Title
Consider approving Resolution No. 2018-24 Authorizing the City Manager to execute the 3rd amendment to the Landfill Operations and Maintenance Agreement with Camelot Landfill TX, LP; and take appropriate action.
Body
BACKGROUND:
In June 2008, the City signed a life of site agreement with Camelot Landfill TX, LP for the operation and maintenance of Camelot Landfill. Within the agreement, the City is responsible for the construction of a scalehouse and maintenance building. The infrastructure must be constructed in accordance with the City of Lewisville zoning and development standards. The City plans to issue Certificates of Obligation and the proceeds of the sale will be used to offset the construction cost of the scalehouse and other required infrastructure.
Relatedly, the City of Lewisville is in the process of extending Corporate Drive to connect the current terminus on the west side of the Elm Fork of the Trinity River to Carrollton Parkway in at the Carrollton/Lewisville city limit line. This extension will travel along the north property line of Camelot Landfill and cross the northern panhandle portion of the landfill that where the current scalehouse is located. The City of Farmers Branch dedicated right-of-way to the City of Lewisville for the Corporate Drive extension in the settlement agreement regarding the expansion of Camelot Landfill that resulted from HB 281 passed during the 2015 Texas Legislative session. The City of Lewisville expects to begin construction of the extension of Corporate Drive in 2019 or 2020. In addition, the City of Lewisville expects Huffines Road to be extended from its current terminus south to Corporate Drive along the current access road within the northern panhandle portion of the landfill. The City of Farmers Branch is obligated to fund the cost of construction of the Huffines Road extension. The City has set aside $700,000 for this extension per the settlement agreement.
A key component to the operation of any landfill is a functional scalehouse. The scalehouse weighs trucks in and out of the landfill to determine the weight of material disposed from the vehicle. The current scalehouse at Camelot Landfill is located just south of the terminus of Huffines Road and north of the future Corporate Drive extension. In order for Camelot Landfill to continue operations during and after the Corporate Drive extension project, a new scalehouse must be constructed south of the future Corporate Drive extension.
Republic Services, the parent company of Camelot Landfill TX, LP, owns and operates Lewisville Landfill. Lewisville Landfill is located in Lewisville, Texas and is located approximately 1.5 miles west-northwest from Camelot Landfill. Republic Services plans to mothball Lewisville Landfill until DFW Landfill closes in approximately 10 years. They will create a seamless transition and direct the customers of Lewisville Landfill to use Camelot Landfill. The additional revenue the City receives from this new volume will be used to pay off the debt associated with the construction cost of the scalehouse. In addition, the City will sell the northern panhandle portion of Camelot Landfill to Republic Services for $700,000. Republic Services will need access to Huffines Road for their new hauling facility located east of Huffines Road.
DISCUSSION:
This contract amendment details the revenue and obligations of the City and Republic Services related to mothballing Lewisville Landfill and the sale of property.
RECOMMENDATION:
City Administration recommends authorizing the City Manager to execute the third contract amendment with Camelot Landfill TX, LP.
POSSIBLE COUNCIL ACTION:
1. I move to approve Resolution No. 2018-24 authorizing the City Manager to execute the third contract amendment to the Landfill Operations and Maintenance Agreement with Camelot Landfill TX, LP; and take appropriate action.
2. I move to approve Resolution No. 2018-24 authorizing the City Manager to execute the third contract amendment to the Landfill Operations and Maintenance Agreement with Camelot Landfill TX, LP, with modifications.
3. I move to table the issue for further study or take no action.
ATTACHMENTS:
1. Resolution No. 2018-24