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Minutes - San Leandro City Council Meeting - March 15, 1993 Page - 11 - NEW BUSINESS (continued) He discussed the Ground Lease highlights and said it is a 25-year Lease with a 5-year-option extension, and minimum rental of $.68 per ton to off- set Transfer Station fees for materials that normally go there. He said this Facility will handle the same waste that currently goes to the Transfer Station; and it was his desire not to reduce City revenue, so this amount has been included with, basically, the same provisions for the Consumer Price Index increases as the Transfer Station. He said a host- city charge for all users of the Facility would be required. He discussed security deposits and surety bonds, before and after construction. He said the contractor will pay all utility fees. He said the contractor would have to establish base lines for underground contaminates on the site, and they would be responsible for anything found in the future beyond the base line. He said the Agreement contains the standard hold-harmless and insurance provisions. He said a Site Plan and legal description will be prepared for future approval , and a License Agreement needs to be approved to provide access to the site. He said the Agenda also contained an Operating Agreement. He said this is a private company with a private project. He said the City has stated it will devote its waste stream, which is now going to the Transfer Station, to this Facility, and will guarantee that it goes to the MRF. He said Bio- Mass will own and operate the Facility and find markets for the materials and legally dispose of them. He said there is a termination clause of July 1, 1994, if Bio-Mass has not gotten all permits necessary to allow it to operate; and, if that occurs, the City will find alternatives to this program. He said the Agreement could also be terminated if Bio-Mass is unable to obtain financing. He said the Agreement gives the City the right to disapprove the Agreement if Bio-Mass is in violation of any of its provisions. He said all of the processing will be done inside a building with negative air pressure and an air-scrubbing system. He said this will probably result in an improvement because the garbage now goes to the open dump site and the sludge odor just goes into the atmosphere. He said this project should decrease odors. He said one other advantage of this site is that the process needs large amounts of water, and it can use the Water Pollution Control Plant effluent. He said the effluent will be tested prior to going through the Plant and will also be tested as it comes out of the MRF; and, if retreatment is required, Bio-Mass will pay. He said Bio-Mass is required to provide a $250,000 security deposit to ensure it meets the requirements of AB 939. Mr. Taylor said there has been some confusion about the fee. He said the City would be charged $55 per ton for all materials going into the MRF, in accordance with the formula in the Agreement. He said the $55-per-ton has a CPI adjustment factor. He said Bio-Mass cannot charge the City any more