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1983-038-Authorizing Execution Of Landfill Agreement With Guadalupe Rubbish Disposal Company, Inc.RESOLUTION NO. 1983 -38 A RESOLUTION AUTHORIZING EXECUTION OF LANDFILL AGREEMENT WITH GUADALUPE RUBBISH DISPOSAL COMPANY, INC. RESOLVED, by the Town Council of the Town of Los Gatos, that the Mayor is hereby authorized to execute that certain Landfill Agreement between the Town of Los Gatos and Guadalupe Rubbish Disposal Company, Inc., attached hereto as Exhibit 'A'. PASSED AND ADOPTED BY THE TOWN COUNCIL OF THE TOWN OF LOS GATOS, CALIFORNIA at a regular meeting held this 22nd day of February 1983, by the following vote: AYES: COUNCIL MEMBERS Joanne Benjamin, Terrence J. Daily, Thomas J. Ferrito, Marlyn J. Rasmussen and Brent N. Ventura NOES: COUNCIL MEMBERS None ABSENT: COUNCIL MEMBERS None ABSTAIN: COUNCIL MEMBERS None SIGNED: — �4! s%! _ ' M YOR OF THE TOWN OF LOS GATOS ATTEST: DEPUTY CLERK OF THE TOWN LOS GATOS LANDFILL AGREEMENT THIS LANDFILL AGREEMENT entered into by and between the CITY OF LOS GATOS, a Municipal Corporation (herein called "CITY "), and GUADALUPE RUBBISH DISPOSAL COMPANY, INC., a California Corporation (herein called "COMPANY ") R E C I T A L S: 1. CITY is required to make adequate provision for the final disposition of garbage, refuse and waste matter (herein referred to as "solid waste ") collected within its corporate limits to protect the physical health and safety of its inhabitants. 2. CITY is acting under clearly articulated and affirmatively expressed policies of the State of California empowering cities to regulate the final disposition of solid waste under powers expressly granted to cities in Article XI, Section 7 of the California Constitu- tion, and also as set forth in the following state statutes: Section . 4250 of the Health and Safety Code of California and Sections 66730, 66732(a), and 66755 to 66757, inclusive, of the Government Code of California. 3. COMPANY owns and operates a disposal site described in Exhibit 'A ", attached hereto and incorporated herein by reference, and which is used for the landfill disposal of solid wastes (herein called the "Disposal Site "). \4. CITY and COMPANY desire to enter into a Landfill Agreement providing for the final deposition of solid waste matter accumulated z and collected in CITY at COMPANY's Disposal Site. It is understood between the parties that this Landfill Agreement is being entered into by COMPANY concurrently with the Cities of Los Gatos, Monte Sereno, Saratoga and Campbell. 5. The purposes to be accomplished by the parties thereto entering into this Landfill Agreement are: A. To ensure residents of the Cities of Los Gatos, Monte Sereno, Saratoga and Campbell a site for the final disposition of solid waste matter accumulated and collected in each of the named cities. B. To enable COMPANY to more accurately predict disposal demand and to capitalize its disposal site facilities. C. To encourage the recovery of resources and energy from solid wastes at the Disposal Site, including, among others, the reduction, separation, recovery, conversion and recycling of solid wastes and the environmentally safe disposal of non- reusable residues in order to further extend the availability and disposal capacity of the Disposal Site for future use by residents of each of the above -named cities. 6. The City Council of CITY hereby determines that the public interest and convenience, and the physical health and safety of its inhabitants require the entering into of the within Landfill Agreement, -2- 0 A G R E E M E N T In consideration of the mutual covenants, terms and conditions herein contained, the parties agree as follows: 1. Deposition Grant. COMPANY grants to CITY the irrevocable right and privilege of delivering, or causing to be delivered, to the Disposal site for final deposition therein all solid waste matter accumulated and collected within CITY during the term of this Agreement, or any extension thereof, and COMPANY covenants and agrees to accept all solid waste matter so delivered. The right and privilege herein granted shall be subject to compliance by CITY of the provisions of the within Agreement. For the purposes of this Agreement "solid waste matter" is defined to mean -all putrescible and nonputrescible solid, semi- solid and liquid wastes. 2. Term. The term of the right and privilege herein granted shall be for a period of twenty (20) years, commencing at 12:01 a.m, on the 1st day of March, 1983, and ending at 11:59 p.m. on the 28th day of February, 2003, excepting as herein otherwise specified. 3. Resource Recovery. A. With the exceptio:i of.methane gas recovery from the Disposal Site Area One. as it exists at the time of execution of this Agreement, or minor material salvage therefrom, COMPANY shall not undertake any major resource recovery operation without first notifying CITY in writing at least ninety (90) days prior to the date upon which the resource recovery operation is proposed to begin, and giving CITY an opportunity to comment and participate therein upon terns and conditions satisfactory to both parties. B. COMPANY shall pay five (5) percent of after -tax net proceeds, based upon the average actual tax rate, derived from any major resource recovery operation which it under- takes to GREEN VALLEY DISPOSAL COMPANY, INC., a California Corporation (herein called "GREEN VALLEY ") and which is the grantee of an exclusive-franchise to collect and dispose of all solid waste matter produced in CITY, as and for a sub- sidy to GREEN VALLEY's customers in each of the following cities: Los Gatos, Monte Sereno, Saratoga and Campbell. The total amount of the five (5) percent payment described above shall be paid to each of the named cities in propor- tion to the volume of solid waste matter collected from each of the cities. For example, in a year where eighteen (18) percent of the total quantity of material is deposited by the above -named cities, then the five (5) percent payment would be computed on the eighteen (18) percent of the resource recovery. (i) CITY shall include its share of any five (5) percent payment received in calculating the gross receipts of GREE14 VALLEY under the franchise described above from CITY. (ii) A certified public-accountant employed by COMPANY and at COMPANY's sole expense shall prepare and submit to CITY an annual finan- cial review of any major resource recovery -4- operation which it undertakes, including, but not limited to, the relationship of the amount of any five (5) percent payment made and the volume of refuse collected from each of the cities.named above. (iii) In the event any of the cities named above provides financial, operational or any other tangible form of support on a voluntary basis in connection with any major resource recovery operation conducted by COMPANY, the parties agree that a new profit- sharing arrangement in any such operation shall be negotiated and memorialized by an appropriate addendum to this Agreement executed by the parties hereto. (iv) It is further agreed by the parties that CITY may, but is not obligated to, support any major resource recovery operation con- ducted by COMPANY. - 4. Tipping Fee. A. COMPANY shall be entitled to charge a "tipping fee" to GREEN VALLEY upon delivery of solid waste matter accumulated and collected within CITY to the Disposal Site. Provided, however, any tipping fee so charged shall not exceed an amount per ton equal to fifteen (15) percent above the average tipping fee charged at a group of disposal sites the number of which and method of selection shall be as hereinafter set forth. B. COMPANY and each of the following cities: Los Gatos, Monte Sereno, Saratoga and Campbell, shall provide each -5- other with a list of comparable public and privately - owned landfill disposal sites in the counties of Santa Clara, San Mateo and Alameda, to be considered for inclusion in the group of disposal sites to be surveyed. (i) The tipping fees charged by each disposal site finally selected for the survey group shall include: (a) Any surcharge, assessment or fee imposed by the disposal site which is computed by the volume (yards or tons) of solid waste matter deposited which is imposed on solid waste collection companies or haulers over and above the unit of refuse by volume (yards or tons) charged to the local solid waste collection companies or haulers. (b) Any surcharge, assessment, inspection fee or tax which is computed by the volume (yards or tons) of solid waste matter deposited which is imposed by a governmental agency and uniformly applicable to the disposal site used in the survey. (c) All other surcharges, taxes, permit fees and licenses shall be included as part of the basic tipping fees of the disposal sites used in the survey group. (ii) In selecting each disposal site for the survey group, each of the following shall be taken into account: (a) Location of disposal site. (b) Tipping charges for compacted solid waste matter by the ton. If a particular disposal site uses compacted yardage in lieu of tonnage, the unit of yardage shall be con- verted to tonnage by multiplying one (1) compacted yard by four (4). -6- (c) Estimated capacity and time life of the disposal site. (d) Resource recovery program at the dis- posal site. (e) Ownership of the disposal site. (f) Average volume of solid waste matter received daily. (g) Any plans for expansion of the land - fill and /or use of transfer stations. (h) Any other data which would aid the parties in the selection of comparable disposal sites. C. COMPANY and the cities named above shall agree upon a selection of a minimum of six (6) and a maximum of ten (10) disposal sites. Provided, however, the highest and the lowest shall be eliminated prior to calculating the average. (i) If for any reason the survey group of disposal sites selected shall be reduced to four (4), COMPANY and the cities named above shall estab- lish a new list in the same manner as the original list was agreed upon. (ii) If for any reason a new survey group of dis- posal sites cannot be selected, then in lieu of using the results reached from the survey group, COMPA14Y shall charge GREEN VALLEY a tipping fee the amount of which shall be ten (10) percent less than the average tipping fee charged b_y COMPANY to solid waste collec- tion companies other than GREEN VALLEY which use the Disposal Site. -7- D. Neither CITY nor any of its officers or employees shall be liable for or in any way be responsible for the payment of any tipping fees due COMPANY from GREEN VALLEY. 5. Annual Report. COMPANY shall furnish at its sole expense an annual report to CITY not later than ninety (90) days following the close of COMPANY's fiscal year concerning the current capacity and operational status, respec- tively, of the Disposal Site, and, if requested by CITY, a summary of tipping fees charged and received from Green Valley Disposal Company, Inc. for any year wherein there will be a sharing of proceeds from any major resource operation. 6. Public Health. In order to protect the public health and the environment, COMPANY shall operate and maintain the Disposal Site so as too A. Control vectors, odor, fire, litter and moisture infil- tration at the solid waste disposal site. B. Not require any collection vehicle to travel on the active face of a disposal site. 7. Catastrophes; Termination. A. Neither CITY nor COMPANY shall be deemed to be in de- fault in the performance of the terms of this Agreement if either party is prevented from performing the terms of this Agreement by causes beyond its control, including, without being limited to, acts of God or the public enemy; failure due to delay of performance by suppliers or con- tractors, interference, rulings or decisions by municipal, -Q- state, federal or other governmental agencies, boards or commissions; and the laws and /or regulations of such municipal, state, federal or other governmental bodies; any catastrophe resulting from flood, fire, explosion or other cause beyond the control of the defaulting party; If any of the stated contingencies occur, the party delayed by force majeure shall immediately give the other party written notice of the cause of delay. The party delayed by force majeure shall use reasonable diligence to correct the cause of delay, if correctable, and if the condition that causedthe delay is corrected, the party delayed shall notify the other party immediatey and shall resume performing the terms of this Agreement. B. If any of the contingencies stated in subsection A occur and thereby make resumption of performance of the terms of this Agreement impossible, then either party may terminate this Agreement by giving the other party not less than ninety (90) days written notice, either by mail or by personal service prior to the date upon which the termination is to be effective. 8a Assignment COMPANY shall not assign this Agreement, or any interest therein, without the written consent of the City Council being first obtained The authorization will not be unreasonably withheld by CITY. A consent to one assignment shall not be deemed to be a consent to any subse- quent assignment. In the event of a sale of the Disposal Site, CITY shall not have the right to approve or disapprove the buyer. However, the new owner shall be subject to the terms of this Agreement. 9. Administration. The administration and enforcement of this Agreement shall be the responsibility of the Town Manaqer , or designated representatives of that office. 10. Independent Contractor Status. COMPANY, its employees and agents, are independent contractors and not employees, agents or sub - agents of CITY. 11. Notice. Any notice required to be given to COMPANY shall be deemed to be duly and properly given if mailed to COMPANY, postage prepaid, addressed to: GUADALUPE RUBBISH DISPOSAL COMPANY, INC. P. 0. Box 712, LOS GATOS, CA 95031 159 .99 Guadalupe Mines Road San Jose, CA or personally delivered to COMPANY at such address, or at such other address as COMPANY designates, in writing, to CITY. Any notice required to be given to CITY shall be deemed to be duly and properly given if mailed to CITY, postage prepaid, addressed to: TOWN MANAGER 110 East Main Street P. 0. Box 949 Los Gatos, CA 95031 or personally delivered to CITY at such address, or at such other address as CITY may designate, in writing, to COMPANY. -10- 12. Condemnation: A. The Parties hereto agree that the right of CITY to use the Disposal Site for the term of 20 years granted in this Agreement is a valuable property right. B. In the event of the partial or total taking of the Disposal Site prior to the expiration of the term of 20 years by a govern- mental entity entitled to do so under eminent domain, whether by the filing and prosecution of a proceeding under the power of eminent domain, or under threat of filing or prosecuting such an action, COMPANY shall pay to CITY an amount equal to five (5) percent of the gross amount received by COMPANY as compensation. Provided, however, the amount to be paid to CITY shall be reduced by one - twentieth (1/20) for each elapsed year of the term of this Agreement. 13. Entire Agreement. This Agreement constitutes the entire agreement between the parties hereto relating to the subject matter hereof, and supercedes any previous agreements or understandings. 14. Successors and Assigns. COMPANY and CITY, and each of them, each binds itself, its respective successors and assigns, to the other party to this Agreement, and to the respective successors and assigns of such other party in respect to all covenants of this Agreement. -11- Y IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed in the City of Los Gatos County of Santa Clara, State of California, as follows: ' By COMPANY this _ day of , 1983. By CITY this da ���� 15 y of — �/-V`stP1h , 1983. ATTEST: 'ity CITY OF LOS GATOS a Municipal Corporation By Mayor (CITY) GUADALUPE RUBBISH DISPOSAL COMPANY, INC. a California Corporation By (COMPANY) -12- r < SCY ULE ONE ,an. 7 1977 EXHIBIT A 7262 -74 Page l of 2 G E O R G E S . N O L T E A N D A S S O C ] A T E 5 Civil aud.Environmentai Engineers • Planners • Surveyors - Guadalupe Disposal Site All that certain real property situate in the County of Santa Clara, State of California, being a portion of that certain parcel of land described in the Grant Deed recorded in Book 8074 of Official Records at Page 709, Santa Clara County Records, more particularly described as follows: BEGINNING at a found granite monument, marked 11 1 /2B, in the easterly line of that certain 194.793 acre parcel of land shown on the Record of Survey, recorded in Book 67 of Maps at page 29, Santa Clara County Records, said monument marking an angle .point in the general easterly boundary of Lot 39, (said Lot 39, together with Lot 40 in T.8S., R.1W., M.D.M., comprising that portion of the Rancho Canada de los Capitancillos, which was finally confirmed to the Guadalupe Mining Company by United States Patent dated December 20, 1871, and recorded October 12, 1871 in Volume "B" of Patents, at page 31, to which said patent and the record thereof reference is hereby made for a more particular descrip- tion of said Lot 39); thence along said easterly line N 0003'24" W, 150.00 feet to the most southeasterly corner of Grant Deed; thence along the easterly and general northerly lines of said Grant Deed the following courses: thence N 0 °03'24" W, 311.27 feet; thence N 44 °31'40" W, 270.49 feet; thence N 41 °16'00" W, 145.22 feet; thence N 45°42'52" W, 73.86 feet; thence N 18 °31'31" E, 95.69 feet; thence N 8 °29'10" W, 144.96 feet; thence N 79 °17 "44' W, 206.08 feet; thence N 44 °06'00" W, 168.00 feet; thence S 78 °34'58" W, 336.64 feet; thence S 83 °57'48" W, 52.44 feet;. thence N 53 °33'20" W, 226.11 feet; 1731 North First Street, P.O. Box 820. San Jose. California 85112. (408) (287-3400) 6 AN 10 8E WALNUT CRSSK SOUTH BAN FRANCISCO • SAN DIEGO ERC /bvh Chkd, by: GEORGE 6, NOLTE AND ASSOCIATES G.tl .«i t«..m.mrnd Lnp, n ry.wo.n tuwr..n ail. 7 1517 ;11262 -74 Page 2 of 2 thence N 27 °29'59" W, 120.78 feet; thence S 87 °19'19" W, 260.41 feet; thence N 37 °49'24" W, 187.00 feet; thence S 59 °45133" W, 125.31 feet; thence South, 567.77 feet; thence N 79 °45'35" W, 474.91 feet; thence N 51 °27'35" W, 376.86 feet (376.90 feet for said Grant Deed); thence N 53 °27'35" W, 275.98 feet (276.00 feet per said Grant Deed); thence N 67 °57'50" W, 158.29 feet (N 67 057122" W, 158.30 feet per said Grant Deed); thence leaving said general northerly line S 68 050'51" W, 396.12 feet; thence South, 500.00 feet; thence S 60 °15'18" E, 806.23 feet; thence S 63 °26'06" E, 670.82 feet; thence S 33 °41'24" E, 360.56 feet; thence S 59 °02'10" E, 583.10 feet; thence S 68 °11'55" E, 538.52 feet; thence East, 500.00 feet; thence N 71 °33'54" E, 316.23 feet; thence N 21 °48'05" E, 538.52 feet; thence N 64 °31'02" W, 274.69 feet; Containing 98.753 Acres, more or less. ERC /bvh Chkd, by: GEORGE 6, NOLTE AND ASSOCIATES G.tl .«i t«..m.mrnd Lnp, n ry.wo.n tuwr..n