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HomeMy WebLinkAboutAgenda Packet 10/10/2003 UTILITY ADVISORY COMMITTEE - SPECIAL MEETING PUBLIC WORK5 CONFERENCE ROOM PORT ANGELES~ WA cJS362 OCTOBER ] 0r 2003 10:00 A,M. AP-ENDA I. CALL TO ORDER II. ROll CALL Iii. APPROVAL OF MINUTE5 - DELAYED TO REGULAR MEETING OF OCTOBER ] 4 IV, DISCUSSION ITEMS AD-iOURN TO EXECUTIVE SESSION RETURN TO REGULAR MEETING LANDFILL ISSUES V. NEXT MEETING DATE - OCTOBER 14~ 2003 VI. ADJOURNMENT pORTANGELES WASHINGTON, U.S.A. UTILITY ADVISORY (:OMMITTEE MEMO DATE: October 10, 2003 TO: UTILITY ADVISORY COMMITTEE FROM: Glenn A. Cutler, Director Public Works and Utilities RE: Interlocal Agreement between the City, Clallam County, and the City of Sequim for a Solid Waste Transfer Station/Export System Summary: The Port Angeles Landfill function will transition to a waste export system not later than December 31, 2006. It is necessary to enter into an interlocal agreement between the City, the City of Sequim, and Clallam County to implement the City's Long Range ?lan for Solid Waste and the County's Solid Waste Comprehensive Plan. Recommendation: Provide staff with comments on the draft interlocai agreement and direction on the next steps for implementation of the Long Range Plan for Solid Waste Management. Background/Analysis: The Port Angeles Landfill is scheduled to close not later than December 31, 2006. It operates as a regional landfill serving the eastside of Clallam County from the Lake Crescent area to the border with Jefferson County. The City Council directed staff to pursue a lead role in providing for the replacement of the landfill functions in a cost effective manner that will meet the needs and requirements of the citizens of Port Angeles and Clallam County. Functions to be replaced include the disposal of municipal, construction and demolition debris, and green waste and the recycling of tires, plastics, paper products, petroleum products, antifreeze, and batteries. The solution to waste disposal as identified in the City's Long Range Plan for Solid Waste Management and the County's Solid Waste Comprehensive Plan is construction of a transfer station and ancillary support facilities with disposal out of county by long haul, truck or barge, most likely to eastern Washington or Oregon. The City long range plan developed an implementation schedule for transition from a landfill to an export system. It was envisioned that by the end of the third quarter 2003, interlocal agreements would be in place and that development of the request for proposals (RFP) would commence and be issued the end of the first quarter 2004. The process for developing the RFP has started. Completion of the interlocal agreements is behind schedule, and they need to be negotiated and finalized. Staffhas been developing strategies to ensure that the waste stream for the transfer station is of sufficient quantity in order to be competitive and economical on a price per ton basis. The tipping fee at the landfill is $76.80 per ton for non-commemial haulers, and $63.00 per ton for those with contracts (City of Sequim and Waste Connections). The projected cost per ton for the same volume of waste stream currently processed at the landfill is in the range of $88 to $90 per ton. Staff has been working closely with our consultants concerning flow control of the waste stream. There are a number of options, all with challenges to ensure flow control. Flow control is important for maintaining large waste stream volumes thereby keeping low the cost per ton for processing and disposal of the waste stream. The following is a list of options developed for the City and County by the consultants to assist in establishing flow control. The staff considers economic flow control the most viable method. Essentially, economic flow control is based on establishing and maintaining a Iow tipping fee. Of the options listed below, 1-4 and 7 are recommended to be adopted for implementation of economic flow control. Actions by the City and County 1. An interlocal agreement (or amendments to the existing agreement) wherein the City and County agree to take the actions needed to implement the strategy. 2. A Comprehensive Solid Waste Plan (Plan) recommending disposal at a local transfer station, long-haul disposal, and a collection district (if needed). 3. Ordinances establishing a solid waste system based on the Plan. 4. A zoning code and solid waste facility permitting process that prohibits solid waste facilities that are not consistent with the Plan. Additional (Alternative) Actions by the County 5. Adopt and enforce an ordinance that requires disposal of solid waste (by haulers, businesses or the general public) at a designated local facility ("regulatory flow control"). 6. The County can form a collection district and provide collection directly or contract with the City, Sequim and/or a private firm and direct the flow by contract ("contractual flow control"). 7. Maintain a low tipping fee at a designated local facility and establish a system of fees and other charges that finance other solid waste programs such as planning, administration, litter control, enfomement, landfill closure, etc. ("economic flow control") through establishment of a disposal district. September 9, 2003 UAC Letter to WDFW Page 3 of 3 Additional Contingent Action by the City 8. Extend municipal collection to strategic unincorporated areas under a contract with the County, ifa collection district is formed by the County in conjunction with 6 above and no private hauler will sign a contract with the County for collection. The above information and recommendations have been discussed with the Clallam County Administrator and County staff at a meeting held on September 10, 2003. It was determined that the Utility Advisory Committee and County Commissioners (there is no special County Commissioner committee to handle solid waste issues) should be informed on the status of the transition from a landfill operation to a waste export system and that each entity should be given a draft interlocal agreement to comment upon to enable staff to continue working towards a final agreement and implementation ora waste export system. The County Commissioners are scheduled to be briefed on October 27, 2003 at 2:30PM at the County Building on Fourth Street. At today's special meeting a presentation will address the long range plan, benefits ora single waste export facility, flow control options and recommendations, and highlights of the draft interlocal agreement, attached for your information. Attachment: Draft Inteflocal Agreement Regarding Solid Waste System Cooperation and Implementation INTERLOCAL AGREEMENT REGARDING SOLID WASTE SYSTEM COOPERATION AND IMPLEMENTATION THIS AGREEMENT is executed by and among Clallam County, the City of Port Angeles, and the City of Sequim for the purposes of promoting the health, safety and welfare of the County's and Cities' residents; achieving the County's solid waste management goals; protecting the environment and natural resources throughout the State of Washington; and, providing for a competitively-priced solid waste system that will include a transfer station and export and disposal services. The Parties enter into this Interlocal Agreement ("Agreement") effective as of the date set forth in Subsection 7A for the purposes and under the terms contained herein. WHEREAS, the Parties are cooperating in the development and implementation of the Clallam County Comprehensive Solid Waste Management Plan (Nov. 2000) pursuant to Chapters 35.21, 36.58 and 70.95 RCW; and WHEREAS, the Plan recommends exporting solid waste to meet future disposal needs of the residents, businesses, visitors and institutions within the Cities and the County; WHEREAS, the Plan recommends using interlocal agreements to create the institutional arrangements needed to implement the Plan; WHEREAS, the Plan recommends closing the Port Angeles sanitary landfill, the only operating municipal solid waste landfill in Clallam County serving the area from Lake Crescent eastward, when it reaches capacity (projected by the end of 2006) and siting a transfer station at the Port Angeles sanitary landfill for the purposes of exporting solid waste for final disposal after the landfill is closed; and WHEREAS, the Parties desire to create the institutional arrangements needed for long- term solid waste transfer, export, and disposal services consistent with the Plan; and WHEREAS, by entering into this interlocal agreement, the Parties can more effectively and efficiently implement the Plan and meet their respective obligations to manage solid waste, including solid waste transfer, export, and disposal; and WHEREAS, the Plan anticipates that the long-term transfer station will be located at the current site of the Port Angeles sanitary landfill, will be operated by the City of Port Angeles or a private company under contract with the City of Port Angeles, and will be utilized by the Cities and by the private solid waste collection companies that serve the unincorporated area of the County from Lake Crescent eastward; WHEREAS, the Parties have, pursuant to Ch. 43.21C RCW, considered the Environmental Checklist and Addendum to Environmental Checklist in the Plan and other relevant environmental documents, and each party has determined that this Agreement will not cause probable significant adverse environmental impacts; WHEREAS, the Parties are authorized and empowered to enter into this Agreement pursuant to Chapters 39.34 and 70.95 RCW; NOW, THEREFORE, in consideration of the above representations and the mutual promises and covenants set forth herein, the Pasties agree as follows: Section 1. Definitions: Except for the terms defined in this section, and unless the context indicates otherwise, for the purposes of this Agreement the Parties intend to use the definitions found in Ch. 70.95 RCW and regulations adopted pursuant thereto, as those definitions may be amended during the term of this Agreement. "Agreement" means this Inteflocal Agreement Regarding Solid Waste System Cooperation and Implementation. "Cities" means the City of Port Angeles and the City of Sequim, Washington, collectively. "County" means Clallam County, Washington. "Disposal Site" means the solid waste handling facility owned by, and located within, the City of Port Angeles, where solid waste generated in the County and the Cities will be deposited, processed, handled, recycled, composted, transferred or otherwise managed prior to export to a final disposal facility consistent with the Plan. "Ecology" means the Washington State Department of Ecology or its successor agency. "Parties" means the County and Cities, collectively, as well as any other entity which becomes a party to this Agreement pursuant to Subsection 7B. "Plan" means the Clallam County Comprehensive Solid Waste Management Plan (November 2000), as amended from time to time pursuant to this Agreement. "Vendor(s)" means either the City of Port Angeles or any company (or companies) with whom the City of Port Angeles contracts for any or all of the design, construction, ownership, and operation of all or a portion of the Disposal Site and/or solid waste export and final disposal services consistent with the Plan. Section 2. Responsibilities of the County. The County shall: A. Amend the Plan to provide for disposal of all solid waste generated in the County -2- from Lake Crescent eastward at the Disposal Site and then adopt the amended Plan; B. Adopt an ordinance designating the Disposal Site as the County's solid waste system, consistent with the Plan and RCW 36.58.040; C. Amend the County's zoning code, solid waste facility permitting process ordinance, and other applicable ordinances to prohibit solid waste facilities that are not consistent with the Plan; D. Make a good faith effort to negotiate and execute with Jefferson County an interlocal agreement requiring each county to amend their respective comprehensive solid waste management plans and other related ordinances and agreements to either prohibit, or impose a surcharge for, disposal of waste within said county if the waste was generated outside said county; E. Consider forming a solid waste disposal district in the eastern part of the County, to the extent it may become necessary to provide a dedicated source of funds to help finance the County's designated solid waste system, including capital costs and the operation and maintenance costs associated with the Disposal Site; and F. Not take any action with respect to solid waste handling that is inconsistent with the Plan or this Agreement. Section 3. Responsibilities of the City of Port Angeles. The City of Port Angeles shall: A. Cooperate with the County to amend the Plan and adopt the Plan as amended; B. Adopt an ordinance designating the Disposal Site as the City's solid waste system, consistent with the Plan and RCW 35.21.120; C. Amend the City's zoning code and other applicable ordinances to prohibit solid waste facilities that are not consistent with the Plan; D. Conduct a procurement process for selecting one or more Vendors to provide solid waste handling services consistent with the Plan, including but not limited to transfer station services and export/disposal services; E. In consultation and cooperation with the County and the City of Sequim, either provide itself, or enter into and administer a contract with one or more Vendors for, solid waste transfer station, export and final disposal services for all of the Pa~ties consistent with the Plan; F. Establish fair and equitable rates (tipping fees) for solid waste received at the Disposal Site; G. Cooperate with the County in the formation of a disposal d/strict to the extent the district includes incorporated areas of the City of Port Angeles; and H. Not take any action with respect to solid waste handling that is inconsistent with the Plan or this Agreement. Section 4. Responsibilities of the City of Sequim. The City of Sequim shall: A. Cooperate with the County to amend the Plan and adopt the Plan as amended; B. Adopt an ordinance designating the Disposal Site as the City's solid waste system, consistent with the Plan and RCW 35.21.120; C. Amend the City's zoning code and other applicable ordinances to prohibit solid waste facilities that are not consistent with the Plan; D. Cooperate with the County in the formation of a disposal district to the extent the district includes incorporated areas of the City of Sequim; E. Deliver all solid waste collected within the City of Sequim, whether collected directly by the City of Sequim or by a solid waste collection company or other entity under contract with the City of Sequim, to the Disposal Site and take reasonable action to enfome such direction, including but not limited to entering into a long term contract with the City of Port Angeles for disposal of solid waste generated in the City of Sequim and, if the City of Sequim ceases to operate its own solid waste collection system, requiring that any private solid waste hauler delivers all solid waste collected in the City of Sequim to the Disposal Site; and F. Not take any action with respect to solid waste handling that is inconsistent with the Plan or this Agreement. Section 5. Duration of Agreement: This Agreement shall remain in force for 25 years from the date that it is first effective unless terminated earlier by written agreement of all Parties. Section 6. Assets and Liabilities: On termination of this Agreement, any assets owned by one of the Parties shall remain the property of that Party. In entering into this Agreement, no Party assumes liability for the actions or activities of the other, except as provided by law or as may be agreed by the Parties separately. Section 7. Miscellaneous Provisions A. Effective Date: This Agreement shall take effect the first date on which Clallam County, the City of Port Angeles, and the City of Sequim have taken all actions necessary to execute this Agreement and the Agreement is flied with the County Auditor. -4- B. Amendment. This Agreement may be amended only in writing and only by agreement of all Parties at the time of amendment; provided, however, that the Parties hereby agree that this Agreement may be amended, without the further agreement of all Parties, to allow any other governmental or sovereign entity within Clallam County, such as a Native American tribe, the National Park Service, or the Town of Forks, to join as a party. C. Non-Waiver: No waiver by any party of any term or condition of this Agreement shall be deemed or construed to constitute a waiver of any other term or condition or of any subsequent breach whether of the same or of a different provision of this Agreement. D. No Third-Party Beneficiary: This Agreement is entered into to protect the public health, safety and welfare of the residents of the Cities and County and to promote the effective and efficient disposal and other handling of solid waste in the Cities and the County. This Agreement is entered into with the intent that it shall only benefit the Parties and that no other person or entity is intended to be a third-party beneficiary of this Agreement. E. Assignment: Upon the creation of a solid waste disposal district pursuant to RCW Ch. 36.58 RCW, the County and any City opting into such a disposal district may assign its rights and obligations under this Agreement to the solid waste disposal district. No other assignment of this Agreement is permitted except with the prior written consent of all Parties. F. Severability: If any provision of this Agreement is determined to be invalid, the remaining provisions shall continue in full force and effect. G. Counterparts: This Agreement may be executed in two or more counterparts, and each such counterpart shall be deemed to be an original instrument. All such counterparts together will constitute one and the same Agreement. IN WITNESS HEREOF, this Agreement is executed by Clallam County and by the Cities of Port Angeles and Sequim, Washington. Dated this day of ,2004. Dated this day of ,2004. CITY OF PORT ANGELES CLALLAM COUNTY BOARD OF COMMISSIONERS , Mayor , Chair -5- Attest: , Commissioner , City Clerk CITY OF SEQUIM , Commissioner Attest: , Mayor Attest: , Clerk of Board , City Clerk Approved as to form: City Attorney, City of Port Angeles City Attorney, City of Sequim Chief Deputy Prosecuting Attomey, Clallam County -6- Port Angeles Landfill Transition Strategy & Interlocal Agreement (Port Angeles/Sequim/County) Utility Advisory Committee Meeting October 10, 2003 ~ ~ORTA~_GEL~___ Presentation · Background · Solid Waste Authorities · Transfer Station Functions & Land Use · Planning Issues · Flow Control Options & Recommendations Implementation Strategies lnterlocal Agreement Infrastructure Expenses/Strategy Questions Background · PA Landfill to Close NLT Dec 31, 2006 · Clallam County Solid Waste Management Plan · Replace Landfill with a Waste Export System · County: Responsibility for waste management · City: Desires to take a lead role for export · Interlocal Agreements needed to move process forward Solid Waste Management Long Range Plan 91%'~'~'~ 9% [] 2 Long Range Plan pORTANGELES Authority of Cities and Counties · Consistent w/Solid Waste Management Plan Solid Waste Handling - Collection * - Storage - Transportation - Treatment - Disposal - Recycling * County may not operate a solid waste collection system except as part of' a solid waste collection district. 3 ,' ~ORT~_NGELES~ Post-Closure Functions · Solid Waste Transfer Station · Garbage/Trash/C&D/Commercial/Residential ' · Co-Composting Facility · Green Waste/Biosolids · Recycling Drop-off · Paper/Anti-Freeze/Oil/Tires/White Goods/Batteries · Moderate Risk Waste Facility ..:,, ,o,, ~. i.,~ORTANGELES Landfill Facility Replacement/ Transfer Station Features Enclosed: Compatible with Airport Operations Scales Commercial and Citizen Drop Off Moderate Risk Waste Facility · Composting: Biosolids and Green Waste · Recycling: Oil, Antifreeze, Tires, White Goods, etc Limited Construction and Demolition Debris 4 I')ORTA_NGE.~LES Benefits of Combined Waste Stream Volumes · Higher Volumes · Lower Unit Prices · Minimal Staff Changes, if any · Permanent MRW Facility · State Funding of MRW Facility/Operations · Lower Development Costs · Shared Risk · All Citizens Benefit/Participate in Costs I~ORTAN_GELES Development Plan · Long-Range Plan Preparation · Planning Studies · Planning Workshops including PW&U, City staff& Council · Shared Vision with Solid Waste Advisory Committee 5 Facility Managed by City · Experienced Staff , · Organizational Structure in Place · Land Availability · Planning Process Started Port Angeles as Lead Agency Why the City? · Control (40%+) of the Waste Stream · Represent the Largest Constituency of Customers · Land Availability: Permitting · Significant Experience Managing Solid Waste Operations · Responsible for 30 Years of Landfill Monitoring/Maintenance "~ ~'"'~ 1-~ORTA-NGELES Land Use I')ORTANGELES Proposed Acquisition Process · Perform Administration for Export and Collection · Evaluate Transfer Station Financing/Construction/Operation · Solicit Proposals for Transfer Station Financing/Construction/Operation · "Best Value" to Customers · Consideration given to City submitting proposal · Privatize Long-Haul Disposal g/J- '-~ RT GELE ~ ~::-'~ Solid Waste Management '~'~_~ Long Range Plan WASTE EXPORT IMPLEMENTATION SCHEDULE Task/Milestone 2002 2003 2004 2005 2006 Options for Flow Control in Clallam County Actions by the Cit~ and County 1. Interlocal Agreement btwn City & County to take actions needed to implement strategy 2. Solid Waste Management Plan (Plan) recommending disposal at a local transfer station, long-haul disposal and collection district/disposal district 3. Ordinances establishing waste system based on the Plan 4. Zoning code and solid waste facility permitting process that prohibits solid waste facilities that are not consistent with the Plan 8 Options for Flow Control in Clallam County <co.td~ Additional (Alternative) Actions bt' the County 5. Adopt and enforce an ordinance that requires disposal of solid waste (by haulers, businesses or the general public) at designated local facility ("regulatory flow control"). Collection District 6. Form a district and provide collection directly or contract with the City, Sequim and/or a private fwm and direct the flow by contract ("contractual flow control"), v-re a,,d lengthy proc~$ 7. Maintain a Iow tipping fee at a designated local facility and establish a system of fees and other charges that f'mancc other solid waste programs such as planning, administration, litter control, enforcement, landfill closure, etc. ("economic flow control"). Disposal District Options for Flow Control in Clallam County Additional Contingent Action bi' the City 8. Extend municipal collection to strategic unincorporated areas under a contract with the County ifa collection district is formed by the County in conjunction with 6 above and no private hauler will sign a contract with the County for collection. 9 Collection District Formation · UTC finds existing companies unable or ' unwilling to provide adequate service · Finding of public necessity for Mandatory Collection ~ DisposalDistrict Formation · Municipal Corporation · Purpose of providing and funding solid waste disposal services · Hold at least I public heating · Unincorporated areas only unless incorporated agree Covers all aspects except collection of waste · Collect fees at disposal or transfer stations based upon weight or volume of waste received Impose excise tax on residents and business · Issue general obligation and revenue bonds 10 ~' p ORTANGELES Recommendations for Flow Control in Clallam County i. Interlocal Agreement between City & County to take actions needed to implement strategy 2. Solid Waste Management Plan (Plan) recommending disposal at a local transfer station, long-haul disposal and collection district/disposal district 3. Ordinances establishing waste system based on the Plan 4. Zoning code and solid waste facility permitting process that prohibits solid waste facilities that are not consistent with the Plan 7. Maintain a low tipping fee at a designated local facility and establish a system of fees and other charges that finance other solid waste programs such as planning, administration, litter control, enforcement, landfill closure, etc. ("economic flow control"). Disposal District Implementation Strategy City/Clallam County Acceptance to Work Cooperatively Interlocal Agreement for County to Consider · Establish Preferred Approach Maximize Waste Stream Commitments to Single Waste Export System: Inter-Local Agreements w/others · Develop Financing Approach/Structure · Secure Funding: Grants, Bonds, etc. · Issue RFP Construction Develop County-wide Rate Structure · Operate Facility 11 Interlocal Agreement Provisions · County 25 Year Commitment * Amend Plan for Waste Disposal to Site from Lake Crescent Eastward * Adopt Ordinance Designating Site Consistent with Plan and RCW * Amend Zoning Codes to Prohibit Facilities Not Consistent w/Plan * Good Faith Negotiations with w/Jefferson County to surcharge or prohibit import of waste * Consider Forming Disposal District in Eastern County Interlocal Agreement Provisions · City of Port Angeles 25 Year Commitment * Cooperate with County to Amend Plan and Adopt * Adopt Ordinance Designating Site Consistent with Plan and RCW * Amend Zoning Codes to Prohibit Facilities Not Consistent w/Plan * Conduct Procurement Process and Administer Contracts * Establish Fair and Equitable Rates (Tipping fees) * Cooperate in Forming a Disposal District, (lf Required) 12 Interlocal Agreement Provisions · City of Sequim 25 Year Commitment * Cooperate with County to Amend Plan and Adopt * Adopt Ordinance Designating Site Consistent with Plan and RCW * Amend Zoning Codes to Prohibit Facilities Not Consistent w/Plan * Cooperate in Forming a Disposal District, (If Required) * Deliver Solid Waste to Site Total Program Costs · Transfer Station - $2.8M · Landfill Closure - $4.5M · Shoreline Stabilization - $2.2M · Other Site Development - $1 .SM · Stormwater Improvements .Co-composting · Moderate Risk Waste .Recycling · Post closure - $3.7M · Contractor Financed - Contract for design/build/finance/ operate 13 Background Information · Funding for Construction: Undetermined · Current Rates: $63 or $76.80 per ton · Future Rates: approximately $90 +/- per ton · Long Haul Rate: $45 to $50 per ton · Tipping Fees: JeffCo- $110, Forks - $110, Blue Mtn - $140, Kitsap Co - $60 Tipping Fee Comparisons City Waste Stream Only City/County/Sequim .~ Debt Service on Capital Costs - ~ Debt Service on Capital Costs - -$250K lyf -$350K/yr ~ Operations Costs - ~ $1.3M/yr .~ Operations Costs - ~ $1.3M/yr ~ Long Haul - - $975K/yr ~ Long Haul - - $2.0M/y~ Annual Cost - $2.6M/yr Annual Cost ~ $3.6M/yr ~ Waste Volume - 22,000 ton/yr ~ Waste Volume - 45,000 ton/yr Projected cost per ton ~$115/ton Projected cosl ~ ton ~$80-$90/ton Higher Volumes - Lower Costs 14 Facility Acquisition and Operation Strategy pORT~NGELF.,S Transfer Station Alternative Operations ~City design/build/operate ~City design/build/Private operate ~Private design/build/operate 15 Criteria for Evaluating Acquisition Strategies ~Cost to the City - o Capital Cost o Operational Cost ~City Control of Waste Systems o Financial o Operational ~'Risk to City o Financial o Operational ~Legal/Institutional Feasibility ~"~ I'~ORTANGELES Comparison of Altematives for Transfer Station Acquisition/Operation City D~ign/Build/ City Design/Build private Design/Build/ Operate Private Operate Opcmtu Cost to City CapPal + Operation + + Conmal by City Financial + 0 + Operational + + Risk to City Financial + Operational 0 O/+ Other Stakeholders Coun~ O + Industry 0 + Legal/institutional 0 +? Feasibility 16 Short Term Actions · Presentation to County Commissioners · Forward Inteflocal Agreement to Sequim · Develop Procurement Strategy Recommendation · Set up Management Team/Procurement Team · Develop Request for Proposal Recommendations · Discuss Inteflocal Agreement · Provide Staffwith Changes on Inteflocal Agreement · Discuss Procurement Strategy · Return to UAC with a more detailed discussion on Facility/Operation Procurement Strategy · Provide Feedback to UAC after County Meeting 17