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
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' 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.
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