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Home My WebLink AboutEDCO Disposal Corporation - Amendment to Agreement - Green Waste - 1994City of National City, Californir t:/UNCIL AGENDA STATEMEN T % MEETING DATE April 19, 1994 5 AGENDA ITEM NO. r ITEM TITLE O AGREEMENT WITH ORGANIC RECYCLING WEST, INC. TRASH - INTERPOSING NO OBJECTION TO REGARDING GREEN WASTE. PREPARED BY C.R. WTT,T,IIMS, JR EXPLANATION SFF ATTACHED. DEPARTMENT PUBLIC WORKS Environmental Review Financial Statement NO DIRECT IMPACT ON CITY. x N/A Account No. N/A STAFF RECOMMENDATION AUTHORIZE MAYOR TO SIGN A T�Fr hR INTERPOSING NO OBJECTION TO FnCO CONTRACT WITH ORGANIC RECYCLING WEST, INC., REGARDING DELIVERY OF GREEN WASTE. BOARD/COMMISSION RECOMMENDATION AMCHMENTS (Listed Below) LETTER TO EDCO CONTRACT EDCO/ORGANIC RECYCLING WEST Resolution No. N/A A-200 (Rev. 9/80) COUNCIL AGENDA STATEMENT MEETING DATE FEBRUARY 22, 1994 EXPLANATION: The City Council recently concurred with establishment of a green -waste -to -compost facility on Otay Mesa. That facility, Organic Recycling West, Inc. (ORW, Inc.) is rapidly approaching operational status and has expressed a desire for commitment of National City green wastes to that operation. Staff has confirmed with the County that National City green wastes are "recyclable", and, as such, are excluded from this cities commitment to provide "100% of our acceptable wastes" to the County. In exchange for this commitment of green wastes, ORW, Inc. is offering to accept the green waste at a tip fee that is less than the green waste tip fee of the County. Although the tip fee itself will be less, use of ORW, Inc.'s facility adds eleven minutes to the normal trash route, which generates additional costs. These costs will exceed the benefits of the lower tip fee and initially will have the effect of increasing the costs of service by about 1 cent per month for single family residential customers and about 8 cents/month for commercial/industrial customers. Anticipating that County tip fees for general trash and for green wastes will increase significantly on 1 July 1994 (and annually thereafter), this increased cost differential will result in reduced costs to the City - basis is that the County tip fee is currently $25/ton for green waste, while ORW, Inc. tip fee will be pegged - by agreement, to $21/ton. If the County green waste tip fees go to $27.00/ton, then the lower tip fees of OWR, Inc. will exactly cover the additional costs to EDCO of using the ORW, Inc. facility. If (or when) the County green waste tip fee goes above the $27.00/ton, costs of total trash service will go down. EDCO is contemplating a contract with ORW Inc., that will establish the tip fee for green wastes at $21.00 per ton from origin of contract to 31 August 1994. From 1 September 1994 to 30 June 1995 the fee would be $4.00 per ton less than the County tip fee (with a minimum of $21.00 and a maximum of $24.00/ton). For the next period, 1 July 1995 to 30 June 1996, the fee would again be at $4.00 less than the County tip fee with the same maximum and minimums, but as modified by the consumer price index and as modified by any extraordinary expenses as documented by ORW. During the next period 1 July 1996 through 31 March 1997, the above formula would be applicable. The contract could be extended past this date on mutually acceptable terms. A contract of this nature will guarantee that green wastes are disposed of at the lowest price. it should be noted that since these green wastes will in fact be recycled into usable/saleable compost, that will help the City meet the State imposed trash reduction requirements, and may help in precluding State imposed fines on the City for failure to meet State goals (25% reduction by 1995/50% by 2000). The current contract with EDCO requires that EDCO deliver trash to where ever the City directs. It is recommended that the Mayor be authorized to sign a letter to EDCO interposing no objection to their negotiation of a contract with ORW, Inc. for delivery of green wastes to the ORW, Inc. facility. It should be further noted that the additional costs imposed by this program on EDCO in the March 94 to July 94 time frame, will be voluntarily up -fronted by EDCO, subject to recapture in the next rate revision (1 July 1994). It should be further noted that collection of green wastes in plastic bags, which is now permitted in National City, is inconsistent with mulching or composting of such green wastes, whether disposal is at County landfills or other alternatives are used. A revision to City ordinances eliminating plastic bags as an alternative is under development currently. a• City of ftional City Office of the Mayor 1243 National City Boulevard, National City, CA 91950 (619) 336-4230 George H. Waters - Mayor April 19, 1994 Ed Burr EDCO Disposal Corporation 5570 Federal Blvd. Lemon Grove, CA 91945 Subject: of Trash City of Services 1993 Delivery of Green Waste; Agreement for Collection in the City of National City by and between the National City and EDCO Disposal Corporation for Rendered of September 25, 1990 as modified June 22, Dear Mr. Burr: Section 7 of the above -referenced agreement, as modified, requires contractor to deliver trash as directed by the City. It is understood that Organic Recycling West, Inc,, is offering a lower tip fee for handling green wastes than is being offered by the County. In view of the fact that Organic Recycling West, Inc. will recycle green wastes into salable composts, and that the tip fee is less than than being offered- by the County, no objection is interposed to EDCO negotiating a contract for such delivery on terms most beneficial to the City. It is understood that this letter does not modify or constitute a waiver of the rights or obligations of EDCO Disposal Corporation or the City of. National City under Section 7 of the above -referenced agreement._ Very truly yours, George Waters Mayor City ORGANIC RECYCLIkJ WEST, INC. 4751 WILSHIRE BOULEVARD, SUITE 209, LOS ANGELES, CA 90010 TELEPHONE: (213)933.5943 FAX: (213) 932-0575 April 5, 1994 Mr. Steve South General Manager Edco Disposal Corporation 6670 Federal Boulevard, Lemon Grove Ca. 91945 Re: Delivery Of Green Waste Collected By Edco Disposal Corporations Inc. To Organic Recycling West's Permitted Compost Facility At Otay Mesa Dear Mr. South, We are pleased to confirm that we can offer the following terms for the delivery of green waste and clean wood waste collected by Edco Disposal Corporation from the City of Coronado and City of National City, to Organic Recycling West Inc.'s (ORWI) compost facility at 1202 La Media Road, San Diego Ca 92173 : 1. Tipping Fee The tipping fee per ton (2,000 pounds) of acceptable materials for the duration of this agreement is agreed upon as follows: From Commencement to August 31. 1994 Set at $21 per ton. September 1. 1994 To June 30. 1995 $4.00 per ton less than what is charged at the county landfill for green waste with maximum fee during this period at $25 per ton and with a minimum fee during this period at $21 per ton [With today's tipping fee at the landfill for green waste at $25.00 per ton, this amounts to $21.00 per ton] MAIN OFFICE NEW ENGLAND OFFICE CANADA OFFICE 614 CORPORATE WAY, VALLEY COTTAGE, N.Y. 10989 P.O. BOX 176, 150 WAMPANOAG ROAD, EAST GREENWICH, R.I. 02818 165 GEDDES STREET, ELORA, ONTARIO NOB 150 TEL: (914) 268-0322 TEL: (401) 884-1455 TEL: (519) 846-8317 FAX: (914) 268-0321 FAX: (401) 884-1634 FAX: (519) 846-8319 3 Any hazardous waste contaminated loads, loads containing significantly high levels of household garbage contamination will be rejected at the compost site and will be removed at Edco Disposal Corporations Inc.'s cost. 3. Duration of Agreement This agreement expires on March 31, 1997 unless renewal is mutually agreed upon. Notwithstanding the foregoing, this agreement may be terminated at any time the other party is in default of its obligations set out in this letter if the defaulting party fails to cure such default within 10 business days of receipt of written notice from the non -defaulting party. 4. Processing Of Materials Organic Recycling West Inc. confirms that green waste and clean wood waste will be processed into mulch, compost and other products that meets the goals of State AB 939. Garbage generated at the compost site will be disposed by of permitted facilities. Organic Recycling West Inc. will operate a weigh scale and materials delivered to the compost site will be weighed. In the event of breakdown of the weigh scale, during that period the tipping fee will be based upon the average weight of that vehicle and/or similar vehicle of the previous 30 days. 5. Indemnity Each party shall indemnify the other party against any losses, claims, judgment or expenses suffered by the other by reason of the breach of the provisions of this agreement (unless it is due to force majeure events including loss of facility permits for whatsoever reasons) by the indemnifying party or the negligent performance of its obligations arising under this agreement. 4 6. Assignment This letter and its obligations of the parties arising hereunder may not be assigned, sub -contracted or transferred without the prior written of the other party. If the foregoing provisions correctly set out our understanding of the matter, please sign both copies of the letter to confirm and acknowledge your agreement. Sincerely, Agreed To And Acknowledged By Edco Disposal Corporations Inc. Beng Hoe Ooi` President Steve South General Manager Date: