HomeMy WebLinkAboutResolution 6573 - Orange County Landfill Gate Fee Lien SysteREQUEST FOR CITY COUNCIL ACTION
Submitted to:
Submitted by:
Prepared by:
Subject:
Honorable Mayor and City Council
Michael T. Uberuaga, City Admini
Louis F. Sandoval, Director of Public Works
Date: March 7, 1994
APPROVED BY CITY COUNCIL
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COUNTY LANDFILL GATE FEE LIEN SYSTEM
Consistent with Council Policy? [XI Yes [ ] New Policy or Exception
Statement of Issue, Recommended Action, Analysis, Environmental Status, Funding Source, Alternative Action, Attachments:
STATEMENT OF ISSUE:
The County of Orange Integrated Waste Management Department (IWMD) is seeking City support
to insure the payment of landfill gate fees by local refuse haulers.
RECOMMENDED ACTION:
Adopt the attached resolution granting the IWMD the right to lien funds due Rainbow Disposal for
residential refuse collection should the hauler fail to pay gate fees on refuse collected in the City of
Huntington Beach.
ANALYSIS:
The County of Orange IWMD is seeking to guarantee the payment of gate fees for refuse deposited
at county landfills by obtaining the power to lien the service fees due a trash hauler should the
hauler fail to make the required payments in a timely manner.
In the past this end was achieved by requiring the haulers to post bonds. But the high cost of such
bonds has prompted the agency of offer to accept a continuing lien as an alternative, and Rainbow
Disposal has requested us to adopt this resolution.
FUNDING SOURCE:
None. No funds necessary.
ALTERNATIVE ACTION:
Deny the recommendations.
ATTACHMENTS:
Resolution
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CoOLandf I
RESOLUTION NO. 6573
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HUNTINGTON BEACH AUTHORIZING A LIEN TO BE PLACED
BY THE COUNTY OF ORANGE AGAINST PAYMENTS DUE TO
RAINBOW DISPOSAL BY THE CITY OF HUNTINGTON BEACH
WHEREAS, the County of Orange Integrated Waste Management Department has
requested that the City of Huntington Beach agree to accept a lien against the moneys due
from the city to Rainbow Transfer/Recycling, Inc., and whereas Rainbow Transfer/Recycling,
Inc., is agreeable to such liens; and
The city collects the trash fees to be paid to Rainbow Transfer/Recycling, Inc., and the
County of Orange requires a guarantee of the gate fees owed by Rainbow Transfer/Recycling,
Inc.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Huntington
Beach hereby authorizes the acceptance of a continuing lien in the amount of Four Hundred
Seventy Six Thousand. Dollars ($476,000). This lien will act as a guarantee of the moneys
owed to the County of Orange by Rainbow Transfer/Recycling, Inc. to the County for gate
fees. This guarantee may be rescinded by the city upon the giving of thirty (30) days notice to
the County of Orange and Rainbow Transfer/Recycling. The City Treasurer is authorized to
execute any and all documents required to implement this guarantee. The City Attorney is
authorized to affirm to the county that this guarantee is a legal obligation of the city.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the 7th day of March
A ST:
APPROVED AS TO F RM:
City Clerk
City Attrkiey G3-► ��
REVIEWED AND AP
ITIATE�A
h.
City Ad
Public Works
RAINBOW. DOC6/resoluUO3/01 /94
Res. No. 6573
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the
City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do
hereby certify that the whole number of members of the City Council of the City of
Huntington Beach is seven; that the foregoing resolution was passed and adopted by the
affirmative vote of at least a majority of all the members of said City Council at a regular
meeting thereof held on the 7th day of March , 19 94 ,
by the following vote:
AYES: Councilmembers:
NOES: Councilmembers:
None
ABSENT: Councilmembers:
Robitaille
City Clerk and ex-officio Clerk
of the City Council of the City
of Huntington Beach, California
Fe
� f' CITYOF HUNTINGTON BEACH
INTER -DEPARTMENT COMMUNICATION
HUNTINGTON BEACH
• � T
To: Michael T. Uberuaga
City Administrator C
� ry
�jr,=ern
r �n
From: Louis F. Sandoval a fCl) rn
Director of Public Works co
Date: March 2, 1994 =�
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C.fJ r
Subject: COUNTY IWMD GATE FEE LIEN RCA
In support of the RCA recommending a renewal of the resolution granting lien power to
the County should the City Refuse Collector fail to pay his gate fees, we offer the
following:
The O. C. Integrated Waste Management Department (IWMD) allows major Orange County
refuse haulers, such as Rainbow Disposal, to dump at the landfill without paying the gate
fee up front. They are billed by IWMD on a monthly basis.
Prior to 1991, the haulers "guaranteed" payment to IWMD by posting a bond. However, the
escalating cost of bonding led the haulers to ask the County for relief. This request was
granted through a "lien" system.
Under the new system, haulers would be exempted from being required to purchase
payment bonds if the Cities they worked for would agree to allow the IWMD to "lien"
payments due the haulers, if the haulers failed to pay the County in a timely manner.
The mechanism of the lien system is simple: If Rainbow doesn't pay the County for
Huntington Beach refuse dumped at the landfill, the County can collect directly from the
City and the City will recover those funds by making a reduction in the amount paid by the
City to the hauler for his service.
When Rainbow Disposal requested that the City of Huntington Beach accept this
arrangement, thereby allowing them to save the cost of bonding payment, we were
agreeable. There appeared to be no reason to force Rainbow to pay "extra" for bonds that
are by and large unneeded. Rainbow has never failed to pay their fees.
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