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HomeMy WebLinkAbout19258 - RESOLUTIONS - 5/20/1998 RESOLUTION NO. 1925E OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING THE BASIC STRUCTURE AND TERMS OF AN AGREEMENT WITH PALM SPRINGS DISPOSAL SERVICES FOR THE DESIGN AND ' CONSTRUCTION OF A SOLID WASTE RECYCLING AND COMPOSTING FACILITY TO SERVE THE CITY OF PALM SPRINGS -------------- WHEREAS, the Edom Hill Landfill which currently serves Palm Springs and the other Coachella Valley communities will reach capacity and be closed no later than May, 2004, forcing the City to look at transferring its waste for disposal outside the Valley; and WHEREAS, the State of California has mandated that 50% of waste generated in the community be diverted from landfill by the year 2000 and the City is committed to meeting or exceeding the State diversion goal through the implementation of recycling programs and the adoption of innovative waste diversion technologies; and WHEREAS,Palm Springs Disposal Services(PSDS) has proposed to construct and operate the NextPhase Recycling Facility which will enable the City of Palm Springs to meet its environmental goal of maximizing waste diversion and provide for transfer of waste to a landfill outside the Coachella Valley upon closure of the Edom Hill Landfill; and WHEREAS, it is proposed that the Facility be financed in part through tax-exempt bonds issued ' through the California Pollution Control Financing Authority; and WHEREAS, to recover certain eligible costs through the financing and to qualify for the program, the City needs to commit to certain parameters as contained herein; and WHEREAS,PSDS needs the City to commit waste collected within the City by all franchised or contracted haulers in order to ensure a predictable flow of waste to the Facility for financing purposes; and WHEREAS, PSDS worked with City in a spirit of cooperation and partnership to help meet the Council's environmental goals, and City is confident that PSDS will continue to meet the waste needs of the City in the same spirit. NOW THEREFORE, the City Council of the City of Palm Springs, California, does hereby resolve as follows: SECTION 1. Waste Commitment Agreement To the extent it is legally able to do so, City agrees to commit any waste hauler that collects and transports solid waste generated within the City to deliver said waste to Facility and require such hauler to pay the tip fee then in effect; and, to ' prohibit such haulers from transporting solid waste to any other Disposal Site. r. -6 Res. 19258 Page 2 SECTION 2. Project Development Agreement a. Tenn. The term of the Project Development Agreement will cover the I' term of the repayment of the bonds and the time for permitting, designing, and constructing the Facility. b. Obligations of City Public Benefit-- City will make a finding of public benefit of the project, citing its environmental goals and the Facility's positive economic impact to the community; and Environmental Review-- City shall commission an environmental review of the project, with the intention that the cost of the review shall be recovered from the bond proceeds of the project; and Tip Fee --Upon approving the Facility Development Agreement, City shall authorize PSDS to adopt a schedule of Tip Fees adequate to enable PSDS to service debt, operate and maintain the Facility and equipment, replace Facility components and equipment, conduct public education programs, administer the Facility, and earn a reasonable return on investment over the life of the Facility. C. Obligations of PSDS Financing--PSDS will make application to the California Pollution Control Financing Authority (CPCFA) for an Initial Resolution for tax- exempt bond financing within 30 days following the adoption of this Resolution; and Design and Construction -- Secure site, and engineer and design the Project to meet City's development standards, environmental goals and need for waste transfer, and construct the Facility according to the design; and Permitting-- Seek and obtain all required permits for the construction and operation of the Facility; and Disposal-- Secure a long-term arrangement for the disposal of waste and residuals with preference given to disposing of the waste in the Riverside County System. SECTION 3. Franchise Agreement Amendments The City and PSDS agree to negotiate on modifications to the existing Franchise Agreements to enable PSDS to implement the wet-dry collection system and convert their existing fleet to Alternative Fuel Vehicles without rate increases to their customers. Res. 19258 Page 3 SECTION 4. Exclusive,Agreement to Negotiate The City and PSDS shall negotiate exclusively one with the other for a period of ' 180 days from the date hereof to reach agreement on a Waste Commitment Agreement, Facility Development Agreement and a Franchise Agreement Amendment sufficient to implement the project, and shall not negotiate with 2my other entity to undertake a similar facility within the Coachella Valley, without the other party's consent. No party shall have liability one to the other for failure to reach agreement on such contracts. ADOPTED this 20th clay of May 1998. AYES: Members Barnes, Hodges, 0den, Reller-Spurgin and Mayor Kleindierst NOES: None ABSENT: None ATTEST: CIT OF PALM SP CALIFORNIA B City Clerk I LCity Manager REVIEWED AND APPROVED: '