RPVCCA_CC_SR_2012_02_21_K_UWS_2nd_Amendment_Residential_Solid_Waste_AgreementCITY OF
MEMORANDUM
RANCHO PALOS VERDES
TO:
FROM:
DATE:
SUBJECT:
REVIEWED:
Project Manager:
HONORABLE MAYOR &CITY COUNCIL MEMBE
TOM ODOM,DIRECTOR OF PUBLIC WORKS
FEBRUARY 21,2012
APPROVE SECOND AMENDMENT TO UNIVERSAL
WASTE SYSTEMS,INC.'S RESIDENTIAL SOLID WASTE
AGREEMENT
CAROLYN LEHR,CITY MANAGER ~
Lauren Ramezani,Sr.Administrative Analyst 'ff--
RECOMMENDATION
Approve the Second Amendment to Universal Waste Systems,Inc.'s residential solid
waste agreement.
BACKGROUND
Universal Waste Systems,Inc.(UWS)is the City's exclusive residential solid waste
provider for Service Area 2.Their negotiated agreement,approved on May 5,2009,went
in~o effect'on July 1,2010.UWS has serviced the City since 2004.UWS's service area
represents 5%of the City and includes the Portuguese Bend landslide and the City's
southern and coastal areas.UWS has approximately 530 single-family customers.
EDCO services the remaining 95%of the City.
Service Area 2,although small,has several unique service levels due to the area's
challenging geography.UWS services both gated and non-gated communities.
Additionally,some neighborhoods receive manual backyard service,while others receive
automated curbside service.Two different trucks,one manual and one automated,
operate in these areas.
During the contract negotiation process in 2009,staff reached out to all the HOAs within
the UWS service area.The outreach was through mail,e-mail,City newsletter,City
website,telephone calls and attending HOA meetings.The feedback received was
positive and supportive of UWS's services.Furthermore,the areas historically receiving
K-1
UWS's Second Amendment
February 21,2012
Page 2
backyard service informed staff that they wished to continue receiving the more
personalized and labor intensive backyard service,and were willing to pay the
corresponding higher backyard rate.
DISCUSSION
Service Area 2 had not had any significant changes in routing and operations for over two
decades.As result,there were many arbitrary (and individualized)service levels,mixed
rates and routing.Through time this became not only confusing,but also created
operational inefficiencies.
During negotiations in 2009,these issues were identified and addressed.As a result,
when the current agreement went into effect in July 2010,it included route and service
clarity,and improved operational and collection efficiency.It established route uniformity,
provided standardized services,incorporated the various HOAs requests and considered
neighborhood aesthetics.Therefore,the attached current agreement identifies two
exclusive service areas:the manual backyard and the automated curbside service areas
(see sections 4.2.6 and 4.2.1).Each is described in more detail below:
Manual Unlimited Backyard Service-For the backyard service areas,there is no limit to
the number of trash,recycling and green waste cans serviced.This service level is very
labor intensive and time consuming.Therefore,the fixed monthly rate of $56.38/mo is
significantly higher than the automated curbside rates of $18/mo to $28/mo.UWS
operates a manual split-bodied truck with a driver and a helper.The helper retrieves the
manual cans from the customers'storage location,lifts and empties them by hand,and
then places the cans back in the storage location.The manual cans are smaller and
lighter than automated carts,so they could be lifted by hand.UWS has 330 backyard
cL!stomers with each averaging over 5-6 cans per week.EDCO does not offer manual
service in the City.
Automated Curbside Service-UWS's curbside customers receive automated service.
Customers pay a variable monthly rate of $18/mo to $28/mo,depending on the size of
their trash cart.The automated truck lifts and empties the automated carts placed at
curbside.UWS and EDCO's rates and services are similar because UWS is
contractually obligated to match EDCO's automated rates and services.This assures
uniformity of automated services throughout the City.
Additionally,automated customers have the option for backyard service.The monthly
backyard service surcharge is approximately $6.40,which was set by EDCO,and is
matched by UWS.Customers may select backyard service due to physical constraints,
convenience,or limited curb space.The automated truck stops at the curb;the driver
retrieves the automated carts from their stored location and brings them to the curb.The
truck lifts and empties them,and then the driver wheels the carts back in their storage
location.
W:\Pam\Staff Reports\2012\01-21-12\UWS residential contract\uws amend #2 resid SR ..doc K-2
UWS's Second Amendment
February 21,2012
Page 3
Petition for Change-Arrowroot Lane (Arrowroot)has historically been within UWS's
backyard service area.However,a few homes received curbside service at a reduced
rate.UWS's current agreement identifies that area as within the exclusive backyard
service area.UWS granted these curbside customers a 15-month (July 2010 to Sept
2011)grace period.Then pursuant to their agreement,in October 2011,they began
charging all Arrowroot customers the contract approved backyard rate of $56.38/mo.
In late November 2011,the City received a signed petition from residents of Arrowroot
(15 homes)requesting a change from their current backyard services of $56.38/mo to
curbside services of $18/mo to $28/mo.This request,if granted,requires changes to the
current UWS agreement.
In December 2011,staff met with UWS senior management and discussed the matter.
UWS expressed their sincere desire to work with the City and keep their customers
satisfied.UWS proposed to change the services from manual unlimited backyard service
to automated curbside service.
However,Arrowroot is connected to two other streets:Tarragon Road (15 homes)and
Upper Barkentine Road (33 homes).These three streets comprise the Upper Barkentine
area (See Area B in "Enlarged Map").According to UWS,changes to services for only
one street is not operationally feasible and leads to excessive truck traffic,noise and road
wear and tear.Thus,any proposed route changes would have to include all three streets.
Since two of the three streets,Tarragon and Upper Barkentine Road,had not requested
any service changes,UWS conducted an extensive public outreach in the Upper
Barkentine area.In January 2012,UWS representatives personally met all of the
residents of the three streets (approximately 60),and presented their proposal.The
customer comments received were either positive or neutral.Additionally,customers
provided UWS with their preferred size of trash,recycling and green waste carts.Finally,
the Upper Barkentine customers,similar to all other automated routes,can pay a monthly
surcharge and receive backyard service.A quarter of the 60 customers have opted to
receive the backyard service.
UWS did not receive any negative feedback and staff did not receive any comments or
complaints either.Therefore,UWS is now prepared to proceed and implement proposed
changes in collection services for these three streets.Staff concurs with UWS's proposal
and concludes that the matter of the petition could be resolved to the parties'satisfaction.
An amendment to UWS's agreement is needed to revise their designated backyard and
curbside service areas.The attached proposed amendment represents the first routing
change to the current agreement.(See amendment and map)
Furthermore,as a show of good faith,UWS has agreed to absorb the additional cost of
PL!rchasing automated carts and re-routing the Upper Barkentine area.This cost would
be in addition to UWS's estimated $20,000 annual loss in revenue because of the
change from the higher manual backyard monthly rates to the lower automated curbside
rates.
;;
W:\Pam\Staff Reports\2012\02-21-12\UWS residential contract\uws amend #2 resid SR ..doc K-3
UWS's Second Amendment
February 21,2012
Page 4
Finally,UWS has informed staff that due to their overall service area being small with a
limited number of customers,they are unlikely to accommodate any further changes to
e~tablished and approved routes and services.
ALTERNATIVE
Do not change the Upper Barkentine services.However,the request for change to
curbside services is initiated by residents of that area.UWS's proposal is in response to
that request.
FISCAL IMPACT
Pursuant to UWS's residential agreement,the City receives 12%of gross revenues for
Collector and 3%for Environmental fees.Due to the reduction in the number of
backyard customers,there will be a nominal decrease ($3,OOO/yr)in the quarterly
payments paid by UWS to the City.
Attach ments:Enlarged Map of Petitioned Area B
Second Amendment
Attachment 6-Map of UWS Service Area 2
--
W:\Pam\Staff Reports\2012\02-21-12\UWS residential conlracl\uws amend #2 resid SR ..doc K-4
Map of a Portion of UWS-Service Area 2
"Enlarged Map"
Area
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5
SECOND AMENDMENT TO
AGREEMENT BETWEEN CITY OF RANCHO PALOS VERDES AND UNIVERSAL
WASTE SYSTEMS,INC.FOR INTEGRATED SOLID WASTE MANAGEMENT
SERVICES
THIS SECOND AMENDMENT TO AGREEMENT FOR INTEGRATED SOLID
WASTE MANAGEMENT SERVICES (this "Amendment")dated as of Febmary 21,2012,is
made and entered into by and between the CITY OF RANCHO PALOS VERDES,a California
municipal corporation ("City"),and UNIVERSAL WASTE SYSTEMS,INC.,a California
corporation ("Company").
RECITALS:
A.City and Company entered into that celiain Agreement Between City of Rancho
Palos Verdes And Universal Waste Systems,Inc.,a California corporation dated May 5,2009
("Agreement").All capitalized terms not otherwise defined in this Amendment shall have the
meanings specified in the Agreement.
B.Pursuant to the Agreement,Company was granted the exclusive right and
privilege to provide Solid Waste and Recyclable Materials Handling Services at Residential
Premises within Service Area 2.
C.Company and City desire to amend the Agreement to clarify the services that
Company is providing within the various areas that are contained within 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 Company do hereby agree as follows:
1.Recitals.The foregoing Recitals are incorporated herein this reference.
2.Section 4.2.1 of the Agreement is hereby amended to read as follows:
"4.2.1 Curbside Cart Refuse Collection
Contractor shall provide all Customers at Single Family Dwellings and Multi-
Fanlily Dwellings without Bin Service,on the streets that receive curbside
Collection (which are depicted as Area A and Area B on the map that is attached
hereto as Exhibit 6,"the Map"),with one Cart ("Refuse Cart(s)"),and shall
Collect all Refuse placed therein for Collection not less than once per week.Such
Customers are "Cart Customers."If there is a dispute between a Customer and
Contractor as to whether Cart or Bin service shall be provided,the City Manager
will make the final determination,which determination shall be final and binding
on the Parties.Cart Customers shall be instmcted to place the Cart(s)in the street
gutter for Collection,unless the Customer receives Backyard Service or flag lot
service.However,Contractor shall relocate Carts for Collection when necessary,
and return them to their original position.
R6876-0333\1427414vl.doc•1
K-6
Cart Customers that regularly require more than one Refuse Cart may request
additional Carts for an additional charge per Cart per month in accordance with
the Rate Schedule.
Customers may select a 35,64 or 96-gallon cart.The 64-gallon cart shall be the
default in the event that a size is not selected.See Section 4.6.4.1 for Cali
selection procedures.
Multi-FaInily Customers receiving Refuse Cart services al'e entitled to the SaIne
services as Single Family Cart Customers and will pay the SaIne rates."
3.Section 4.2.6 of the Agreement is hereby aInended to read as follows:
"4.2.6 Manual Backyard Refuse Collection
Contractor shall Collect Refuse from Customer-provided Containers once per
week from Single-FaInily Customers and Multi-FaInily Customers without Bin
service,in the following areas that have been designated by the City to receive
manual Container service.The areas that will receive manual Container
collection service are depicted as Area C and Area D on the Map.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.Exhibit 6 to the Agreement is hereby replaced with the version of Exhibit 6 that is
attached to this Second Amendment.
5.No further Changes.Except as expressly modified by this Second Amendment,
and as previously modified by the First Amendment,the Agreement remains in
full force and effect without modification or impairment.
6.Counterparts.TIns Second 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.
2
R6876-0333\1427414vl.doc
J K-7
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
Anthony Misetich,Mayor
ATTEST:
Carla Morreale,City Clerk
APPROVED AS TO FORM:
Richards,Watson &Gershon
Carol Lynch,City Attorney
UNIVERSAL WASTE SYSTEMS,INC.,
a California Corporation
By:_
Its:_
By:_
Its:_
3
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