Req.#7801
RESOLUTION NO. 34662
1 WHEREAS, since 1989, the City has contracted with Land Recovery,
2 Inc. ("LRI") to provide for the long-haul transport services and the disposal of
3 its municipal solid waste ("MSVV'), and
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WHEREAS, on September 16, 1997, in Substitute Resolution
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6 No. 33826, as modified by Resolution No. 34463 on July 27, 1999, the City
7 Council authorized the execution of an amendment to the Agreement with LRI
8 for transportation and disposal of IVISW and directed City staff to competitively
9 bid for the transportation and disposal of all waste not processed by the City or
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disposed of in any future Pierce County landfill, and
WHEREAS in Ordinance No. 26337 passed on December 8, 1998, the
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13 City Council declared an emergency to exist when Tacoma Power discontinued
14 operations at Steam Plant No. 2, leaving the Solid Waste Utility ("SWU") with
15 an immediate need to increase the amount of MSW to be transferred by
16 long-haul with LRI, and
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WHEREAS, at the time the City Council gave this direction, there was
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19 no operating landfill in Pierce County other than the City landfill, and
20 WHEREAS, since that time, LRI has obtained all required permits and
21 constructed and begun operations of its new 304th Street landfill under the
22 regulatory authority of the Pierce County Health Department, and
23 WHEREAS, with the opening of this new landfill, the City can transport
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its waste by City vehicles directly to the site without the need for extensive
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26 facilities and equipment for rail haul of waste to distant landfills, and
Res7801.doc-LCW:j1d
LEG 004 (11/89)
I WHEREAS the only other regional landfills available to the City for
2 disposal of its MSW are more than one hundred miles away and would require
3 long-haul transport services by rail, and
4 WHEREAS the current contract with LRI has expired, and
5 WHEREAS the City has adopted a Solid Waste Management Plan which
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includes recycling and waste to energy as essential components, and
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8 WHEREAS capital improvements to the Power Plant and Resources
9 Recovery Facilities will be completed in 2001 to accommodate these programs,
10 and
I I WHEREAS, to further implement the City's Solid Waste Management
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Plan, the City Council has authorized a 20-year management agreement for
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14 operation of the City waste to energy facilities, and
1 5 WHEREAS operation of these components of the City's Solid Waste
16 Management Plan will significantly reduce the future volume of solid waste
17 requiring contract disposal, and
18 WHEREAS operations of these programs will create short-term
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fluctuations in disposal volumes for routine maintenance and emergencies, and
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21 WHEREAS municipal disposal contracts typically must be indexed to
22 volume, and
23 WHEREAS the longer the term and the greater the volume of waste
24 disposed, the lower the unit prices that can be obtained in the market, and
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Res7801.doc-LCW:jId
LEG 004 (11/89)
I WHEREAS the negotiated terms of the disposal contract will give the
2 City the flexibility to manufacture as much refuse-derived fuel ("RDF") as
3 possible for waste to energy, increase recycling, and look to other lower-cost
4 options for the City to process its own waste in the future, in furtherance of the
5 City's Solid Waste Management Plan, and
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WHEREAS a local facility can more readily provide the flexibility
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8 necessary for the variable amount of waste to be delivered without the need to
9 maintain the additional facilities and equipment that would be necessary to rail
10 haul waste in the event of short-term needs for greater capacity, and
I 1 WHEREAS first-class cities are not required to call for bids in
12 connection with solid waste disposal contracts, and
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WHEREAS neither the City Charter nor the Tacoma Municipal Code
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15 require a call for bids on the subject agreement for solid waste disposal, and
16 WHEREAS it is in the best interest of the citizens of Tacoma and the
17 public health to execute an agreement with LRI to assure that the citizens have
18 an available, cost-effective, and safe disposal site for their solid waste- Now,
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Therefore,
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BE IT RESOLVED BY THE COUNCIL OF THE CITY OF TACOMA:
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22 That the proper officers of the City are hereby authorized to execute an
23 agreement with Land Recovery, Inc., in the amount of $3,500,000, for the
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Res7801.doc-LCWJ1d
LEG 004 (11/89)
A PP, 5_@-
I purposes hereinabove enumerated, which document shall be substantially in
2 the form of the proposed agreement on file in the office of the City Clerk.
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4 Adopted FEB 1 2000
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7 Attest: City Clerk
8 A ed as to form and legality:
9 @_ C."]
'j - .Jules
10 City Attorn Y
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I\f,k Res7801.doc-LCW:jId
LEG 004 (11/89)
CITY CLERK USE
REQUEST FOR O"INANCE Request
Ordinance
"AC
Ir
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Lema OR RESOLUTION Resolution
1. DATE: January 3, 2000
2. REQUESTING DEPARTMENT/DIVISION 3. CONTACT PERSON: PHONE
Public Works/Solid Waste Utility Karen J. Larkin, P.E., Asst. P.W. Director/Utility Services 591-5525
4. PREPARATION OF A RESOLUTION IS REQUESTED FOR THE CITY COUNCIL MEETING OF TUESDAY, FEBRUARY 1, 2000.
5. SUMMARY TITLE/RECOMMENDATION:
Authorize agreement with Land Recovery, Inc. (LRI) for hauling and disposal of a portion of the City's solid waste at
LRI's 3041h Street Landfill. Further, authorize payments under terms of this agreement for 2000 in the amount of
$3.5 million.
6. BACKGROUND INFORMATION/GENERAL DISCUSSION:
Since 1989 the City has contracted with LRI for the disposal of its solid waste. The current contract has expired.
The City Council, per Resolution #33826, as modified by Resolution #34463, directed staff to competitively bid for
disposal services for all waste not processed by Tacoma or disposed of in Pierce County. At the time the Council
gave this direction there was no operating landfill in Pierce County other than Tacoma's. Subsequently, LRI has
obtained all required permits, constructed and begun operations of its new Landfill. The only other regional landfills
available are more than 100 miles away and require transportation services in addition to contract disposal. All of
Tacoma's waste can be disposed of within Pierce County and there's no need to bid for transportation services. The
City is not required to bid for solid waste disposal contracts.
This contract provides for a 20-year term. The price for disposal is indexed to volume. The longer the term and the
greater the volume of waste disposed the lower the unit prices that can be obtained in the market. This is typical for
municipal waste disposal contracts. This negotiated contract gives Tacoma total flexibility to manufacture as much
Refuse Derived Fuel (RDF) as possible, increase recycling and look to other lower cost options to process its own
waste in the future. LRI has been a good partner in the management of Tacoma's waste. Their local presence
allows flexibility in the amount of waste delivered when Tacoma's facilities are unable to accept waste.
Tacoma reserved capacity in the LRI 304 1h Street landfill through the establishment of a trust fund in 1989. Upon
execution of this agreement the proceeds of this trust fund in the amount of $938,381.07 will be disbursed to LRI.
The City currently disposes of solid waste that is not recycled or composted through a combination of the production
of RDF that is utilized at Steam Plant No. 2, for conversion into electricity, and landfilling. A small percentage of
waste is disposed of in Tacoma's landfill. In 1999 the City contract landfilled approximately 136,200 tons of waste.
It is anticipated that in 2000 contract landfilling volumes will remain the same or increase slightly while improvements
to the Power Plant and to Resource Recovery Facility are completed to accommodate increased RDF production
and usage in 2001. In 2001 the SWU anticipates increasing the production of RDF and reducing contract landfilling
to approximately 50,000 tons/year. Based on disposal of 140,000 tons in 2000 the new unit price would be
$23.50/ton compared to the current price of $36.34/ton an estimated savings of $1,797,600.00 in this year.
7. FINANCIAL IMPACT: The new rate will result in approximately $1.8 million savings this year. These reduced disposal
costs will offset unanticipated increases in the cost of operation of Steam Plant No. 2 during this budget cycle.
8. LISTALLMATERIALAVAILABLEASBACKUPINFORMATIONFORTHEREQUESTANDINDICATEWHEREFILED:
Source Documents/Backup Material Location of Document
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Existing Agreement - Resolution No. 32719 City Clerk's Office
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Amended Agreement - Resolution No. 33826 City Clerk's Office C-j C=
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Resolution 33826 City Clerk's Office
Resolution 34463 City Clerk's Office
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Draft Agreement City Clerk's Office r-
9. FUNDING SOURCE: MI
C,) M 'IO
Fund# & Name: 4200 SWU Operating State $ City $3,500,000 Other $ TotaMi@un&:$3,M000
If an expenditure, is it budgeted? Pq Yes F-1 No Where? Org# 5141 Acct"4270--CNRB62
Pka
10. ATTORNEYCONTACT: LeahWhi*a -591-5888
Approyela of Funds
L. Pug] Peter Director
3466AMO
Resolution No.
Adopted: _ FEB 1 200
Maker of Motion:
Seconded:
Roll Call Vote:
MEMBERS AYES NAYS ABSTAIN ABSENT
Mr. Crowley
Mr. De Forrest
Mr.Evans
Mr. Kirby
Dr. McGavick
Mr. Miller
Ms. Moss
Mr. Phelps
Mayor Ebersole
L
MEMBERS AYES NAYS ABSTAIN ABSENT
Mr. Crowley
Mr. De Forrest
Mr.Evans
Mr. Kirby
Dr. McGavick
Mr. Miller
Ms. Moss
Mr. Phelps
Mayor Ebersole
g:@CityclWormsVesol.doc