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RPVCCA_CC_SR_2015_06_16_04_Residential_Solid_Waste_Services_EDCOCITY OFi�RANCHO PALOS VERDES PUBLIC HEARING Date: June 16, 2015 Subject: Approve Residential Contract Extension with Edco Disposal Corporation for Residential Solid Waste Services including Assignment of Universal Waste Systems, Inc. Contract Subject Property: Identified Area 1. Report of Notice Given: City Clerk Morreale 2. Declare the Hearing Open: Mayor Knight 3. Staff Report & Recommendation: Director of Public Works Throne 4. Public Testimony: Applicant: N/A Appellant: N/A 5. Council Questions: 6. Rebuttal: 7. Declare Hearing Closed: Mayor Knight 8. Council Deliberation: 9. Council Action: Public Hearing Cover Page CITY OF!RANCHO PALOS VERDES MEMORANDUM TO: HONORABLE MAYOR & CITY COUNCIL MEMBERS FROM: S�I►AICHAEL THRONE, P.E., DIRECTOR OF PUBLIC WORKS -Pa DATE: JUNE 16, 2015 SUBJECT: APPROVE RESIDENTIAL CONTRACT EXTENSION WITH EDCO DISPOSAL CORPORATION FOR RESIDENTIAL SOLID WASTE SERVICES INCLUDING ASSIGNMENT OF UNIVERSAL WASTE SYSTEMS, INC.'S CONTRACT (Supports 2014 City Council Goal of Government Efficiency, Fiscal Control and Transparency) REVIEWED BY: DOUG WILLMORE, CITY MANAGER G4ic--'� Project Manager: Lauren Ramezani, Senior Administrative Analyst RECOMMENDATIONS Approve amendment # 1 to the residential solid waste contract with EDCO Disposal Corporation, which includes the following: 1. Extending the residential solid waste contract until June 30, 2020 including seven renewals, automatic one-year extension options, on mutual consent for FY 2020/21 to 2026/27, and waiving the eligible FY 15-16 rate adjustment, and several other administrative items. 2. Approving the assignment of Universal Waste Systems, Inc.'s contract, Service Area 2, to EDCO Disposal Corporation including waiving the applicable assignment's transfer and legal fees. 3. Approving a modification to the allocation of Collector and Environmental Fees between the General Fund and the Waste Reduction Fund. EXECUTIVE SUMMARY Staff and the Solid Waste Subcommittee (Subcommittee), comprised of Councilmen Campbell and Duhovic, recommend approval of a contract amendment with EDCO Disposal Corporation (EDCO) for exclusive residential solid waste services. The amendment includes an extension of EDCO's residential contract and several other l EDCO Contract Extension June 16, 2015 Page 2 of 17 mutually agreed upon terms and conditions. Staff and the Subcommittee also recommend approval of the assignment of UWS' exclusive residential contract for Service Area 2 to EDCO the exclusive hauler for Service Area 1. The amendment includes several items including: extending the term of the contract until June 30, 2020, with the addition of seven renewals, automatic one-year annual extension options; waiving EDCO and UWS' Citywide eligible rate adjustment for FY 15-16 residential customers; adjusting the caps for future rate adjustment rate components; planning for organics waste recycling; and assuming the administration of the street sweeping contract. (Exhibit A) 0 1 a The City has exclusive single-family and multi -family residential solid waste and recycling agreements with EDCO Disposal Corporation (EDCO) for 95% of the City (Service Area 1) and Universal Waste Systems, Inc. (UWS) for the remaining 5% of the City (Service Area 2). UWS' service area is concentrated in the City's coastal and landslide areas. Both agreements commenced on July 1, 2010 and will terminate on June 30, 2017. The agreements include a "City's Option to Extend Term", Section 2.5 of each Agreement that specifies that the City has the sole option to extend the term upon expiration of the initial term for a period of up to 36 months. (Exhibit B) In late 2013, EDCO contacted the City regarding the possibility of extending their agreement. However, formal discussions were delayed due to the recruitment of a new Director of Public Works followed by the recruitment of a new City Manager. DISCUSSION In March 2015, City Manager Willmore, Director of Public Works Throne, and Senior Analyst Ramezani, began formal contract negotiation discussions with EDCO senior management. After several negotiation meetings tentative understanding was reached on several items as described in this report. On May 26, 2015, staff received a letter from UWS announcing that they had reached an agreement with EDCO for acquisition of UWS' franchise agreement pending: a) approval of the assignment of UWS' contract, and b) the City Council's approval of EDCO's proposed contract extension. On May 27, 2015, staff made a presentation to the Subcommittee including the late correspondence from UWS. After discussion, the Subcommittee supported the negotiated items and approved presenting them and the assignment of UWS' franchise agreement to EDCO to the full City Council for approval. SUMMARY OF NEGOTIATED ITEMS: Six items were negotiated. (Exhibit C for details) Freeze Rates: Freeze the current FY 14/15 residential rates through June 30, 2016. EDCO has agreed to waive its eligible 4.2% rate adjustment which would have been effective July 1, 2015 for FY 15/16. 2 EDCO Contract Extension June 16, 2015 Page 3 of 17 2. Extend Agreement: Extend EDCO's contract until June 30, 2020 and include a maximum of seven (7) renewals, automatic one-year (1) extensions, based on mutual consent. Allow annual cancellation of the extension years. 3. Limit Rate Adjustment Factors: Restrict the eligible disposal (landfill) and service components of the rate adjustment formula. 4. Plan for Organics Waste Recycling: EDCO would submit a plan to the City that addresses community interest in this form of recycling. 5. Administer Street Sweeping Contract: EDCO would assume the administration of the City's street sweeping contract with no mark-up or additional cost. 6. Consolidate Two Service Areas/Assignment of Universal Waste Systems' (UWS) Contract: EDCO and UWS have mutually agreed that EDCO would acquire UWS' Service Area 2 effective July 1, 2015 pending City Council approval. Staff sent a courtesy notification to the UWS customers, and published a notice in PV News. FEE DISTRIBUTION/ALLOCATION: The EDCO and UWS currently pay the City two fees: a Collector Fee and an Environmental Fee. The Collector Fee is paid in consideration of the rights granted to EDCO and UWS per the solid waste and recycling agreements. The Environmental Fee is designed to support the City's environmental efforts. Staff recommends a modification to the allocation of the fees among the two City Funds. (Exhibit D) CONCLUSION Staff, with concurrence from the Solid Waste Subcommittee, are presenting beneficial terms that have been negotiated with EDCO. The rate freeze and restricted caps for the rate adjustment components directly benefit rate payers and provide immediate and long term cost savings for them. Extending the contract is further beneficial to customers by retaining a quality and responsive hauler. EDCO's advance planning for more recycling activities and administering the street sweeping contract are also favorable to both residents and staff. Finally, the assignment of UWS to EDCO has been desired for several years and would retain each area's unique and customized services and rates. ALTERNATIVE The City Council may modify, remove, or negotiate additional item(s) for discussion and consideration with EDCO as part of contract extension negotiations. 3 EDCO Contract Extension June 16, 2015 Page 4 of 17 FISCAL IMPACT The City would bear a nominal professional consulting fees of $5,000, and legal fees of $5,000, for the evaluation of negotiation items and the preparation of a contract amendment. The City's Waste Reduction Fund has an estimated fiscal year-end balance of $370,000. Attachments: Exhibit 1- Summary of Recommended Negotiated Items (page 5) Exhibit 2- Section 2.4 and 2.5 of EDCO's Agreement (page 6) Exhibit 3- Detail of Negotiated Items (page 7) 3A- Letter from UWS to City (page 12) 3B —Courtesy Notification to UWS Customers (page 13) Exhibit 4- Collector and Environmental Fees (page 15) Exhibit 5- Recycling/Rebate Credit (page 16) Exhibit 6- Draft Amendment # 1 (page 18) Exhibits A, B, C, D and 7 2 EDCO Contract Extension June 16, 2015 Page 5 of 17 Item impact to City/Rate Payers I impact to EDCO 1, f=reeze current * Rate payers save a total of $156,000 in FY 15- EDCO waives $156,000 in rates for one year 16 anticipated revenue in FY 15--16 Individual single-family rate payers save $10- Amount above will not be $14.5 in FY 15-16 recouped in the future Multi -Family rate payers savings vary based on level of service 2. Extend terra of * Rate payers' compound 5 -year (FY 15-16 to FY Securing longer term contract contract until 19-20) saving is $850,000 EDCO's compound revenue loss 2020, plus seven ; « Continuity of services by reliable provider in 5 -years is $825,000-850,000. 1 -year renewal Seven automatic one-year renewal options with Longer utilization of equipment options 60 -day notice of cancellation option prior to each January with contract ending --6-8 months tater e Extensive performance bond, Letter of Credit, default and service provisions remain unchanged and in full force 3. Limit Impact of Better rate payer safeguards with caps on the ® Restriction on possible pass - future rate hikes disposal and/or service components through of portions of disposal and/or service component costs_ 4. Plan for organics Advance preparation of possible new organics • Advance preparation of possible waste recycling waste recycling regulation new organics waste recycling _ regulation 5. __ Administer street ___ ® Street sweeping contract separate and stand- * Additional administration duties sweeping contract alone for EDCO staff/management and * No added cost for administration (no markup, no costs pass-through of costs) ® EDCO has familiarity with administering street sweeping contracts Staff time allocated for administration of other maintenance contracts ® EDCO has experienced professional customer se rvi ce 6. Consolidate a Response to long-time request for consolidation v Additional administration, Residential by some residents, members of the City Council operations and customer service Franchises (UWS and Solid Waste Subcommittee e Larger contract, route and Contract a Retain individual service levels, rates, discounts service area Assignment to - Use small truck in landslide area o More customers and revenue EDCO) - Rate freeze for FY 15-16 * Waiver of FY 15-16 eligible rate Experienced customer service increase Uniformity and easier contract administration * Experience in hard to service Standardization of new program implementation areas EDCO Contract Extension June 16, 2015 Page 6 of 17 2.4 Terra of Agreement The initial term of this Agreement shall be seven (7) years, commencing on ,July 1, 2010, and expiring June 30, 2017 (the "Initial Term"), subject to extension or earlier termination as provided herein. Option2.5 City's City shall have the sole option to extend the Term upon expiration of the Initial Term for a period of up to thirty-six (36) months. The City may, upon ninety -day (90 -day) advance written notice to the Contractor prior to the expiration of the Initial Term, exercise this extension option. If City provides this extension notice, this Agreement will automatically renew monthly, up to a maximum of thirty-six (36) months. Such automatic renewals shall cease, and this Agreement shall terminate, upon the earlier of, (i) the expiration of the above mentioned thirty-six (36) months, or (ii) ninety (90) days following the date upon which City gives Contractor written notice of termination. 0 EDCO Contract Extension June 16, 2015 Page 7 of 17 Freeze Rates: Freeze the current FY 14/15 residential rates through June 30, 2016. EDCO has agreed to waive its eligible 4.2% rate adjustment which would have been effective July 1, 2015 for FY 15/16. The one-year saving to rate payers is estimated at $156,000. Similarly, the one-year impact (loss of revenue) to EDCO is the same $156,000. EDCO would not recoup the eligible FY 14/15 rate adjustment in subsequent years. Comment: This item is a direct benefit to residents. In FY 15/16, a regular single- family customer would save between $10 and $14.50 in one year. Multi4amily customers would save significantly more depending on each complex's service levels. This concession was made by EDCO during negotiations. 2. Extend Agreement: Extend EDCO's contract until June 30, 2020. a. One -Year Extensions: The amendment includes a maximum of seven (7) automatic one-year (1) extensions/renewals, based on mutual consent. The new amended maximum term end date would be June 30, 2027, if the city continues to be pleased with services and does not issue a notice of cancellation. b. Annual Cancellation Option: The amendment includes a mutual annual cancellation/non-renewal option that could be exercised during any of the various annual extension years. The agreement is based on fiscal years. Starting in November of 2019, either party could terminate the automatic one-year extensions/renewals by giving a written notice. The notice would be required "within 60 days prior to January 1 of each year of the agreement" to be affective June 30th of the following year (in 6-8 months). The annual "60 -day window" for a cancellation notification does not preclude the City from initiating a new procurement process early on and several months later issuing a notice of termination. Typically 15-18 months is an adequate time for a competitive solid waste procurement process, conducting public education and outreach, awarding a contract and allowing time for the order and delivery of new equipment, and the hauler completing an operational plan. The cancellation option allows the City to choose how much time it needs for a new contract procurement before issuing a notice of cancellation. 7 EDCO Contract Extension June 16, 2015 Page 8 of 17 See example of the notification process and effective dates: Cancellation Notice Period Contract Cancellation Effective Date j "60 -dam window" November - December 2019 June 30, 2020 (6-8 months' notice) No Actionl No notice issued June -3-0--,---2 0-2 .1 during 2079 j November - December 2020 June 30, 2021 (6-8 months' notice) No Actionl No notice issued June 30, 2022 Performance Standards and Safeguards: There are extensive safeguards in the current contract to assure maintaining high quality and reliable service for ratepayers. They include extensive performance standards and liquidated damages for failure to meet service standards such as faithful performance bond of $1,750,000, letter of credit of $250,000, default provisions, insurance, right to termination, assignment, and transfer of contract will remain unchanged and in full force and effect. d. Ratepayer Compound Savings: Extending EDCO's agreement this year prolongs the savings to ratepayers. From FY 15/16 to FY 19/20, when the contract would end, the compound savings to rate payers resulting from the FY 15/16 rate freeze (item #1.a. above) including estimated accumulated annual interest of 2.7% is estimated at $825,000-$850,000*. *Total savings of approximately $825,000-$850,000 is derived from annual savings of $156,000 for five years, increased by 2.7% each year (interest assumption). Staff Comment: This item is mutually beneficial. Rate payers would save money. The City would benefit by retaining a hauler that has provided residents with a high level of service and competitive pricing. EDCO would benefit by securing a longer term contract, continue to provide material to their EDCO Recycling & Transfer facility in Signal Hill, and continue the utilization of the trucks and equipment purchased to service RPV. Additionally, this proposed extension would not obligate either party to a long-term contract. Both parties could terminate the contract any year after 2019, provided proper notification is given. 3. Limit Rate Adjustment Factors: Reduce the possibility of future rate hikes and restrict the eligible disposal (landfill) and service components of the rate adjustment formula. a. The disposal (landfill) component would be lowered and capped at 8%. EDCO's current cap is set at 10%. b. The service component (inclusive of fuel, CPI, labor and equipment costs) would be lowered and capped at 4%. EDCO's current cap is set at 6%. Staff Comment: This item is a benefit to residents. It safeguards rates by keeping them competitive by avoiding or minimizing the possibility of significant price hikes by EDCO Contract Extension June 16, 2015 Page 9 of 17 various factors such as fuel and labor costs, consumer price index, and landfill gate fees that could result from the recommended longer term contract. This concession was made by EDCO during negotiations. . Flan for Organics Waste Recycling: To further improve diversion, on or before June 30, 2019, EDCO would provide the City a plan for residential (single and multi -family) organics waste recycling implementation for the City's evaluation and consideration. At that point, the City could decide to pursue, modify, or consider implementation at a later date. a. The State approved AB 1826, "Mandatory Commercial Organics Recycling", commences on April 1, 2016. The phased implantation initially focuses on businesses that generate large quantities of organics waste. The City has non-exclusive commercial hauling agreements with eight (8) haulers. On or before, 2016, staff will work closely with affective commercial haulers to reach out to and monitor the eligible businesses. b. AB 1826 also includes larger multi -family complexes. However, it does not include every multi -family complexes or any single-family households. Starting or prior to 2016, staff will work closely with EDCO to educate and monitor the eligible multi -family complexes. The recommended assignment of UWS' contract would help streamline the outreach process to affected complexes now and all residences in the future. c. The City is a member of the Los Angeles Regional Agency (LARA). As a combined group, LARA's reported 2013 diversion rate was 68%. California is pursuing the statewide goal of 75 percent recycling, composting and source reduction by 2020. Therefore, smaller residential generators could be mandated in the future to recycle organics. Staff Comment: This allows adequate time to methodically work toward a feasible and economical plan for compliance in the future with larger scale mandatory residential organics recycling. 5. Administer Street Sweeping Contract: EDCO would assume the administration of the City's street sweeping contract. However, street sweeping would be a completely separate and stand-alone contract. There will be no association with the EDCO's solid waste contract. There would be no pass-through of street sweeping costs on to the trash bills, or vice versa. The residential solid waste rates would not be impacted, altered or otherwise changed. a. The City would prepare a scope of work for street sweeping and go out for competitive bids or proposals. The City would review and approve the proposed sweeping schedules. However, after the award of the sweeping contract, the City would assign the contract to EDCO for administration and EDCO would be responsible for managing the day-to-day street sweeping operations. The sweeping contract is inclusive of weekly servicing of the trash and recycling bins at all bus stop and bus shelters. 9 EDCO Contract Extension June 16, 2015 Page 10 of 17 b. EDCO would receive invoices from the contractor, then the City would directly reimburse EDCO for the street sweeping expenses. There would be no mark-up or added costs by EDCO for contract administration. c. EDCO's customer service professionals would handle inquiries and answer street sweeping related calls. They have several years of experience with such issues. d. Street sweeping frequency may increase in the future pending clarification of requirements by the Los Angeles Regional Water Quality Board. EDCO would handle the anticipated increase in customer service inquiries. Staff Comment: EDCO is experienced and is effectively administering street sweeping contracts for some other client cities, including La Mirada, Buena Park, La Palma and Imperial Beach. This will free up staff's available time to administer other maintenance contracts more effectively. This concession was made by EDCO during negotiations. 6. Consolidate Two Service Areas/ .Assignment of Universal Waste Systems' Contract: EDCO and Universal Waste Systems, Inc. (UWS) have reached a mutual agreement where EDCO would acquire UWS' Service Area 2 effective July 1, 2015, pending: a) the approval of the assignment by the City Council, and b) the approval of EDCO's recommended contract extension. (UWS letter attached) Staff has discussed this consolidation with both parties and they are aware of the City's desire for a seamless transition with the least amount of interruption and inconvenience to customers, as possible. The City has mailed courtesy notifications of the proposed consolidation and City Council date to the UWS customers. A notice was published in the PV News on June 11, 2015. The consolidation plans includes: a. Consolidating services effective July 1, 2015, to match the FY 15-16 billing cycle. Both haulers have successfully conducted business with each other in the past and continue to have an excellent working relationship with one another. This helps increase effective communication and make the transition proceed smoother. b. Retaining UWS' same level of services, rates, manual unlimited backyard collection. c. Using small truck(s) in the landslide areas. EDCO experienced with hard to reach areas and use of small "pup" trucks in the City. d. Retaining UWS' same level of service, rates and automated curbside collection in the coastal areas. e. Freezing rates in FY 15-16 by waiting the UWS and EDCO eligible rate increases. f. Potentially changing the Thursday collection day for a small group of customers. * UWS and EDCO operations personnel and management are working on the details of the route. More information would be available by the date of the meeting as the operations/routing detail get closer to finalization. Affected customers would be notified prior to July. 0 EDCO Contract Extension June 16, 2015 Page 11 of 17 Staff Comment: This item is a benefit to residents and staff. For the past several years some residents, members of the City Council and the Solid Waste Subcommittee periodically questioned the reason why the City had two residential solid waste providers, and inquired how the two contracts could get consolidated into one. This consolidation would improve efficiency, increase uniformity, and customer service throughout the City. Approval of the contract assignment would create one Citywide residential hauler, EDCO, which would make services, billing, outreach, State reporting and new program implementation more effective. As for servicing the landslide area, EDCO has experience in servicing hard to reach areas including backyard service in narrow driveways and streets in RPV. EDCO has hundreds of such "pup" accounts throughout the City especially servicing the streets and homes off of PVDE. They have inspected the UWS route and do not see any un -manageable service issues or difficulties. M EDCO Contract Extension June 16, 2015 Page 12 of 17 IJAHU©na IAd M SYSM& WC' M- NT r- LARGE ENOUGH TO SERVE, SMALL EMOUON TO CARE May 26, 2015 Ms. Lauren Ramezani Sr. Administrative Analyst- Public Works City of Rancho Palos Verdes 30940 Hawthorne Blvd. Rancho Palos Verdes, CA 90275-5391 Dear Ms. Ramezani, Exhibit 3A 9010-9016 Norwalk Blvd., Santa Fe Springs, CA 90670 P.O. Box 3038, Whittier, CA 90650 562-941-4900 Universal Waste Systems, Inc. (UWS) has been honored to serve the City of Rancho Palos Verdes for the past 11 years. During that time, we have very much appreciated the opportunity to serve the community. With this in mind, we are pleased to announce that EDCO Disposal Corporation has agreed to acquire the UWS Area #2 Franchise Agreement, conditioned on both assignment approval by the City and approval of the proposed extension of the EDCO Area #1 Franchise Agreement. Contingent upon the two noted conditions, UWS and EDCO anticipate concluding this transaction on June 30, 2015 and would respectfully request City approval within this timeframe. Should you have any questions, please feel free to contact me at (562) 941-4900. Thank you for your timely consideration of this request. Sincerely, y Matt Blackbur Universal Waste Systems Vice President zava e 500ayli to Save ....... 5"&'50 to & 12 EDCO Contract Extension June 16, 2015 Page 13 of 17 Exhibit 38 I�Nt,i K ) I'Al 0s \/I iii )E -,c-) June 5, 2015 COURTESY NOTICE: Proposed Assignment of UWS Service Area to EDCO Dear UWS Customer and RPV Resident, As you may be aware, Universal Waste Systems (UWS) currently provides waste and recycling services to approximately 5% of the community, including your residence Another solid waste company, EDCO Disposal Corporation (EDCO), provides waste and recycling service to the rest of the City Recently, the City was informed that EDCO has reached a tentative agreement with UWS to assume the collection responsibilities for your area effective July 1, 2015 This Item will be brought to the City Council for consideration and approval at their June 16, 2015 meeting, at 7 p.m at Hesse Park, 29301 Hawthorne Boulevard As it is of most importance that your service continues with the least amount of disruption, the City Council will be considering EDCO's offer to assume the UWS contract providing that EDCO • continues the same level of service as provided by UWS continues the some type of service as provided by UWS • continues the some rates and discounts as provided by UWS • continues with small sized trucks and eouipment as provided by UWS for the landslide area freezes the current FY 14.16 rates for one year and waives eligible rate Increases for FY 15-16 EDCO has indicated to the City that they are committed to fulfilling the complete obligations of the UWS contract described above including the continuation of the backyard manual unlimited collection with the use of smaller trucks in the landslide area and the use of automated trucks and variable sized carts In the automated serviced coastal areas. Given EDCO's excellent customer service, high resident satisfaction level, and experience in the balance of the City and their understanding of the unique operating conditions in your area, this should be a seamless transition This consolidation will also allow one service provider for the entire community allowing you to benefit from services currently provided by UWS in addition to the ones provided by EDCO in the rest of the city such as free paperldocument shredding, mulch giveaway. brush clearing, etc 13 EDCO Contract Extension June 16, 2015 Page 14 of 17 EDCO and UWS are working on the final operations and route details including collection days Additional information will be sent to you from EDCO in the coming week(s) A copy of the Public Works staff report will be available on the City's website by Thursday evening June 11. In the meantime, if there are any additional questions, please contact EDCO at 310 540-2977, UWS at 800-6317016 or Public Works at 310-544-5252. Sincerely.. yr; _ Michael Throne, P.E. Director of Public Works Cc Mayor and City Council Members Doug Willmore, City Manager Efrain Ramirez, V.P. EDCO Matt Blackburn, V.P. UWS 2) 14 EDCO Contract Extension June 16, 2015 Page 15 of 17 Exhibit 4 fN Collector ani! Environ-t,,iental Fees The City receives a Collector Fee and an Environmental Fee. Per EDCO's contract, the fee amounts are fixed annual amounts, and could get adjusted when the rates are adjusted. FDCO has agreed to freeze the FY 14-15 rates and waive rate increases therefore, the FY 14-15 fees would remain unchanged. EDCO's current annual Collector Fee is $506,065. The Collector Fee is deposited into two funds: 1) General Fund, and 2) Waste Reduction Fund. The residential and arterial streets' wear and tear due to truck traffic is addressed through the General Fund programmed projects such as the annual residential overlay and slurry seal, arterial rehabilitation, and ongoing pothole, curb and gutter repairs. The administration of EDCO's contract, assisting with customer service questions and concerns, implementing ongoing Citywide recycling and waste reduction activities, organizing special events, and complying with State mandates and annual reports are paid through the restricted Waste Reduction Fund. EDCO's current Environmental Fee is the fixed amount of $127,910, which is deposited 100% into the Storm Water Quality Program of the General Fund and it supports regular sweeping of residential and arterial streets, servicing trashcans at bus shelters, and assisting in NPDES/storm water quality program implementation and compliance. UWS' Collector and Environmental Fees are based on a 12% and 3% of UWS' gross receipts, respectively. To assure uniformity of the fee structure, staff recommends a fixed collector fee of $35,735 and a fixed Environmental Fee amount of $8,930 for FY 15-16 to be added to EDCO's current fees. These are the same amounts paid by UWS in FY 14- 15. The EDCO/UWS, combined Collector Fee would be a total of $541,800 ($506,065+ $35,735). Staff proposes modifying the FY 15-16 percentage allocation of the Collector Fee between the General Fund and Waste Reduction Fund to more adequately address the expenditures in the two funds. (See below) Collector Fee Fund Allocation Current Percentage FY 14-15 J Proposed _ Percentage FY 15-16 Proposed Amount (rounded) FY 15-16 General Fund- Various 65% 75% $406,350 Waste Reduction Fund 35% 25% $135,450 Tota 1 ($ rounded) 100% 100% $541,800 The EDCO/UWS combined Environmental Fee would be a total of $136,840 ($127,910+ $8,930). No changes are recommended. 15 EDCO Contract Extension June 16, 2015 Page 16 of 17 Exhibit 5 Recycling Rebate/Credit Until 2013, the City received an annual recycling rebate of $280,000 from EDCO and $16,000 from UWS. The funds were deposited into the City's Recycling Fund for use on median improvement and/or maintenance, and Beautification Grants. However, at the direction of City Council those amounts are refunded back to customers in their billing statements as a recycling credit. EDCO would continue to provide their existing customers with the City Council approved recycling rebate/credit of $1.58/month/customer/u nit, UWS' current customers would continue to receive their Council approved recycling rebate/credit of $1.31/month/customer/unit. The minor difference ($0.27/mo) is due to the difference in the ratio of the number of UWS customers to its contractual annual recycling revenue due to the City, as compared to EDCO's. 0 EDCO Contract Extension June 16, 2015 Page 17 of 17 EXHIBIT 6 DRAFT AMENDMENT #1 17 EXHIBIT 6 BANSM", AVAMMIUM MANAGEMENT SERVICES THIS AMENDMENT TO EDCO AGREEMENT FOR INTEGRATED SOLID WASTE MANAGEMENT SERVICES ("Amendment") dated as of , 2015, is made and entered into by and between CITY OF RANCHO PAL.OS VERDES, a California municipal corporation (-City-), and EDCO DISPOSAL CORPORATION, a California corporation ("Contractor-). Collectively. City and Contractor are referred to herein as the "Parties'. RECITALS: A. City and Contractor entered into that certain Agreement Between City of Rancho Palos Verdes and EDCO Disposal Corporation for Residential Solid Waste Management Services Service dated on or about November 24, 2009 ("EDCO Agreement"). All capitalized terms not otherwise defined in this Amendment shall have the meanings specified in the EDCO Agreement. E. Pursuant to the EDCO Agreement, Contractor was granted the exclusive right and privilege to provide Solid Waste and Recyclable Materials Handling Services at Residential Premises within Service Area 1. C. City and Universal Waste Systems, Inc., a California corporation ("UWS") entered into that certain Agreement Between City of Rancho Palos Verdes and Universal Waste Systems Inc. for Residential Solid Waste Management Services dated on or about May 5, 2009 ("UWS Agreement"). Pursuant to the UWS Agreement, UWS was granted the exclusive right and privilege to provide Solid Waste and Recyclable Materials Handling Services at Residential Premises within Service Area 2. D. Contractor and UWS have informed City that they have entered into an agreement whereby Contractor would acquire all rights of UWS under the UWS Agreement, and have requested that City approve the assignment of the UWS Agreement to Contractor. E. Contractor has requested an extension of the term of the EDCO Agreement, and the Parties have mutually agreed upon the conditions for such an extension. F. As an inducement to City to extend the term of the EDCO Agreement and approve the assignment of the UWS Agreement, Contractor has offered to freeze all rates in both Service Area l and Service Area 2 until July 1, 2016, G. Contractor and City desire to amend the EDCO Agreement to extend the term and make other changes, approve the assignment of the UWS Agreement to Contractor, and incorporate Service Area 2. NOW, THEREFORE, in consideration of the mutual promises contained herein, and other good and valuablc consideration, the receipt and sufficiency of which are hereby acknowledged, City and Contractor do hereby agree as follows: R6876-0333\18421 170.doc l 18 The foregoing Recitals are incorporated herein this reference. 2. This Amendment shall become effective upon the occurrence of the following conditions precedent: (a) Approval of this Amendment by the City Council of the City of Rancho Palos Verdes.- (h) erdes: (b) Receipt by City of evidence reasonably satisfactory to the City Attorney that UNVS has assigned its rights and obligations under the UWS Agreement to Contractor, and that Contractor has assumed those rights and obligations; and (c) Receipt by City of evidence reasonably satisfactory to the City Manager that the insurance and performance security provided by EDCO pursuant to Sections 9.4, 9.5. and 9.6 of the EDCO Agreement are current, and apply to both Service Area I and Service Area 2. 3. City hereby approves the assignment of the UWS Agreement to Contractor, subject to the terms and conditions of this Amendment. The transfer fee and cost reimbursement required by Section 12.5 of the UWS Agreement are hereby waived. 4. The UWS Agreement is hereby terminated, and is of no further force or effect. The EDCO Agreement is hereby amended to include Service Area 2. All references to "Service Area l" in the EDCO Agreement are hereby revised to read "Service Area l and Service Area 2". A reap depicting Service Area 2 is attached hereto, and is hereby added to the EDCO Agreement as Exhibit 8. 6. Contractor shall commence Solid Waste and Recyclable Materials Handling Services in Service Area 2 on July 1, 2015. Contractor shall provide curbside collection service, in accordance with Section 4.2.1 of the EDCO Agreement, in the areas depicted as Area A and Area B on Exhibit 8. Contractor shall provide manual backyard Collection, in accordance with Sections 4.14, 4.16, and 4.17 of the EDCO Agreement; in the areas depicted as Area C and Area D on Exhibit 8. 7. Article l of the EDCO Agreement is hereby revised to add the definition of Service Area 2, as follows: "1..62.5 Service Area. 2 "Service Area 2„ means that area of the City identified in Exhibit 8 of this Agreement." Section 2.4 of the EDCO Agreement is hereby revised to read as follows: 116876-(7333\18421 t 70.doc 2- 19 "2.4 1'erm of Agreement The term of this Agreement shall commence on July 1, 2015 and expire June 30, 2020 (the "Terni-), subject to extension or termination as herein provided. Commencing January 1, 2020 and every year thereafter for a maximum of seven renewals, automatic one year extensions shall be applied to the Term so that the 'Perm of the Agreement shall remain between six (6) months and eighteen (18) months. If all of the automatic extensions take place, the 'Perm shall expire on June 30, 2027. Commencing January I, 2020, should either Party desire that the automatic one year renewal and extension provision be terminated, such Party may give the other- Party written notice of such termination within sixty (60) days prior to January I of any year of the Agreement. Such notice will terminate the automatic one year renewal and extension provision, and the Agreement shall remain in effect for the balance of the term then outstanding. By ,vay of example only: the Terra shall be extended by one year commencing July 1, 2020, unless within sixty (60) days prior to January 1, 2020, either Party provides notice to the other Party terminating the extension." Section 2.5 of the EDCO Agreement is hereby deleted 10. For the period cornmencing July 1, 2015, the Collector Fee shall be $135,450.00 per quarter. Thereafter, the Collector Fee shall be adjusted as provided in Section 3.2.1 of the EDCO Agreement. The Parties acknowledge that this amount reflects the addition of Service Area 2 to the EDCO Agreement. 1 l . For the period commencing July 1, 2015, the Environmental Programs Fee shall be $34,210.00 per quarter. Thereafter, the Environmental Programs Fee shall be adjusted as provided in Section 3.2.2 of the EDCO Agreement. The Parties acknowledge that this amount reflects the addition of Service Area 2 to the EDCO Agreement. 12. For the period commencing July 1, 2015, the Recycling Rebate shall be $74,000.00 per quarter. Thereafter, the Recycling Rebate shall be adjusted as provided in Section 3.2.3 of the EDCO Agreement. The Parties acknowledge that this amount reflects the addition of Service Area 2 to the EDCO Agreement, 13. Section 4.4.5 (Organics Recycling Plan) is added to Section 4.4 ofthe EDCO Agreement, as follows: "4.4.5 Organics Recycling flan Contractor shall provide City a plan for the implementation of organics waste recycling at Residential Premises for City's evaluation and consideration no later than June 30, 2019. City shall be under no obligation to implement the plan and retains the right to modify or consider implementation at a later date. 116876-0333118421 170.doc -3- 20 At a minimum, Contractor shall identify the following elements for City consideration: projected participation rates among generators, projected recovery rates at processing facility, increased overall diversion benefit to City, public education component, program sustainability factors, financial implications and proposed implementation schedule. Contractor shall take into account any change of law that would impact the flan... 14. All references to "Cart" in Subsection 4.6.4.2 ofthe EDC'O Agreement are hereby revised to read "Cart and Contractor -provided manual service Container". 15. Article 4 of the EDCO Agreement is hereby revised to add the following sections, all of which apply only to Service Area 2: "4.14 ]manual Backyard Refuse Collection Contractor shall Collect Refuse from Customer -provided Containers once per week from Single -Family Customers and Multi -Family Customers without Bin service in the areas depicted as Area C and Area D on the map attached hereto as Exhibit 8. The Collection location for manual service shall he Customer's hack or side yard, or other location that is not visible from the street. These Customers shall be "Manual Collection Customers." The number of Containers is not limited. 4.15 Portuguese Bend reach Club Litter Containers Contractor shall Collect and Dispose of Solid Waste and Recyclables from litter containers placed at the beach property for no more than the maximum rate identified in the approved rate schedule. Under this EDCO Agreement, Contractor is required to provide this Collection service if requested, but does not have the exclusive right to provide this service, and the Portuguese Bend Beach Club may negotiate with other haulers for this service. 4.16 Recyclable Materials Collection for Manual Collection Customers Contractor shall Collect Recyclable Materials from Contractor -provided 32 -gallon Containers with unattached lids and without wheels, placed at the same Collection location as Customer -provided Refuse Containers, once per week from Manual Collection Customers. Recyclable Materials Collected shall be the same as those Collected from Cart Customers. Contractor shall provide a sufficient number of Containers to each Customer to meet each Customer's individual needs. 4.17 Green Waste Collection for Manual Collection Customers Contractor shall Collect Green Waste from Contractor -provided 32 -gallon wheeled Containers with unattached lids, as well as unlimited Green Waste tier] and bundled as set forth in Section 4.4.3 above, placed at the same Collection location as Customer -provided Refuse Containers, once per week from Manual 116876-0333\18421170.dor. -4- 21 Collection Customers. Contractor shall provide a sufficient number of Containers to each Customer to meet each Customer's individual needs, 4.38 Frush Clearing; Events Contractor shall provide and service sufficient boll -Off Boxes up to twice per year to each homeowners' associatiojl for the purpose of brush clearing. Timing; and placement of Containers to be mutually agreed upon between Contractor and each homeowners' association... 16. The maximum rates approved #or the Rate Year commencing July 1, 2014 for Service Area 1 and Service Area 2 are attached hereto as Exhibits A and 13, respectively. Notwithstanding Article 6 of the EDCO Agreement and Article 6 of the U WS Agreement, Contractor will freeze the City approved July 1, 2014 rates through June 30, 2016 for both Service Area I and Service Area 2. In calculating the July l, 2016 rate adjustment formula, there will be no retroactive recovery of the freeze. The July 1, 2016 rate adjustments will be based only on the most recent twelve month indexes (i.e. January 1, 2015 to December 31, 2015) available at that time. 17. Paragraphs (2) and (3) of Section 6.4.2 of the EDCO Agreement are hereby revised to read as follows: "(2) Annual increase in total disposal component (including Green Waste) in any one year shall be limited to no more than 8%u, with non -permitted increases pennitted to be applied to any subsequent year's increase to the extent the annual increase does not exceed 8%n. (3) Annual increase in disposal component exclusive of disposal at the Orange County Landfill System is limited to no more than 8%, with non -permitted increases permitted to be applied to any subsequent year's increase to the extent the annual increase does not exceed 8%." 18. Section 6.4.3 of the EDCO Agreement is hereby revised to read as follows: `i6.4.3 Rate Adjustment Steps All rates will be adjusted using the same methodology and cost component Nveightings. See Exhibits 5A, 5B and 5C. Exhibit 5A, Step One - Calculate-1'ercenta e Change in Indices. Calculate the percentage increase or decrease in each index listed in Section 6.4.2. The increase or decrease in the published indices for fuel, equipment and all other (CPI, less food and energy) will be the change in the average annual published index between the calendar year ended the December prior to the Rate Year anniversary, date and prior calendar year, 86870-0333\18421170,&c -5- 22 Example disposal component calculations are included in Exhibit 5B and Exhibit 5C: Exhibit 513, Step 1: Determine the average disposal cost per ton for non -Orange County Landfill disposal. Exhibit 513, Step 2: Determine whether the change in the cost per ton of non - Orange County Landfill disposal exceeds the maximum allowable increase of 8%. If so, reduce the new non -Orange County Landfill disposal index to reflect no more than an 8% increase. Exhibit 56, Step 3: Weight the cost at the Orange County Landfill System and non -Orange County Landfill cost based upon percentage of tonnage directed to each (subject to a 50% minimum to be assumed directed to the Orange County Landfill System). Exhibit 513, Step 4: Determine whether the change in the total Disposal Component exceeds the maximum allowable overall increase 8%. If so, reduce the new disposal index to reflect no more than an 8% increase. The resulting Average Cost Per Ton in Column P on Row 12 of Exhibit 5B will be the New Index Value used in Exhibit 5A. There may be multiple landfills used, and therefore multiple gate rates for which to calculate the percentage change, which shall be weighted by the number of tons disposed at each landfill. The change in Landfill and Green Waste Disposal indices shall be based upon the change between the per ton gate rates as of the effective date of the rate adjustment and 12 months prior. For example, the rate adjustment effective July 1, 2011 will reflect the change in the gate rate from. July 1, 2010 to July 1, 2011. There shall be no adjustment for changes in disposal rates prior to July 1, 2010. See Exhibit 5C to calculate the July 1, 2010 disposal component baseline for the July 1, 2011 rate adjustment. Exhibit 5A. Step Two i. Component Weightings: The first rate adjustment cost components as a percentage of service component costs and of total costs are provided in Section 6.4.2 above, with subsequent components calculated in Step Four of the rate adjustment example in Exhibit 5A. For Exhibit 5A, Step Two of each subsequent rate adjustment, use the cost components recalculated in Step Four during the previous rate adjustment. ii. Service Component. Multiply the percentage changes for each rate adjustment service component by that component's weighting as a percentage of the service component and add these resulting percentages together to get the service component weighted change to the rates, subject to the service component increase cap. The annual change to the service component, calculated on row 11 of Exhibit 5, is capped at no more than a four percent (4%) increase per year. If the increase in any one year is higher than four percent (4%), the percentage R6876-0333\1842117v3.doc -6- W increase not permitted may be added to any subsequent year's increase to the extent that a subsequent increase is below four percent (4%). iii. Disposal Component, The change in the disposal component is equal to the calculation on Row 5 of Exhibit 5A, ("olurnn C. iv. Combined Rate Adjustment. Multiply the permissible percentage changes for the combined service component and the disposal component, as determined on rows 13 and 14 in column G of the example rate adjustment calculation in Exhibit .5A, by the cost component weightings for the service and disposal components. Exhibit 5A,__S" Three - Multiply the total weighted percent change from Step Two by the existing Customer rates to calculate the increase or decrease to the maximum rates. Add the rate increase or decrease to the existing rates to derive the newly adjusted rates. Exhibit 5A, Stele Dour - Recalculate weightings for the following year based upon these changes." 19. Section 6.4.4 of the EDCO Agreement is hereby revised to read as follows: "6.4.4 Government Fees New or increased Federal, State or locally imposed per ton disposal iee sureharges are excluded from the 8% per year disposal component increase caps." 20. Section 4.5.7 (Street Sweeping Contract Management) is hereby added to Section 4.5 of the EDCO Agreement, as follows: "4.5.7 Street Sweeping Contract Management Commencing July 1, 2015, or such later date as may be directed by Ciiy's Director of Public Works, and for the term of this Agreement thereafter, Contractor shall provide contract management services of City street sweeping; services in accordance with the current requirements specified by City at no additional cost to City. Street sweeping services shall be provided through a street sweeping service provider engaged by City. in the event of (1) default of the street sweeping contract that is not the result of the negligence or willfiil act of Contractor, and/or (ii) termination of street sweeping services that is not the result of the negligence or willful act of Contractor, such default or termination shall not be cause for default and/or termination of this Agreement. R6876-0333\1 842 1170.doc 24 Contractor shall initially provide contract management services under a street sweeping agreement between City and Joe's Sweeping AKA Nationwide Environmental Services, dated May 19, 2009, as amended by those certain First, Second, and Third Amendments dated July 1, 2012, July 1, 2013, and Jul), 1, 2014 (as amended the "Joe's Street Sweeping Agreement") until it's expiration, at no additional cost to City. A copy of the Joe's Street Sweeping Agreement is attached hereto as Exhibit C and incorporated herein by this reference. Prior to expiration of the Joe's Street Sweeping Agreement, City shall select a qualified street sweeping service provider to perform street sweeping services of city streets and contract with such provider following; the expiration of the Joe's Street Sweeping Agreement. City shall assign the contract to the Contractor for contract management. The Joe's Street Sweeping Agreement and any successor agreement entered into by City and a street sweeping service provider,_ are referred to herein as the "Street Sweeping Agreement Contractor shall ensure that street sweeping services are provided in accordance with teens and conditions specified by City. Contractor shall be responsible for all inquiries on street sweeping through its customer service call center and shall ensure that all matters are promptly corrected to the satisfaction of City. Contractor shall coordinate street sweeping services with City's Code Enforcement Division to enforce parking regulations related to street sweeping activities, as directed by City's Director of Public Works. Contractor shall deliver an annual report to City on the number of linear miles swept, amount of street sweeping debris collected and disposed, and other pertinent statistics as may be required by the Director of Public Works. Contractor shall be responsible for supervising the street sweeping service provider to ensure the street sweeping service provider performs street sweeping services to the highest level possible and properly disposes of street sweeping debris in a lawful manner. Contractor shall ensure that all terms and provisions in the Street Sweeping Agreement are maintained. On or before the 10th day of each month, Contractor will invoice City for street sweeping services performed during the preceding month by the street sweeping service provider. Each invoice shall also itemize the additional street sweeping services performed during the preceding month, by hour, and the actual costs incurred for processing of collected sweepings and water. There shall be no additional fees added by Contractor for contract management other than those requested by the street sweeping service provider. City shall pay each invoice within thirty (30) days after receipt, except such amounts as City may in good faith dispute, which amounts City may withhold until resolution of the dispute. payment of any disputed amounts shall be made Avithin ten (10) days following resolution of the dispute. R6876 -0333U842 I 170.doc -$- 25 Contractor shall remit appropriate payment to the street sweeping service provider in accordance with the terms of Street Sweeping Agreement." 21. No further Changes. Except as expressly modified by this Arnendn)ent, the EDCO Agreement remains in full force and effect Without modification or impainnent. 22. Counter, . This Amenclmcnt may be executed in one or more counterparts. cacti of which shall be deemed an original, but all of which shall constitute one and the same- document. IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date and year first above written. CITY OF IZANCHO PALOS VERDES., a California municipal corporation Jim Knight, Mayor ATTEST: Carla Morreale, City Clerk APPROVED AS TO FORM: Richards, Watson & Gershon Carol W. Lynch, City Attorney 116576-17333;18421170.doc -9- 26 EDCO DISPOSAL CORPORATION., a Califoraiia Corporation By: Its: By: Its: 80876-0333\18421170.doc -10- 27 Exhibit A MAXIMUM RATES FOR SERVIGIF AREA I IN EFFECT UNTIL JUNE 30, 2016 Exhibit A Page I of 1 EXHIBIT A Page I of t Rates F.ffective 7/1/2015 (No Change from 2014) EDCO SINGLE-FAMILY RATES Monthly Cart Service One each Refuse, Refitse Cart Size: 35 -gallon 04 -gallon 96 -gallon Standard Service $19.40 $24.97 S30.52 Additional Refuse Cart $0.67 SS.90 511.13 Additional RechclingCart Additional Green Waste Cart (above t}rice) free $2.23 Free n/a Free a q.45 Other Cart Rates and Services Char ed in $154.57 $171.59 Backvard Service - Rer $237.30 $6.86 Pup Service- per ]ionic $120.57 $5.72 Back yard and Pu Senior Rate Reduction $222.72 $9.14 10 n, Low -Income Rate $71.96 5°k, Annual Pa �ment Rate 5 H. Additional Special Overage Pickup for Automated Cart $547.52 $5.56 Additional Bulky ]tem 4 -yard $27.82 Cart Exchange after free- $222.72 $16.69 Cart Re -deliver Fee if $354.53 $27.82 Re -Start Fee - after $275.29 $16.69 Including all fees retained by, or paid to, City. Month1v Bin Rates Container bize Pickups 1 2 3 4 5 6 xtra Pickups 2 -yard $86.49 $120.53 $154.57 $171.59 $222.68 $237.30 $61.68 3 -yard $120.57 $154.61 $188.67 $222.72 $273.75 $284.55 $71.96 3- yard wZ com actor $241.12 $309.23 $377.30 $445.42 $547.52 $569.06 $143.94 4 -yard 1 $137.65 $171.62 1 $222.72 $273.79 $333.57 $354.53 1 $82.25 4- yard wl con actor $275.29 $343.27 $445.44 $547.59 $664.86 $7t7r3.07 $166.73 6 -yard $177.70 $230.32 $273.80 $324.89 $377.57 $394.73 $123.38 Rc 'Clio bin sari No char e ce EXHIBIT .A Exhibit 4 City of Rancho Pais Verdes m Area I EDCO Rates Effective 7/1/2015 (No Change from 2014) Additional Service Char es state Per Service ]lin Cleanin , Per Iain $50.05 Bill Overage Ovan-up 522.24 (following one written Additional Holkv Item $27.82 pickups (in excess ofthree 1i:nurgenc)- Sen ice IZates - one aJcw and one Recycling Rebate (Fixed) Rebate Per Unit Per Month Single Family 57.58 Multi -Family 57.58 Dees,�.,...�,.......W..._,._e.....�, Collector $506,065 Environmental �_ 5727,906 1Zecvchri , Rebate Fixedi Nole 7 Note 1: Rebated directly to Customers Fffective 1/1/2013 jNu Change/ Rate adjusted per Section 3.2.3 only) jNo Change/ Rate adjusted per Section 3.1.3 only) Page 2 of 2 30 Exhibit B MAXIMUM RATES FOR SERVICE AREA 2 IN EFFECT UNTIL JUNF' 30, 21)16 Exhibit B Page l of i 31 Page l of 2 FY 15-16 Effective 7/1/2015 (No Change from 2014) Single -Family Maximum not to Fxceed Rates Monthly Manual Service Rates Bockyard Servict fol refuse, recycling, and green $60.62 waste "- per home per month Manure 32 -gal Customer -provided can (por Can per --722 04 month) Monthly Automated Cart Service Rates One each Refuse, Recvcling. and Green IMasu�Carl, rate bas—ed- asedupon uponRefuse Carl size: Refuse Carl 35 -gallon 64 -g=allon 96 -gallon Sizc: —T] Standard 1140 Si24.97 $30.52 Service, based on refuse earl size Additional 56.67 58,90 517.13 Refuse Carl Additional free free free Recycling Cart Additional 52.23 n/a 54.45 Green Waste Carl (over three carts'l Other Cart Rates and Services (Charged in Addition to Monthly Cari Service Rates) Backyard Service - per home per month, all can sizes $6.62 Senior Rate Reduction 10% Low -Income Rate Reduction 5% Annual Payment Rate Reduction 5% Additional Special Overage Pickup for Automated $5.56 Cart Customers (in excess of two pickups per year), per pickup Additional Bulky Item pickups (in excess of three free 527.82 pickups per dwelling unit per year), per item Cavi Exchange (after free -exchange period), per $16.69 request Cart Re -delivery Fee (if carts are pulled for non- $27.82 payment, one charge for redelivery of all carts) Re -Start Fee - after voluntary suspension of service, if $16.69 earls have not been pulled, per re -start s\awalstr\AppDirta\local\Microsoft\Windows\lemporary Internet riles\ContPM.00I00k\GGHWIZItM\Copy of UWS- City of RPV 2015 same as 2014 final.xlsx J Rate Sheels 3 J2015, 616 I m loft EXHIBIT B FY 15-16 Effective 7/1/2015 (No Change from 2014) Multi-Falliily FY 15-16 Lffective 7/1/2015 (No Change from 2014) I'olIolviIig arr the not to exceed rates for Jul 1, 2015 through June 30, 2016: Other Bin Service Rates - Per Month Rate Per Service No. Pickups perweek Monthly Bin Rates No. Pickups per week 1 2 3 Container Size 1 2 3 4 5 6 Extra Pickups 2 -turd $76.06 5106.03 $135.40) $150.63 5194.87 5224.56 $16.53 3 -yard 71115.83 5135.49 $165.22 $194.91 S240.55 $270.41 $27.56 4- "It $120.74 515038 $194.96 $240.59 5290.67 5336.80 $38.58 Manure 3- yard $137.76 feet or $27.56 Recycling bin cart No charge t ler Other Bin Service Rates - Per Month Rate Per Service No. Pickups perweek Bin Service: 1 2 3 4 5 b l�yckin-8 Bin $7.84 59.79 $11.16 $12-54 513.91 515.29 Service collection truck (Per lIr) Scout Vehicles $29.03 $49.85 $7p.25 $90.85 $171.48 5132.10 Bin Push -Out 4.14.04 578.40 4105.85 $133.33 5160.81 518830 Service (35 feet or t ler Additional Service Charges Rate Per Service Portuguese Bend Beach Chub - beach titter container $2,204.13 collection per month (not to exceed) 58,930 Bin Cleaning Per Bin $27.56 Bin Chverage Clean-up (following one written $27.56 warning) Per Clean Up Additional Bulky Item pickups (in excess of three free $27.56 pickups per dwelling unit per year) Per Item Emergency Service Rates - one crew ane) one $93.67 collection truck (Per lIr) Proposed Pees TY 15-1fi Amount Collector $35,735 Environmental 58,930 Rec-yclin RebatcY $ll Rebate offered to customers as of 111/2013. No change. Page 2 of 2 C\Users\av alsh\AppData\Local\Micrasoh\Windows\Temporary Internet Files\Content Ou1ieok\GGH(,171IM\Copy of UWS City of RPV 2015 same as 2014 tinall..xx1sx / Rate Sheets 3 52015, 6:]b Pt 2of2 Exhibit C JOE'S SWFFTING AGRETM] N'T. AS AMENDED Pape I of l 34 Third Amendment to Agreement betweer) Verde the City of Rencho Pflo-., r-, and Nationwide Unvironmerittl Sorvicer Div, of Jar's Sweeping, Inc,. This is the third amendintint ('ThirdArnendmeni")to the street sweeping services, agreetrient between the. City of Nencho Ralos, Verdes ("City") and Nationwide Environmental Services Div. of Joe's Sweeping, Inc, ("Contractor), dated May 19, 2009 ("Agreement"). The first,amendment, which was effective July 1, 2012, extended the term of the Agreement for one year, The second amendment, which was effective July 1, 2013, likewise extended the term of the Agreement for one year. This Third Amendment is in effect as of September 16, 2014, and is being made, to extend the term of the Agreement for one more year. Section 1. The name of the Contractor is hereby amended from "Nationwide Environmental Services Div. of Joe's Sweeping, Inc." to "Joe's Sweeping, Inc, d/b/a Nationwide Environmental Services.' Suction 2-: Section 1a of the Agreement is hereby amended to read as follows: "Ierm of Contract, This Agreement shall commence on July 1, 2009, and shall terminate on June 30, 2016, unless sooner terminated pursuant to Section 5 of this Agreement," Section 31 Section 10 of the Agreement is hereby amended to read as follows: "No fige. Except as otherwise required by low, any payment, notice or other communication authorized or required by this Agreement shall be in writing and shall be deemed received on (a) the day of delivery If delivered by hand or overnight courier service during City's regular business hours or (b) on the third business day following deposit in the United States mall, postage prepaid, to the addresses listed below, or at such other address as one party may notify the other: To CITY Michael Throne, Public Works Director City of Rancho Palos Verdes 30940 Hawthorne Blvd. Rancho Palos Verdes, CA 90276 jq_DPNTB&TOR: Never Samuelian Joe's Sweeping, Inc. 11914 Front Street Norwalk, CA 90660" R6676-O=i \16421 Ml.doc W., Svct,lon /. The following Section 11 is hereby added to the Agreement: "Licensed in accordance with the City of Rancho Mos Verdes under "Nationwide Environmental Services," license number 3274-1-41, which was issued on January 9, 2014. Scuflcm f._, The following Section 12 is added to the Agreement: "j­iC1jtiDU!� business Name Statement. Joe's Sweeping, Inc. has provided to the City a, copy of its Fictitious Business Name Statement to utilize the name Nationwide Environmental Services. This Fictitious Business Name Statement was filed with the County of Los Angeles on November 10, 2009, and thus will expire on November 9, 2014. The Contractor shall file a new Fictitious Business Name Statement with the County of Los Angeles before November 9, 2014 and shall immediately provide the CRY with a copy of the new filed Fictitious Business Name Statement, marked by the County of Los Angeles, or the City*shall have the discretion to immediately terminate the Contract," Section 6. Contractor shall obtain new faithful performance and payment bonds to cover the period of time from September 16, 2014 through June 30, 2016, each in an amount that is not less than the total compensation amount of this Third Amendment; In lieu of a new faithful performance bond, Contractor may submit proof from the surety company that the existing faithful performance bond has been extended for duration of the new term. All bonds must be submitted using the required forms, which are attached hereto and incorporated herein by this reference, or in any other form approved by the City Attorney." §eglip p 7. Except as expressly amended by this amendment to the Agreement, all of the other provisions of the Agreement shall remain in full force and effect as written in the Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Third Amendment as of the date and year written below. R6876-0001 ki 5421 Obvtdoc 36 Dated: September , 2014 JOE'S SWEEPING, d/b/a NATION►\ E EN R NMF I\11 _ SERVIG . S "Cof 1 of") By: r! Printed Name Title:414 By: Print f AV ,r Title: _ - / CITY OF RANCHO PALOS VER®ES ("City") d Al I Sy:..�&i l f l' 11 / City Clerk 86876-0001\16471M1, OC M LA Second Amendment to Agreement between the City of Rancho Palos Verdes and Nationwide Environmental Services Div. of Joe's Sweeping, Inc. This agreement is the second amendment ("Second Amendment") to the street sweeping services agreement between the City of Rancho Palos Verdes ("City") and Nationwide Environmental Services Div. of Joe's Sweeping, Inc. ("Contractor"), dated May 19, 2009 ("Agreement"). The first amendment, which was effective July 1, 2012, extended the term of the Agreement for one year. This Second Amendment is effective as of July 1, 2013, and is being made to extend the term of the Agreement for one year more year. Section 1. Section 1 a of the Agreement is hereby amended to read as follows: "Term of Contract. This Agreement shall commence on July 1, 2009 and shall terminate on June 30, 2014, unless sooner terminated pursuant to Section 5 of this Agreement. Additionally, there is one (1) one-year option to renew the Agreement for fiscal year 2014-2015 with the mutual written consent of both parties." Section 2. Section 2 of the Agreement is hereby amended to read as follows: "Compensation. In consideration of the services rendered hereunder, City shall pay Contractor a not to exceed amount of one hundred and seventy thousand dollars ($170,000.00) each fiscal year in accordance with the prices reflected on the Bid Sheet of the Proposal, which is attached hereto as Exhibit "A" and incorporated herein by this reference." Section 3, Section 9(1) of the Agreement is hereby amended to read as follows: "All insurance policies shall provide that the insurance coverage shall not be cancelled or modified (except through addition of additional insured to the policy) by the insurance carrier without the insurance carrier giving the City thirty (30) days prior written notice thereof. Additionally, Contractor shall provide notice to the City within three business days it it receives a cancellation or policy revision notice from the insurer. Contractor agrees that it will not cancel, reduce or otherwise modify said insurance coverage." Section 4, Section 9(3) of the Agreement is hereby amended to read as follows: The Contractor shall submit to the City: (1) copies of the entire insurance policy for all required insurance; (2) insurance certificates indicating compliance with the minimum workers' compensation insurance requirements above, and (3) insurance policy endorsements above, not less than one (1) day prior to beginning of performance under this Agreement. Endorsements must be executed on the City's appropriate standard forms titled "Additional Insured Endorsement," copies of which are attached hereto. R6676 -000111542106v 1. doe Section 5. Section 10 of the Agreement is hereby added to read as follows: "Notice. Except as otherwise required by law, any payment, notice or other communication authorized or required by this Agreement shall be in writing and shall be deemed received on (a) the day of delivery if delivered by hand or overnight courier service during City's regular business hours or (b) on the third business day following deposit in the United States mail, postage prepaid, to the addresses listed below, or at such other address as one party may notify the other: To CITY: Les M. Jones II, Interim Public Works Director City of Rancho Palos Verdes 30940 Hawthorne Blvd, Rancho Palos Verdes, CA 90275 To CONTRACTOR: Never Samuelian Nationwide Environmental Services Div. of Joe's Sweeping, Inc. 11914 t jUnt Strnrt Norwalk , CA 9650 Section 6. The Attachment titled "Indemnification and Hold Harmless Agreement and Waiver of Subrogation and Contribution" is hereby amended to read as stated in Exhibit B, which is attached hereto and incorporated herein by this reference. Section 7. Except as expressly amended by this amendment to the Agreement, all of the other provisions of the Agreement shall remain in full force and effect as written in the Agreement. [Signatures on next page.) R6876-0001%1642 Mv1.doc T LA First Amendment to Agreement between The City of Rancho Palos Verdes and Nationwide Environmental Services div, of Joe's Sweeping, Inc. This agreement is the first amendment to the Street Sweeping Maintenance Services between the City of Rancho Palos Verdes ("CITY") and Nationwide Environmental Services div. of Joe's Sweeping, Inc. ("CONTRACTOR"), dated May 19, 2009 ("Original Agreement"). This first amendment is effective as of July 1, 2012 and is being made to extend the term of the Agreement for one year. Section 1. 1 a. Term: of Agreement is hereby amended to read as follows: "This Agreement shall commence on July 1, 2012 and shall expire on June 30, 2013, unless sooner terminated pursuant to Section 5 of this Agreement. Additionally, there are two (2) one-year options to renew the Agreement for FY 2013-2014 and 2014- 2015 with the mutual written consent of both parties." Section 2. Except as expressly amended by this amendment to the Original Agreement, Section 1 Scope of Services: and all other provisions of the Agreement shall remain in full force and effect as written In the Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year first above written. ATTEST: B y. City Clerk CITY OF RANCHO PALOS VERDES ("CITY") By: 4, ' N-�Q, Mayor NATIONWIDE ENVIRONMENTAL SERVICE div. OF JOE'S SWEEPING, INC. ("CONTRAC e 1 : Signature; Printed Name: Ani Samuelian Title: viae President 41 CITY OF RANCHO PALOS VERDES CONTRACT FOR: STREI+T SW1+EPIM'P SERVICES FISCAL YEAR 2009/10-2010/11-2011/12 THIS AGI IEEMENIis made and entered this Nineteenth , day of Mai , 2009 , by and between the CITY Oh RANCHO PALOS V11iRDES, hereinafter referred io as "City" and NATIONWIDE ENVIRONMl_NI'AI, SEIZVIC ESS llIV Oi._ll 'SW4)'_Ll'INCa_N('_, hereinafter referred to as "Conti -actor," WITNESSE"1'H M11iR1 AS, Contractor and C.oritractor's Surety are providing the bonds attached hereto and incorporated by this reference, and WHEREAS, City desires to contract with Contractor to perform the services detailed in this contract, including the Proposal, and WHEREAS,, Contractor has represented that it is fully qualified to assurne :and discharge such responsibility; NOW, THEREFORE, the parties hereto do agree as follows: She of Services. City hereby employs Contractor to perform the work and provide the services and materials for the project identified as: STREET SWEEPING SERVICES FISCAL YEAR 2009110-2010111-2011112 as described in these Plans and Specifications, attached hereto and incorporated herein by this reference, including miscellaneous appurtenant work. Such work shall be performed in a good and workmanlike manner, under the terms as stated herein and in these Plans and Specifications, and in accordance with the latest edition of the Joint Cooperative Committee, Southern California Chapters of the American Public Works Association and the Associated General Contractors of America, document entitled "Standard Specifications." In the event of any conflict between the terms of this agreement and any of the above -referenced documents, the terms of this agreement shall be controlling. la. Term: The contract shall commence on July 1, 2009 and shall continue in full force and effect through and including June 30, 2012 unless earlier termination as provided in Section S herein. The contract may be extended to three (3) additional one year terms by mutual consent of both parties. 2. ConlVensation. In consideration of the services rendered hereunder, Contractor shall be paid according to the prices as submitted on the Bid Sheet of the Proposal, attached hereto as a part of these Plans and Specifications and in accordance with the Special Provisions, 3, Ind 1t2m went t ontractor. It is specifically understood and agreed by all parties hereto that Contractor is, for the purposes of this Agreement, an independent contractor and not an employee of the City. Accordingly, Contractor shall not be deemed the City's employee for any purpose whatsoever, Contractor shall not incur or have the power to incur any debt, obligation or liability whatever for or against City. AssiggtpK,llj. This agreement may not be assigned by Contractor, in whole or in part, without the prior written consent of City. K T r inination, This Agreement may be canceled by City at any time without penalty upon thirty- (30) days' Nwitten notice. In the event of termination without fault of Contractor, the City shall pay Contractor for all services rendered prior to date of termination, and such payment shall be in full satisfaction of all services rendered hereunder, Workers' Compensation insurance. California Labor Code Sections 1860 and 3700 provide that every contractor will be required to secure the payment of compensation to its employees. In accordance with the provisions of California Labor Code Section 1861, the Contractor hcreby certifies as follows: "l am aware of the provisions of Section 3700 of the Labor Code which require every employcr to be insured against liability for workers' compensation or to under take self- insurance elfinsurance in accordance with the provisions of that code, and l will comply with such provisions before cornrrreneing the performance of the work of this contract." Dispute: Resolution. This contract is subject to the provision of Article 1.5 (commencing at Section 20104) of Division 2, fart 3 of the California Public Contract Code regarding the resolution ofpublic works claims of less than $375,000. Article 1.5 mandates certain procedures for the filing of clairns and supporting documentation by the contractor, for the response to such claims by the contracting public agency, for a mandatory meet and confer conference upon the request of the contractor, for mandatory non-binding mediation in the event of litigation is commenced, and for mandatory judicial arbitration upon the failure to resolve the dispute through mediation. This contract hereby incorporates the provisions of Article 1.5 as though fully set forth herein. Suit; �ecrrver of Attome;Y „Fees & Costs, Should either par#y bring any action to protect or enforce its rights hereunder, the prevailing party in such action shall be entitled to recover, in addition to all other relief, its reasonable attorney fees and court costs. Insurance Requirements, The Contractor shall at all times, during the term of this contract, carry, maintain and keep in full force and effect, a policy or policies of (l) general liability insurance with an insurance company admitted to write insurance in California, or carriers with a rating of, or equivalent to, ANII by A. M. Best & Company to, and approved by, the Director of Public Works and City Attorney, within minimum limits of One Million Dollars ($1,000,000.00) combined single limit coverage with an aggregate of Two Million Dollars ($2,000,000.00) against any injury, death, loss or damage as a result of wrongful or negligent acts or omissions by the Contractor, its officers, employees, agents, and independent contractors in performance of services under this Agreement; (2) automotive liability insurance with a minimum combined single limits coverage of One Million Dollars ($1,000,000.00) with an aggregate of 7'wo Million Dollars ($2,000,000.00); and (3) worker's compensation insurance as required by law, The Contractor shall at all times during the term of this contract carry, maintain and keep in full force and effect a policy or policies of Workers' Compensation insurance and shall provide to the City evidence of such coverage in the form set forth herein. The City, its officers, employees, attorneys, and volunteers shall be named as additional insured on the policy (ics) as to comprehensive general liability, properly damage, and worker's compensation coverages. 1, All insurance policies shall provide that the insurance coverage shall not be non -renewed, canceled, reduced, or otherwise modified (except through addition of additional insured to the policy)by the insurance carrier without the insurance earricr giving, the City thirty (30) day's prior written notice thereon, The Contractor agrees that it will not cancel, reduce or otherwise modify said insurance covcrage, The Contractor agrees that if it does not keep the aforesaid insurance in full farce and effect, and such insurance is available at a reasonable cost, the City may take out the necessary insurance and pay the premium thereon, and the repayment thereof shall be deemed an obligation of the Contiactor and the cost of such insurance may be deducted, at the option of the City, from payments due the Contractor. 3. The Contractor shall submit to the City (l) insurance- certificates indicating compliance with the minimum worker's compensation insurance requirements above. and (2) insurance policy endorsements above, not less than one (1) day prior to beginning of performance under this Agreement. Endorsements must be executed on the City's appropriate standard forms entitled "Additional Insured Endorsement," copies of which are attached hereto. A, Upon the request of the Director of Public Works, or his authorized representative, the Contractor shall provide written notice to the Director of Public Works indicating all litigation and claims (past, current, or anticipated) between the Contracto► and any claimants that may affect the aggregate insurance coverage. 10. Licensed in accordance with the City of Rancho Palos Verdes: License No. 09 OQ44 3-2'7 A r Date Issued: ! 109 IN WITNESS WHEREOF, the parties hereto have executed the within Agreement the day and year first above written. CITY ()r1rA CHH 1 let I:S BY: C 0'.1 Mayor KI TUST: City Clerk CONTRACTOR: 13y: - kV4( Never Samuel i.an __ ] 9, _?M Primed Nance Date Exhibit 8 MAI' DEPICTING SERVICE ARFIA 2 Exhibit K Page 1 of I 'y I& Map of UWS- Service Area 2 `a AN cs' Au u � Y s t _�e7��" rlt� '{•� NT PIC • W 4� tEuurr pa -Aprrrr 12 rn t C tt r• J' fpr rrPCr o �. P VINT rrPM. �S_�vim• _-+.�x'_;w 0 nomas r� yER ��. • �lfr Q4AD STA=D' - d?a:•3F � ��-./ low °°°7d�T INsvtiurrov — POINT POINT Area A =Curbside Automated Service. Non -Gated Areas. No Changes - Area Previously Designated as Manual Unlimited Backyard Service. Now Changing to Automated Curbside Service N C Manual Unlimited Backyard Service. Gate Areas. No Changes_ W .p MD -Manual Unlimited Backyard Service. Non -Gated Areas. No Changes. S E o� � r: r".• �rA i_ �G of t •� YrcT_., T;U 't w 012 f -r.( D - C,a��lliy�. �L.–.:... yZ V --J1.1 L L_- r J�i%!ru EXHIBIT $ -�• 4 :'��` `'r 4 �... �. _ OT�,4 onm cow "W ` • R I 06 %�EE . 00&Aim low °°°7d�T INsvtiurrov — POINT POINT Area A =Curbside Automated Service. Non -Gated Areas. No Changes - Area Previously Designated as Manual Unlimited Backyard Service. Now Changing to Automated Curbside Service N C Manual Unlimited Backyard Service. Gate Areas. No Changes_ W .p MD -Manual Unlimited Backyard Service. Non -Gated Areas. No Changes. S E o� � r: r".• �rA i_ �G of t •� YrcT_., T;U 't w 012 f -r.( D - C,a��lliy�.