HomeMy WebLinkAbout06-050 CC Resolution
I
I
I
RESOLUTION NO. 06-50
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF TEMECULA APPROVING AMENDMENT NO. 4 TO
THE CITY'S SOLID WASTE FRANCHISE AGREEMENT
WITH CR&R, INC.
THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY
RESOLVE AS FOLLOWS:
Section 1. The City Council of the City of Temecula does hereby find,
determine and declare that:
A. On May 28, 1991 the City and CR&R entered into that certain
agreement entitled "Agreement Between the City of Temecula and CR&R
Incorporated, for the Collection, Transportation, Recycling, Composting, and
Disposal of Solid Waste and Construction Debris and for Providing Temporary
Bin/Rolloff Services," which was amended on August 17, 1996, June 24, 1997
and, July 25, 2000.
B. The public health, safety, and well-being are served and the public
convenience and necessity are served by the amendments to the Franchise
Agreement set forth in this Fourth Amendment.
Section 2. The City Council of the City of Temecula hereby approves that
certain Agreement entitled "Amendment No. 4 to Agreement Between the City of
Temecula and CR&R Incorporated, for the Collection, Transportation, Recycling,
Composting, and Disposal of Solid Waste and Construction Debris and for Providing
Temporary Bin/Rolloff Services." The Mayor and City Clerk are hereby authorized to
execute and attest, respectively, the Agreement, on behalf of the City in substantially
the form attached hereto as Exhibit A.
R:/Resos 2006JResos 06-50
I
PASSED, APPROVED, AND ADOPTED by the City Council of the City of
Temecula this 13th day of June, 2006.
c3Gk'M'~'
ATTEST:
IJ
~
[SEAL]
I
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss
CITY OF TEMECULA )
I, Susan W. Jones, MMC, City Clerk of the City of Temecula, do hereby certify that
the foregoing Resolution No. 06-50 was duly and regularly adopted by the City Council of
the City of Temecula at a meeting thereof held on the 13th day of June, 2006, by the
following vote:
AYES: 4
COUNCIL MEMBERS:
Comerchero, Edwards, Naggar,
Washington
NOES: 0
COUNCIL MEMBERS:
None
ABSENT: 1
COUNCIL MEMBERS:
COUNCIL MEMBERS:
Roberts
ABSTAIN: 0
None
I
. Jones, MMC
City Clerk
R:/Resos 2006/Resos 06-50
2
I
I
I
EXHIBIT A
AMENDMENT NO.4 TO AGREEMENT BETWEEN THE
CITY OF TEMECULA AND CR&R INCORPORATED, FOR
THE COLLECTION, TRANSPORTATION, RECYCLING,
COMPOSTING, AND DISPOSAL OF SOLID WASTE AND
CONSTRUCTION DEBRIS AND FOR PROVIDING
TEMPORARY BIN/ROLLOFF SERVICES
THIS AMENDMENT NO.4 to the Franchise Agreement is entered into as of
June 13, 2006, by and between the City ofTemecula, a municipal corporation ("City") and
CR&R Incorporated, a California corporation ("Grantee"). In consideration of the mutual
covenants and conditions set forth herein, the parties agree as follows:
1. Recitals. This Amendment No.4 is made with respect to the following
facts and purposes, which each party agrees to be true and correct:
A. On May 28, 1991 the City and Grantee entered into that certain
agreement entitled "Agreement Between the City ofTemecula and CR&R Incorporated,
for the Collection, Transportation, Recycling, Composting, and Disposal of Solid Waste
and Construction Debris and for Providing Temporary BinIRolloff Services."
B. The May 28,1991 Agreement was amended by the parties on
August 27, 1996, June 24, 1997 and July 25,2000. For the purposes of this Fourth
Amendment, the May 28, 1991 franchise agreement, as amended on August 27, 1996,
June 24,1997, and July 25,2000 shall be referred to as the "Franchise Agreement."
C. The parties have determined that the public health, safety, and well-
being will be served by the amendments to the Franchise Agreement set forth in this
Amendment No.4.
2. Amendment of Exhibit D. Schedule of Rates. The Franchise
Agreement is hereby amended by deleting Exhibit D, Schedule of Rates, and in its place
substituting a new Exhibit D (June 13, 2006), which new Exhibit D is attached hereto as
Attachment I and incorporated herein as though set forth in full.
3. Continuation of Franchise Terms. Except as specifically amended by
this Amendment No.4, the terms of the Franchise Agreement remain in full force and effect.
889368.4 June I, 2006
I
I
I
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date first above written.
CITY OF TEMECULA
Ron Roberts
Mayor
ATTEST:
Susan Jones, MMC
City Clerk
APPROVED AS TO FORM:
Peter M. Thorson
City Attorney
889368.4 June I, 2006
2
I
I
I
CR&R INCORPORATED, a California
Corporation
By:
By:
Name:
Title:
David Fahrion
President
[Signatures of two corporate officers required]
889368.4 June I, 2006
3
I
I
I
ATTACHMENT 1 TO AMENDMENT NO.4
NEW EXHIBIT D (JUNE 13,2006) TO FRANCHISE AGREEMENT
Exhibit D
Schedule of Rates
1. Mechanized single family detached residential collection, recycling, composting,
transfer, and disposal grantee billing
Monthly Rate:
$ 15.45
2. Mechanized single family detached residential collection, recycling, composting,
transfer, and disposal parcel charge
Monthly Rate:
$ 15.45
3. Mechanized single family detached residential additional refuse, and composting
container grantee billing
Monthly Rate:
$ 6.34
4.
Single family detached residential additional bulky item pick up - grantee billing
Pick Up Rate:
$ 7.64
5. Commercial, industrial, and multi-family residential refuse monthly bin rates
(one 2 cubic yard bin) with the following pick ups per week:
I x week
2 x week
3 x week
4 x week
5 x week
6 x week
7 x week
Compacted 2 Cubic Yard monthly rate:
$ 73.77
$ 147.54
$ 221.31
$ 295.08
$ 368.85
$ 442.62
$ 516.39
2.5 x monthly rate
6. Commercial, industrial, and multi-family residential refuse monthly bin rates (one 3
cubic yard bin) with the following pick ups per week:
I x week
2 x week
889368.4 June 1,2006
4
$ 85.26
$ 170.52
I
I
I
3 x week
4 x week
5 x week
6 x week
7 x week
Compacted 3 Cubic Yard monthly rate:
$ 255.78
$ 341.04
$ 426.30
$ 511.56
$ 596.82
2.5 x monthly rate
7. Commercial, industrial, and multi-family residential recvcline monthly bin rates
(one 3 cubic yard bin) with the following pick ups per week:
I x week
2 x week
3 x week
4 x week
5 x week
6 x week
7 x week
$ 38.55
$ 77.10
$ 115.65
$ 154.20
$ 192.75
$ 231.30
$ 269.85
8. Commercial, industrial, and multi-family residential refuse monthly bin rates (one 4
cubic yard bind) with the following pick ups per week:
I x week
2 x week
3 x week
4 x week
5 x week
6 x week
7 x week
Compacted 4 Cubic Yard monthly rate:
$ 96.77
$ 193.54
$ 290.31
$ 387.08
$ 483.85
$ 580.62
$ 677.39
2.5 x monthly rate
9. Commercial, industrial, and multi-family residential recvcline monthly bin rates (one 4
cubic yard bin) with the following pick ups per week:
I x week
2 x week
3 x week
4 x week
5 x week
6 x week
7 x week
10.
Temporary 3 cubic yard bin rate:
11. Extra 3 cubic yard pick up:
889368.4 June 1,2006
5
$ 51.04
$ 102.08
$ 153.12
$ 204.16
$ 255.20
$ 306.24
$ 357.28
$ 74.63 perload
$ 38.87 pick up
I 12. Redeliver and reinstatement rate: $ 31.94 per occurrence
13. Roll-off disposal rate: $ 179.38 MRF/landfill fee
14. Roll-off recycling rate: $ 179.38 plus market valve
15. Roll-off compactor rate: $ 249.73 MRF/landfill fee
16. Roll-off recycling compactor rate: $ 249.73 plus market valve
17. "Hard to service" vehicle usage rate: no charge
18. "Hard to service" bin moving rate: no charge
19. Special bin lids (Iocking/CBL) rate: no charge
20. Deodorizing / replacing bin rate: no charge
21. Annual Adjustment of Rates.
I
The rates in paragraph D 1-20 above, shall be automatically adjusted to reflect changes
in: (I) the Bureau of Labor Statistics Consumer Price Index (CPI); (2) the Bureau of
Labor Statistics #2 Diesel Fuel (wpU057303) or Natural Gas (WPU053 I); and (3)
landfill tipping fees. The first adjustment following Amendment No.4 shall be on July I,
2006.
A. The CPI adjustment shall be equal to the amount derived by multiplying
(I) the previous rate by (2) the percentage increase or decrease in the Bureau of Labor
Statistics Consumer Price Index (CPI) for all urban consumers within the Los Angeles-
Anaheim-Riverside Metropolitan Areas during the prior calendar year, excluding the
housifig component. The comparison shall be made for each calendar year during the
term thereof and shall be effective each July I st.
B. The fuel component adjustment shall be equal to the amount derived by
multiplying (a) the previous rate by (b) the percentage increase or decrease in the Bureau
of Labor Statistics #2 Diesel Fuel (WPU057303) or Natural Gas (wpU053 I). The diesel
fuel index shall be applied until such time as the Grantee's fleet of solid waste collection
vehicles exceed fifty percent (50%) powered by natural gas and then the natural gas index
shall be applied. The comparison shall be made for each calendar year during the term
thereof and shall be effective each July I st.
I
C. The landfill tipping fee adjustment shall be a pro-rata pass through of any
tipping fee increase or decrease, and shall be effective at the start of the first full billing
period after the landfill tipping fee is adjusted. As of the effective date of Amendment
No.4, the landfill tipping fee is $23.41 per ton.
889368.4 June I, 2006 6
I
I
I
D. The formulas for the annual CPI, Fuel Component, and Landfill Tipping
Fee Adjustments are as follows:
1. CPI Formula:
a. Exhibit "D" paragraphs 1-4: (Rate x 73%) x CPI
b. Exhibit "D" paragraphs 5-20: (Rate x 66.5%) x CPI
2. Fuel Component:
a. Exhibit "D" paragraphs 1-4: (Rate x 5%) x Diesel Fuel or
Natural Gas
b. Exhibit "D" paragraphs 5-20: (Rate x 5%) x Diesel Fuel or
Natural Gas
c. The fuel adjustment component which equates to 5% of the
total rate shall not exceed &10.00 per year.
3. Landfill Tipping Fee Formula:
a.
$.21 per $1.00/ton landfill increase or decrease times
current published residential recycling (less greenwaste)
diversion rate, e.g., $8.00 landfill increase with a 25%
diversion rate equals: $.21 x $8.00 = $1.68 x 25% = $.42 -
$1.68 = $1.26 rate increase.
b. $.91 per $1.OO/ton landfill increase or decrease times
current published nonresidential recycling (less
greenwaste, concrete, and asphalt) diversion rate. e.g.,
$8.00 landfill increase with 25% diversion rate equals:
$.91 x $8.00 = $7.28 x 25% = $1.82 - $7.28 = $5.46 rate
increase.
22. Extraordinarv Costs.
A. In addition to, and not in lieu of, the annual CPI increase or decrease described in
paragraph D 1-20, above, Grantee shall also be entitled to rate increases or decreases in an
amount equal to Grantee's extraordinary increases or decreases in its cost of collection. Such
extraordinary cost increases or decreases shall be subject to City Council approval. Since tipping
fee adjustments shall be a pro-rata pass through to City, Grantee's material recovery facility or
transfer station processing fees, now or later imposed, shall neither be levied on City nor added
to the rates in Exhibit "D". Such extraordinary increases or decreases in its cost of collection
shall include, by way of example and not by way oflimitation: (I) a change in the location of
the landfill or other lawful disposal sites to which the Grantee is required to transport solid waste
collected hereunder; (2) levied material recovery facility host fees; and (3) changes in the local,
State or Federal laws governing street sweeping and temporary bin/rolloff services and
889368.4 June 1, 2006 7
I
I
I
collection, separation, transportation, recycling, composting, or disposal of solid waste and
construction and street debris.
B. Grantee shall not begin to charge customers for residential recycling until the
effective date of the respective recycling programs.
889368.4 June I, 2006
8