TO: Napa-Vallejo Waste Management Authority
FROM: Richard Luthy, Executive Director
REPORT BY: Richard Luthy, Executive Director
SUBJECT: Authorize Exercise of Five-year Term Extension - Agreement 2014-01 with Potrero Hills Landfill, Inc.
RECOMMENDATION
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Approval and authorization for the Authority to exercise its right to renew and extend the disposal contract with Potrero Hills Landfill, Inc. for an additional five-year term beyond the current Base Term.
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EXECUTIVE SUMMARY
In 2013, after a comprehensive RFP process, the Board authorized execution of a contract with Poterero Hills Landfill for Long Term Residue Disposal and ADC Capacity Services. The contract calls for an initial term of ten (10) years, commencing January 1, 2014. The Authority has the exclusive right to renew and extend the contract beyond ten (10) years for up to three (3) separate extensions of five (5) years each, not to exceed fifteen (15) years total extension time. The contract requires that the Authority must notify the contractor of its intent to extend the agreement no later than one (1) year prior to the end of the then-current term.
The current term will end on December 31, 2023 unless the Authority exercises its right to renew and extend the Base Term and notifies the contractor of that decision prior to December 31, 2022. Staff is recommending that the Board approve and authorize the exercise of the Authority’s right to renew the contract for an additional five (5) years, and direct staff to notify the Contractor of that decision in accordance with the terms of the Agreement.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
No |
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Is it currently budgeted? |
Yes |
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Where is it budgeted? |
Napa Vallejo Waste Management Authority |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
Continuity of Disposable Operations |
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Is the general fund affected? |
No |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California
Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.
BACKGROUND AND DISCUSSION
In 2013, after a comprehensive RFP process, the Board authorized execution of a contract with Poterero Hills Landfill for Long Term Residue Disposal and ADC Capacity Services. The contract calls for an initial term of ten (10) years, commencing January 1, 2014. The Authority has the exclusive right to renew and extend the contract beyond ten (10) years for up to three (3) separate extensions of five (5) years each, not to exceed fifteen (15) years total extension time. The contract requires that the Authority must notify the contractor of its intent to extend the agreement no later than one (1) year prior to the end of the then-current term.
The current term will end on December 31, 2023 unless the Authority exercises its right to renew and extend the Base Term and notifies the contractor of that decision prior to December 31, 2022. Staff is recommending that the Board approve and authorize the exercise of the Authority’s right to renew the contract for an additional five (5) years, and direct staff to notify the Contractor of that decision in accordance with the terms of the Agreement.