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RPVCCA_CC_SR_2015_06_30_C_Assignment_Of_UWS_Agmt_To_EDCO_Disposal_CorpCITYOF MEMORANDUM PALOS VERDES TO: HONORABLE MAYOR & CITY COUNCIL MEMBERS FROM: MICHAEL THRONE, P.E., DIRECTOR OF PUBLIC WORKS DATE: JUNE 30, 2015 SUBJECT: APPROVE THE ASSIGNMENT OF UNIVERSAL WASTE SYSTEMS, INC.'S CONTRACT TO EDCO DISPOSAL CORPORATION; APPROVE AMENDMENT #1 TO EDCO DISPOSAL CORPORATION'S CONTRACT (Supports 2014 City Council Goal of Government Efficiency, Fiscal Control and Transparency) REVIEWED BY: DOUG WILLMORE, CITY MANAGER(ff)fc11'' p'" 1 Project Manager: Lauren Ramezani, Senior Administrative Analyst #__ RECOMMENDATIONS 1. Approve Amendment #1 to EDCO Disposal Corporation's (EDCO) contract. 2. Approve the assignment of Universal Waste Systems, Inc.'s (UWS) residential solid waste contract (Service Area 2) to EDCO, including waiving the applicable transfer fees. 3. Authorize the Mayor and City Clerk to sign Amendment #1 to EDCO Disposal Corporation's (EDCO) contract, which includes the assignment of Universal Waste Systems, Inc.'s contract. BACKGROUND 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. 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 about the possibility of consolidating the contracts. During recent contract negotiation discussions with EDCO, staff received a letter from UWS announcing that they had reached an agreement with EDCO for acquisition of UWS' franchise agreement, effective July 1, 2015, pending: a) approval of the assignment of 1 UWS Contract Assignment/EDCO Contract Extension June 30, 2015 Page 2 of 3 UWS' contract by the City Council, and b) the City Council's approval of EDCO's proposed contract extension. On June 16, 2015, the City Council approved the extension of EDCO's residential contract until June 30, 2020, including seven additional automatic one year extension options based on mutual consent of the City and EDCO. Furthermore, Council approved the modification to the Collector and Environmental Fees allocation among General Fund and Waste Reduction Funds. At the same meeting, staff also recommended approval of the assignment of the UWS contract to EDCO. However, due to a lack of a quorum for the UWS assignment issue (two Council members were absent, and Mayor Knight who was present at the meeting recused himself due to residing in the UWS service area) the item could not be acted upon. Pursuant to Council direction, staff is bringing this item back for Council consideration and approval of the contract amendment, including the assignment. If approved, the contract assignment would create one Citywide residential hauler. This consolidation would improve efficiency, increase uniformity and customer service throughout the City and make services, billing, outreach, State reporting and new program implementation more efficient. It also would retain each area's unique and customized services and rates. As for servicing the more challenging landslide area, EDCO has experience in servicing hard to reach areas including providing backyard service in narrow and steep driveways and streets in RPV. EDCO has hundreds of such "pup" truck accounts throughout the City, especially the streets and homes off of PVDE. EDCO operations staff and management have inspected the UWS route and do not see any un- manageable service issues or difficulties. Staff is recommending that the City Council waive the applicable transfer fees, because those fees are not being incurred by the City as a result of this transfer, due to the fact that EDCO is well known to the City. PUBLIC OUTREACH: Staff has provided outreach to the UWS customers in early June via a courtesy notification letter, a list server breaking news email, and a notice in PV News. More outreach will be distributed upon approval of the assignment. Customers will also be notified that there will be a rate freeze in FY 15-16; thus their rates and discounts will remain the same and unchanged. If approved, the assignment would be effective July 1, 2015, and the first day of service changeover would be on the route's first collection day in July, which is Thursday, July 2, 2015. ALTERNATIVE The City Council may not approve this assignment. However, the consolidation of services is beneficial to customers and the City, and it will be handled by EDCO, the City's current service provider. K UWS Contract Assignment/EDCO Contract Extension June 30, 2015 Page 3 of 3 As a result of the consolidation of the two contracts, the City's total Collector and Environmental Fees would be approximately $541,800 and $136,840, respectively. There will be no increase in the fees since current rates will not change and remain frozen for FY 15-16. Attachment: Amendment # 1 to EDCO's Contract (page 4) Exhibit A (page 13) Exhibit B (page 16) Exhibit C (page 19) Exhibit 8 (page 30) 3 r 1 AND EDCO DISPOSAL CORPORATION FOR RESIDENTIAL SOLID WASTE 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 PALOS 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". 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. B. 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 I 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 valuable consideration, the receipt and sufficiency of which are hereby acknowledged, City and Contractor do hereby agree as follows: R6876-0333\18421170.doc -1- Cl 1. 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; (b) Receipt by City of evidence reasonably satisfactory to the City Attorney that UWS 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 1 and Service Area 2. 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 1" in the EDCO Agreement are hereby revised to read "Service Area 1 and Service Area 2". 5. A map depicting Service Area 2 is attached hereto, and is hereby added to the EDCO Agreement as Exhibit 8. 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 1 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: K6876-0333\18421 170.doe -2- 5 "2.4 Term of Agreement The term of this Agreement shall commence on July 1, 2015 and expire June 30, 2020 (the "Term"), 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 Term of the Agreement shall remain between six (6) months and eighteen (18) months. If all of the automatic extensions take place, the Term shall expire on June 30, 2027. Commencing January 1, 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 1 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 way of example only: the Term 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." 9. Section 2.5 of the EDCO Agreement is hereby deleted. 10. For the period commencing 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, 11. 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 of the EDCO Agreement, as follows: "4.4.5 Organics Recycling Plan 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. 86876-0333\18421 170.doc -3- on 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 Plan." 14. All references to "Cart" in Subsection 4.6.4.2 of the EDCO 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: 114.14 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 be Customer's back 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 Beach 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 tied and bundled as set forth in Section 4.4.1 above, placed at the same Collection location as Customer -provided Refuse Containers, once per week from Manual R6876-0333\1842117v3.doe -4- 7 Collection Customers. Contractor shall provide a sufficient number of Containers to each Customer to meet each Customer's individual needs. 4.18 Brush Clearing Events Contractor shall provide and service sufficient Roll -Off Boxes up to twice per year to each homeowners' association 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 for the Rate Year commencing July 1, 2014 for Service Area 1 and Service Area 2 are attached hereto as Exhibits A and B, respectively. Notwithstanding Article 6 of the EDCO Agreement and Article 6 of the UWS Agreement, Contractor will freeze the City approved July 1, 2014 rates through June 30, 2016 for both Service Area 1 and Service Area 2. In calculating the July 1, 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%, with non -permitted increases permitted to be applied to any subsequent year's increase to the extent the annual increase does not exceed 8%. (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: "6.4.3 Rate Adjustment Steps All rates will be adjusted using the same methodology and cost component weightings. See Exhibits 5A, 5B and 5C. Exhibit 5A, Step One - Calculate Percentage 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. R6876-0333\18421 170.doc -5- C • 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 513, 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 86876-0333\18421 170.doc -6- 9 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, Column 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, Step 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, Step Four - 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 fee surcharges 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 City'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 (i) default of the street sweeping contract that is not the result of the negligence or willful 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\1842117v3.doc -7- 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 July 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 terms 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 within ten (10) days following resolution of the dispute. 86876-0333\18421 17v3.doc -8- 11 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 Amendment, the EDCO Agreement remains in full force and effect without modification or impairment. 22. Counterparts. This Amendment may be executed in one or more counterparts, each 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 RANCHO 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 EDCO DISPOSAL CORPORATION., a California Corporation By: Its: By: Its: R6876-0333\1 8421170.doc -9- 12 Exhibit A MAXIMUM RATES FOR SERVICE AREA 1 IN EFFECT UNTIL JUNE 30, 2016 Exhibit A Page 1 of 1 13 S11111 219 1111P11117 I P! 111 1 Rates Effective 7/1/2015 (No Change from 2014) EDCO SINGLE-FAMILY RATES Monthly Cart Service One each Refuse, Refuse Cart Size: 35 -gallon 64 -gallon 96 -gallon Standard Service $19.40 $24.97 $30.52 Additional Refuse Cart $6.67 $8.90 $11,13 Additional Recycling Cart Free Free Free Additional Green Waste Cart (above three) $2.23 n/a $4.45 Other Cart Rates and Services (Charged in $237.30 $61.68 Backyard Service - per $120.57 $6.86 Pu12 Service - 12er home $222.72 $5.72 Backyard and Pu $71.96 $9.14 Senior Rate Reduction $309.23 10% Low-income Rate $547.52 5% Annual Payment Rate 4 -yard 5% Additional Special Overage Pickup for Automated Cart $222.72 $5.56 Additional Bulky Item 1 $354.53 $27.82 Cart Exchange after free- $275.29 $16.69 Cart Re -delivery Fee if $547.59 $27.82 Re -Start Fee - after $166.73 $16.69 Including all fees retained by, or paid to, City. Monthl Bin Rates on amer Size Pickups 2 3 4 5 6 Extra Pickups 2 -yard $86.49 $120.53 $154.57 $171.59 $222.68 $237.30 $61.68 3- and $120.57 $154.61 $188.67 $222.72 $273.75 $284.55 $71.96 3 -yard w compactor $241.12 $309.23 $377.30 $445.42 $547.52 $569.06 $143.94 4 -yard $137.65 $171.62 1 $222.72 1 $273.79 1 $333.57 1 $354.53 $82.25 4- and wZ com actor $275.29 $343.27 $445.44 $547.59 $664.86 $709.07 $166.73 6 -yard 1 $171.70 $230.32 $273.80 $324.89 $377.57 $394.73 $123.38 Reaclin binj cart No char&e M Exhibit 4 City of Ranch® Palos Verdes - Area 1 EDCO Rates Effective 7/1/2015 (No Change from 2014) Additional Service Rate Per Service Charges (Fixed) Bin Cleaning Per Bin $50.05 Bin Overage Clean-up $22.24 (following one written Single Family Additional Bulky Item $27.82 pickups (in excess of three Emergency Service Rates $94.55 - one crew and one Recycling Rebate Rebate per Unit Collector (Fixed) Per Month $127,906 I Recycling Rebate Fixed $1.58 (No Change/ Rate adjusted per Section 3.2.3 only) Single Family Multi-Farnil y $1.58 (No Change/ Rate adjusted per Section 3.2.3 only) Fees ��� Collector $506,065 Environmental $127,906 I Recycling Rebate Fixed Note 1 Note 1: Rebated directly to Customers Effective 1/1/2013 15 Exhibit B MAXIMUM RATES FOR SERVICE AREA 2 IN EFFECT UNTIL JUNE 30, 2016 Exhibit B Page I of I 16 11!111 111!111! lir 11111��111;11: FY 15-7.6 Effective 7/1/2015 (No Change from 2014) Single -Family Maximum not to Exceed Rates Monthly Manual Service Rates Backyard Service for refuse, recycling, and green $60.62 waste "- per home per month Manure 32 -gal customer -provided can (per can per $22.04 month) Monthly Automated Cart Service Rates One each Refuse, Recycling, and Green Waste Cart, rate based upon Refuse Cart size: Refuse Cart 35 -gallon 64 -gallon 96 -gallon Size: Standard $19.40 $24.97 $30.52 Service, based on refuse cart size. Additional $6.67 $8.90 $11.13 Refuse Cart Additional free free free Recycling Cart Additional $2.23 n/a $4.45 Green Waste Cart (over three carts) Other Cart Rates and Services (Charged in Addition to Monthly Cart Service Rates) Backyard Service - per home per month, all cart 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 $27.82 pickups per dwelling unit per year), per item Cart Exchange (after free -exchange period), per $16.69 request Cart IZe-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 carts have not been pulled, per re -start C:\Users\awalsh\AppData\Local\Microsoft\Windows\Temporary Internet File s\Content.0utlook\GGHMZTLM\Copy of UWS- City of RPV 2015 same as 2014 final.xlsx / Rate Sheets 6/5/2015, 6:16 PM Iof2 17 FY 15-16 Effective 7/1/2015 (No Change from 2014) Multi -Family FY 15-16 Effective 7/1/2015 (No Change from 2014) Following are the not to exceed rates for Jul X 1, 2015 through June 30, 2016: Other Bin Service Rates - Per Month No. Pickups per week Bin Service 1 2 3 4 5 6 Monthly Bin Rates $9.79 $11.16 $12.54 Container Size 1 2 No. Pickups per week 3 4 5 6 Extra Pickups 2 -yard $76.06 $106.03 $135.46 $150.63 $194.87 $224.56 $16.53 3- yard $105.83 $135.49 $165.22 $194.91 $240.55 $270.41 $27.56 4- and $120.74 $150.38 $194.96 $240.59 $290.67 $336.80 $38.58 Manure 3- and $137.76 $27.56 Recycling bin cart No charge Other Bin Service Rates - Per Month No. Pickups per week Bin Service 1 2 3 4 5 6 Locking Bin $7.84 $9.79 $11.16 $12.54 $13.91 $15.29 Service $27.56 warning) Per Clean Up Additional Bulky Item pickups (in excess of three free Scout Vehicles $29.03 $49.85 $70.25 $90.85 $111.48 $132.10 Bin Push -Out $44.04 $78.40 $105.85 $133.33 $160.81 $188.30 Service (35 feet or further) Additional Service Charges Rate Per Service Portuguese Bend Beach Club - beach litter container $2,204.13 collection per month (not to exceed) Bin Cleaning Per Bin $27.56 Bin Overage 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 and one $93.67 collection truck (Per Hr) Proposed fees PY 15-16 Amount Collector $35,735 Environmental $8,930 Rec clin Rebate $0 Rebate offered to customers as of 1/1/2013. No change. C\Users\awalsh\AppData\local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\GGHMZTLM\Copy of UWS- City of RPV 2015 same as 2014 fmal.xIsX / Rate Sheets 6/512015, 6:16 PM 2 of 2 • Exhibit C JOE'S SWEEPING AGREEMENT, AS AMENDED Exhibit C Page 1 of 1 W CITY OF RANCHO PALOS VERDES CKI►(lll. s x7111:1 STREET SWEEPING SERVICES FISCAL YEAR 2009/10-2010/11-2011/12 THIS AGREEMENT is made and entered this Nineteenth _ day of May �2009, by and between the CITY OF RANCHO PALOS VERDES, hereinafter referred to as "City" and NATIONWIDE ENVIRONMENTAL SERVICES DIV. OF JOI'S,rSWEEPM, INC., hereinafter referred to as "Contractor." WITNESSETH: WHEIREAS, Contractor and Contractor'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 assume and discharge such responsibility, NOW, THEREFORE, the parties hereto do agree as follows: 1. Sco}ze 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 2009/10-2,010/11-2011/12 as described in these Playas 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 5 herein. The contract may be extended to three (3) additional one year terms by mutual consent of both parties. 2. Compensation. 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, Independent Contractor. 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. 4. Assimnient. This agreement may not be assigned by Contractor, in whole or in part, without the prior written consent of City. 20 7 crrnination. This Agreement may be canceled by City at any time without penalty upon thirty- (30) days` written 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. 6. Workers' Com�rensation 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 hereby certifies as follows: "1 am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers' compensation or to under take self- insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract." Dis ute 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 Coderegarding the resolution of public works claims of less than $375,000. Article 1,5 mandates certain procedures for the filing of claims 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 mandatoryjudicial 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: Recovery, of Attorney Fees & Costs. Should either party bring any action to protector 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 tern of this contract, carry, maintain and keep in full force and effect, a policy or policies of (1) general liability insurance with an insurance company admitted to write insurance in California, or carriers with arating 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 vchth 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 Two 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 (ies) as to comprehensive general liability, property 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 carrier giving the City thirty (30) day's prior written notice thereof. The Contractor agrees that it will not cancel, reduce or othenvise modify said insurance coverage. RE 2. The Contractor agrees that if it does not keep the aforesaid insurance in full force 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 Contractor and the cost of such insurance may be deducted, at the option of the City, from payments due the Contractor. 1 The Contractor shall submit to the City (1) insurance certificates indicating compliance with the minimum worker's compensation insurance requirements above, and (2) insurance policy endorsements above, not less than one (l) 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 Contractor and any claimants that may affect the aggregate insurance coverage, 10. Licensed in accordance with the City of Rancho Palos Verdes: License No {�.( 060..2 "%.._.._ ...,v Date .Issued: _ 2C .. IN WITNESS WH} REOE, the parties hereto have executed the within Agreement the day and year first above written. CITY C' ZA CIIO I'RT E Mayor ATI'EST: Ey: _ City Clerk CONTRACTOR: Printed Name Date 22 La5.' 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: By: City Clerk CITY OF RANCHO PALOS VERDES ("CITY') By: Mayor NATIONWIDE ENVIRONMENTAL SERVICE div. OF JOE'S SWEEPING, INC. ("CONTRAC Signature: Printed Name: A-ni samuelian Title: "dice President 23 a. V �TA AM « • Amendment to Agreement between Environmentalthe City of Rancho Palos Verdes and Nationwide of •e's Sweeping, 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 if 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. 86876-0001\1542106v1.doc M 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. 11911 F;�rzt 2+ rnct NQ,ml k CA 9n 50 , Section & 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.] 16876-000111542106v 1.doc 25 IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date and year written below. Dated: April -10 , 2013 NATIONWIDE ENVIRONMENTAL RVI ES NG 'OUS SWEEPINT INC. 'Cont actr?)J Printed Name: Ani Samuelian Title: Vice Pzeoident By: Printed Name: suzy samu --euan Title: Corporateae=t-ary CITY OF RANCHO PALMS VERDES ("City") By. T&r,= Maor ATTEST: City Clerk R687"001 \1 542106vl,doc 26 This agreement is the third amendment (`Third 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. 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. Sedbon 1. The name of the Contractor is hereby amended from "Nationwide Environmental Services Div. of .foe's Sweeping, Inc." to "Joe's Sweeping, Inc. d/b/a Nationwide Environmental Services.„ Section 2: Section 1a of the Agreement is hereby amended to read as follows: "Terni of Contract. This Agreement shall commence on July 1, 2009, and shall terminate on June 30, 2015, unless sooner terminated pursuant to Section 5 of this Agreement." Section 3. Section 10 of the Agreement is hereby amended to read as follows: "Na 'ce. 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: Michael Throne, Public Works Director City of Rancho Palos Verdes 30940 Hawthorne Blvd, Rancho Palos Verdes, CA 90275 To CONTRACTOR: Never Samuelion Joe's Sweeping, inc. 11914 Front Street Norwalk, CA 90650" x26676 -000111542108x1. dor, M Third Amendment to Agreement between the City of rancho Palos Verdes and Nationwide Environmental Services Div. of Joe's Swooping, Inc. This agreement is the third amendment (`Third 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. 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. Sedbon 1. The name of the Contractor is hereby amended from "Nationwide Environmental Services Div. of .foe's Sweeping, Inc." to "Joe's Sweeping, Inc. d/b/a Nationwide Environmental Services.„ Section 2: Section 1a of the Agreement is hereby amended to read as follows: "Terni of Contract. This Agreement shall commence on July 1, 2009, and shall terminate on June 30, 2015, unless sooner terminated pursuant to Section 5 of this Agreement." Section 3. Section 10 of the Agreement is hereby amended to read as follows: "Na 'ce. 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: Michael Throne, Public Works Director City of Rancho Palos Verdes 30940 Hawthorne Blvd, Rancho Palos Verdes, CA 90275 To CONTRACTOR: Never Samuelion Joe's Sweeping, inc. 11914 Front Street Norwalk, CA 90650" x26676 -000111542108x1. dor, M Section 4. The following Section 11 is hereby added to the Agreement: "Licensed in accordance with the City of Rancho Palos Verdes under "nationwide Environmental Services," license number 3274-14, which was issued on January 9, 2014. Section 6. The following Section 12 is added to the Agreement; "Fictitious 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 City 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 15, 2014 through June 30, 2015, 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 bythe City Attorney." cg2n 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. [Signatures on next page) R6876-000111642106vi.doc M• Dated: September_, 2014 JOE'S SWEEPING, . d/b/a NATION E ENVRONMENTAL-) s ERVI I "Go ra or") By: Printed Name: A * T ­ T E ST, /121, By: City Clerk 86876-0001 \1642106v 1,doC Title: M - v Printed Naw, e: Lzy- Ll a Y mw- n Title: CITY OF RANCHO PALOS VERDES Ccitvl) 29 Exhibit 8 MAP DEPICTING SERVICE AREA 2 Exhibit 8 Page I of I Wt ggg r F� y rt r VIA rusrr WE AT rt an 4 Map of UWS- Service Area 2 W VL 91, L nfl DAKV CfIx EXHIBIT $' ~�- i 4 4 ww AM :aNf itliA Area A Curbside Automated Service. Non -Gated Areas. No Changes. per. . rclrn��.sf �� PTAO 'IkV7161T7(w AgART ew L7 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 W D =Manual Unlimited Backyard Service. Non -Gated Areas. No Changes. S E CgT9�44 •' reTi> � r � ••� CR le% r,K IOtMr YlQMQ \ A IGff am srmrm HINT ricarf t CA f c.. j W VL 91, L nfl DAKV CfIx EXHIBIT $' ~�- i 4 4 ww AM :aNf itliA Area A Curbside Automated Service. Non -Gated Areas. No Changes. per. . rclrn��.sf �� PTAO 'IkV7161T7(w AgART ew L7 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 W D =Manual Unlimited Backyard Service. Non -Gated Areas. No Changes. S E CgT9�44