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AGREEMENT AMONG THE COUNTY OF MONTEREY, THE SALINAS VALLEY SOLID WASTE AUTHORITY, THE MONTEREY REGIONAL WASTE MANAGEMENT DISTRICT, THE PEBBLE BEACH

COMMUNITY SERVICES DISTRICT, AND THE CITIES OF CARMEL-BY-THE-SEA, DEL REY OAKS, GONZALES, GREENFIELD, KING CITY, MARINA, MONTEREY,

PACIFIC GROVE, SALINAS, SAND CITY, SEASIDE, AND SOLEDAD TO EVALUATE AND ANALYZE CURRENT PRACTICES AND OPTIONS FOR THE COLLECTION, TRANSPORTATION, PROCESSING AND REDUCING LANDFILL DISPOSAL OF

SOLID WASTE WITHIN MONTEREY COUNTY THAT CAN BENEFIT ALL RATEPAYERS IN THE COUNTY

THIS AGREEMENT is entered into on this 9th day of December 2013 (the “Effective Date”) by and between the County of Monterey (the ‘COUNTY’), a political subdivision of the State of California, the Salinas Valley Solid Waste Authority (‘SVSWA’), a Joint Powers Authority, and the Monterey Regional Waste Management District (‘MRWMD’), a Special District of the State of California,) (the ‘Agencies’), and the Cities of Carmel-by- the-Sea, Del Rey Oaks Gonzales, Greenfield, King City, Marina, Monterey, Pacific Grove, Salinas, Sand City, Seaside, and Soledad(the ‘CITIES’), municipal corporations, and the Pebble Beach Community Services District, together referred to the Parties.

RECITALS

WHEREAS, management of the collection, transportation, and disposal of Solid Waste within

Monterey County is presently exercised by the two Agencies; and

WHEREAS, the Parties further acknowledge that opportunities currently exist to improve efficiencies, reduce costs, and stimulate the local economy by examining options for the collection, transportation, processing and reducing landfill disposal of Solid Waste within Monterey County; and

WHEREAS, the Parties further acknowledge and accept that the objective of this analysis is not

to merge the two existing solid waste processing and disposal agencies; and WHEREAS, it is further acknowledged that both agencies will set their respective rates as their

Boards see fit and that nothing in this analysis has the objective of establishing a uniform and equalized countywide rate structure between the two authorities.

WHEREAS, the Parties acknowledge that opportunities exist to improve collaboration of the County, the Cities, the SVSWA and MRWMD; and

WHEREAS, it is in the best interest of the Parties to agree to work together to evaluate, analyze

and ultimately propose and implement such mutually beneficial options to better serve the residential, commercial, agricultural, and industrial ratepayers throughout Monterey County; and

WHEREAS, the Parties agree to participate in a comprehensive process to evaluate and analyze the collection, transportation, processing and disposal of Solid Waste within Monterey County to determine and implement options for cost effective, sustainable, and economically viable approach(s) that meets all state requirements.

NOW, THEREFORE, in mutual consideration of the covenants, terms and conditions set forth

herein, the Parties agree as follows:

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AGREEMENT

The Parties agree to work together in good faith to evaluate and analyze current practices and options for the collection, transportation, processing and reducing landfill disposal of Solid Waste within Monterey County that involve both Agencies and private companies that are under contract with the Cities and County.

Furthermore the Parties agree: A. To maintain transparency;

B. That this effort will be overseen and managed by a subcommittee comprised of the County

Administrator, the General Managers of the SVSWA and the MRWMD and the City Managers of Monterey, Pacific Grove, Salinas, Greenfield and Gonzales herein referred to as the Solid Waste Subcommittee; and

C. That the City of Gonzales will serve as the “lead agency” for purposes of retaining and

contracting with the consultants and/or experts in the field of solid waste to evaluate and analyze the Solid Waste Management System within Monterey County; and

D. To support the Request for Proposal (RFP) included as Attachment ‘A’ , which purpose and

goal “…is to obtain a thorough, unbiased analysis that will produce actionable recommendations that if accepted and approved by the Parties and once implemented by the County, the Cities, and both Agency Boards, will result in Monterey County constituents receiving fiscally, economical, environmentally sustainable, and effective solid waste and landfill diversion management services; and

E. To support systems that continue to reduce waste to landfill, meet or exceed state and or local

diversion requirements’; and F. That all efforts will be made to assure maximum participation by all interested parties and

that the respective Boards and Councils of the parties receive quarterly status reports;

Cost Sharing Plan The Parties, agree to collectively fund the comprehensive process per the funding formula

included as Attachment ‘B’ subject to a maximum amount of $150,000. The Parties, agree to remit their payment of all invoices received from the lead agency within 30 days of receipt

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Term of the Agreement

This Agreement shall begin on the Effective Date and shall remain in effect until the delivery of the Final Report described in Attachment A (Scope of Services), including any presentation described therein, and a decision by the Parties, whether to implement any of the recommendations set forth in the Final Report. This Agreement shall be automatically extended if the Parties collectively agree to implement some or all of the recommendations set forth in the Final Report, and shall stay in effect until the full implementation of those recommendations undertaken by the Parties.

IN WITNESS WHEREOF, this Agreement is made on that date first written above between all and among the incorporated Cities of Monterey County, the Pebble Beach Community Services District, the County of Monterey, the Salinas Valley Solid Waste Authority and the Monterey Regional Waste Management District. CITY OF GONZALES Mayor: ___________________________ Dated: __________________________ ___ City Clerk: ________________________ Dated: ___________________________ APROVED AS TO FORM: City Attorney: _____________________ Dated: ___________________________ CITY OF GREENFIELD Mayor: ___________________________ Dated: __________________________ ___ City Clerk: ________________________ Dated: ___________________________ APROVED AS TO FORM: City Attorney: _____________________ Dated: ___________________________ CITY OF SOLEDAD Mayor: ___________________________ Dated: __________________________ ___ City Clerk: ________________________ Dated: ___________________________ APROVED AS TO FORM: City Attorney: _____________________ Dated: ___________________________ CITY OF KING Mayor: ___________________________ Dated: __________________________ ___ City Clerk: ________________________ Dated: ___________________________ APROVED AS TO FORM:

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ATTACHMENT ‘A’

Request for Proposals Scope of Work To

Evaluate and Analyze

Monterey County’s Integrated Waste Management System This Request for Proposal is issued on behalf of the County of Monterey (the ‘County’), a political subdivision of the State of California; the Salinas Valley Solid Waste Authority (‘SVSWA’), a Joint Powers Authority, and the Monterey Regional Waste Management District (‘MRWMD’), a Special District of the State of California, (collectively, the ‘Agencies’); the Cities of Carmel-by-the-Sea, Del Rey Oaks, Gonzales, Greenfield, King City, Marina, Monterey, Pacific Grove, Salinas, Sand City, Seaside, and Soledad (collectively the ‘Cities’), municipal corporations; and the Pebble Beach Community Services District (‘PBCSD’), all collectively referred to as the ‘Parties’.

I. Introduction

Integrated waste management services in Monterey County

The solid waste landfills and waste diversion operations in the County of Monterey are owned, operated, and provided by three separate public agencies, multiple franchise collection haulers, and private vendors. The Salinas Valley Solid Waste Authority (“SVSWA”) serves the eastern portion of the County and operates the Johnson Canyon Landfill. Additionally, the SVSWA operates the Sun Street Transfer Station and the Jolon Road Transfer Station. SVSWA is also responsible for the maintenance and environmental monitoring of three closed landfills (i.e., Crazy Horse Canyon Landfill, Lewis Road Landfill, and the Jolon Road Landfill). The Monterey Regional Waste Management District (“MRWMD”), a Special District of the State of California, serves the western portion of the County and operates the Monterey Peninsula Landfill near Marina. The Monterey County Environmental Health Bureau (EHB) provides public education, some AB 939 services and franchise collection contract administration for the entire unincorporated area of Monterey County and holds membership in both solid waste agencies. The purpose of SVSWA and MRWMD is to provide secure long-term solid waste disposal, assist jurisdictions in meeting state and local diversion requirements and waste reduction education services to all of its members in an environmentally sound and cost-effective manner.

II. Project Background

A. Difference in tipping fees

There are several solid waste and recycling issues in Monterey County that can benefit from a comprehensive analysis to determine if there are better methods to manage waste and diversion operations in the County more efficiently. Furthermore, there are several current economic and infrastructure issues that are under discussion for the SVSWA and MRWMD member agencies that include but are not limited to: (a) rate increase discussions for Agency member cities, (b) a new recycling and solid waste RFP for 7 of the MRWMD member agencies released May 31, 2013, (c) potential new facilities and operations for SVSWA and MRWMD, (d) issues of significant decline of solid waste to both SVSWA and MRWMD landfills and the resultant economic impacts on member agencies rates, (e) potential pending withdrawal from the SVSWA by the County, (f) potential new higher diversion mandates by the state, and (g) post-closure landfill costs and liabilities associated with the three SVSWA closed landfills.

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There is a difference between the basic tipping fees for waste disposal charged by SVSWA (current tipping fee $67.00, plus approximately $0.75 - $1.00 per household/month for AB 939 programs) and MRWMD (current tipping fee $48.25). Based on the information provided by the SVSWA, its tipping fees have tended to be higher for three major reasons: 1) SVSWA has a large debt of $37.5 million which was used to purchase the Crazy Horse landfill, and improve and fix the four old and inadequately funded landfills (Crazy Horse Canyon, Lewis Road, Johnson Canyon and Jolon Road) that it received from County and the City of Salinas and to develop new landfill capacity, and 2) SVSWA provides transfer station services that reduce landfill traffic, which are not provided by MRWMD, and 3) SVSWA has an annual landfill legacy liability of $3.0 million per year for debt payments and maintenance of the three closed landfills. These three reasons do not impact the MRWMD or its member agencies.

Both agencies have historically relied on importation of waste from agencies and jurisdictions outside of Monterey County to support ongoing operations and both have experienced financial challenges as a result of the uncertainty of this revenue stream. The SVSWA has recently implemented rate changes to provide for funding agency operations without the necessity of waste importation. Integrated waste management systems of both agencies should be evaluated based on the full cost of service without unsustainable waste importation revenues. B. Waste hauling patterns

MRWMD owns and operates one site for processing and disposal of waste. It is located at the Monterey Peninsula Landfill site; a 470-acre parcel located two miles north of the City of Marina, one mile east of State Highway 1 in unincorporated Monterey County. On the site, the District owns and operates a Household Hazardous Waste Facility, the Last Chance Mercantile (reuse) store, a five megawatt landfill gas to energy project, a materials recovery facility (C&D, commercial and self-haul) and the Monterey Peninsula Landfill. Waste is hauled directly to the site by franchised haulers serving the seven Monterey Peninsula cities and western Monterey County areas between and including Moss Landing, Big Sur and Carmel Valley, a service area of 853 square miles.

A transfer station in Carmel Valley is owned and operated by franchise hauler Waste Management. Two Material Recovery Facilities process single stream material, one is owned by the City of Monterey, located in Ryan Ranch and operated by Monterey Disposal Service; the other is located in Castroville, owned and operated by franchise hauler Waste Management.

The waste flow patterns for the SVSWA are best illustrated by the maps included as Exhibit 1 that illustrate both the current and strategic waste flow maps.

In addition to the structural differences in tipping fees; service area boundaries and waste flow control restrictions of the MRWMD and SVSWA and the way waste is transported also may impact the disparity in rates and results in some inefficiency.

A comprehensive analysis of collection, rates, facilities and other issues could provide some cost

efficiencies between SVSWA and the MRWMD. C. Strategic Outlooks

In addition, the SVSWA and the MRWMD have different strategic outlooks. Among other differences, the MRWMD seeks to monetize its significant capacity at the Monterey Peninsula Landfill through importation of waste from outside Monterey County to subsidize lower rates for its constituents. The SVSWA seeks to eliminate land filling as the preferred long term management strategy for non- recyclable waste.

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All the Cities of Monterey County, the County of Monterey, the PBCSD, SVSWA and

MRWMD, (the Parties) are requesting proposals from qualified firms or individuals interested in conducting an evaluation of the current solid waste management system in Monterey County and exploring alternatives for creating a system for collaborative approach to solid waste management throughout the County, that can be more responsive to the needs of all Monterey County communities

III. Purpose and Goals of the RFP

The Parties are requesting proposals from qualified firms or individuals interested in conducting an evaluation integrated waste management system in Monterey County. The purpose of this RFP is to obtain a comprehensive county-wide analysis of the solid waste, private and public recycling processing, operational/infrastructure and financial issues of SVSWA and MRWMD in Monterey County that can result in a cost effective approach to providing solid waste and recycling services to its member agencies, while still meeting or exceeding state and local waste diversion mandates. The comprehensive analysis should be completed in a manner that would provide actionable recommendations for consideration by the Parties. The recommendations considered for implementation by the SVSWA and the MRWMD should result in Monterey County constituents receiving the most sustainable, economical and effective solid waste, recycling and waste diversion management services available while meeting all regulatory obligations and liabilities to reduce land filling of waste.

Furthermore, the proposals should include evaluating current agreements and practices relating to the importation of out-of-county waste into the County’s landfill facilities, and provide strategic recommendations to maximize the long-term financial returns and sustainability of waste importation.

IV. Scope of Services

The comprehensive solid waste and recycling analysis being sought by the Parties will require the completion of the following tasks: (In responding, please identify the order for completing these tasks and any other tasks that may be necessary to complete the Scope of Work.)

• Facilitate a workshop(s) of all Parties to identify and develop a consensus on those operational, financial, political, and legal issues and alternatives anticipated to be addressed in the study, and the process to be followed.

• Assess the advantages and disadvantages and the potential cost efficiencies of a modified or collaborative use of the SVSWA and MRWMD facilities and evaluate the best long and short term use of the existing and projected county-wide transfer stations, waste processing facilities (existing and proposed) and landfills in the County, including an analysis of capacity impacts.

• Evaluate the cost and recommend potential cost efficiencies for a modified and or coordinated use of the MRWMD’s and SVSWA’s recycling and reduction and reuse facilities (existing and proposed).

• Evaluate the best beneficial uses, associated costs, and efficiency of existing or proposed transfer

stations, both public and private recycling facilities, both public and private materials recovery facilities, and other waste recycling, composting, waste reduction and reuse systems existing or proposed within the county.

• Identify an appropriate cost model that could, stabilize and ideally lower fee structures within the

entire County taking into consideration debt structures, sustainability of waste importation

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revenues, franchised collection rates, physical assets, revenue streams, state mandated requirements to reduce land filling of waste and other issues as appropriate.

• Review the advantages and disadvantages of waste importation from outside Monterey County.

Advantages may include additional revenues to support solid waste programs within Monterey County. Disadvantages may include uncertain long-term assurances of receiving such waste, reduced landfill capacity for member agencies, and increases in long-term public liability for care of old landfills.

• Evaluate the current rates for the SVSWA and the MRWMD and identify methods that could

minimize rate impacts and increases. • Review the establishment of a cost of service rate structure that accounts for differential

MRWMD and SVSWA system debt and liability, and • Evaluate the initiatives, goals and objectives of both the SVSWA and the MRWMD to determine

similarities and differences and how these policies impact the projected cost of operations, waste disposal, and ability to meet state regulations and goals to reduce land filling of wastes.

• Evaluate commercial collection rate structure for unincorporated Monterey County and City of Salinas and recommend adjustments.

• Evaluate financial and operational benefits and challenges of Monterey County integrated waste management services, programs and franchise administration not currently under direction of the SVSWA and MRWMD.

• Assess advantages/disadvantages of changing current flow control measures (e.g., waste routes

efficiency, carbon footprint reduction, etc.).

• Evaluate how best to fund and meet AB939 requirements given that the MRWMD, the SVSWA, the County, all franchise haulers, and cities pay for and manage AB939 programs.

• Evaluate the long-term rate increases of the different options.

The selected consultant shall utilize the information gathered in the above described process to

develop recommendations and scenarios which would objectively identify potential principles for managing solid waste and recycling and waste reduction that would create the most cost effective and sustainable model possible in Monterey County At least one scenario should include evaluation of private sector operations or a mix of public and private partnerships.

The selected consultant shall also develop recommendations that:

1. Identify best practices and performance measures that most effectively utilize existing and planned waste collection and processing infrastructure and future landfill capacity, reduce overall land filling of waste and reduce, control or minimize costs for all existing and future residents and business in the county.

2. Identify options for improved operations, collaboration and reduce costs for all residents of the County. Options should be consistent with the current Source Reduction and Recycling

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Element, the Household Hazardous Waste Element and the Non-Disposal Facility Element for the County of Monterey and its Cities.

3. Provide for streamlining procedures and processes for current and required functions regarding landfill and waste diversion operations, Materials Recovery Facilities (MRFs), recycling, composting, reuse, and other waste reduction strategies and programs and establish future cost of service user fees.

4. Analyze options for increasing long-term sustainability.

5. Provide options for streamlining the transportation and delivery system of waste, recycling, green waste/food waste/organics, C&D and other materials countywide.

6. Provide the most effective organizational structure options and identify preferred alternatives.

7. Present other options not mentioned here that the consultant believes could provide the best alternative to the present systems of disposing, diverting and regulating solid waste in Monterey County.

V. Working Relationships This RFP is being issued by the Parties and it is expected that the successful prime Consultant

and any Sub-Consultants will report to the Solid Waste Subcommittee,

The Solid Waste Subcommittee is tasked with steering and managing this process and working with the designated County, City, District and Authority staff for data gathering and review of data information. The City Managers in the Subcommittee will report back to the City Managers of all the Cities (who would in turn be responsible for reporting back to their respective councils).

VI. Deliverables At the conclusion of the countywide comprehensive solid waste and recycling analysis the

consultant shall, as described in the Scope of Work:

1. Provide a Preliminary Report of Findings and Recommendations that effectively summarizes and communicates the required information reviewed in the Scope of Services;

2. Present the Preliminary Report of Findings and Recommendations to the Solid Waste Subcommittee meeting and respond to the Subcommittee’s questions regarding the findings and recommendations;

3. Identify key issues and opportunities;

4. Formulate recommendations and preferred alternative(s);

5. Prepare the Final Report of Findings and Recommendations which would include addressing the Subcommittees’ questions, comments, concerns and inclusion of additional analysis; and

VII. Final Report & Presentation

The Final Report issued shall:

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1. Include an Executive Summary summarizing the findings and recommendations as identified in the Scope of Services.

2. Shall address all the areas listed in the scope of services and provide the information necessary for policy decisions regarding the operational and service options.

3. Include as attachments/exhibits or via reference all spreadsheets, reports, studies, sources or other documentation prepared or utilized by the Consultant.

4. Be presented by the Consultant as necessary and directed by the Solid Waste Subcommittee to governing boards of the Parties of this RFP. In order to facilitate the presentation, consultant should prepare a PowerPoint presentation or utilize other presentation tools/media to maximize the understanding of the Final Report

5. Be provided via 15 written copies and in electronic format including ass the exhibits, tables,

spreadsheets, etc., utilized.

VIII. Proposed Timeline Release of RFP November 4, 2013 RFP Closes November 29th, 2013 Evaluation of RFP December, 2013 Selection & Engagement of Consultant January, 2014 Release & Presentation of Preliminary Report of

Findings & Recommendations April, 2014

Release & Presentation of Final Report of Findings & Recommendations July, 2014 Consideration and Implementation of Findings & Recommendations by the Parties July – Sept, 2014

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Attachment ‘B’

Cost Sharing Plan

The Parties agree to share in the overall costs which are estimated to not exceed $150,000 as follows:

$50,000 between the Authority and District = $25,000 each. $100,000 between the Cities, PBCSD and County = (pursuant to the formula in the table

included as Exhibit A). The Parties understand that all efforts will be made by the Solid Waste Management Study Subcommittee of MBAMG to keep costs as low as possible. The Parties agree that the City of Gonzales as the Lead Agency will invoice each participant its percentage share of the costs pursuant to the payment schedule negotiated with any retained consultants or experts.

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Exhibit A Cost Sharing Allocation for the Evaluation and Analysis of the Monterey County Solid Waste System

Blended by Percentage of Population, Solid Waste Generation & Assessed Valuation $100,000

Population Estimates 1/1/2013 *

% of Total Population

in the County

% of Solid Waste Generated

Countywide**

% of Assessed Valuation

Countywide*** Est. Cost Share

County/City Total Population 403,167

Carmel-By-The-Sea 3,775 0.94% 2.65% 6.24% $ 3,278.06

Del Rey Oaks 1,648 0.41% 0.44% 0.46% 435.89

Gonzales 8,296 2.06% 1.40% 0.87% 1,443.06

Greenfield 16,729 4.15% 1.69% 0.98% 2,274.19

King City 13,073 3.24% 2.07% 1.31% 2,208.20

Marina 20,073 4.98% 4.75% 2.94% 4,224.55

Monterey 23,991 5.95% 11.19% 9.01% 8,715.49

Pacific Grove 15,268 3.79% 4.15% 5.23% 4,387.08

Salinas 153,215 38.00% 25.52% 17.24% 26,918.46

Sand City 338 0.08% 0.66% 0.46% 401.04

Seaside 29,214 7.25% 7.78% 3.53% 6,184.75

Soledad 16,047 3.98% 2.36% 1.30% 2,547.06

Pebble Beach**** 0.00% 3.41% 0.00% 1,138.05

Balance of Monterey County 101,500 25.18% 31.93% 50.42% 35,844.13

Subtotals 403,167 1.0000 100.00% 100.00% $ 100,000.00

Agencies

SVSWA $ 25,000.00 MRWMD 25,000.00

Subtotal $ 50,000.00

Total Estimated Budget $ 150,000.00 *Department of Finance Demographic Research Unit (5/1/13): Population Minus Exclusions

**Information from the 2011-2012 Annual Reports of the SVSWA and MRWMD.

***Information Provided by the Monterey County Assessor ****Amount will be covered by Monterey County