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HomeMy WebLinkAboutItem 4.14 AltamontLandfillPleasAGENDA STATEMENT FILE 600-40 CITY COUNCIL MEETING DATE: July 3, 2001 SUBJECT: Agreement Between the City of Dublin and the City of Pleasanton Regarding Expenditures Created by the Altamont Landfill Settlement Agreement Prepared by: Jason Behrmann, Administrative Analyst ATTACHMENTS: 1) 2) Resolution dated August 1, 2000, Approving Agreement Letter from Dublin Mayor Houston and Pleasanton Mayor Pico dated February 28, 2001 RECOMMENDATION: Re-affirm the Council' s previous approval of the agreement between the City of Dublin and the City Of Pleasanton regarding expenditures created by the Altamont Landfill settlement agreement FINANCIAL STATEMENT: The agreement with Pleasanton will restfit in more potential revenue for the acquisition of permanent open space in the City of Dublin. There is no direct fiscal impact to the City, although residents and businesses may be impacted, as the open space fee is included in the garbage rate calculation beginning in Fiscal Year 2002-2003. DESCRIPTION: Background of Open Space Fees As part of the settlement of litigation over the expansion of the Altamont Landfill, the parties to the litigation (Alameda County, Waste Management of Alameda County, the Cities of Livermore and Pleasanton, and various environmental groups) agreed that the County would charge Waste Management of Alameda County, Inc. (WMAC) two fees totaling $1.25 per ton of waste disposed at the Landfill, which WMAC is required to pass on to its franchisors and other jurisdictions that use the Landfill. Of the two fees, $0.75 per ton must be spent on the acquisition of open space, either by purchasing the land or obtaining a permanent easement. Only twenty percent of the total amount of money acquired through the fee will be spent in the Dublin-Pleasanton area, referred to in the settlement agreement as the western area; the other eighty percent must be used to acquire property in eastern Alameda County, around Livermore. How Decisions Regarding Expenditure of the Fees are Made As envisioned with the adoption of the settlement agreement, all money collected from the open space fee will be deposited into an account held by the County. Under the terms of the settlement agreement, the County COPIES TO: ITEM NO. must convene an Advisory Committee to make decisions about the expenditure of the funds in the account. The County, Livermore, Pleasanton, and the Sierra Club may appoint voting members to the Committee. Dublin has a non-voting representative. The Committee will prepare a "priority list" of properties for acquisition in each of the two areas. It will also decide how to allocate funds derived from the fee for expenditure during each year° For the Dublin- Pleasanton area, the Committee takes action by majority vote of the members representing the County, Pleasanton, and the Sierra Club. Those three members decide which properties in that area will appear on the priority list and how to spend the money allocated for expenditure on open space in that area. The Committee makes annual adjustments to the lists and the proposed expenditure of funds. After the Committee makes its recommendations for the priority list and the allocation of funds, the Committee must submit them to the County and to the appropriate city (Livermore or Pleasanton, depending on the area in which the open space will be acquired). The County and city must hold public discussions on the recommendations at meetings of their respective legislative bodies. Their task is to determine whether the recommendations are consistent with the criteria in the settlement agreement, discussed below. If either does not ratify the recommendations, they will be referred back to the Committee. In placing property on the priority list, the Committee must give first priority to property that has significant value for preservation of native biological diversity and/or wildlife habitat; it must give second priority to property that has value for visual character and/or non~motorized recreation. The agreement places two limits on the expenditure of the funds. First, the Committee may not spend them to acquire property if acquisition has already been required as a condition of project approval, or if acquisition would otherwise facilitate development of open space. Second, it may not spend the funds on acquiring land in the viticulture area of the South Livermore Valley Area Plan that would otherwise be acquired through a city or County regulatory program. The Committee may, however, spend up to five percent of the annual proceeds of the open space fund on independent consultants to help identify open space areas for acquisition and to make plans for their acquisition. Summary of the Agreement with Pleasanton In attempting to comply with its obligations under the settlement agreement, in April 2000, WMAC requested that the City of Dublin incorporate the open space fees into its proposed compensation from the City, and pass the fee along to Dublin ratepayerso Because Dublin residents would, if the fee were included in their rates, pay into the open space account but have no say in the expenditure of funds as outlined in the negotiated settlement agreement, the Council directed staff to negotiate an agreement with Pleasanton to use its vote on the Committee to assure that funds allocated for open space in the western area would be divided evenly between Dublin and Pleasanton, and that Dublin would approve all property in Dublin placed on the priority list for the western area. In return, Dublin would agree to allow WMAC to include the fee in its calculation of target revenue and, thus, in its increased rates. Under the agreement, Dublin agrees to allow WMAC to take the open space fees into account in its calculation of target revenue and, thereby, to include the fees in customers' rates. Dublin further agrees to continue to study mechanisms for funding open space acquisition and to share that information with Pleasanton and the Committee. Finally, Dublin agrees to participate in the Committee and advocate for the division of funds as provided for in the agreement. In return, Pleasanton agrees that, when the Committee prepares the priority list for the western area, its representative to the Committee will only vote to put on the list properties in Dublin that Dublin has approved. It also agrees, on those occasions, to vote to divide the funds allocated for the western area evenly between properties in Dublin and Pleasanton, unless the two cities agree to an alternate arrangement. If the Committee approves a list or allocation that does not conform to the agreement between Dublin and Pleasanton, Pleasanton agrees that its City Council will vote to disapprove the Committee' s recommendation. Finally, the agreement allows the two cities to agree separately to allocate the funds for the western area other than evenly between them. Thus, they can structure deals for one city to get the entire amount for one or several years to acquire a specific property. However, over time, the division of funds will be equitable, and in the absence of such an agreement, the funds will be divided evenly. The attached agreement (Attachment 1 ) was approved by the Dublin City Council on August 1, 2000. The agreement was also considered by the Pleasanton City Council on the same evening, however the Pleasanton City Council did not agree with the equal division of open space fees between the two cities, and instead approved an amended form of the agreement which would have divided the open space fees based on population. Because the agreement was not approved by both cities, the Dublin City Council elected not to include the open space fees in its rate calculations for Fiscal Year 2000-2001. In March of this year, Dublin Mayor Houston and Pleasanton Mayor Pico sent a letter to both City Councils suggesting that the Cities reconsider the original agreement without amendment (Attachment 2). The City of Pleasanton recently approved the agreement at its City Council Meeting of June 19, 2001. Because the Dublin City Council previously approved the agreement, there is no need for the Council to re-approve the agreement. However it suggested that the Council re-affirm its original intent to enter into an agreement with the City of Pleasanton regarding expenditures created by the Altamont Landfill settlement agreement. If the Council has any reservations about the agreement it would be appropriate to raise those concerns at this time. Because the City Council has already established garbage rates for Fiscal Year 2001-2002, and the requested compensation was subject to the 5% revenue cap, the open space fees will not impact Dublin residences and businesses in Fiscal Year 2001-2002. It is assumed that WMAC will request that the City of Dublin incorporate the open space fees into its proposed compensation from the City, beginning in. Fiscal Year 2002-2003. Recommendation Staff recommends that the Council re-affirm its previous approval of the agreement between the City of Dublin and the City of Pleasanton regarding expenditures created by the Altamont Land fill settlement agreement RESOLUTION NO. 135 - 00 A RESOLUTION OF THE CTrY COUNCIL OF ~ CITY OF DUBLIN AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT BETWEEN ~ CITY OF DUBLIN AND ~ CITY OF PLEASANTON REGARDING EXPENDITURES BY ~ OPEN SPACE ADVISORY COMMITTEE CREATED BY AN AGREEMENT SETTLING LITIGATION OVER THE EXPANSION OF TIlE ALTAMONT LANDFILL WHEREAS} the Council has been presented with an agreement entitled Agreement between the City of Dublin and the City of Pleasanton Regarding Expenditures by the Open Space AdVisory Committee Created by an Agreement Settling Litigation over the Eicpansion of the Altamont Landfill; and WHEREAS, the Council is familiar with the terms of the agreemere; and WHEREAS, the City Manager has recommended approval of the agreement. NOW, THEREFORE BE IT RESOLVED, that the Agreement between the City of Dublin and the City of Pleasanton Regarding Expenditures by the Open Space Advisory Committee Created by an Agreement Settling Litigation over the Expansion of the Altamont Landfill is hereby approved and the Mayor is hereby authorized and directed to execute the Agreement attached as Exhibit A. PASSED, APPROVEDANE} ADOPTED this 1st day of August 2000, by the following vote: AYES: Councilmembers Howard and Zika, Vice Mayor Lockhart and Mayor Houston NOES: None ABSENT: ' Councilmember McCormick ABSTAIN: None ATTEST n. f K:/G/8-1-00/reso-pton-openspace.doc (Item 4.6) z/, / q/ /Iz, / ATTACHMENT 1 AGREEMENT BETWEEN THE CITY OF DUBLIN AND THE CITY OF PLEASANTON REGARDING EXPENDITURES BY THE OPEN SPACE ADVISORY COMMITTEE CREATED BY AN AGREEMENT SETTLING LITIGATION OVER THE EXPANSION OF THE ALTAMONT LANDFILL This Agreement is entered into by and between the City of Dublin (hereafter "Dublin"), a municipal corporation organized under the laws of the State of California, and the City of Pleasanton (hereafter '~Pleasanton''), a municipal corporation organized under the laws of the State of California, this __ day of ,2000. RECffALS A. In 1991, Waste Management of Alameda County, Inc. (hereafter WMAC) applied to Alameda County (hereafter "County") for a Conditional Use Permit (hereafter "CLIP") that would have allowed it to expand the capacity of the Altamont Landfill and Resource Reclamation Facility (hereafter '%andfill"). The County granted the CUP in 1996, precipitating litigation over the sufficiency of the Environmental Impact Report prepared in conjunction with the CLIP application. Pleasanton was one of the plaintiffs in the case. B. In 1999, the parties to the litigation entered into an agreement settling their claims. As part of that agreement, a copy of which is attached hereto and hereby incorporated by reference, the County agreed to impose on WMAC, as a condition of expanding the Landfill, several fees per ton of waste disposed at the Landfill. The agreement allocated a portion of those fees to an Open Space Account (hereafter "Account"); it further allocated twenty percent of the funds deposited into the Account to the acquisition of open space in the Dublin-Pleasanton area. The County holds all funds in the Account until expenditures are approved. C. The settlement agreement established an Open Space Advisory Committee (hereafter "Committee") to administer the Account and the acquisition of open space with funds in the Account. Pleasanton, the City of Livermore, the County, and the Sierra Club may all appoint voting members to the Committee. Dublin has nonvoting representation on the Committee. The Committee's tasks, as described in the settlement agreement, are the creation of"priOrity lists" of properties to acquire in the Dublin- Pleasanton and Livemore areas and the allocation of funds from the Account for the acquisition of the listed open spaces by obtaining title or a permanent easement. Committee decisions regarding the priority list and allocations for the Dublin-Pleasanton area are made by a majority vote of Pleasanton, the County, and the Sierra Club. Once the Committee recommends a priority list and allocations for the Dublin- Pleasanton area, the Pleasanton City Council and the County Board of Supervisors must ratify the recommendations by determining that they are consistent with the requirements of the settlement agreement. If either body does not ratify the recommendation, it is referred back to the Committee for reconsideration. The Committee makes annual adjustments to the priority lists and the proposed expenditures of funds. D. As a further part of the settlement agreement, WMAC agreed, at the earliest point allowed under its franchise agreements, to include the fees in its per ton rate for disposal at the Landfill, thereby Agreement Regarding Open Space Committee Expenditures between the City of Pleasanton and the City of Dublin EXHIBIT A passing the fee to its franchisors and other jurisdictions that use the Landfill. Each franchisor must then pass the fee along to its customers by increasing rates for solid waste collection and disposal. WMAC has recently included the fees in its proposed per ton disposal rates for Dublin, thereby requesting that Dublin include the fees in its customers' rates. Dublin does not believe that, under the terms pfits franchise agreement with WMAC, WMAC has the fight to include the fees in its disposal rate for Dublin. E. Believing that the acquisition of open space in the Dublin-Pleasanton area will benefit the residents of both cities, and recognizing that the residents of Dublin will contribute to the Account by indirectly paying the fees discussed above, the parties hereto enter into this Agreement to provide a mechanism for assuring the equitable distribution of the funds from the Account designated for the creation of open space in and around both cities. AGREEMENT NOW, THEEFOE, in consideration of the mutual promises'contained herein, the parties agree as follows: 1. Dublin' s Responsibilities. a. Dublin shall, pursuant to its franchise agreement with WMAC and when requested by WMAC, include in the per ton Base Rate defined in that agreement all fees imposed on WMAC by the County as part of the agreement settling the litigation over the expansion of the Landfill. b. Dublin shall, to the extent permitted by law, continue to study mechanisms and funding sources for open space acquisition and research within and around its boundaries and shall share all information obtained from such studies with Pleasanton and the Committee. c. Dublin shall actively participate in the Committee and strongly advocate that the funds in the Account be allocated for the acquisition of open space in Pleasanton and Dublin. 2. Pleasanton's Responsibilities. a. When the Committee creates and makes annual adjustments to the priority lists and proposed allocations of funds, Pleasanton's Committee representative shall vote to place on the priority list properties in Dublin that Dublin's representative has approved. Pleasanton's representative shall, on those occasions, also vote to divide the funds in the Account allocated for the acquisition of open space in the Dublin-Pleasanton area as agreed to by the parties. If the parties reach no other agreement regarding allocation of funds, Pleasanton's representative shall vote that the proposed expenditures for the ensuing year be divided equally between the parties, such that half of the funds are designated for the acquisition of open space in Pleasanton, half for open space in Dublin. b. If the Committee recommends a priority list that contains properties in Dublin that Dublin' s Committee representative has not approved or an allocation of funds for the acquisition of open space in the Dublin-Pleasanton area that is not divided between the parties as they have agreed, the Pleasanton City Council shall vote to disapprove the recommendation as inconsistent with the requirements of the settlement agreement. If the parties have not agreed to an alternative allocation of funds for any given year, the Pleasanton City Council shall similarly vote to disapprove a Committee recommendation for that year that does not evenly divide between the parties the funds allocated for the Dublin-Pleasanton area. 3. Alternative Allocations. The parties may informally agree to an allocation of funds for a single year or for multiple years that is not evenly divided between them. In the absence of an agreement for an alternative allocation, the annual allocation of funds shall remain evenly divided for acquisition of open space in each city. 4. Indemnification. Each party agrees to hold harmless the other and its elected and appointed councils, boards, commissions, officers, agents, employees, and representatives from any and all claims, costs, and liability that may arise directly or indirectly as a result of any actions taken pursuant to this Agreement. 5. Term and Termination. This Agreement shall remain in effect for as long as the Committee exists and makes decisions about the allocation of funds derived from fees imposed as a result of the settlement of the above-described litigation over the expansion of the Landfill. This Agreement may be terminated only by the written consent of both parties. 6. Severability. If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions will nevertheless continue in full force without being impaired or invalidated in any way. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date written above. CITY OF DUBLIN By: G /f~~' ~y~o~ston, Mayor " CITY OF PLEASANTON By: Ben Tarver, Mayor Attest: . Attest: Kay Keck, City Clerk Approved as to form: Peggy Ezidro, City Clerk Approved as to form: Elizabeth H. Silver, City Attorney Michael Roush, City Attorney THE CITY OF._,ek,' _- _ _ _.__ ' LEASANTON, February 28, 2001 Dublin City Council 100 Civic Plaza Dublin, CA 94568 Pleasanton City Council P.O. Box 520 Pleasanton, CA 9456643802 RE: Allocation of Aitamont Settlement Agreement Open Space Fees Honorable Councilmembers: As part of the settlement of litigation over the expansion of the A!tamont Landfill, a fee of $.75 per ton is earmarked for the acquisition of open space in the TriNalley. Eighty percent is to be spent in the Livermore area and twenty percent in .the Pleasanton-Dublin area. Under the terms of the Settlement Agreement, the County must convene an AdVisory Committee to make decisions about the expenditure of funds in the account. The County, Livermore, Pleasanton and the Sierra Club may appoint voting members of the Committee. Dublin is allowed a non-voting representative. Since Dublin uses the A!tamont Landfill, Dublin's franchised waste hauler has requested that the City pass the new fee on to its ratepayers. Under these circumstances, Dublin residents would pay into the open space account, but have no representation in determining how the funds are spent. To remedy this situation, adraft agreement, prepared by our City Managers, was presented. to both cities on August 1, 2000 to ensure that open space fees would be allocated equally between both cities, Unfortunately, the cities were unable to come to a final agreement, and Dublin elected not to pass the open space fee on to its ratepayers. In a spirit of cooperation and partnership, we are requesting that both cities reconsider the draft agreement. We feel that the agreement is equitable and would provide Pleasanton and Dublin the opportunity to work together to protect open space that is valued and shared by both communities. Under the agreement, Dublin would agree to include the fees in its new rates to be adopted July 1, 2001. Furthermore, Dublin would agree to continue to investigate potential open space properties and mechanisms for funding open space acquisition and to share that information with Pleasanton and the Committee. In return, Pleasanton would agree that, when the Committee prepares the open space priority list, its representative to the Committee will only vote to put on the list properties in Dublin that Dublin has approved. It would also agree to vote to divide the ATTACHMENT 2 .,ublin City Council February 28, 2001 Page Two funds evenly between properties in Dubiin and Fleasanton, unless the two cities agree to an alternate arrangement. We look forward to working together to protect the open space of both communities by supporting the proposed Altamont Open Space Agreement. Thank you. Sincerely, ""' ~Uy Hou:ton Mayor City of Dublin Tom Pico Mayor City of Pleasanton ~altamontopenspace.doc2/28/01).