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HomeMy WebLinkAbout4.09 Revise Solid Waste Agree °CD—a) CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: March 13, 1989 SUBJECT Revisions to Solid Waste Agreements EXHIBITS ATTACHED o Excerpt of Agreement Section 7 .6 and Current Listing of Public Facilities Serviced o Proposed Amendment to Agreement for Waste Collection and Disposal (Amending Schedule 1 ) o Letter dated May 23, 1988 regarding Community Wide Clean-Up Funds Usage o Letter dated July 7, 1988 from Livermore Dublin _Disposal Requesting an increase in the cost of. Community Clean-Ups - o Current Agreement for Funding of Special Clean-ups outside of Rates • o Letter dated December 6, 1988 to Joint Refuse Rate Review Committee (JRRRC) from City Manager o Letter dated February 10, 1989 from (JRRRC) approving interest, earnings. o Proposed Amendment to Agreement Funding, Clean-Ups Outside of Rates ' RECOMMENDATION o Authorize Mayor to Execute an Amendment to the Agreement dated March 10, 1986 for Collection & Disposal of Waste. (Revision to Schedule 1 ) o Authorize City Manager to Execute Amendment for Special Pick-ups. FINANCIAL STATEMENT: No change in Rates charged to customers. City Clean-up Fees will increase by a total of $800 during the year, which is paid through a Special Clean-Up Fund. DESCRIPTION In the Spring of 1986, the City of Dublin assumed responsibility for the provision of Solid Waste Service. The City negotiated an agreement with Oakland Scavenger Company. The disposal company was later purchased- by Waste Management of North America, Inc. although the key contacts with the City are the same personnel. Solid Waste Agreement - Services to Jurisdiction' The agreement originally negotiated • provided for services at public facilities . - An excerpt of Section .7 . 6 is attached for your review. The agreement provides that the costs of providing these services are considered as an operating expense for rate setting purposes. Therefore, these costs are spread over the rate base. The reorganization of services provided by Dublin San Ramon Services and the development of new City Facilities warrant a revision to Schedule 1 in the agreement. The City owned facilities which require bin service and should be added to Schedule 1 -are: Dublin Senior Center, 7437 Larkdale -Avenue Dublin Civic Center - Dublin Boulevard at Sierra Court Staff would recommend that the Dublin San Ramon Services .District Administrative Offices should not remain on the schedule. Although Fire Station No, 1 remains on the schedule, this facility and its operations are funded from City contributions . DSRSD is a separate entity, which generates revenues independent of the City "and its boundaries are different than the City' s . The City does not include facilities of any other jurisdiction in the schedule. - If the City Council agrees to discontinue the inclusion of DSRSD, it may be appropriate to establish a date for the termination. Staff would recommend a date of July 1 , 1989 in order to allow DSRSD to budget for this expense in .their upcoming budget. The proposed resolution has been drafted in this manner. If the City Council prefers to address this COPIES TO: • Bill Brandi, Dublin Livermore Disposal D. David McDonald, -Waste 'Mgt. Inc. Mary Evans, Controller, L-D Disposal ITEM NO. dep • differently, the proposed amendment will need to be modified. Cost of Community Wide Clean-ups The second action required relates to the cost paid for the community-wide clean-up. This is a special Saturday collection for residential customers of Dublin-Livermore Disposal. In July, 1985, prior to the City awarding the Garbage Franchise, the study conducted by the Joint Refuse Rate Review Committee (JRRRC) indicated that a rate reduction was possible. It was recommended that an 11%. decrease be provided on the commercial rates. The policy of the JRRRC was to reduce the level of "Commercial Subsidy" to the residential rate structure. The Dublin San Ramon Services District Board of Directors elected to not implement the 11 % decrease effective July 1 , 1985 . They indicated at that time that they were uncertain as to the direction the cities would be proceeding and did not desire to implement a rate change at that time. The City implemented the rate reduction upon assuming the Garbage Franchise responsibility in 1986. It should be noted that in addition to being a benefit to the traditional commercial users, the rate also affected residential customers who request bin service. Letter of Intent Due to the DSRSD decision to refrain from implementing a rate decrease in July, 1985, additional funds accrued to Oakland Scavenger Company which would not have accrued had the rate reduction been implemented. The funds were -received by Oakland Scavenger Company between the period of July 1 , 1985 and March 31 , 1986, had the 11 % . rate reduction in commercial rates taken place. The amount collected totalled $78, 040 . The Disposal Company received permission from the JRRRC on September 25, 1986 to set the funds aside. The City entered into a Letter of Intent and later an agreement to designate the use of these funds to perform two clean-ups per year. An additional two clean-ups are funded through the rate base. Company Request for Increased Charge for Clean-ups In a letter dated May 23, 1988, Mr. Dave McDonald provided an outline of the funds expended since 1986. In accordance with our agreement, the disposal company has charged $8, 000 for each of the special clean-ups funded outside - the .rate structure . As identified in a letter dated, July 12, 1988, the company has indicated an increase in their cost to perform this service. They have requested that the rate be increased to $8, 400 per special collection. This represents a 5 percent increase over two years. In addition to inflationary increases, the City has .experienced growth which would be expected to alter the cost of providing this service. While Staff was discussing with Waste Management Officials their proposed increase, it was noted that interest earnings were not accruing to the special clean-up fund. Waste Management Staff conducted an analysis and found that the interest earned through September 1988 was $8, 770 . The City Staff requested that the Joint Refuse Rate Review Committee allow Waste Management to credit interest earnings to this fund. The basis for this request was the same as when the fund was originally established. The funds were originally generated by Dublin rate payers and it would seem inappropriate for them to become a windfall for the garbage company. Mr. Causey, the chairman of the JRRRC, notified the City in the attached letter that the Committee approved the accrual of the interest. This action has extended the number of special pick-ups which will be paid for by the special fund. • Recommendation Staff would recommend that the City Council authorize the Mayor to execute the amendment which revises Schedule 1 and authorize the City Manager to execute the amendment to the Agreement for Special Collection Services . If the City Council determines that it does not want to exclude DSRSD locations, a modification to the proposed Schedule 1 (a) will be required. • upon or incur --d by or asserted against *" City of such officers , agents or employees on account of (a) any failure of the Company to comply with any of the terms of this Agreement or (b) any loss or damage to property or any injury to or death of any person -177 that maybe occasioned by the Company' s operations under the c2, 1 V franchise granted herein. Gi —' Section 7 . 5. Liability Insurance . J s ty Q The Company shall carry automobile, public liability and ( ) property damage insurance covering the operation of all vehicles of the Company, and blanket , all risks, liability insurance P 7 c) ?s including excess limits on the automobile coverage . The basic © 0 V auto policy shall have minimum limits of $100, 000 for injury to one person , $300, 000 for injury to more than one person, and -1 $25 , 000 property damage . The blanket policy shall have a minimum limit of $3, 000,000. The policies shall name the City of Dublin , �JJ 0 its officials , agents , and employees as additional insured d __4 parties and a copy of insuring agreements shall be furnished to d M� the City of Dublin for approval by the City Attorney. W 1 d Section 7 .6 . Services to jurisdiction. The Company shall provide to the City, without fee , those services described in Schedule 1 to this Agreement and such services as shall henceforth be established or altered by -- -- agreement of the parties . The cost of providing those services shall be allowed as an operating expense for rate-setting purposes . Section 7 . 7. Notices. • Any notice t'hich either party is required t' give or TJhich either party may choose to give to the other party shall be in writing . Such notice shall be served either by personal delivery to a managing officer of the other party, by personal delivery to r SCHEDULE 1 1' 1QA- JP. I 11S Services to be provided to the City of Dublin at no charge pursuant to Section 7 . 6 . Services to jurisdiction. The City shall reserve the right to request the elimination of free services at any of the locations through a written request by the Director. The following are all locations where governmental activities are taking place : Quantity Type of Service-Weekly Location 1 3 yard bin 7494 Donahue (Fire Station No. 1) 1 6 yard bin Dublin Sports Grounds 1 3 yard bin 7051 Dublin Blvd (DSRSD Offices) 1 2 yard bin " 1 2 yard bin 8151 Village Parkway (Valley Swim Ctr) 2 4 yard bins 11600 Shannon Avenue (Shannon Park & Community Center) 1 4 yard bin (on wheels) Scarlett Court Terminus (City Corporation Yard) • FI] AMENDMENT DATED MARCH 13 1989 TO AGREEMENT DATED MARCH 10, 1986 BETWEEN CITY OF DUBLIN AND OAKLAND SCAVENGER COMPANY REGARDING WASTE COLLECTION AND DISPOSAL This amendment is by and between City of Dublin, hereinafter "CITY" and Oakland Scavenger Company, hereinafter, "COMPANY" . Recitals WHEREAS, The City of Dublin and Oakland Scavenger Company entered into a franchise agreement for waste collection and disposal; and WHEREAS, The agreement is dated 10th day of March, 1986; and WHEREAS, Section 7 . 6 of said agreement defines certain services which are to be provided to the City; and WHEREAS, Schedule 1 of the agreement defines locations where governmental activities are taking place; and WHEREAS, Service to locations identified in Schedule 1 is to be provided free of charge; and WHEREAS, Oakland Scavenger is allowed to consider these costs as an operating expense for rate setting purposes; and WHEREAS, The City Council has determined that it is appropriate to amend Schedule 1 to reflect a change in governmental properties serviced. NOW, THEREFORE, CITY and COMPANY do hereby agree that Schedule 1 (a) attached hereto and by reference made a part hereof shall replace Schedule 1 contained within the agreement dated March 10 , 1986 . BE IT FURTHER RESOLVED, that the elimination of offices at 7051 Dublin Boulevard from Schedule 1 (a) shall be effective on July 1 , 1989 and the service at the Dublin Civic Center shall not begin until construction is complete and the facility is occupied. For City : Paul C. Moffatt, Mayor Date For Company : D. David McDonald Date Oakland Scavenger Co. (a Division of Waste Management Co. ) Schedule 1 (a) Amendment to Agreement Between the City of Dublin and Oakland Scavenger Company Services to be provided to the City of Dublin at no charge pursuant to Section 7 . 6 . Services to jurisdiction. The City shall reserve the right to request the elimination of free services at any of the locations through a written request by the Director. The following are all locations where governmental activities are taking place: Type of Quantity Service-Weekly Location 1 3 yard bin 7494 Donahue (Fire Station No. 1 ) 1 6 yard bin Dublin Sports Ground 1 2 yard bin 8151 Village Parkway (Valley Swim Ctr) 2 4 yard bins 11600 Shannon Ave (Shannon Park & Community Center) 1 4 yard bin (on wheels) Scarlett Ct Terminus (City Corporation Yard) 1 3 yard bin 7437 Larkdale Ave (Dublin Senior Center) 2 4 yard bins Dublin Blvd. @ Sierra Ct. (Civic Center) To Be Discontinued Effective July 1 , 1989 1 3 yard bin 7051 Dublin Blvd (DSRSD Offices) 1 2 yard bin It • ��% Waste Management c PI th/America,Inc. LoiBay Area District 2000 Emharcadero•Oakland,California 94606 Suite 300•415/532-1400 May 23 , 1988 Mr. Paul Rankin - Assistant to the City Manager City of Dublin P.O. Box 2340 Dublin, California 94568 ALLOCATION OF COMMUNITY—WIDE CLEAN—UP FUNDS Dear Mr. Rankin: Attached is a copy of your letter, dated November 4 , 1986 (with attachments) to Peter Borghero, President of Oakland Scavenger Company. Your letter deals with an agreement for the funding of special residential clean-ups in conjunction with the City of Dublin Resolution No. 21-86 . As you requested, the following is an update of the accounting for this funding arrangement: Original Amount Allocated $78, 040 Clean-Ups Performed: - 07/26/86 $8 , 000 01/10/87 8 , 000 07/25/87 8 , 000 01/09/88 8 , 000 $32 , 000 Funding Remaining $46, 040 Should you have any questions, please contact me. Sincerely.; , . .-----',, /197-7 1 / I/ i ---/C: D. David MacDonald District Vice President and Controller DDM/m DDM88043 .M cc: P. Borghero Attachment Livermore Dublin Disposal 6175 South Front Road Livermore,California 94550 A Waste Management Company 415/447-1300 %el/ July 7 , 1988 Mr. Paul Rankin RECEIVED Assistant to the City Manager JUL 1 31988 City of Dublin P.O. Box 2340 Dublin , California 94568 rim nc DUBLIN Dear Paul : This letter confirms the details of our July 6 , 1988 , meeting regarding the cost of Dublin clean - ups . We request the clean- up agreement between Livermore Dublin Disposal and the City of Dublin be amended to reflect a cost of $8 ,400 . 00 per clean - up for the July, 1988 , and January, 1989 , clean - ups . We have enclosed a schedule detailing our costs , which is based on prior year actuals . If you have any questions please call us at your convenience . Sincerely, '77 Bill Brandi General Manager • Mary S . Evans Controller A Division of Oakland Scavenger Company 06-Jul-88 A Waste Management Company DUBLIN CLEAN - UP PROPOSED COST ( BASED ON PRIOR YEAR ACTUALS) EXTENDED COST WAGES : 12 DRIVERS 120 HOURS s3 , 592 8 HELPERS 80 HOURS 2 , 204 1 MECHANICS 8 HOURS 279 2 SUPERVISORS 525 DISPOSAL: 30 LOADS X 10 TONS/LOAD X $6 . 00/TON 1 ,800 ADVERTISING: NO CHARGE. TOTAL ESTIMATED CLEAN - UP COST $8 , 400 + 'AGREEMENT • BY AND BETWEEN THE CITY OF DUBLIN AND OAKLAND SCAVENGER COMPANY REGARDING FUNDING OF SPECIAL RESIDENTIAL CLEAN-UPS OUTSIDE OF RATES This agreement entered into this day of November, 1986, by - and between the City of Dublin— a municipal corporation, hereinafter "CITY" and Oakland Scavenger Company, a California corporation, hereinafter "COMPANY" . WITNESSETH WHEREAS, the CITY and the COMPANY entered into a Letter of Intent dated February 20, 1986 ; and WHEREAS , the conditions of that document provided for a written agreement once approval of the proposal was received from the Joint Refuse Rate Review Committee; and WHEREAS, the precise amount of funds available were not known at the time that the Letter of Intent was signed; and WHEREAS, the City Manager was authorized to execute an agreement based on the Letter of Intent ; and WHEREAS, the Joint Refuse Rate Review Committee approved a related action on September 25, 1986 . NOW, THEREFORE, in consideration of the premises set forth above and of the mutual covenants and agreements contained herein, the parties agree as follows : Section 1 : Intent The intent and scope of this agreement shall be as defined in the original "Letter of Intent" , noted as Exhibit A, attached hereto and by reference made a part hereof . Section 2 : Amount of Funds As of September 25, 1986 , $70 , 040 was available pursuant to the letter dated September 25, 1986, noted as Exhibit B, attached hereto and by reference made a part hereof . The cost of the first two Citywide clean-ups shall not exceed $8, 000 for each clean-up . The cost of any further clean-ups shall be negotiated between the COMPANY and CITY. Page 1 Section 3 : Use of Funds • _ As described in Exhibit A COMPANY shall ' provide residential Citywide clean—ups . COMPANY shall only charge CITY for clean—ups which are in addition to those included in the basic rates . Scheduling of clean—up dates shall require CITY approval . Other uses shall be consistent with Exhibit A. Section 4 : Accounting COMPANY shall segregate funds within its internal accounting system to provide an adequate audit trail . COMPANY shall provide CITY with a minimum of a semi—annual statement of the balance remaining in this fund . These funds shall be for the benefit of CITY as stated in this agreement , or as may otherwise be approved by the Joint Refuse Rate Review Committee . Section 5 : Terms COMPANY shall provide services described in this agreement pursuant to and in compliance with the "Agreement Between the City of Dublin and Oakland Scavenger Company Regarding Waste Collection and Disposal" , dated March 10 , 1986 . All conditions of said agreement shall be considered applicable to this agreement . This agreement shall cease to be in effect once the balance of funds available is zero . For CITY : For OAKLAND SCAVENGER COMPANY : RicharAmbrose , City Manager Peter Borgher , President Page 2 - ;, :;,r'; .s• _ 1 .. "Exhibit A" 1i� ""`'�•C 'wtr Letter of.Intent ' ,: .• ...,..�•• :-.,, - s- Dated February 20, 1986 . ..•i►,L Try. *! �. C'i'�' 7'. ntr�K -3! ;.:'.1t.1,8.. By and Between the City of•Dublin ("City")"City") and • � t,=.,-,• , ,. •,'•L % : -. Oakland Scavenger Company :(0SC) � 7.t 't; Wr. ''... by .'i x • �f,i WaS• i1a7•;:} • - Background . 1.�;•: '- L EI--�•iSx' u . O - �:-,-. �+,,. ;��1.r. The Dublin San Ramon Services District was the agency f3.. ' ^ -st. �`. ;4-'• y- responsible for the solid waste franchise in the City of Dublin •''••^,'` '•.' ..%�Y'"-+c � ∎ between July 1, 1985 to March 31, 1986. The Board of Directors ` _==';.; =' ;'i , ;. -�% elected not to implement an 11 percent rate reduction in =.7`t' :.is�',.`�'" . commercial fees as recommended by the Refuse Rate Review Committee •='':'��rr-:. -.�•:••i'' .•x°��' (RRRC) . If the recommendation had been implemented it is 4•''.',;;••^r would have not been realized • '{_';' estimated that approximately $77,000 wo '_;= t- (OSC). The exact amount • -� -3�•.-''•� '• �'=��:�) as profit by Oakland Scavenger Company ``' -- only be determined after all collections are completed on '.: ` = =▪ : <,.. can onl 986. -• '...-, • - '•- {• =-�'.'.` 'billings through March 31, 1 _' +5�"tYiT L' ---.-...-'.4.•::•-•'.. `='.'•�••y::�.&... It is the belief of both parties that this .windfall should x '.'ti:_.r'. - _ _•;;. ••:,- Y �, }.� not be spread over the return of investment realized as a benefit ~-�'-.y-;•:r ;,';- '= by all communities serviced by OSC. The benefit should be • r',' y:'_', ':- retained within the community in which it was generated. • • s r :-..'.J`-. Q • '_-.: ,:;_ _ ; :-'� - • >` 1''.." "`'"•' '`` Definition of Amount of Funds - -.;•:�'•:' ;-: ''_'' It is proposed that DSC shall prepare documentation of the 1 ,h�^ amount of the total gain realized between July 1, 1985 and `__;:�== Y - March 31, 1986 due to the fact that the rate reduction was not ..•= -..,--�`= f--�`'r''-'=�=y steps proposal reviewed 'fir_ implemented. OSC shall take ste s to have the " "4"'' : ;44 ';.<ti,_--' • by the RRRC The current estimate of available funds is ':ice' -. -:.i ..:-, _ 000. ,;u aPProximately 577. Proposed Use - . •- 4 ?; y..kz; It is proposed that these funds be -utilized to provide for _ ; : r .z? ? two (2) residential clean-ups each year These clean-ups would be '' ' ' 'r '' in addition to the two included in the rates for residential .... .. ..—.....- ,;27.:,:,..,,•:..._ service. The cost of the first two clean-ups shall not exceed _ ._ >?'j $8,000 for each clean-up. •.: _ _Ls:; r- "Zt:ViN OSC would provide the City with an ongoing accounting of the balance remaining. As OSC provided these services the cost would•` • -.-!. ' ` `.= - be deducted from the existing balance and appropriate ='+ documentation would be provided. Nothing shall prevent the two - i \y •.•+1 parties from determining other uses for these funds which are - . a'' " mutually agreed to. -• • T - Intent - - It is the intent of both parties to enter into a written ,` agreement based on this letter of intent, once final details and - ;i-• -;"`?= : -?: ..;•v, -.'.-t' necessary approvals are received. 1.:`tI, ,,y -' .- �:l./,.1 For For Oakland Scavenger Company. t -7.t..1 /Q mil _; , 4.-t - �c���- ':� •' 'cam •eter "- ny.er yor Peter Bor he L a, President a: gip.-2 ate Date EXHIBIT . A _:._•.'i.,......_ ->..::- c 0 v.ir:'1g• • ":-.1-‘;'..,-•:-•-'. • . • • .(;1�;:- - -- - - ----:-.---t.---,---..-7.-. > = •-)-.-.,,,. C�:?L-..:1•✓^.-^_^:-,-r v-?.- "7.7.....'".....% .7 - - •••• • OAKLAND SCAVENGER CO.MI'ANY • , -_ 2601 PERALTA STREET • OAKLAND. CALIFORNIA 1=E07 • Te!ephcne 465-2511 - • September 25, 1986 `-7, ; • • Mr. Paul Rankin Assistant to the City Manager • City of Dublin 6500 Dublin Blvd. , Suite 101 P. 0. Box 2340 _ • Dublin, California 94568 RESOLUTION NO. 21-86 EXHIBIT A - LETTER OF INTENT Dear Mr. .Rankin: In accordance with the subject Letter of Intent, dated February 20, 1986, between the City of Dublin and Oakland Scavenger Company, we presented my letter, dated September 24, 1986, to the Refuse Rate Review Committee. As you are aware, we are pleased that the Committee accepted our request and recommendation to allocate $78,040 of our unearned revenues to the City of Dublin. At the time that the Letter of Intent was formulated we estimated that $77,000 would be the available funding. We have done the formal calculations on the ac- tual amounts from July 1, 1985 through March 31, 1986 and that amounts to $78,040. We performed a cleanup chargeable to the City of Dublin on July 26, 1986 for the agreed amount of $8,000. The adjusted available funding is now $70,040. Should you have any questions, please contact Dave MacDonald. Sincerely, • ��Z _ v-tom Peter Borgh g President PB/bc cc: R. Ambrose, City of Dublin D. D. MacDonald • EXHIBIT 1ES ..._ • .. ...w. .. . .....-- r. .r v. . r . _ .. ,..,� _ ..1w _,._.l.r r--..•ir•.�-n. .. -rn:*.-.r..-.vv. .� .. -, t.J 1 1 1 %.,1. �./ v L• U 1..2' "4 V�1\, 1 1. Box 2340 DUBLIN. CALIFORNIA 9 43 PSIO �� t1 • -'11/10 December 6, 19818, f I' S (1)}, J I'' II I u u � CITY OFFICES 6500 DUBLIN BLVD. . ' " 14e Mr. Paul Causey, Chair 0, • ADMINISTRATION \ (415) 829-4600 Joint Refuse Rate Review Committee '41 ,-t-,.,•; ••� c/o Ora Loma Sanitary District 2600 Grant Avenue BUILDING INSPECTION San Lorenzo, CA 94580 (415) 829-0822 Dear Mr. Causey and Members of the JRRRC: CITY COUNCIL (415) 829-4600 The purpose of this correspondence is to request authorization for the Dublin Clean-up Fund to be credited CODE ENFORCEMENT with a proportionate share of interest. It is our (415) 829.0822 understanding that the Joint Refuse Rate Review Committee (JRRRC) will be acting on this request. ENGINEERING The "Dublin Clean-Up Fund" was created by action of the (415) 8294927 JRRRC, after the City of Dublin became a member in 1986. Prior to this time, the garbage service in our community was FINANCE monitored by the Dublin San Ramon Services District (DSRSD) . (415) 829-6226 In 1985 , the JRRRC determined that it was appropriate to PLANNING institute an 11 percent decrease in the commercial garbage (415) 829-4916 rates . At this time DSRSD was uncertain as to whether the Cities of Dublin and San Ramon would be assuming control of the garbage franchises in their respective cities . POLICE Therefore, DSRSD elected to maintain the rates and did not (415) 8290566 institute the reduction. PUBLIC WORKS In March of 1986, the City of Dublin became the signator to (415) 829-4927 the garbage franchise agreement. The City immediately initiated the commercial rate decrease. On our behalf, RECREATION Oakland Scavenger Co. (OSC) approached the JRRRC and (415) 829-4932 requested that the excess funds contributed by Dublin Commercial users be placed in a special fund. This fund was to be for the exclusive use of special clean-ups in the City of Dublin. This action was approved by the JRRRC. The basis for this action was consistent with an equitable distribution of OSC earnings . These funds had been generated solely by Dublin rate payers . It appeared inappropriate for OSC to gain a windfall. The establishment of the cleanup fund is based on the concept of retaining these funds for the benefit of the community in which they were generated. We recognize that this was a unique request and appreciated the support from the JRRRC. The current request is to allow the application of historic interest rates to this special fund. In the original action taken by the Committee, the issue of earnings on this fund was not addressed. As noted in the analysis prepared by Waste Management Inc. (OSC) , the total interest earnings through September of this year amounted to $8, 770 . Again, we would contend that this "windfall" should not accrue to the Company or other rate payers in the system. On behalf of the City of Dublin, we would request that the JRRRC allow Waste Management Inc . (OSC) to calculate interest on the "Dublin Clean-up Fund. " This would be calculated at the company' s historic rate and would be applied retroactively in accordance with the attached schedule. Future interest earnings will be calculated in the, same manner until such time as the fund is depleted. I appreciate the Committee' s consideration of this matter. If I can be of assistance, please feel free to contact me. Sincerely, Richard C. Ambrose RCA: slh City Manager cc: Dave McDonald, OSC Bill Brandi, Dublin Livermore Disposal Livermore Dublin Disposal 6175 South Front Road is Livermore,California 94550 A Waste Management Company 415/447-1300 14!!!;; November 1 , 1988 Mr . Paul Rankin Assistant to the City Manager City of Dublin P . 0. Box 2340 Dublin, California 94568 Dear Paul : Per your conversation with Dave MacDonald, enclosed is an analysis of the Dublin Clean-Up Fund as of September 30 , 1988 . The 1986 interest rates reflect Oakland Scavenger Company ' s historic rates ; the 1987/1988 rate was determined by the Joint Refuse Rate Review Committee . Please do not hesitate to contact me at ( 415 ) 537 - 5500 if you have questions . Sincerely, 176f6I 6A/is/— Mary S . Evans Controller Enclosure As above cc : Dave MacDonald Bill Brandi • A Division of Oakland Scavenger Company • • A Waste Management Company DUBLIN CLEAN-UP FUND ANALYSIS CLEAN-UP INTEREST -FUND COST EARNED BALANCE Master agreement dated Mar. 10, 1986 $ 18,040 Interest Mar/Apr/May/Jun/Jul @ 5.25% S 1,101 79,747 Clean-up dated 7/26/86 $ (8,000) 71,147 Interest Aug/Sept/Oct/Nov/Dec @ 5% 1,495 73,242 Clean-up dated 1/10/87 $ (8,000) 65,242 Interest Jan/Feb/Mar/Apr/May/Jun/Jul @ 5.16% 1,879 67,121 Clean-up dated 7/25/87 $ (8,000) 59,121 Interest Aug/Sept/Oct/Nov/Dec @ 5.76% 1,419 60,540 Clean-up dated 1/9/88 $ (8,000) 52,540 Interest Jan/Feb/Mar/Apr/May/Jun/Jul/ 2,270 54,809 Aug/Sept @ 5.76% • CLEAN-UP FUND BALANCE AS OF 9/30/88 $ 54,809 • • Q . \ ORO LOMA SANITARY DISTRICT N,, 2600 GRANT AVENUE Di,ecmn. SAN LORENZO, CALIFORNIA 94580 Carl E.Evanson,President TELEPHONE (415) 276-4700 Howard W.Ken,Vice Presidlent Kenneth G.Burkard,Secretary 4`t Marvey f d,No king,t rector M.L.Sanford,Director \ , General Manager. Paul H.Cau.ey February 10, 1989 aJ Mr. Richard C. Ambrose, 6' City Manager City of Dublin P.O. Box 2340 Dublin, CA 94568 Subject: City of Dublin Cleanup Fund Dear Mr. Ambrose: Reference is made to your December 6, 1988 letter requesting action by the Joint Refuse Rate Review Committee on interest for the "Dublin Cleanup Fund" . Please be advised that the Committee took this matter under consideration at its February 9, 1989 meeting. At that meeting, they approved your request with the following three conditions: 1. That the Oakland Scavenger Company annually provide a financial analysis of activity related to this fund with their rate application. 2. That the interest to be applied against the fund be no different than interest applied to all Joint Refuse Rate Review Committee or franchised operations. 3. That the City of Dublin be solely responsible for authorization of expenditures from this fund. Finally, the Committee asked me to find out the secret to your negotiating success for the annual cost of the cleanup program. Other Member Agencies of the Committee are paying from $30,000 to $150,000 for their annual cleanup programs. If you have any tips in that regard, we would appreciate receiving them. Should you have any questions about to the Committee's actions, please be advised that Mr. Phil Molina of your Agency was present at the discussions and either he or I should be able to answer those questions. • erely, e • •I Paul H. Causey; Chailfn Joint Refuse Rate Review C• tee cc: Dave MacDonald, Oakland Scavenger Company Bill Brandi, Dublin-Livermore Disposal FIRST AMENDMENT TO AGREEMENT REGARDING FUNDING OF SPECIAL RESIDENTIAL CLEAN-UPS OUTSIDE OF RATES This amendment dated 13th March, 1989 shall modify the agreement first entered into in November of 1986 by and between the City of Dublin, a municipal corporation, hereinafter "CITY" and Oakland Scavenger Company, hereinafter "COMPANY" . WHEREAS, Oakland Scavenger is now operating as a division of Waste Management, Inc. ; and WHEREAS, pursuant to Section 2 of the current agreement the COMPANY has requested an adjustment to the cost of each of the clean-ups . NOW, THEREFORE, in consideration of the premises set forth the current agreement shall be amended as follows : a. Section 2 of the agreement shall be amended in the following manner: "The cost of individual clean-ups shall not exceed $8, 400 for each clean-up, beginning in 1989 . " b. Section 4 shall be amended to include the following: "In accordance with action taken by the Joint Refuse Rate Review Committee (JRRRC) on February 9, 1989, the Special Clean-Up Funds shall accrue interest. The Fund shall also be subject to the following conditions : 1 . Oakland Scavenger Company shall annually provide an analysis of activity related to this fund with their rate application. 2 . The interest applied to the Fund shall the same as the interest applied to all JRRRC or franchised operations . 3 . The City of Dublin shall be solely responsible for authorization of expenditures from this fund. " FOR CITY: FOR COMPANY: Richard C. Ambrose, City Manager Dave McDonald, Vice President "Exhibit A" Letter of Intent . Dated February 20, 1986 By and Between the City of Dublin ( "City" ) and Oakland Scavenger Company (OSC ) Background The Dublin San Ramon Services District was the agency responsible for the solid waste franchise in the City of Dublin between July 1 , 1985 to March 31, 1986. The Board of Directors elected not to implement an 11 percent rate reduction in commercial fees as recommended by the Refuse Rate Review Committee (RRRC) . If the recommendation had been implemented it is estimated that approximately $77,000 would have not been realized as profit by Oakland Scavenger Company (OSC ) . The exact amount can only be determined after all collections are completed on billings through March 31 , 1986. It is the belief of both parties that this windfall should not be spread over the return of investment realized as a benefit by all communities serviced by OSC . The benefit should be retained within the community in which it was generated . Definition of Amount of Funds It is proposed that OSC shall prepare documentation of the amount of the total gain realized between July 1 , 1985 and March 31, 1986 due to the fact that the rate reduction was not implemented. OSC shall take steps to have the proposal reviewed by the RRRC . The current estimate of available funds is approximately $77,000. Proposed Use It is proposed that these funds be utilized to provide for two (2) residential clean-ups each year. These clean-ups would be in addition to the two included in the rates for residential service. The cost of the first two clean-ups shall not exceed $8 , 000 for each clean-up . OSC would provide the City with an ongoing accounting of the balance remaining. As OSC provided these services the cost would be deducted from the existing balance and appropriate documentation would be provided. Nothing shall prevent the two parties from determining other uses for these funds which are mutually agreed to . Intent It is the intent of both parties to enter into a written agreement based on this letter of intent , once final details and necessary approvals are received . For y: For Oakland Scavenger Company: Peter W. yde Mayor Peter Borghero , President .2(,N/86, ate Date • +-+..s.;7 ..ten7' 77.-.s"r..'Z'1^' ., Jf' >T.fc--r ^.'y.7.R+ 7-7gc.; -•^' 7 :77:17. 71;7777 '.'."`.'�tii��:-'".f'"°"."i`.: +ax,;. ..... -�-. _ .. .,.'�5`"?°'T.r..-✓4�;+n..<- .� •;s.�c,.a ohs ."..:;�f v°"3",.,'c.'".' �'e2?`:r.Y.4.�"'wee""'Sr`,',•.�'?."!...^'°y'_,^^'..-,�sfa� .. -