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HomeMy WebLinkAboutD-7 Staff Report -Ordinance Amending Sec. 2-473 Re Landfill FeeSCHEDULED ITEM D-7 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: TROY L. BUTZLAFF, ICMA-CM, CITY MANAGER FROM: MARCO A. MARTINEZ, CITY ATTORNEY DATE: JUNE 19, 2017 SUBJECT: FIRST READING OF ORDINANCE AMENDING SECTION 2-473 OF THE AZUSA MUNICIPAL CODE RELATING TO THE PAYMENT OF LANDFILL FEES SUMMARY: Recently, the City entered into an agreement with Azusa Land Reclamation Inc. (ALR) settling a dispute concerning the payment of landfill fees and business license fees charged to their landfill. The agreement clarified how the City would treat waste disposed at the ALR landfill for purposes of charging City fees authorized by both Section 2-473 and 18-694 of the Azusa Municipal Code. This ordinance further clarifies how the fees authorized by Section 2-473 are charged. The proposed action introduces, waives further reading, reads by title only, Ordinance No. 2017-08. RECOMMENDATION: Staff recommends that the City Council take the following action: 1.Introduce, waive further reading, and read by title only Ordinance No. 2017-08, amending Section 2-473 of the Azusa Municipal Code Relating to the Payment of Landfill Fees. DISCUSSION: The attached ordinance amends Section 2-473 of the Azusa Municipal Code to impose a more equitable and flexible landfill fee. Azusa Land Reclamation Inc. (ALR) operates the only landfill within the corporate boundaries of the City of Azusa. The landfill is located on property located at 1211 W. Gladstone Street in the City of Azusa (“Property”) and is operated pursuant to a State of California, Solid Waste Facility Permit No. 19-AA-0013 (“Landfill”). Thus, the revisions proposed in this ordinance will only apply to their Property. ALR has reviewed the proposed changes and believes they will also create more equity and flexibility. The ordinance amendment does the following: •Charges a landfill fee of $2.60 per ton on each ton or portion thereof of asbestos and tire matter deposited at the Landfill; APPROVED CITY COUNCIL 6/19/2017 Ordinance Landfill Fees June 19, 2017 Page 2 • Imposes a minimum landfill fee of $125,000 if tonnage of asbestos and tire materials exceeds 45,000 tons in a calendar year; • Charges the $2.60 per ton fee in calendar years when the 45,000 ton threshold is not met. FISCAL IMPACT: Amounts received under the current fee calculation have varied. If asbestos and tire matter exceeds 45,000 tons per calendar year, the City is expected to receive greater fee amounts than currently collected. The landfill has exceeded the 45,000 ton threshold the past 4 years. Moreover, the ordinance provides the City with more flexibility in the use of the fees. Prepared by: Fiscal Impact Reviewed by: Marco A. Martinez Talika M. Johnson City Attorney Director of Finance Reviewed and Approved: Reviewed and Approved: Louie F. Lacasella Troy L. Butzlaff, ICMA-CM Management Analyst City Manager Attachments: 1) Ordinance No. 2017-08 ORDINANCE NO. _________ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA AMENDING SECTION 2-473 OF THE AZUSA MUNICIPAL CODE RELATING TO THE PAYMENT OF LANDFILL FEES WHEREAS, the City of Azusa, California (the “City”) is a municipal corporation, duly organized under the constitution and laws of the State of California; and WHEREAS, pursuant to Section 2-473, the City of Azusa is authorized to charge a landfill fee to existing operating landfills within the City of Azusa; and WHEREAS, Azusa Land Reclamation Inc. (ALR) operates the only landfill within the corporate boundaries of the City of Azusa located on property located at 1211 W. Gladstone Street in the City of Azusa (“Property”) pursuant to a State of California, Solid Waste Facility Permit No. 19-AA-0013 (“Landfill”); and WHEREAS, on or about January of 2016, the City commissioned an audit of business license taxes and landfill replacement fees paid by ALR between 2012 to 2014; and WHEREAS, such taxes and fees are required to be paid by ALR pursuant to Azusa Municipal Code (“AMC”) Sections 18-694 and 2-473; and WHEREAS, since March of 2016, the parties, among other things, have been discussing a more equitable and flexible approach to imposing the landfill fee required by Section 2-473 of the AMC; and WHEREAS, this ordinance provides a more flexible and equitable approach to imposing such fees NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Incorporation of Recitals. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. Section 2-473 of the Azusa Municipal Code is hereby amended in its entirety to read as follows: “Sec. 2-473. - Landfill fee. There is levied a fee of $2.60 per ton on each ton or portion thereof of asbestos and tire matter deposited at the Azusa Land Reclamation, Inc. Landfill (“ALR Landfill”), with such charge to be collected at the same time Amended: June 19, 2017 as any city fees, other tipping fees and landfill charges are collected. The fee shall be collected by the landfill operator and remitted to the city on a quarterly basis. If the ALR Landfill receives a minimum tonnage of 45,000 tons of asbestos and tires tire matter combined in a calendar year, the amount received by the city from disposal of asbestos and tires tire matter combined at ALR Landfill shall not be less than $125,000.00 per that same calendar year (“Minimum Payment”). If the ALR Landfill does not receive a minimum tonnage of 45,000 tons of asbestos and tire matter combined in a calendar year, then the Minimum Payment shall not be charged by the city. However, $2.60 per ton of asbestos and tire matter shall be charged for any tonnage amounts less than 45,000 tons. The landfill fee is in addition to any other fees, charges or taxes levied on the ALR Landfill.” SECTION 3. CEQA. This Ordinance is not a project within the meaning of Section 15378 of the State of California Environmental Quality Act (“CEQA”) Guidelines, because it has no potential for resulting in physical change in the environment, directly or indirectly. The City Council further finds, under Title 14 of the California Code of Regulations, Section 15061(b)(3), that this Ordinance is nonetheless exempt from the requirements of CEQA in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. The City Council, therefore, directs that a Notice of Exemption be filed with the County Clerk of the County of Los Angeles in accordance with CEQA Guidelines. SECTION 4. Custodian of Records. The documents and materials that constitute the record of proceedings on which this Ordinance is based are located at the City Clerk’s office located at 213 E. Foothill Blvd., Azusa, CA 917025. The custodian of these records is the City Clerk. SECTION 5. Severability. If any section, sentence, clause or phrase of this Ordinance or the application thereof to any entity, person or circumstance is held for any reason to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are severable. The City Council of the City of Azusa hereby declares that it would have adopted this Ordinance and each section, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. SECTION 6. Effective Date. This Ordinance shall become effective thirty (30) days following its adoption. SECTION 7. Publication. The City Clerk shall certify to the adoption of this Ordinance. Not later than fifteen (15) days following the passage of this Ordinance, the Ordinance, or a summary thereof, along with the names of the City Council members voting for and against the Ordinance, shall be published in a newspaper of general circulation in the City of Azusa. PASSED, APPROVED AND ADOPTED by the City Council of the City of Azusa, California, at a regular meeting of the City Council held on the ____ day of ___________________, 20___, by the following vote: AYES: NOES: ABSENT: ABSTAIN: City of Azusa ________________________________ Joseph R. Rocha, Mayor ATTEST: ________________________________ Jeffrey Cornejo, City Clerk APPROVED AS TO FORM: BEST BEST & KRIEGER LLP _______________________________ Marco A. Martinez, City Attorney CERTIFICATION I, Jeffrey Cornejo, City Clerk of the City of Azusa, do hereby certify that the foregoing Ordinance No. ____ is the actual Ordinance No. ____ that was introduced at a regular meeting of said City Council on the _____ day of _______________, 20___ and was finally passed and adopted not less than five (5) days thereafter on the ____ day of _____________, 20___ by the following vote to wit: AYES: NOES: ABSENT: ABSTAIN: ______________________________ Jeffrey Cornejo, City Clerk ORDINANCE NO. 2017-08 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA AMENDING SECTION 2-473 OF THE AZUSA MUNICIPAL CODE RELATING TO THE PAYMENT OF LANDFILL FEES WHEREAS, the City of Azusa, California (the “City”) is a municipal corporation, duly organized under the constitution and laws of the State of California; and WHEREAS, pursuant to Section 2-473, the City of Azusa is authorized to charge a landfill fee to existing operating landfills within the City of Azusa; and WHEREAS, Azusa Land Reclamation Inc. (ALR) operates the only landfill within the corporate boundaries of the City of Azusa located on property located at 1211 W. Gladstone Street in the City of Azusa (“Property”) pursuant to a State of California, Solid Waste Facility Permit No. 19-AA-0013 (“Landfill”); and WHEREAS, on or about January of 2016, the City commissioned an audit of business license taxes and landfill replacement fees paid by ALR between 2012 to 2014; and WHEREAS, such taxes and fees are required to be paid by ALR pursuant to Azusa Municipal Code (“AMC”) Sections 18-694 and 2-473; and WHEREAS, since March of 2016, the parties, among other things, have been discussing a more equitable and flexible approach to imposing the landfill fee required by Section 2-473 of the AMC; and WHEREAS, this ordinance provides a more flexible and equitable approach to imposing such fees NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Incorporation of Recitals. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. Section 2-473 of the Azusa Municipal Code is hereby amended in its entirety to read as follows: “Sec. 2-473. - Landfill fee. There is levied a fee of $2.60 per ton on each ton o r portion thereof of asbestos and tire matter deposited at the Azusa Land Reclamation, Inc. Landfill (“ALR Landfill”), with such charge to be collected at the same time as any city fees, other tipping fees and landfill cha rges are collected. The fee shall be collected by the landfill operator and remitted to the city on a quarterly basis. If the ALR Landfill receives a minimum tonnage of 45,000 tons of asbestos and tires combined in a calendar year, the amount received by the city from disposal of asbestos and tires combined at ALR Landfill shall not be less than $125,000.00 per that same calendar year (“Minimum Payment”). If the ALR Landfill does not receive a minimum tonnage of 45,000 tons of asbestos and tire matter combined in a calendar year, then the Minimum Payment shall not be charged by the city. However, $2.60 per ton of asbestos and tire matter shall be charged for any tonnage amounts less than 45,000 tons. The landfill fee is in addition to any other fees, charges or taxes levied on the ALR Landfill.” SECTION 3. CEQA. This Ordinance is not a project within the meaning of Section 15378 of the State of California Environmental Quality Act (“CEQA”) Guidelines, because it has no potential for resulting in physical change in the environment, directly or indirectly. The City Council further finds, under Title 14 of the California Code of Regulations, Section 15061(b)(3), that this Ordinance is nonetheless exempt from the requirements of CEQA in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. The City Council, therefore, directs that a Notice of Exemption be filed with the County Clerk of the County of Los Angeles in accordance with CEQA Guidelines. SECTION 4. Custodian of Records. The documents and materials that constitute the record of proceedings on which this Ordinance is based are located at the City Clerk’s office located at 213 E. Foothill Blvd., Azusa, CA 917025. The custodian of these records is the City Clerk. SECTION 5. Severability. If any section, sentence, clause or phrase of this Ordinance or the application thereof to any entity, person or circumstance is held for any reason to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are severable. The City Council of the City of Azusa hereby declares that it would have adopted this Ordinance and each section, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. SECTION 6. Effective Date. This Ordinance shall become effective thirty (30) days following its adoption. SECTION 7. Publication. The City Clerk shall certify to the adoption of this Ordinance. Not later than fifteen (15) days following the passage of this Ordinance, the Ordinance, or a summary thereof, along with the names of the City Council members voting for and against the Ordinance, shall be published in a newspaper of general circulation in the City of Azusa. PASSED, APPROVED AND ADOPTED by the City Council of the City of Azusa, California, at a regular meeting of the City Council held on the ____ day of ___________________, 20___, by the following vote: AYES: NOES: ABSENT: ABSTAIN: City of Azusa ________________________________ Joseph R. Rocha, Mayor ATTEST: ________________________________ Jeffrey Cornejo, City Clerk APPROVED AS TO FORM: BEST BEST & KRIEGER LLP _______________________________ Marco A. Martinez, City Attorney CERTIFICATION I, Jeffrey Cornejo, City Clerk of the City of Azusa, do hereby certify that the foregoing Ordinance No. ____ is the actual Ordinance No. ____ that was introduced at a regular meeting of said City Council on the _____ day of _______________, 20___ and was finally passed and adopted not less than five (5) days thereafter on the ____ day of _____________, 20___ by the following vote to wit: AYES: NOES: ABSENT: ABSTAIN: ______________________________ Jeffrey Cornejo, City Clerk