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CC SR 20171205 L - 2017 Commercial Haulers AgreementsRANCHO PALOS VERDES CITY COUNCIL AGENDA REPORT AGENDA DESCRIPTION: MEETING DATE: 12/05/2017 AGENDA HEADING: Consent Calendar Consideration and possible action to approve Amendment No. 1 to the agreements with seven authorized commercial haulers for calendar years 2018, 2019 and 2020 RECOMMENDED COUNCIL ACTION: (1) Approve the Amendment No. 1 to the commercial hauler agreements with California Waste Services LLC; CalMet Services, Inc.; Consolidated Disposal Service, LLC DBA Republic Services; EDCO Disposal Corporation; Universal Waste Systems, Inc.; USA Waste of California, Inc., DBA Waste Management of Los Angeles; and West Coast Waste & Roll Off Service for calendar years 2018 to 2020; and, (2) Adopt Resolution No. 2017- , A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES LIMITING THE NUMBER OF HAULERS AUTHORIZED TO PROVIDE SOLID WASTE COLLECTION AND RECYCLING SERVICES FROM COMMERCIAL PREMISES, AND ROLL OFF SERVICES TO RESIDENTIAL AND COMMERCIAL PREMISES IN THE CITY OF RANCHO PALOS VERDES IN CALENDAR YEARS 2018 TO 2020 FISCAL IMPACT: None Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A ORIGINATED BY: Lauren Ramezani, Senior Administrative Analyst,A, REVIEWED BY: Elias Sassoon, PE, Director of Public Works APPROVED BY: Doug Willmore, City Manager Q,��. n,- ATTACHED SUPPORTING DOCUMENTS: �"'� �'`' A. Amendment No. 1 to the commercial haulers agreements (page A-1) B. Resolution No. 2017- (page B-1) BACKGROUND AND DISCUSSION: The approval of this Amendment No. 1 will allow the current authorized hauling companies for commercial collection and disposal services to continue their operations in the City for three (3) more years to December 31, 2020. The City currently has two-year, non-exclusive franchise agreements with seven trash -hauling companies for commercial collection and disposal services. These agreements end December 31, 2017. These 1 haulers provide bins to business customers for on-going business activities, and roll -off dumpsters to residential and commercial customers for construction, demolition, cleanup, and remodeling activities. The rates charged by the haulers for various services are competitive and set by the haulers, not by the City. Each commercial hauler will be required to sign the amendment agreeing to the previous contractual terms including the non -collusion certification. Additionally, each will: 1) obtain annual City business license, 2) submit proof of general and pollution liability, workers compensation insurance, and additional insured endorsement, and 3) submit quarterly reports and payments, and provide refuse disposal and recycling tonnage information on their quarterly report. The City Attorney's Office has prepared the attached amendment that will be completed and signed by each individual hauler (Attachment A), and reviewed the attached resolution (Attachment B). Furthermore, in 2016, the City Council also approved an eighth agreement for commercial hauling with Easy Roll Off Services, but the agreement was never executed because Easy Roll Off Services did not sign the agreement or provide the required insurance. The non-exclusive franchise agreements allow the City to collect a franchise fee of five percent (5%) of gross receipts and an AB 939 (waste reduction) fee of up to five percent (5%) of gross receipts from haulers doing business in the City. The City's goal is to encourage haulers to recycle by providing a financial incentive for recycling construction, demolition, remodeling and business waste such as dirt, concrete, asphalt, cardboard, paper, and green waste. Therefore, haulers are entitled to a reduction on their AB 939 fees if they divert solid waste tonnage from landfills to recycling, waste -to - energy, and/or material recovery facilities. Furthermore, the State has several recycling mandates, including AB 341 (Mandatory Commercial Recycling) and AB 1826 (Mandatory Organics Recycling). The mandates necessitate that the City work closely with the subject haulers, monitor their compliance and public outreach efforts, and submit that information to CalRecycle annually. Adopting the attached resolution limits the number of authorized commercial haulers in the City. The purpose is to: a) avoid overburdening the street network, which creates traffic and congestion problems, b) reduce potential damage to the pavement by having fewer competing trucks driving through the same areas, and c) create efficiency and facilitate monitoring of commercial haulers for compliance with State mandates. ALTERNATIVES: In addition to the Staff recommendation, the following alternative actions are available for the City Council's consideration: 1. Do not adopt the draft resolution, thereby removing limits on the number of commercial haulers for calendar years 2018 to 2020. 2. Take other action as deemed appropriate by the City Council. 2 AMENDMENT NO. 1 TO NON-EXCLUSIVE FRANCHISE AGREEMENT FOR PROVISION OF SOLID WASTE HANDLING SERVICES THIS AMENDMENT TO THE NON-EXCLUSIVE FRANCHISE AGREEMENT ("Amendment") by and between the CITY OF RANCHO PALOS VERDES ("City") and a ("Contractor") is effective as of the day of 2017. RECITALS A. City and Contractor entered into that certain Non -Exclusive Franchise Agreement For Provision Of Solid Waste Handling Services dated ("Agreement") whereby City granted Contractor a non-exclusive franchise to provide solid waste handling services to commercial premises, and on-call box and bin services to residential and commercial premises. B. City and Contractor now desire to amend the Agreement to extend the term for three (3) years, and to make other miscellaneous changes. TERMS 1. Contract Changes. The Agreement is amended as provided herein. Deleted text is indicated in stfikethfough and added text in bold italics. (a) Section 2.3, Term & Extended Term, is hereby amended to read as follows: "Unless earlier terminated in accordance with Article XI of this Agreement, this Agreement shall continue in full force and effect from the Effective Date until December 31, 24P 2020. If contractor provides written notice to City of its willingness to extend the Agreement not later than six (6) calendar months prior to expiration of the term or any extended term of the Agreement, City may, in its sole and unfettered discretion, extend the term of this Agreement, under its then -existing terms and conditions, for a maximum of three (3) years (or any shorter period of time, as may be determined by City). City may waive the six-month notice requirement in its sole discretion." (b) Section 3.3.3, Payment Protocol, is hereby amended to read as follows: "All such Franchise Fees and AB 939 Fees required pursuant to this Section 3.3 shall be made to City within thirty (30) Days of the conclusion of each calendar quarter during the Term hereof, including any extension thereof. Upon the expiration of any such thirty (30) Day period, a delinquent assessment of twenty- five percent (25%) of the amount due per month, or Two Hundred Dollars Even ($200.00), whichever is higher, shall be levied against any unpaid balance. Each payment of the Franchisee Fee and AB 939 Fee shall be accompanied by a statement setting forth the Gross Receipts collected by Franchisee and the A-1 computation of the total of each fee due. Each statement shall include the following certification executed by an officer of the Franchisee: "I hereby certify that the foregoing statement of the Franchise Fee and AB 939 Fee payments is made by me, that I am authorized to make such statement, and that, to the best of my knowledge and belief, it is true, correct and complete." No acceptance by City of any payment shall be construed as an accord that the amount is the correct amount, nor shall such acceptance of payment be construed as a release of any claim City may have against Franchisee for any additional sums payable under the provisions of this Agreement. All amounts paid shall be subject to independent audit and recompilation by City." (c) Section 4.3, Hours & Dates of Collection, is hereby amended to read as follows: "Franchisee shall so conduct its operations so as to offer the least possible obstruction and inconvenience to public traffic or disruption to the peace and quiet of the area within which Collections are effected. In accordance therewith, Collection services by Franchisee shall only be performed between the hours of 7:00 a.m. and 7:00 p.m. (standard and daylight savings time) of any day, except that no Collections shall be made on Sunday. City may, from time to time, revise the Collection hours specified in this Section by duly adopted resolution. Further, Franchisee shall observe the following holidays annually (whereby there will be no Collection services and Collection shall occur one non -holiday weekday Day late following the holiday): 0 New Year's Day • Memorial Day 0 Independence Day • Labor Day • Thanksgiving Day • Christmas Day Franchisee shall also observe any additional holidays coinciding with the holiday schedule observed by the County to the extent such County -observed holiday results in the closure of the County's Disposal Sites. In any week in which one of these holidays falls on a Collection day, Collection will be delayed to the next business day. Any changes to the holiday Collection schedule may only be made as approved by the City in advance in writing." 01203.0006/417698.1 -2- W:\LAUREN\STAFFRPT\REFUSE\2017\Amendment No. 1 to Non -Exclusive Commercial Waste Hauler Agreement for SR.docx A-2 (d) Section 4.6, Encroachment Permits Required, is hereby amended to read as follows: "Franchisee shall not place any Container at any Premises within the City until Franchisee has verified that the Owner of the Premises has obtained a required encroachment permit from Public Works or has verified with the City that none is required. No Container shall be placed or used in any manner that violates an applicable encroachment permit. Franchisee shall immediately remove any Container that does not have a valid encroachment permit, unless notified by the City that none is required. The Franchisee shall furnish and install flashing barricades adjacent to any Container that is placed within the public right of way. Upon request of the City, Franchisee shall provide the City with the address of any Premise where a Container will be placed, the size of the Container, the duration of the placement, and the type of material that will be placed in the Container. If City removes a Container that is placed in violation of this Section, Franchisee shall immediately reimburse City for all costs incurred by City in removing the Container." (e) Section 6.2.5, is hereby added to read in its entirety as follows: "Commercial Franchisee Provided Containers shall not block/obstruct traffic motorists' line of sight in any direction and shall not infringe on any driveway approach, fire hydrant, emergency facility, or utility cabinet. Commercial Franchisee Provided Containers shall have cones or delineators, reflectors, and reflectorized tape at corners." 2. Continuing Effect of Agreement. Except as amended by this Amendment, all provisions of the Agreement shall remain unchanged and in full force and effect. From and after the date of this Amendment, whenever the term "Agreement" appears in the Agreement, it shall mean the Agreement, as amended by this Amendment to the Agreement. 3. Affirmation of Agreement; Warranty Re Absence of Defaults. City and Contractor each ratify and reaffirm each and every one of the respective rights and obligations arising under the Agreement. Each party represents and warrants to the other that there have been no written or oral modifications to the Agreement other than as provided herein. Each party represents and warrants to the other that the Agreement is currently an effective, valid, and binding obligation. Contractor represents and warrants to City that, as of the date of this Amendment, City is not in default of any material term of the Agreement and that there have been no events that, with the passing of time or the giving of notice, or both, would constitute a material default under the Agreement. City represents and warrants to Contractor that, as of the date of this Amendment, Contractor is not in default of any material term of the Agreement and that there have been no events that, with the passing of time or the giving of notice, or both, would constitute a material default under the Agreement. 01203.0006/417698.1 -3 - W:\LAUREN\STAFFRPT\REFUSE\2017\Amendment No. 1 to Non -Exclusive Commercial Waste Hauler Agreement for SR.docx A-3 4. Adequate Consideration. The parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment. 5. Authority. The persons executing this Agreement on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other Agreement to which said party is bound. [SIGNATURES ON FOLLOWING PAGE] 01203.0006/417698.1 -4- W:\LAUREN\STAFFRPT\REFUSE\2017\Amendment No. 1 to Non -Exclusive Commercial Waste Hauler Agreement for SR.docx IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first -above written. ATTEST: Emily Colborn, City Clerk APPROVED AS TO FORM: ALESHIRE & WYNDER, LLP Dave Aleshire, City Attorney CITY: CITY OF RANCHO PALOS VERDES, a municipal corporation CONTRACTOR: INSERT NAME By: Name: Title: By: Name: Title: Address: Mayor Two corporate officer signatures required when Contractor is a corporation, with one signature required from each of the following groups: 1) Chairman of the Board, President or any Vice President; and 2) Secretary, any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. CONTRACTOR'S SIGNATURES SHALL BE DULY NOTARIZED, AND APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONTRACTOR'S BUSINESS ENTITY. 01203.0006/417698.1 -5- W:\LAUREN\STAFFRPT\REFUSE\2017\Amendment No. 1 to Non -Exclusive Commercial Waste Hauler Agreement for SR.docx A-5 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document. STATE OF CALIFORNIA COUNTY OF LOS ANGELES On , 2017 before me, , personally appeared , proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature: OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT ❑ INDIVIDUAL ❑ CORPORATE OFFICER 01203.0006/417698.1 A-6 TITLE OR TYPE OF DOCUMENT TITLE(S) ❑ PARTNER(S) ❑ LIMITED ❑ GENERAL NUMBER OF PAGES ❑ ATTORNEY-IN-FACT ❑ TRUSTEE(S) ❑ GUARDIAN/CONSERVATOR ❑ OTHER DATE OF DOCUMENT SIGNER IS REPRESENTING: (NAME OF PERSON(S) OR ENTITY(IES)) SIGNERS) OTHER THAN NAMED ABOVE 01203.0006/417698.1 A-6 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document. STATE OF CALIFORNIA COUNTY OF LOS ANGELES On , 2017 before me, , personally appeared , proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature: OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER ❑ ❑ INDIVIDUAL CORPORATE OFFICER TITLE(S) ❑ PARTNER(S) ❑ LIMITED ❑ GENERAL ❑ ATTORNEY-IN-FACT ❑ TRUSTEE(S) ❑ GUARDIAN/CONSERVATOR ❑ OTHER SIGNER IS REPRESENTING: (NAME OF PERSON(S) OR ENTITY(IES)) 01203.0006/417698.1 DESCRIPTION OF ATTACHED DOCUMENT TITLE OR TYPE OF DOCUMENT NUMBER OF PAGES DATE OF DOCUMENT SIGNER(S) OTHER THAN NAMED ABOVE A-7 RESOLUTION NO. 2017- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES LIMITING THE NUMBER OF HAULERS AUTHORIZED TO PROVIDE SOLID WASTE COLLECTION AND RECYCLING SERVICES TO COMMERCIAL PREMISES, AND ROLL OFF SERVICES TO RESIDENTIAL AND COMMERCIAL PREMISES IN THE CITY OF RANCHO PALOS VERDES IN CALENDAR YEARS 2018 TO 2020 WHEREAS, the City of Rancho Palos Verdes ("City") currently has collection agreements with seven (7) solid waste haulers to provide solid waste collection and recycling services to commercial premises and on-call roll off services to commercial and residential premises ("Commercial Haulers"): California Waste Services LLC; CalMet Services, Inc.; Consolidated Disposal Service, LLC DBA Republic Services; EDCO Disposal Corporation; Universal Waste Systems, Inc.; USA Waste of California, Inc., DBA Waste Management of Los Angeles; and West Coast Waste & Roll Off Service; and WHEREAS, in 2016, the City Council also approved an eighth agreement for commercial hauling with Easy Roll Off Services, but the agreement was never executed because Easy Roll Off Services did not sign the agreement or provide the required insurance; and WHEREAS, pursuant to Section 8.20.260 of the City of Rancho Palos Verdes Municipal Code, and to improve monitoring and reporting of commercial and roll off disposal and recycling tonnage, and public education activities, only parties to a collection agreement with the City may collect and dispose of solid waste in the City, with limited exceptions; and WHEREAS, on March 15, 2016, the City Council of the City of Rancho Palos Verdes adopted Resolution No. 2016-11, limiting the number of Commercial Haulers in calendar year 2017 to eight; and WHEREAS, the City Council, in adopting Resolution No. 2016-11, found that more than eight Commercial Haulers would overburden the streets and create traffic problems, as well as potentially damaging the pavement, and would increase the difficulty of efficiently monitoring and reporting commercial and roll off disposal and recycling tonnage, and public education activities; and WHEREAS, the City Council has considered the ongoing impact of Commercial Haulers on City streets, including their impact on traffic, as well as monitoring and reporting, and public education activities; and WHEREAS, the City Council has determined that it is still the case that having more than eight Commercial Haulers would overburden the streets and create traffic problems, as well as potentially damaging the pavement, and would increase the difficulty of efficiently monitoring and reporting commercial and roll off disposal and recycling tonnage, and public education activities; and M WHEREAS, the seven Commercial Haulers with executed agreements with the City provided timely quarterly reports and fees, and provided the required proof of valid general liability and workers compensation insurance during calendar year 2017; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES THAT: Section 1: The following seven solid waste haulers who entered into commercial collection agreements in calendar year 2017 and provided required quarterly reports and insurance documentation are permitted to enter into such agreements in calendar year 2018 to 2020: California Waste Services LLC; CalMet Services, Inc.; Consolidated Disposal Service, LLC DBA Republic Services; EDCO Disposal Corporation; Universal Waste Systems, Inc.; USA Waste of California, Inc., DBA Waste Management of Los Angeles; and West Coast Waste & Roll Off Service. Section 2: No other solid waste haulers will be authorized to collect solid waste and recyclables from commercial premises, or provide roll off services to commercial and residential premises in the City in calendar years 2018 to 2020, except as provided in the City's Municipal Code Chapter 8.20 and any contract executed between the City and any Commercial Hauler. PASSED, APPROVED, AND ADOPTED THE 5th DAY OF DECEMBER 2017. ATTEST: CITY CLERK State of California ) County of Los Angeles ) ss City of Rancho Palos Verdes ) MAYOR I, EMILY COLBORN, City Clerk of The City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2017- was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on December 5, 2017. CITY CLERK P:\8 City Council Meetings\Draft Staff Report Review 20171205\2 Corrections\Commercial haulers\RESOLUTION 2017 v 32.Bc2