1998 AGN APR 21 I30 - Laserfiche WebLink

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City of Colton Agenda Report Council Meeting of April 21, 1998 Page 2 ❑ WDA rate is adjusted annually. The adjustment is based on two indexes specifically the Producer Price Index for Industrial Commodities (an adjustment for inflation) and the Employment Cost Index (an adjustment for operating costs related to payroll). Additionally, the adjustment only applies to escalating portion of the rate (approximately 62%) and using a ten-year average, the annual adjustment would be 1.83 %. Based on this estimate, the negotiated WDA Rate would not equal the current San Bernardino County Disposal Rate of $33 per ton until sometime in the year 2006. ❑ Out of County processing is limited to the lesser of (1) 40 % of the amount of City Acceptable Waste delivered to an Out -Of -County Processing Facility during contract year or (2) 7 % of the total amount of controllable waste generated in the City during contract year. Upon expiration of existing Waste Hauler contracts the 7 % figure in (2) decreases to 2 %. ❑ The Agreement is a 15 -year agreement with significant penalties for early termination. Examples of such penalties are $8,147,580 in Year #1, $5,819,700 in year #5, and $581,970 in Year #14. ❑ The City of Colton's interest in approving the WDA was discussed with representatives of both Colton Disposal and Jack's Disposal; the City of Colton's franchised haulers. ❑ Discussions were held between the City of Colton Solid Waste Ad -Hoc Committee and representatives of the County of San Bernardino and NORCAL. On March 18, 1998, the Solid Waste Ad -Hoc Committee unanimously agreed to present the WDA to the City Council and to recommend its approval. FISCAL IMPACT: Based on controllable tonnage of 10,210 tons per quarter (the actual controllable tonnage for the 4th quarter of 1997) estimated revenue for the remainder of Fiscal year 1997/98 is (10,210 /3 x 2) x 4.5 = $30,630. Estimated revenue for Fiscal Year 1998/99 is {(10,210 /3 x 7) x 4.5 + (10,210 / 3 x 5)x4.01} =$175,442. RECOMMENDATION: Staff recommends that the City Council approves and authorizes the Mayor to execute the attached Waste Delivery Agreement between the County of San Bernardino and the City of Colton. Attachments (2)