, demolition, and construction wastes. For the purposes of this Agreement, Acceptable Solid Waste expressly excludes hazardous waste, radioactive waste, medical waste, appliances, tires, sewage sludge, recyclable materials, organic materials, and any other materials requiring separate handling or disposal under State law.
Tipping Fees and the City’s Franchise Hauler Obligation for the term of this Agreement, include a responsibility for the payment of the Total Disposal Rate as set forth in Schedule 1 of this Agreement. “Total Disposal Rate” means the sum of the tip fee normally charged at the Fink Road Landfill, in addition to any applicable program fees for Household Hazardous Waste and AB 939 related programs.
Base Year Rates shall apply to all tons of Acceptable Solid Waste delivered to the Fink Road Landfill during the base year of this Agreement in the amount of $43.38 and include the following breakdown for the fees:
1. Tip Fee: $39.14 per ton.
2. Household Hazardous Waste Program Fee: $2.45 per ton.
3. AB-939 Program Fees: $1.79 per ton.
Annual Adjustment of Total Disposal Rate will be adjusted annually, effective July 1 of each year, to reflect the average annual percentage change in the “Consumer Price Index” based on the 12-month period beginning April 1 and ending March 31 each year immediately preceding the adjustment date. The rate may be adjusted upward or downward accordingly, and Total Disposal Rate Annual Adjustment Cap shall not exceed five percent (5%) per annum without express written agreement from both Parties.
County’s Obligations include providing and maintaining the following programs and services for each contracted City:
1. All AB 939 Program Services as required by law, including but not limited to:
Preparation and submittal of all required State diversion reporting and tracking;
2. Countywide public education and/or outreach;
3. Administration of the Recycling Market Development Zone;
4. Application for and administration of regional grants, including those for used oil recycling, beverage container recycling, used tire recycling, and tire enforcement;
5. Serve as staff to the Local Task Force on Solid Waste and Regional Solid Waste Planning Agency (Regional Agency);
6. Monitor proposed solid waste legislative and regulatory changes; and
7. Administration of the County’s Food Processing By-Product Program.
Household Hazardous Waste (HHW) Programs, including but not limited to:
1. Conducting a minimum of two (2) mobile HHW collection events annually for each Regional Agency City, with the exception of Ceres
2. Provide access to the permanent Household Hazardous Waste Facility for the collection of e-waste, used oil, oil filters, paints, pesticides, batteries, sharps, medications, and other miscellaneous household chemicals from Countywide residents;
3. Provide access to the permanent Household Hazardous Waste Facility for the collection of hazardous waste generated by qualified and approved Conditionally Exempt Small Quantity Generators’ Countywide; and
4. Countywide public education and/or outreach.
FISCAL IMPACT
The 2025 Solid Waste Rate Study accounts for a Base Year Rate tipping fee of $43.38 per ton, which includes a 5% annual adjustment cap on the total disposal rate. This ensures that the fees collected from garbage service customers are sufficient to meet the Franchise Haulers’ Tipping Fee Obligation. By negotiating as part of the Regional Agency, the City has the opportunity to secure a more favorable rate by committing to minimum tonnage levels delivered to the Fink Road Landfill. This collective commitment supports the County’s ability to offer the most costeffective rate while ensuring stable revenue to meet its service obligations.
This increase in tipping fees was accounted for and included in the current Solid Waste Rate Study.
ATTACHMENTS
Attachment A: City Council Resolution 2025-41, Approving the 2025 Regional Solid Waste Disposal Plan Memorandum of Understanding
Attachment B: Regional Solid Waste Disposal Plan Memorandum of Understanding.