AgdaPkt 2008-09-08 - Laserfiche WebLink

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RepORT 6.3C Page 1 September 8, 2008 SUBJECT Agreement between the South Bayside Waste Management Authority, (SBWMA) and the City of San Carlos Related to the Shoreway Recycling and Disposal Center RECOMMENDATION By resolution, approve an agreement between the SBWMA and the City of San Carlos related to the Shoreway Recycling and Disposal Center (SRDC). BACKGROUND The SRDC was initially constructed in 1982 by Browning Ferris Industries (8FI) pursuant to a conditional use permit (CUP) issued by the City of San Carlos. The CUP was conditioned on BFI and San Carlos entering into an agreement providing San Carlos with a "franchise fee" in order to offset impacts from the SRDC's location and operation in San Carlos. 8FI signed a contract in 1982 which entitled San Carlos to five percent (5%) of the gate fee revenues received at the SROC. The SBWMA, of which Redwood City is a member, purchased" the SRDC in 2000. The 1982 contract between San Carlos and BFI expired in 2004, but fees in the amount of 5% of revenues have continued to be paid to the City of San Carlos. The SBWMA's Joint Exercise of Powers Agreement, as amended and restated in December 2005 (JPA Agreement), calls for (sections 12.6 and 12.7) the City of San Carlos to receive a franchise fee from the operation of SROC. Due to an oversight in drafting, the JPA Agreement does not specify the exact amount of the fee. The proposed agreement will provide for the continued payment to the City of San Carlos of 5% of the gate fee revenues earned at the SROC, the same amount San Carlos has received since the facility opened in 1982. The new agreement makes clear that the fee does not apply to the revenues received by SBWMA from the sale of recyclable materials. The City Council of San Carlos unanimously approved the agreement at its July 14, 2008 Council meeting while the SBWMA Board approved the agreement on July 24, 2008. Governing bodies of at least eight of the twelve SBWMA member entities must approve this agreement in order for it to become effective. ALTERNATIVES If at least eight of the twelve member entities' governing boards do not approve this agreement the SBWMA staff will need to renegotiate this agreement with the City of San Carlos. Should these parties be unable to reach an agreement the absence of such an agreement could cause San Carlos not to issue a conditional use permit for the improvements the SBWMA is planning to make to the SROC. This in turn could