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HomeMy WebLinkAboutOrdinance 24533-11-2020 ORDINANCE NO. 24533-11-2020 AN ORDINANCE AMENDING CHAPTER 12.5 ", ARTICLE VIII "SOLID WASTE AND RECYCLING", OF THE CODE OF THE CITY OF FORT WORTH (2015), AS AMENDED, BY AMENDING DIVISION 1 "GENERAL PROVISIONS", SECTION 12.5-800 TO INCLUDE A DEFINITION FOR "NON CITY WASTE"; AMENDING DIVISION 4 "DEPOSITS, RATES AND COLLECTION", BY ADDING SECTION 12.5-844 "NON CITY WASTE LANDFILL ENVIRONMENTAL FEE"; MAKING THIS ORDINANCE CUMULATIVE OF PRIOR ORDINANCES; REPEALING ALL ORDINANCES AND PROVISIONS OF THE FORT WORTH CITY CODE IN CONFLICT HEREWITH; PROVIDING A SAVINGS CLAUSE; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City owns the Southeast Landfill located at 6900 Dick Price Road, Fort Worth, Texas 76060 permitted by the Texas Commission on Environmental Quality for the disposal of Municipal Solid Waste; and WHEREAS, on or about January 28, 2003, the City entered into an Agreement to Lease and Operate the Southeast Landfill with Allied Waste Systems, Inc. d/b/a Fort Worth Southeast Landfill (hereinafter, "Republic Services") known as City Secretary Contract No. 28336 (the"Lease"); and WHEREAS, the Lease allows for Republic Services to accept Non City Waste for disposal at the Landfill and assess a Tipping Fee to the hauler; and WHEREAS, Section 7.03 of the Lease, as amended, allows the City to pass through a charge when enacted by the City in its governmental capacity through Republic's Tipping Fee; and WHEREAS, the Landfill has a permitted capacity of 38,558,000 cubic yards; and WHEREAS, on September 30, 2020, the City's consultant, Burns & McDonnell submitted a report projecting that the Landfill's remaining capacity as of January 1, 2021 to be 19,151,027 cubic yards; and WHEREAS, Burns & McDonnell recommended the City enact a landfill surcharge to help meet the financial burden on the City's residents to address the future need of disposal of Solid Waste; and WHEREAS, it has been determined that the majority of waste being disposed of at the Landfill is "Non City Waste," as defined below (which may or may not be generated within the City of Fort Worth); and WHEREAS, the City requires those non City Collector, as defined by Section 12.5-800 of the City Code, haulers who transport or collect municipal solid waste within the City limits to enter into a Grant of Privilege Agreement and obtain a vehicle hauling permit through City Code Sections 12.5-850 through 12.5-863; and WHEREAS, the Grant of Privilege fee and rates collected from the City's residents help to address the needs and cost of the City's Solid Waste disposal program; and WHEREAS, those haulers who utilize the Southeast Landfill by disposing of Solid Waste but do not have a current, valid Grant of Privilege or hauling permit do not contribute to the City's cost of providing for disposal of Solid Waste in the same manner as its residential rate payers and Grant of Privilege haulers; and WHEREAS, the City seeks to equalize the burden of addressing the future needs of disposal of Solid Waste between those who utilize the Southeast Landfill; and WHEREAS, the City Council hereby finds that addressing the future need for disposal of Solid Waste for its residents is a governmental function; and WHEREAS, the City Council hereby further finds that implementing a Landfill Environmental Fee (surcharge)to Non City Waste is a necessary governmental action. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH: SECTION 1. That Section 12.5-800, "Definitions", Division 1 "General Provision", Article V111 "Solid Waste and Recycling", of Chapter 12.5 of the Code of the City of Fort Worth (2015), as amended, is further amended to include the definition of"Non City Waste" as follows: NON CITY WASTE. Solid Waste that is not collected through the City's household collection services as provided for in Section 12.5-821 or the City's commercial cart service provided for in Section 12.5-830 by the City's Collector. SECTION 2. That Section 12.5-844, "Landfill Environmental Fee", shall be enacted and added to Division 4, "Deposits, Rates and Collection", Article Vlll "Solid Waste and Recycling", of Chapter 12.5 of the Code of the City of Fort Worth(2015), as amended, as follows: 12.5-844 NON CITY WASTE LANDFILL ENVIRONMENTAL FEE. All persons disposing of Non City Waste at the Southeast Landfill who do not have a current, valid Grant of Privilege Agreement with the City pursuant to Section 12.5-850 and/or do not possess a current, valid hauling permit pursuant to Section 12.5-857 shall pay a Landfill Environmental Fee as set by the City Council, which shall not exceed $5.00 per ton. The Landfill Environmental Fee shall be collected with the tipping fee assessed by the operator of the Southeast Landfill. SECTION 3. This ordinance shall be cumulative of all provisions of ordinances and of the Code of the City of Fort Worth, Texas (2015), as amended, except where the provisions of this ordinance are in direct conflict with the provisions of such ordinances and such Code, in which event conflicting provisions of such ordinances and such Code are hereby repealed. SECTION 4. It is hereby declared to be the intention of the City Council that the sections, paragraphs, sentences, clauses and phrases of this ordinance are severable, and, if any phrase, clause, sentence, paragraph or section of this ordinance shall be declared unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs and sections of this ordinance, since the same would have been enacted by the City Council without the incorporation in this ordinance of any such unconstitutional phrase, clause, sentence, paragraph or section. SECTION 5. This ordinance shall take effect on January 1, 2021. APPROVED AS TO FORM AND LEGALITY: (� c lfwts w k, i oys ---ioura- Christa R.Lopez-Reynolds(Nov 20,202 12:44 CST) Christa R. Lopez-Reynolds Mary J. Kayser Sr. Assistant City Attorney City Secretary ADOPTED: November 17, 2020 y pF FOR •.. S City of Fort Worth, Texas Mayor and Council Communication DATE: 11/17/20 M&C FILE NUMBER: M&C 20-0839 LOG NAME: 23SOUTHEAST LANDFILL SURCHARGE SUBJECT (ALL)Adopt an Ordinance to Amend Chapter 12.5 of the City Code, Environmental Protection and Compliance,Article VIII,Solid Waste and Recycling,Division 1,General Provisions to make a Definition of Non City Waste and Division 4, Deposits, Rates and Collection to Establish a Landfill Environmental Fee as Section 12.844 for Certain Non-City Waste Received at the Southeast Landfill and Finding that Adopting the Fee Is Necessary to Address the Future Need for Disposal of Solid Waste and Is a Governmental Function and to Establish the Landfill Environmental Fee in an Amount Not to Exceed$5.00 Per Ton RECOMMENDATION: It is recommended that the City Council: 1. Adopt the attached ordinance to amend Chapter 12.5 of the City Code, Environmental Protection and Compliance,Article VIII,Solid Waste and Recycling, Division 1,General Provisions to establish a definition of Non-City Waste and to amend Divison 4 Deposits, Rates and Collection to establish a Landfill Environmental Fee as Section 12.844 for Non-City Waste not collected under a Grant of Privilege and disposed of at the Southeast Landfill;and 2. Find that adopting the fee is necessary to address the future needs for disposal of solid waste and is a governmental function;and 3. Establish the Landfill Environmental Fee in an amount not to exceed$5.00 per ton. DISCUSSION: The City is the owner of the Southeast Landfill.The Southeast Landfill is operated by Allied Waste Systems, Inc.d/b/a Fort Worth Southeast Landfill(hereinafter,"Republic Services")through a Lease Agreement(City Secretary Contract No.28336.) On September 30,2020,the City's consultant,Burns&McDonnell finalized a study and recommended that the City adopt a$5.00 per ton landfill surcharge for non-City waste disposed of at the Southeast Landfill.Section 7.03 of the Lease Agreement,as amended,allows for Republic Services to set the tipping fee charged to haulers.However the tipping fee must include all charges mandated by the City when that charge is enacted in the City's governmental capacity. This ordinance amends the City Code to require that haulers who do not have a Grant of Privilege with the City and dispose of Non-City Waste at the Southeast Landfill be assessed the surcharge as recommended by Burns&McDonnell,to be call the Landfill Environmental Fee. Furthermore, the City Council by this Mayor and Council Communication hereby sets the fee in an amount not to exceed$5.00 per ton. Thereafter,the City Manager may direct the establishment of this fee in amount of up to$5.00 per ton.The collection of this fee will begin January 1,2021. Over the life of the Lease Agreement,solid waste and limited special waste has been delivered by various City contractors and other commercial solid waste haulers for permanent disposal. Historically,the landfill was predominately utilized by and for the City's residential and internal operational waste stream. However,over the past ten or more years,the volume of solid waste being disposed of within the landfill has significantly changed to include the greatest amount by type and generation point beyond the City's residential stream(24%City residential vs 76%non-City in 2019)into the commercial,business and industrial sectors of Fort Worth and beyond the City limits. In addition,the expansion and enhancements associated with the City's Solid Waste Service Programs(Litter&Debris Abatement, Illegal Dumping Collection&Enforcement Investigation, Street Sweeping, Dead Animal Collections, Keep Fort Worth Beautiful and Code Communications)has increased beyond the initial residential- focused services associated with the last major funding advancement in 2006. As both the costs(annually more than$4.4 million)and beneficiaries of these programs and services have reach further into the commercial, business,industrial sectors and greater community as a whole,the City has avoided addressing increased fund requirements utilizing prior funding balance. As a City asset,the Southeast Landfill has continued to receive increased solid waste volumes associated with the affordable disposal costs, increased growth and development in the Fort Worth,Tarrant County,and greater DFW Region;which has greatly reduced the disposal capacity and life to between 11.9 to 16.9 years. In addition,the capital cost of expanding the existing landfill and permitting a new greenfield landfill has been estimated at$46+million,which needs to be fully funded prior to beginning the necessary activities associated with each. Based on the increased utilization of the landfill being weighted towards the non-City municipal solid waste stream,advancing this Landfill Environmental Fee is necessary and done so by the City Council acting in its official governmental capacity. A Form 1295 is not required because:This M&C does not request approval of a contract with a business entity. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that upon approval of the above recommendations and establishment of a landfill environmental fee,funds will be deposited into the Solid Waste Fund. The Code Compliance Department(and Financial Management Services)is responsible for the collection and deposit of funds due to the City. Submitted for City Manager's Office by: Valerie Washington 6199 Originating Business Unit Head: Brandon Bennett 6322 Additional Information Contact: David B.Carson 6336