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
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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.
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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
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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."
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(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.
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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]
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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.
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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
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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
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