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HomeMy WebLinkAbout15-056 CC Resolution RESOLUTION NO. 15-56 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING AMENDMENT NO. 5 TO THE CITY'S SOLID WASTE FRANCHISE AGREEMENT WITH CR&R, INC. FOR THE COLLECTION, TRANSPORTATION, RECYCLING, COMPOSTING, AND DISPOSAL OF SOLID WASTE AND CONSTRUCTION DEBRIS AND FOR PROVIDING TEMPORARY BIN/ ROLLOFF SERVICES THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. 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." This agreement has since been amended four times on August 17, 1996, June 24, 1997, July 25, 2000, and June 13, 2006. ' Section 2. 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 Fifth Amendment. Section 3. The City Council of the City of Temecula hereby approves that certain Agreement entitled "Amendment No. 5 to the City's Solid Waste Franchise agreement with CR&R Inc. 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. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula on this 27th day of October, 2015. ATTEST j� Jeff Comerchero, Mayor — P7� ' Randi , City Clerk [SEAL] STATE OF CALIFORNIA ) ' COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Randi Johl, City Clerk of the City of Temecula, do hereby certify that the foregoing Resolution No. 15-56 was duly and regularly adopted by the City Council of the City of Temecula at a meeting thereof held on the 27th day of October, 2015, by the following vote: AYES: 5 COUNCIL MEMBERS: Edwards, McCracken, Naggar, Rahn, Comerchero NOES: 0 COUNCIL MEMBERS: None ABSTAIN: 0 COUNCIL MEMBERS: None ABSENT: 0 COUNCIL MEMBERS: None ' Randi Johl, City Clerk Resos 15-56 2 EXHIBIT A ' Amendment No. 5 the to the City's Solid Waste Franchise Agreement with CR&R Inc. ' Revised October 27, 2015 AMENDMENT NO. 5 TO THE AGREEMENT BETWEEN THE CITY OF TEMECULA AND CR&R INCORPORATED, FOR THE COLLECTION, TRANSPORATION, RECYCLING. COMPOSTING AND DISPOSAL OF SOLID WASTE AND CONSTRUCTION DEBRIS AND FOR PROVIDING TEMPORARY BIN;ROLLOFF SERVICES This Fifth Amendment to the Franchise Agreement is entered into as of October 27, 2015, by and between the City of Temecula, 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 Number Five 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 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. B. The May 28, 1991 Agreement was amended by the parties on August 27, 1996, June 24, 1997, July 25, 2000 and June 13, 2006. For purposes of this Fifth ' Amendment the May 28, 1991 Franchise Agreement, as amended on August 27, 1996, June 24, 1997, July 25, 2000 and June 13, 2006 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 Number Five. 2. Amendment to Exhibit C, Recycling Programs, Service Commencement, AB 939 Topics and Facility Considerations. The Franchise Agreement is hereby amended by adding Section J to Exhibit C. as outlined below: J. Effective July 1, 2015 Grantee shall direct all Residential Organic Waste generated within the City Limits to its Anaerobic Digester Processing Facility (AD Facility) located in Perris, California. All Organic Waste processed in the AD Facility shall be diverted from the landfill and receive diversionary credit. Commercial customers shall have the option of diverting their organic waste through Grantee provided Food Waste and Green Waste Programs. The costs for these programs shall be as outlined in Exhibit "D"- Schedule of Rates. 3. Definitions. Section 2 of this Franchise Agreement is hereby amended to read as follows: A. Item "E" shall be replaced to read as follows: E. "Organic Waste' shall mean food waste, green waste, landscape and ' pruning waste, nonhazardous wood waste and soiled paper waste that is mixed ' in with food waste. Organic Waste does not include waste types specified as "Special Wastes." B. Item "F" shall be added to read as follows: F. Special Wastes. "Special Wastes" shall mean all the items and materials which are set forth on Exhibit "B." "Special Wastes." 4. Amend Section 5. Services Provided by Grantee. Section 5.0 (4) is hereby amended as follows: (4) Mandatory Commercial Recycling. Grantee shall implement recycling and organic diversion programs for commercial entities in accordance with the requirements of AB 341 (Mandatory Commercial Recycling) and AB 1826 (Organic Waste). Grantee shall use its best efforts to bring commercial entities that meet the criteria of AB 341 and AB 1826 in compliance with State law. Grantee shall conduct a waste audit of all contracted commercial and multi-family accounts to determine their recyclable content, prior to services being rendered. The process used to conduct this waste audit shall be shared with the City of Temecula, the City of Perris, and the County to ensure permit compliance and acceptance. Those accounts that contain a significant recyclable content shall be processed through the Perris Material Recovery Facility (MRF) that currently processes salvaged separate materials for reuse. Customers achieving this content, or higher, shall only be charged the service rates that appear in Exhibit "D" paragraph D.S. 6 and 8. These the la'' However, if these customers desire to commence a source separated recycling program, a recyclinq container shall be provided by Grantee and customers shall be charged the service rates reflected in Exhibit "D" paragraph D.7 and 9. Exh bit "ID" paFagFaph IDA., and !he seuFGe sepaFated F9GYGIiRg Fates in Exhibit "ID" 5. Section 25. Indemnification and Insurance. Section 25.D. is hereby amended as follows: D. Indemnification. Grantee agrees to protect, defend, with counsel approved by City, and indemnify City against all fines or penalties imposed by the CalRecycle in the event the source reduction and recycling goals of AB 939, the disposal reduction goals of SB 1016, the commercial recycling goals of AB 341, the organic diversion goals of AB 1826, or any other requirement of CalRecycle are not met by the City with respect to the waste stream collected under this Franchise Agreement. City shall use its best efforts to assist and support Grantee in the implementation of existing or new recycling and organics programs which are imposed by CalRecycle. 6. Additional Recycling Containers. Paragraph E. of Exhibit C. of the Franchise Agreement is hereby amended as follows: ' E. Grantee shall institute a three - sixty (60) gallon container recycling system pursuant to Chapter 8.20 - one container for refuse, one container for organic waste, and one container for commingled recyclables. The initial commingled recycling container and any additional commingled recycling containers needed by residential customers shall be provided by Grantee at Grantee's expense. All containers shall provide the minimum container specifications contained in Exhibit F. Grantee shall replace and repair containers as may be necessary as a result of normal wear and tear." Grantee shall also make available Kitchen Food Waste Pails upon individual customer request, to single family residential service recipients. The first Food Waste Pail will be provided at no cost to the resident. Additional food waste Pails, above and beyond the first pail will be charged per Food Waste Pail as outlined in Exhibit "D". 7. Amendment of Exhibit D. Schedules of Rates. The Franchise Agreement is hereby amended by deleting Exhibit D, Schedule of Rates, and in its place substituting a new Exhibit D (October 27, 2015), which is attached hereto as Attachment 1 and incorporated herein as though set forth in full. S. Continuation of Franchise Terms. Except as specifically amended by this Amendment No. 5, the terms of the Franchise Agreement remain in full force and effect. ' IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. CITY OF TEMECULA CR&R INCORPORATED Jeff Comerchero Mayor By: Clifford R. Ronnenberg ATTEST: Chief Executive Officer Rand! Johl-Olson By: ' City Clerk David E. Fahrion Division President APPROVED AS TO FORM: Peter M. Thorson City Attorney 1 ' AMENDMENT NO. 5 TO THE AGREEMENT BETWEEN THE CITY OF TEMECULA AND CR&R INCORPORATED, FOR THE COLLECTION, TRANSPORATION, RECYCLING, COMPOSTING AND DISPOSAL OF SOLID WASTE AND CONSTRUCTION DEBRIS AND FOR PROVIDING TEMPORARY BIN/ROLLOFF SERVICES This Fifth Amendment to the Franchise Agreement is entered into as of October 27, 2015, by and between the City of Temecula, 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 Number Five 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 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. B. The May 28, 1991 Agreement was amended by the parties on August 27, 1996, June 24, 1997, July 25, 2000 and June 13, 2006. For purposes of this Fifth Amendment the May 28, 1991 Franchise Agreement, as amended on August 27, 1996, June 24, 1997, July 25, 2000 and June 13, 2006 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 Number Five. 2. Amendment to Exhibit C. Recycling Programs, Service Commencement, AB 939 Topics and Facility Considerations. The Franchise Agreement is hereby amended by adding Section J to Exhibit C. as outlined below: J. Effective July 1, 2015 Grantee shall direct all Residential Organic Waste generated within the City Limits to its Anaerobic Digester Processing Facility (AD Facility) located in Perris, California. All Organic Waste processed in the AD Facility shall be diverted from the landfill and receive diversionary credit. Commercial customers shall have the option of diverting their organic waste through Grantee provided Food Waste and Green Waste Programs. The costs for these programs shall be as outlined in Exhibit "D"- Schedule of Rates. 3. Definitions. Section 2 of this Franchise Agreement is hereby amended to read as follows: A. Item "E" shall be replaced to read as follows: E. "Organic Waste" shall mean food waste, green waste, landscape and pruning waste, nonhazardous wood waste and soiled paper waste that is mixed ' in with food waste. Organic Waste does not include waste types specified as "Special Wastes." ' B. Item "F" shall be added to read as follows: F. Special Wastes. "Special Wastes" shall mean all the items and materials which are set forth on Exhibit "B." "Special Wastes." 4. Amend Section 5. Services Provided by Grantee. Section 5.0 (4) is hereby amended as follows: (4) Mandatory Commercial Recycling. Grantee shall implement recycling and organic diversion programs for commercial entities in accordance with the requirements of AB 341 (Mandatory Commercial Recycling) and AB 1826 (Organic Waste). Grantee shall use its best efforts to bring commercial entities that meet the criteria of AB 341 and AB 1826 in compliance with State law. Grantee shall conduct a waste audit of all contracted commercial and multi-family accounts to determine their recyclable content, prior to services being rendered. The process used to conduct this waste audit shall be shared with the City of Temecula, the City of Perris, and the County to ensure permit compliance and acceptance. Those accounts that contain a significant recyclable content shall be processed through the Perris Material Recovery Facility (MRF) that currently processes salvaged separate materials for reuse. Customers achieving this content, or higher, shall only be charged the service rates that appear in Exhibit "D" paragraph D.S. Those accounts that do not satisfy the content level, shall have their waste stream disposed of at the landfill and shall only be charged the service rates that appear in Exhibit "D" paragraph D.S. However, if these customers desire to commence a source separated recycling program, a ' recycling container shall be provided by Grantee and customers shall be charged the additional service rates reflected in Exhibit "D" paragraph D.S., and the source separated recycling rates in Exhibit "D" paragraph D.6. will become a customer option. 5. Section 25. Indemnification and Insurance. Section 25.D. is hereby amended as follows: D. Indemnification. Grantee agrees to protect, defend, with counsel approved by City, and indemnify City against all fines or penalties imposed by the CalRecycle in the event the source reduction and recycling goals of AB 939, the disposal reduction goals of SB 1016, the commercial recycling goals of AB 341, the organic diversion goals of AB 1826, or any other requirement of CalRecycle are not met by the City with respect to the waste stream collected under this Franchise Agreement. City shall use its best efforts to assist and support Grantee in the implementation of existing or new recycling and organics programs which are imposed by CalRecycle. 6. Additional Recyclinq Containers. Paragraph E. of Exhibit C. of the Franchise Agreement is hereby amended as follows: E. Grantee shall institute a three - sixty (60) gallon container recycling system pursuant to Chapter 8.20 - one container for refuse, one container for organic waste, and one container for commingled recyclables. The initial commingled recycling container and any additional commingled recycling containers needed by residential customers shall be provided by Grantee at Grantee's expense. All containers shall provide the minimum container specifications contained in Exhibit F. Grantee shall replace and repair containers ' as may be necessary as a result of normal wear and tear." ' Grantee shall also make available Kitchen Food Waste Pails upon individual customer request, to single family residential service recipients. The first Food Waste Pail will be provided at no cost to the resident. Additional food waste Pails, above and beyond the first pail will be charged per Food Waste Pail as outlined in Exhibit "D". 7. Amendment of Exhibit D. Schedules of Rates. The Franchise Agreement is hereby amended by deleting Exhibit D, Schedule of Rates, and in its place substituting a new Exhibit D (October 27, 2015), which is attached hereto as Attachment 1 and incorporated herein as though set forth in full. B. Continuation of Franchise Terms. Except as specifically amended by this Amendment No. 5, the terms of the Franchise Agreement remain in full force and effect. 1 ' IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. CITY OF TEMECULA CR&R INCORPORATED Jeff Comerchero Mayor By: Clifford R. Ronnenberg ATTEST: Chief Executive Officer Randi Johl By: ' City Clerk David E. Fahrion Division President APPROVED AS TO FORM: Peter M. Thorson City Attorney ' ATTACHMENT 1 TO AMENDMENT NO. 5 NEW EXHIBIT "D" (October 27, 2015) TO THE FRANCHISE AGREEMENT Schedule of Rates 1. Mechanized single family detached residential collection, recycling, composting, transfer, and disposal grantee billing Monthly Rate: $ 20.05 Monthly AD Rate Effective 7/1/15—6/30/16 $ .98 2. Mechanized single family detached residential collection, recycling, composting, transfer, and disposal parcel charge Monthly Rate: $ 20.05 Monthly AD Rate Effective 7/1/15—6/30/16 $ .98 3. Mechanized single family detached residential additional refuse, and composting container grantee billing Monthly Rate: $ 8.78 4. Single family detached residential additional bulky item pick up—grantee billing Pick Up Rate: $ 10.38 5. Commercial, industrial, and multi-family residential refuse monthly bin rates (one 2 cubic yard bin) with the following pick-ups per week: 1 x week $ 94.91 2 x week $ 188.55 3 x week $ 282.17 4 x week $ 375.79 5 x week $ 469.43 6 x week $ 563.04 7 x week $ 656.68 Compacted 2 Cubic Yard monthly rate: 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: 1 x week $ 109.10 2 x week $ 216.93 3 x week $ 324.77 4x week $ 432.58 ' 5 x week $ 540.39 ' 6 x week $ 648.22 7 x week $ 756.05 Compacted 3 Cubic Yard monthly rate: 2.5 x monthly rate 7. Commercial, industrial, and multi-family residential recycling monthly bin rates (one 3 cubic yard bin) with the following pick-ups per week: 1 x week $ 47.63 2 x week $ 95.28 3 x week $ 142.90 4 x week $ 190.53 5 x week $ 238.14 6 x week $ 285.78 7 x week $ 333.39 8. Commercial, industrial, and multi-family residential refuse monthly bin rates (one 4 cubic yard bin)with the following pick-ups per week: 1 x week $ 123.34 2 x week $ 245.41 3 x week $ 367.47 4 x week $ 489.54 5 x week $ 611.60 ' 6 x week $ 733.65 7 x week $ 855.74 Compacted 4 Cubic Yard monthly rate: 2.5 x monthly rate 9. Commercial, industrial, and multi-family residential recycling monthly bin rates (one 4 cubic yard bin) with the following pick-ups per week: 1 x week $ 63.06 2 x week $ 126.16 3x week $ 189.21 4 x week $ 252.30 5 x week $ 315.37 6 x week $ 378.46 7 x week $ 441.50 10. Temporary 3 cubic yard bin rate: $ 95.97 per load 11. Temporary or Regular Service extra 2, 3 or 4 cubic yard: $ 51.77 pick up 12. Redeliver and reinstatement rate: $ 39.47 per occurrence 13. Roll-off Delivery Fee: $ 68.84 per bin 14. Roll-off disposal rate: $ 222.92 + MRF/landfill/AD fee ' 15. Roll-off recycling rate: $ 222.92 + market valve 16. Roll-off compactor rate: $ 310.38 + MRF/landfill/AD Fee 17. Roll-off recycling compactor rate: $ 310.38 + market valve 18. Scheduled Extra Green Waste Pick-up (up to 10 bags): $ 10.00 per pick up 19. Non-Scheduled Extra Green Waste Pick-up (up to 10 bags):$ 25.00 per pick up 20. E-Waste Pick up: no charge 21. "Hard to service" vehicle usage rate: no charge 22. "Hard to service" bin moving rate: no charge 23. Special bin lids (locking/CBL) rate: no charge 24. Deodorizing / replacing bin rate: no charge 25. Recycle Bin Contamination Fee: $ 45.54 per bin 26. MRF Fee: $ 47.12 per ton ' 27. C&D Fee: $ 47.12 per ton 28. Inert Disposal: $ 125.00 per load 29. AD Fee: $ 72.50 per ton 30. Extra Food Waste Pail: $ 7.00 per pail 31. Annual Adjustment of Rates. The rates in paragraph D 1-29 above shall be automatically adjusted to reflect changes in: (1) the Bureau of Labor Statistics Consumer Price Index (CPI) and (2) landfill tipping fees. The first adjustment following Amendment No. 5 shall be on July 1, 2016. A. The CPI adjustment shall be equal to the amount derived by multiplying (1) 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 housing component. The comparison shall be made for each calendar year during the term thereof and shall be effective each July 1s'. B. 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. 5, the landfill tipping fee is $27.95 per ton. ' C. The formulas for the annual CPI and Landfill Tipping Fee Adjustments are as follows: 1. CPI Formula: a. Exhibit "D" paragraphs 1-4: (Rate x 78%) x CPI b. Exhibit "D" paragraphs 5-17: (Rate x 71.5%) x CPI C. Exhibit "D" paragraphs 25-29: Rate x 100%) x CPI 2. Landfill Tipping Fee Formula: a. $.21 per $1.00/ton landfill increase or decrease times current published residential recycling (less green waste) 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 $1.00/ton landfill increase or decrease times current published nonresidential recycling (less green waste, 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. ' 31. Extraordinary Costs. A. In addition to, and not in lieu of, the annual CPI increase or decrease described in paragraph D 1-29, 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 of limitation: (1) 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/roll-off services and 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. 1