CC SR 20180515 01 - EDCO Rate Adjustment
PUBLIC HEARING
Date: May 15, 2018
Subject: EDCO’s Residential Solid Waste and Recycling Rate Increase Request for FY18 -19
Subject Property/Location: Citywide
1. Report of Notice Given: City Clerk
2. Request for Staff Report: Mayor Brooks
3. Staff Report & Recommendation: Senior Administrative Analyst Ramezani
4. Council Questions of Staff (factual and without bias):
5. Declare Public Hearing Open: Mayor Brooks
6. Testimony from members of the public:
The normal time limit for each speaker is three (3) minutes. The Presiding Officer may grant additional time to a representative speaking
for an entire group. The Mayor also may adjust the time limit for individual speakers depending upon the number of speakers who
intend to speak.
7. Declare Hearing Closed/or Continue the Public Hearing to a later date: Mayor Brooks
8. Council Deliberation:
The Council may ask staff to address questions raised by the testimony, or to clarify matters. Staff and/or Council may also answer
questions posed by speakers during their testimony. The Council will then debate and/or make motions on the matter.
9. Council Action:
The Council may: vote on the item; offer amendments or substitute motions to decide the matter; reopen the hearing for additional
testimony; continue the matter to a later date for a decision.
RANCHO PALOS VERDES CITY COUNCIL MEETING DATE: 05/15/2018
AGENDA REPORT AGENDA HEADING: Public Hearing
AGENDA DESCRIPTION:
Consideration and possible recommendation to approve EDCO’s Residential Solid
Waste and Recycling rate increase request for FY 18-19
RECOMMENDED ACTION:
1) Review and approve EDCO’s Residential Solid Waste and Recycling rate increase
request of 4.12% for FY18-19.
FISCAL IMPACT: If approved by City Council, the City’s annual Collector Fee and
Environmental Fee would increase by 4.12%.
Amount Budgeted: N/A
Additional Appropriation: N/A
Account Number(s): N/A
ORIGINATED BY: Lauren Ramezani, Senior Administrative Analyst
REVIEWED BY: Elias Sassoon, PE, Director of Public Works
APPROVED BY: Doug Willmore, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. Amendment to the Agreement between the City and EDCO Disposal
Corporation for Residential Solid Waste Management Services (minus the
street sweeping section) (page A-1)
B. Current FY17-18 and Proposed FY18-19 Monthly Rates (page B-1)
C. Rate Adjustment Formula & Methodology - Table 5-A (page C-1)
D. Collector and Environmental Fees and Recycling Rebate/Credit (page D-1)
E. EDCO’s Agreement Extension/Cancellation Options (page E-1)
BACKGROUND AND DISCUSSION:
EDCO is requesting a rate adjustment of 4.12% for FY18-19 in accordance with the
terms and the specific adjustment methodology outlined in their agreement.
The City has had an exclusive residential solid waste and recycling agreement with
EDCO Disposal Corporation (EDCO) since July 1, 2010 for Service Area 1. This
agreement consisted of a seven-year base period, 7/1/2010 to 6/30/2017, plus an
extension option of up to 36 months.
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The Agreement was amended on June 30, 2015, and the term of the agreement was
extended to June 30, 2020 (Attachment A). It also included seven, one-year options to
extend based on mutual consent (FY20-21 to FY26-27).
In 2015, as part of the contract extension negotiation, EDCO waived their eligible 4.2%
rate adjustment request for FY15-16. Additionally, EDCO reached an agreement with
Universal Waste Systems, Inc. (UWS) and acquired UWS’ franchise agreement. UWS
serviced the City’s coastal and landslide areas, Service Area 2. This consolidation
improved efficiency, increased uniformity and customer service throughout the City and
made services, billing, outreach, State reporting and new program implementation more
efficient. It also retained Service Area 2’s unique and customized services and rates.
RATE ADJUSTMENT REQUEST: In accordance with Section 6.3 of EDCO’s
agreement with the City: “Adjustments to the maximum rates is subject to the approval of
the City Council at a public hearing, although the Council’s discretion shall be limited to
determining, based on substantial evidence, whether the requested maximum rate
adjustment meets the requirements as set forth herein.”
The City has a specific rate adjustment methodology (RAM), which was prepared by the
City’s procurement consultant and was subsequently approved by the City Council when
the EDCO agreement was approved in November 2009. The RAM outlines the
acceptable cost variables and national approved indices, and provides detailed
guidelines on how future rate adjustments are calculated. This helps calculation
accuracy. Each individual index may go up or down depending on the economy and
other factors. Additionally, there are “caps on increases”, which protect the City from
sudden rate spikes. The formula is found in Section 6.4.3 (Attachments A and C).
Similar methodologies are used by various cities in their recent solid waste franchise
agreements. In March 2018 in accordance with the adjustment formula in the
Agreement, EDCO requested a rate adjustment of 4.12% for FY18-19, with the increase
effective July 1, 2018.
PROPOSITION 218 PROCESS: On November 15, 2016, the City conducted a
Proposition 218 public notification and hearing process. Additionally, the City Council
adopted a formula authorizing automatic fee adjustments for a 5-year period. This
included the re-approval RAM rate adjustment formula. However, this does not mean
that the exact annual adjustment amount is predetermined; it is only the formula that is
preapproved. The various indices outlined in Attachment C, Exhibit 5A, determine the
actual annual percentage change.
Proposition 218 requires that notice of rate changes be given to customers at least 30
days before the effective date of a rate adjustment. Last year, the public hearing
approving the FY 17-18 rates was held on June 6, 2017, therefore the new rates could
not go into effect on July 1st, the contractual billing period. Instead, the new rates went
into effective on August 1, 2017, rather than July 1, 2017. As a result of this one-month
delay, a temporary minor adjustment of 0.28% was made last year, which is being
reversed this year. Therefore, the net rate increase for FY18-19 will be 4.12%. [4.4%-
0.28%= 4.12%].
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This public hearing is being held as a courtesy and for the purposes of transparency for
ratepayers. Courtesy notices of the Public Hearing were published in the May 3 and
May 10, 2018 issues of Peninsula News. Current and proposed new rates are provided
(Attachment B). There are no additional costs or surcharges added to EDCO’s
requested rate increase. Staff and Charles Abbott Associates (CAA), the City’s AB 939
consultant, reviewed the data and calculations provided by EDCO, and found them
accurate and per the Agreement.
SOLID WASTE SUBCOMMITTEE (Subcommittee): The City Council Solid Waste
Subcommittee (comprised of Councilmembers Alegria and Cruikshank), Staff and EDCO
representatives met on Wednesday April 25, 2018, and reviewed EDCO’s rate adjustment
request, the proposed rates, and its adherence to the rate adjustment formula as set forth
in EDCO’s Agreement. The Subcommittee recommended approval of this rate
adjustment request to the full Council.
At the Subcommittee meeting, the discussion also included considering alternative uses
or allocations for the Collector and Environmental Fees, exploring going out for
competitive proposals, comparing rates with other neighboring cities, seeing the history
of the national indices, educating the youth on sustainability and “green practices”, and
EDCO providing an enhanced public education campaign.
Staff is providing information on EDCO agreement’s extension/cancellation options and
deadlines (Attachment E). Typically 15-18 months is needed for a competitive solid
waste procurement process, including (potential) equipment purchases, implementing a
smooth service transition and public education and outreach. At the Council’s direction,
Staff can prepare a staff report and present possible options and include a rate survey of
neighboring cities in the next few months.
ALTERNATIVES:
In addition to the Staff recommendation, the following alternative actions are available for
the Council’s consideration:
1. Do not approve the fee increase. However, this action would be contrary to
the terms of the Agreement.
2. Take other action as deemed appropriate by the Council.
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AMENDMENT TO AGREEMENT BETWEEN CITY OF RANCHO PALOS VERDES
AND EDCO DISPOSAL CORPORATION FOR RESIDENTIAL SOLID WASTE
MANAGEMENT SERVICES
THIS AMENDMENT TO EDCO AGREEMENT FO' INTEGRATED SOLID WASTE
MANAGEMENT SERVICES (" Amendment") dated as of 4_ ___ 0 , 2015, is made and
entered into by and between CITY OF RANCHO PALOS V4' I ES, a California municipal
corporation("City"), and EDCO DISPOSAL CORPORATI t , 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.
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 1 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:
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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.
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 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.
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 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."
8.Section 2.4 of the EDCO Agreement is hereby revised to read as follows:
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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.
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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:
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 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
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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 SC.
Exhibit SA, 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.
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Example disposal component calculations are included in Exhibit 5B and Exhibit
5C:
Exhibit 5B, Step 1: Determine the average disposal cost per ton for non-Orange
County Landfill disposal.
Exhibit 5B, 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 5B, 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 5B, 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 SC 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 SA. For Exhibit SA, 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
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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.
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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.
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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
fight,
ATTEST:
dA-
Carla Morreale, City Clerk
APPROVED AS TO FORM:
Richards, Watson& Gershon
Carol W. Lynch, ty Attorney
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EDCO DISPOSAL CORPORATION.,
a California Corporation
By: zi C
Its:
OttittP2
By: dr
Its: C C ft-A-4-2
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Exhibit A
MAXIMUM RATES FOR SERVICE AREA 1
IN EFFECT UNTIL JUNE 30, 2016
Exhibit A
Page 1 of 1
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Exhibit 4 City of Rancho Palos Verdes - Area 1 EDCO
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 $2.23 n/a 4.45
Cart(above three)
Other Cart Rates and
Services (Charted in
Backyard Service-per 6.86
Pup Service-per home 5.72
Backyard and Pup 9.14
Senior Rate Reduction 10%
Low-Income Rate 5%
Annual Payment Rate 5%
Additional Special 5.56
Overage Pickup for
Automated Cart
Additional Bulky Item 27.82
Cart Exchange(after free- 16.69
Cart Re-delivery Fee(if 27.82
Re-Start Fee-after 16.69
Including all fees retained by,or paid to,City.
Monthly Bin Rates
Container size Pickups
Extra
1 2 3 4 5 6 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 w/compactor $241.12 $309.23 377.30 445.42 547.52 $569.06 $143.94
4-yard 137.65 $171.62 222.72 273.79 333.57 $354.53 $82.25
4-yard w/compactor $275.29 $343.27 445.44 547.59 664.86 $709.07 $166.73
6-yard 171.70 $230.32 273.80 324.89 377.57 $394.73 $123.38
Recycling bin/cart No charge
Other Bin Service Rates-
t3in service Pickups
1 2 3 4 5 6
LockingBin Service 6.86 $9.14 10.28 11.42 13.72 14.85
Scout Vehicles 28.56 $50.27 71.96 93.68 115.38 $137.08
Bin Push-Out Service(35 $47.99 $85.68 117.66 145.08 177.07 $211.33
feet or further)
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Exhibit 4 City of Rancho Palos Verdes - Area 1 EDCO
Rates Effective 7/1/2015(No Change from 2014)
Additional Service Rate Per Service
Charges
Bin Cleaning Per Bin 50.05
Bin Overage Clean-up 22.24
following one written
Additional Bulky Item 27.82
pickups(in excess of three
Emergency Service Rates 94.55
one crew and one
Recycling Rebate Rebate per Unit
Fixed) Per Month
Single Family 1.58 (No Change/ Rate adjusted per Section 3.2.3 only)
Multi-Family 1.58 (No Change/Rate adjusted per Section 3.2.3 only)
Fees
Collector 506,065
Environmental 127,906
Recycling Rebate(Fixed)Note 1
Note 1:Rebated directly to Customers Effective 1/1/2013
A-13
Exhibit B
MAXIMUM RATES FOR SERVICE AREA 2
IN EFFECT UNTIL JUNE 30, 2016
Exhibit B
Page 1 of 1
A-14
Exhibit 4 City of Rancho Palos Verdes - Area 2 UWS
FY 15-16 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
tre 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 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
carts have not been pulled,per re-start
C:\Users\awalsh\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\GGHMZTLM\Copy of UWS-City of RPV 2015 same as 2014 final.xlsx/Rate Sheets
6/ 5/2015,6:16 PM
1 of 2
A-15
Exhibit 4 City of Rancho Palos Verdes - Area 2 UWS
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 July 1,2015 through June 30,2016:
Monthly Bin Rates
No.Pickups per week
Container
Size 1 2 3 4 5 6 Extra Pickups
2-yard 76.06 106.03 135.46 150.63 $194.87 $224.56
r $
16.53
3-yard 105.83 135.49 165.22 194.91 $240.55 $270.41 $27.56
4-yard 120.74 150.38 194.96 240.59 $290.67 $336.80 _ $38.58
Manure 3-137.76 27.56
yard
Recycling No charge
bin/cart
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
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 FY 15-16
Amount
Collector 35,735
Environmental 8,930
Recycling 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 final.xlsx/Rate Sheets
6/5/2015,6:16 PM
2 of 2
A-16
Exhibit 8
MAP DEPICTING SERVICE AREA 2
Exhibit 8
Page 1 of 1
A-17
I 1' •. 3 C N5.rlicf
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C Manual Unlimited Backyard Service. Gate Areas. No Changes.
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D Manual Unlimited Backyard Service. Non-Gated Areas. No Changes.
V
S
A-18
INTERNATIONAL FIDELITY INSURANCE COMPANY RECEIVED
Home Office: Newark,New Jersey) City of Rancho PalosVerdes
2999 Oak Road,#820,Walnut Creek,CA 94597
HCS 24 :{
CONTINUATION-PREMIUM BILLING NOTICE PUBLIC ORKS DEPARTMENT
Principal-Name&Address Bond No.: 472111
EDCO Disposal Corporation
6670 Federal Blvd. Continuation Effective Date
Lemon Grove,CA 91945-1392 From: November 11,2016
To: November 11,2017
Obligee Agent:
City of Rancho Palos Verdes International Fidelity Insurance Company
30940 Hawthorne Blvd. One Newark Center
Rancho Palos Verdes,CA 90275-5391 Newark,NJ 07102-5207
Bond Amount Premium Billing
1,750,000.00 19,950.00
Continuation Certificate Not Required
EiContinuation Certificate Required And Is Described Below
CONTINUATION CERTIFICATE
It is hereby agreed that the captioned numbered Bond is continued in force in the
above amount for the period of the continued term stated above and is subject to all the cov-
enants and conditions of said Bond.
This continuation shall be deemed a part of the original Bond,and not a new obli-
gation,no matter how long the Bond has been in force or how many premiums are paid for
the Bond,unless otherwise provided for by statute or ordinance applicable.
In witness whereof,the company has caused this instrument to be duly signed,
sealed and dated as of the above "continuation effective date".
Inter tional Fidelity Insurance Company
Signed and Sealed this 4th Day of October,2016
By '
Lawrence F. McMahon /Attorney-in-Fact
No Signature Needed Where Continuation Certificate Is Not Required
A-19
4-7200 •• ..._..: :..:. Tel (973) 62 ATTORNEYOWER
H:........:..... :.... .. .... ...:::.. ::...,..::,... ..::.:.:,.:i,..,:.:.,...,.. .. . .... ,... ...: :..... ::. :.
i•::. :..,..:.....,: ...,. ...:. INTERNATIONAL FIDELITY INSURANCE COMPANY
ALLEGHENY COMPANY .
ONE:NEWARK'CENTER,20TH FLOORS NEWARK, NEW:JERSEY 07102-5207
KNOW ALL MEN BY THESEPRESENTS: That INTERNATIONAL FIDELITY INSURANCE COMPANY a'corporation organized and existing under
the laws of the State of New Jersey, and ALLEGHENY:CASUALTY COMPANY a corporation organized and existing under the laws of the State of
Pennsylvania,having their principal office in the City of Newark,New Jersey,do hereby constitute and appoint
JAMES D. CASTLE, LAWRENCE F, MCMAHON
San Diego, CA.
their true and lawful attorney s)-in-fact to execute,seal and deliver for and on its behalf as surety,any and:all bonds'and undertakings, contracts of indemnity
and other writings obligatory in the nature thereof, which are or maybe allowed,required or permitted by law,.statute,rule,regulation,contract or otherwise,ggsuch instruments. in pursuance of these presents,shall be as binding upon the:said INTERNATIONAL FIDELITY INSURANCEand> ..the execution of
COMPANY and ALLEGHENY CASUALTY COMPANY, as fully and amply, to all intents and purposes:,as if the same had been duly executed and
acknowledged by their regularly elected officers at their principal offices.
This Power::of:Attorney is executed,and may be revoked, pursuant to and by authority of the B Laws of INTERNATIONAL FIDELITY INSURANCE
COMPANY 'ALLEGHENY CASA_!Al_.TY CMPANY and is granted:under and•by authority of the following resolution adopted by the Board of Directors.and
of INTERNATIONAL FIDELITY INSURANCE COMPANY at ameeting dulyheld on the 20th day.of July,2010 and by the Board or Directors of ALLE HEN
CASUALTY COMPANY at a.•rneeting duly held on the 15th day of August, 000
RESOLVED,thatCl.:)the President,Vice President,Chief Executive Officer or Secretaryof the Corporation shall have the power to appoint,and to revoke
PPtheappointments of, Attorneys-in-Fact or agents with power and authority as defined or limited in their respective powers;of attorney, and to execute on behalf
of the.Corporation and affix the Corporation's seal thereto,bonds,undertakings, recognizances, contracts of indemnity and other written obligations in the
Officers of the Corporationoration mayappointoint and revoke the appointments of joint-control custodians,agents
nature thereof or related thereto; and (2)any such pp p
ce ptance ofprocess,and with authority to execute.waivers,and consents on behalf of the Corporation;.and (3)the signature ofany
li•
for ac Attorneys-in-factppoftheCororationandtheCorporation's seal may be affixed by facsimile to any power of attorney or certification given:for the execution of anysuchOfficerprpgg
recognizance, contract'of indemnityor other written obligation in the nature thereof or related thereto,such signature and seals whenbflnd,undertaking,
so used whether heretofore or hereafter, being hereby adopted by the Corporation as the original signature of,such:-officer andthe original seal of,the
Corporation,'to be valid:and bindingpupontheCorporation with the same force and effect as though manuallyaffixed."
IN WITNESS WHEREOF,. INTERNATIONAL FIDELITY INSURANCE..COMPANY and ALLEGHENY CASUALTY COMPANY have each executed and
attested these presents on this 22nd day of July,2014.
tti),STY:4•4444.:
oN$U.A0.),
STATE OF NEW JERSEY A : G„
i' :.
1- :- ::'
f.:44,,;\:......::...44011,.. . .
4 County%., . of Es.ssex r
4.6,-
tbit.. ., .. . ,
SIEAL . ' yam H , .
09;72vri.,...,,,v.
r s
1936
I : :
4,,, :-.:.:, ,. ,:.: ::: „.: ,, ,,,::. :::: ,,. . : ::. ,:. .::,,,,. ,,, ,,,. ,. :: ::: ..: .:, ::: -..,. , .. -: :. .:, ::: .,,: .„ : .,. ..:: ... ..
4.1 . . :::•. :::-..:,:::::
cttio
H. . :. .- .,./,-...71.0.JE.tt----s: :;.: ::: :,. .::, .,: :::, ::::: ..:..:,, ::.: :, : : : - . :
CROBERTERT
W.'MINSTER
s :
N't,#) - hi f Executive Ofioer(Internation al FidelityGYL
Insurance Company)and President( Allegheny
CasualtyCo
who a ecuted the recediri instrument'to me personally known,and, being by me dulyOnthis22nddayofJuly2014, before me came the individualx p g P Y
sworn, said he is the therein.described and authorized officer INTERNATIONAL, .FIDELITY INSURANCE COMPANY and`ALLEGHENY CASUALTY
COMPANY; that the seals affixed to said instrument are the Corporate Seals of said Companies;that the said Corporate Seals and his signature were .
duly affixed by order of the Boards of Directors of said Companies.
ii 4 TESTIMQ Y ',AIHEREOF,FEOF, ; ;a.v s et;;i: a nd of xed y Official Seal,
at e•City ofNewark,New Jersey theday above written.
A5sIoN•_....c-- -.._ ••::: ...: :. .,, ::-:. . .:.::: : :.:.,:. .::: :. :. , : ::: .::: . .: :i: ::: : .:: : .: .:: ., . a
1HYC ,
E. '• NOTARY 53; I': :::: :. ::: il ;:. :: :. :: : :. :::: i.. ::., .: H :: 1: ::: :::: i: :, .:: , ': .:' 'r:
001,4!' •'.
11101,,
H r, : :. :::: „
4...
PUBLIC 0•
NOTARY
4-16-2`"•'.•
PUBLIC OFNEW
1MyCommissionEpyesApr ,
OF N E ,.0
CERTIFICATION
l,the undersigned officer of INTERNATIONAL FIDELITY INSURANCE COMPANY and.ALLEGHENY CASUALTY COMPANY do hereby certify that I have
compared the foregoing copy of the Power of Attorney and affidavit,and the copy of the::Sections of the:By-Laws of said Companies as set forth in said
Power of Attorney, with the originals on file in the home office of said companies, and: that the same:.are correct transcripts thereof, and of the whole
of the said originals,and that the said Power of Attorney has:not been revoked and is now in full force and effect.
IN TESTIMONY WHEREOF, I have hereunto set my hand this .1::::00:4 day' of2016
t.' ecretaMAFAsitanSsRANAss
A-21
Current Rates Effective 8/1/17
Monthly Cart Service Rates
One each Refuse, Recycling, and Green Waste Cart, rate Oased upon
Refuse Cart size:
Refuse Cart Size: 35-gallon 64-gallon 96-gallon
Standard Service $20.36 $26.21 $32.03
Additional Refuse Cart $7.00 $9.34 $1 1-68
Additional Recycling Free Free Free
Cart
Additional Green Waste $2.34 n /a $4.67
Cart (above three)
Other Cart Rates and Services [Charged in Addition to Monthly
C'.art SPtvicP RatPs)
Backyard Service -per home per month, all cart $7.19
s jz,pS
Pup Service -per home per month, all cart sizes $6.00
Backyard and Pup Services -per home per month, $9.59
a ll cart sizes
Senior Rate Reduction 10%
Low-Income Rate Reduction 5%
Annual Payment Rate Reduction 5°/n
Additional Special Overage Pickup for Automated $5.84
Cart Customers (in excess of hvo pickups per year)
Additional Bulky Item pickups (in excess of three $29.19
free pickups per dwelling unit per year)
Cart Exchange (after free-exchange period) $17.52
Cart Re-delivery Fee (if carts are pulled for non-$29.19
payment, one charge for redelivery of all carts)
Re-Start Fee -after voluntary suspension of service, $17,52
ti carts have not been pulled
' l ncl •ld ln~ •II (C<:S -lni.'<I b)'. a< jllll<! to, 01)··
5/4/2018
City of Rancho Palos Verdes -Area 1
EDCO SINGLE-FAMILY RATES Proposed Rates
FY 18-19 Effective 7 /1/2018
Monthly Cart Service Rates
One each Refuse, Recycling, and Green Waste Cart, rate based upon
Refuse Cart size:
Refuse Cart Size: 35-gallon 64-gallon 96-gallon
Standard Service 521.20 $27,29 $33-35
AddiJ:iDn a l Refuse Cart $7.29 $9.72 $12.16
Additional Recycling Free Free Free
Cart
Additional Green Waste $2.44 n/a $4.86
Cart (above three)
Other Cart Rates and Services (Charged in Addition to Monthly
Cart Service .R•tesl
Backyard Service -per home per month, all cart $7.49
;i?oo
Pup Service -per home per month, all cart sizes $6.25
Backyard and Pup Services -per home per month, $9.99
all cart sizes
Senior Rate Reduction 10%
Low-Income Rate Reduction 5%
Annual Payment Rate ReductJon 5%
Additional Special Overage Pickup for Automated $6.08
Cart Customers (in excess of two pickups per
vearl
Additional Bulky Item pickups (in excess of three $30.39
free pickups per dwelling unit per year)
Cart Exchange (after free-exchange period) $18 .24
Cart Re-delivery Fee (ii carts are pulled for non-$30,39
payment, one charge for redelivery of all carts)
Re-Start Fee -after voluntary suspension of $18.24
service, if carts have not been pulled
•Including all fees retained by, or paid to, Oly~
Increase eff 7 /1/18
Reverse Adjustment for 1
month delay (eff 8/1/17)
Total % Iner Eff. 7.1.18
4.40%
-0.28%
4.12%
The FY 18-19 rates reflect a 4.12%
increase.
B-1
111,...omi11 m e r ;:,1z:e
1
2-vard $90.76
3-yard $126.52
3-vard w I comoactor 5253.02
14-yard $144.44
4-vard w I compactor $288-88
6-vard $180 ,18
Recvdin!Z: bin/ cart Nodwl:<'
City of Rancho Palos Verdes -Area 1
EDCO SINGLE-FAMILY RATES
MULTI-FAMILY RATES
Monthly Bin Rates
Pick"uo s oer week \..On.a1n e-r ;:111zc
b tfll
2 3 4 5 6 rick u ps
$126 .48 $162.20 $180.07 $233.67 $249 .02 $64.72 2-vard
$162.24 $197_99 $233.71 $287.27 $298.60 $75.51 3-vard
$324.50 $395.93 $467,42 S,,74.56 $597.16 $151.05 3-vard w I compactor
$1 80.10 $233.71 $287.31 5350.03 S3n.03 $86.31 4-yard
$360.21 $467.44 $574.63 $697.68 $744,08 $174.96 4-vard w / cornoactor
$241.69 $287-32 $340.94 $39621 $41422 $U9.48 6-vard
Rc<:vcllmr b i n/«•<t
Increase eff 7 /1/18
Proposed Rates
MULTI-FAMILY RATES
Monthly Bin Rates
Pkkuos -pe-r w~ek
1 2 3 4 5 6
$94_50 $131.69 $168.88 $187.49 $243.30 $25928
$131.73 $168.92 $206.15 $243.34 $299.11 $310.90
$263.44 $337 .87 $412.24 $486.68 $598.23 $621.76
5150.39 $187.52 $243.34 $299.15 $364.45 $387.36
5300 .78 S375 .05 $486 .70 $598.30 $726.42 $774.74
$1 87.60 $251.65 $299-16 $354.99 $41253 $43 1.29
No c harge
Other Bin Service Rates -Per Month Other Bin Setvico Rates -r er IV.lonth
I D LO ;:) ~-l'V JC.t'
l 2
Locki:lg Bin Service $7-19 $9.59
Scout Vehicles $29.97 $52.75
Bin Push-Out Service (35 $50.36 $89.91
fee l o: further)
AdditionaJ Service ChaTges
Bin C:eaning Per Bin
Bin Overage Clean-up (following one written
warning) Per Clean Up
Additional Bulky Item pickups (in excess of three
free pickups per dwelling unit per y ear) Per Item
Emergency Service Rates -one crew and one
collection truck (Per Hr)
Recycling Rebate
(Fixed)
Sirnde Familv
Multi-Familv
Foes
Coll eclll r S53 1,05Q
En vir:>nmt'.!'ntal SI 34.22J
Recvc ll n2 Reba te IFixedl No1e I
Note :.: Rebated directly to Customers Effective 1/1/2Q_U
5/4/2018
ri cKuos-o e·r we-c k
3
$10.79
$75.51
$123.46
Rate Per
Secvice
$52.53
$23.33
$29.19
$99.21
Rebate per
Unit Per
Month
$1.58
$1.58
4 5 6
$11 .98 $14.40 $15.51
$98.31 $121.08 $143.84
$15224 $185.81 $221.76
(No Change/ Rate adjusted per Section 3 2,3 only)
(No Change/ Rate adjusted per Section 3 2,3 only)
is1n ~erv1ce
1 2
Loe.kine: Bin Service $7.49 $9.99
Scout V ehides $3 1.20 $54.92
Bin Push-Out Service (35 $52 ,43 $93.61
feet or further)
Add1ti onal Service Charges
Bin Cleaning Per Bin
Bin Overage Dean-up (following one written
warning) Per Clean Up
Additional Bulky Item pickups (in excess of three
free _pickups per dwelling unit per year) Per Item
Emergency Service Rates -one crew and one
collection truck (Per Hr)
Recycling Rebate
(Fixed)
Sirn:le Family
Multi-Family
Foes
Collector 5552,929
Enviroruno nm l Sl 39 751
Re<v d in R Rob•!e (fix ed) Note !
Not• 1: ~•b•ted dlrect lV to Cus tomers Eff<>otlllo lfl/2013
Pic k uns ner week
3
$11 .23
$78.62
$128.55
Rate Per Service
$54-69
$24.29
$30.39
$103 .30
Rebate per Unit
Per Month
$1.58
$1.58
4 5 6
$12.47 $1 4.99 $16.22
$lil2.36 $U6.07 $149_77
$158.51 $193 ,47 $230.90
(No Change/ Rate adjusted per Section 3.2.3 only)
(No Change/ Rate adjusted per Section 3-2.3 only)
4.40%
Extra rickups--
$67.39
$78.62
$1 57.27
$89.87
$182.17
$134.81
B-2
City of Rancho Palos Verdes -Area 2 (former UWS Area)
SINGLE-FAMILY
Current Rates Effective 111/17
M o nthl y Ma n u al Sei:vice R a.tcs
Backyard Service for refuse, recycling, and green $63.61
waste~-per home per month
Manure 32-gal customer-provided can (per can $23.13
per month)
Monthlv Automated Cart Service Rates
One each Refuse. Recycling. and Groen Wost~ Cart, rate based
upon Refuse Cart s1>"1
Refuse Cart Size: 35·g•ll on 64-gallon 96-gallon
Standard Service, based $20.36 $26.21 $32.03
on refuse cart size
Additional Refuse Cart $7.00 $9.34 $11.68
Additional Recycling free free free
Cart
Additional Green Waste $2 .34 n/a $4.67
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 $7.19
sizes
SeriiorRate Reduction 10%
Low-Income Rate Reduction 5%
Annual Payment Rate Reduction 5%
Additional Special Overage Pickup for $5.84
Automated Ccirt Customers (in excess of two
pickups per year), per pickup
Additional Bulky Item pickups (in excess of three $29.19
free pickups per dwelling unit per year), per item
Cart'Exchange (after free-exchange period), per $17.52
request
Cart Re-delivery Fee (if carts are pulled for non-$29.19
payment, one charge for redelivery of all carts)
Re-Start Fee -after voluntary suspension of $17.52
service, if carts have not been pulled, per re-start
5/4/2018
Proposed Single-Family Maximum( Not to Ex ceed) Rates
FY 18-19 Effective 7/1/2018
M o nthly M anu a l Service Ral·es
Backyard Service for refuse, recycling, and green waste $66.23
"'-per home per month
Manure 32-gal customer-provided can (per can per $24,08
month)
Monthlv Automated Cart Service Rates
On~ each Refuse, Recycling, and C:reen Wa•te Cu~ rate based upon
Refuse Cart size:
Refu~ Cart Size: 35-gallon 64·gallon 96-g~llon
Standard Service, based on $21.20 $27.29 $33,35
refuse cart size
Additional Refuse Cart $7.29 $972 $12,16
Additional Recycling Cart free free free
Additional Green Waste $2 .44 n/a $4.86
Cart (over three carts)
Other Cart Rates and Services (Charged in Add ition to Monthly
Cart Service Rates)
Backyard Service -per home per month, all cart sizes $7.49
Senior Rate Reduction 10%
Low-Income Rate Reduction 5%
Annual Payment Rate Reduction 5%
Additional Special Overage Pickup for Automated $6.08
Cart Customers (in excess of two pickups per year),
per pickup
Additional Bulky Item pickups (in excess of three free $30.39
pickups per dwelling unit per year), per hem
Cart Exchange (after free-exchange period), per requesl $18,24
Cart Re-delivery Fee (iT carts are pulled for non-$30.39
payment, one charge for redelivery of all carts)
Re-Start Fee -aftet voluntary suspension of service, if $18.24
carts have not been pulled, per re-start
Increa se eff 7 /1/18
Reverse Adjustment for 1 month
delay (eff 8/1/17)
% Increase Eff. 8.1.17
4.40%
-0.28%
4.12 %
The FY 18·19 rates reflect a 4.12% increase.
l B-3
EXHIBIT4
Multi-Family
Current Rates Effective 111/li
MonU1l y Bin Rates
l '--o n1a m ~r ~•'%.~ No. P ickups per w•ck
1 2
2-vard $79.81 $111 .27
3-yard $111 .05 $142.18
4-yard $126.70 $157.80
Manure 3-yarct 5144.57
R.ecyrl ;M bin/ caLt No
O lhec Bio Service R'>tos-
11n n ~ervice No.
1 2
Locking Bin Service $8.22 $10.V
Scout Vehicles $30.47 $52.31
Bin Push·Out Service (35 $46.22 $82.27
fee.tor further)
Additional SeNicc Chorgcs
rortu~u-llcnd S.a<h Club -hooch Ii UN
Bin C1r!::mim?. Pf'.!r Bin
Bin Ov•r•~• Oea.n·uo lfollowin• one wri tten
i\dditionru Bulky Item oickiJDS lin excess of th rt?<!
Emer'f'.encv Se:r\1ice Rates -one crew and on<!
Area 2 ---
Current Rates Effective
111117 Amount
Collector I $37,499
Environmental I $9,371
Recvclinit Rebate I $0
5/4/2018
3
Sl42.l5
$173.38
$204.58
3
$U.71
$73.72
$111.07
Rate Per
Service
S2.JU.95
528 .92.
528.92
S2S.92
S9S.30
Area 1
$531,050
$134,221
4
$158,07"
$204.53
$252.47
4
$13.15
$95.33
$139,91
Total Area 1 2
$568,549
$143,592
5
$204.49
5252.43
.$305.02
5
Sl-L60
$ll6.98
$168,75
6
$235.65
5283.76
$353.43
6
$16.05
5138.63
$197.59
PerQtr
$ 142,137
s 35,898
Extra
Pick u ps
$17.34
S2S.92
$4D.48
$28.92
EX HIBIT 4
Multi-Family
PROPOS ED MAXIMUM (Not to Exceed) RATES
FY 18--19 Effective 7/1/2018
Mon th ly Bin Rates
\..Onf.:t.i1'1(T :)tZ.<!
1 2
2-vard $83.10 $115.85
3-vard $115.63 $148.04
4-varct $131.92 $164.30
Manure 3·varct $150.53
R.ecvdin2 bin/earl NQchare:e
O thor Bin Service Rates-
oin ;:,crv1 ce No. Picl<uos
l 2
Locklni: Bin Service SS.56 510.69
Scout Verudes $31.73 $54.47
Bin Push-Out Service (35 $48.12 $85.66
feet or further)
Addltionol Service 0.orges
l'ortu2uose Bend Beach Club -beach \Hier conhliner
Bin Oeanin2 Per Bin
Bin Overnnc. Clcnn·uo (f'OJlo h'imr: one written wamim?.~
Additional Bulkv Item 1>ickuos Cln 01Ccess of three frt?<!
Emor~encv Service Rates -one crow and one rolle<tion
Area2
FY 18--19 Effective 7/1/2018
Amount
Collector I $39.044
Environmental r $9.757
Recvcline Rebate T $0
No. Pick uns nor week
3 4
$148.01 $164.58
$180.52 $212.96
$213.01 $262.87
J 4
$12.19 $13.69
$76.76 $99 .26
$1l5.65 $145.67
Rate Per
Service
S2A08-24
$30.11
530.11
530.11
5!02.35
Area 1 To ta l Area 1 2
$552,929
$139,751
$591,973
$149,508
5
$212.91
$262.83
$317.59
s
$15.20
$121.80
$175.70
$591,973 $
$149,508 $
6
$245,36
$295.45
$367.99
6
s16.n
$144.34
$205.73
PerQtr
147,993
37,377
Extra P icku ps
$18.05
$30.11
$42.15
$30.11
B-4
Attachment C
Rate Adjustment Formula and Methodology
The City has a specific rate adjustment methodology (RAM), which was prepared by the
City’s procurement consultant and was approved by the City Council when the EDCO
agreement was approved initially in November 2009, and again when the contract
extension was approved in June 2015. The RAM outlines the acceptable cost variables
and national approved indices, and provides detailed guidelines on how future rate
adjustments are calculated. This helps calculation accuracy. Similar methodologies are
used by various cities in their recent solid waste franchise agreements. Additionally, do
not exceed caps have been placed on the Service and the Disposal components to
protects the City’s rate payers from sudden rate spikes.
1) Service/Collection Cost Component: EDCO’s service/collection cost increases
are based on calendar year 2017 and reflect the percentage of increases/decreases in
several national indices from the U.S. Department of Labor, Bureau of Labor Statistics.
These selected indices were specifically chosen because they are tailored to solid waste
collection operations. A weighted average of the various service/collection changes is
calculated and used in the RAM formula with the annual change in Service Component
costs capped at 4%. The national indices include:
(US Dept. of Labor) Index /Commodity % Change in 2017
Consumer Price Index (CPI) +1.8%
Producer Price Index (PPI) for Fuel- Natural Gas +23.3%
PPI for heavy-Duty Truck Manufacturing +1.9%
Hourly Labor Costs * +2.8%
Total Weighted Average, Service/Collection
Component
+3.1%
(See Exhibit 5A, Row 13G)
* Based on previously contract approved labor rates
2) Disposal Cost Component: EDCO’s disposal cost increases are based on the
percentage changes at the county owned disposal facilities between 7/1/17 and 7/1/18.
To increase accuracy, a weighted average of the various disposal facilities’ rate changes
is calculated and used in the RAM formula with the annual change in Disposal
Component costs capped at 8%.
A straight average is not used because different facilities are used for disposal of trash
and processing green waste. To derive the weighted average, the percentages of each
material’s (trash and green waste) destination and the quantity taken to each facility are
C-1
considered. EDCO has a long-term importation agreement for the next decade with the
County of Orange, which helps stabilize landfill disposal rates.
The total weighted average disposal cost component changed from $33.07 to $35.38 per
ton during that period. In 2016, the Disposal Component exceeded 8%, therefore it was
capped and a carryover was brought forward to 2017. This change is reflected in the
following table:
Disposal Facility Gate Rate $
Change/ton
Gate Rate %
Change/ton
County of Orange* - Solid Waste $27.53/ton to
$28.58/ton 3.8%
Southeast Resource Recovery Facility
(SERRF) - Long Beach waste to energy facility
$75.00/ton to
$75.00/ton 0%
Puente Hills Transfer Station - Green Waste $43.50/ton to
$45.50/ton 4.6%
**Carryover- Weighted average increase in
Non-Orange County disposal rate from
$39.31/ton to $48.34/ton, capped at 8% per
City agreement ($42.45/ton). Thus $5.89/ton
carried over to 2019
$39.31/ton to
$42.45/ton 8.00%
Total Disposal Cost Component
$33.07 to
$35.38/ton
(Weighted Average)
7.0%
(Exhibit 5A,
Row 14G)
* EDCO has renewed its importation agreement for the next decade with the County of Orange, which
helps stabilize landfill disposal rates. Additionally, EDCO’s Recycling & Transfer Facility in Signal Hill
accepts and transfers all of the trash collected from the City by EDCO to alternative disposal sites.
** In 2017, the weighted average Non-Orange County disposal rate of $46.89/ton was also capped at +8%
($39.31/ton), with $7.58/ton carried over to 2018.
Approximately 67% of EDCO’s overall costs are related to service/collection costs, which
increased 3.1%. Approximately 33% of EDCO’s overall costs are related to disposal
costs, which increased 7.0% in 2017. Therefore, EDCO’s total weighted residential rate
adjustment, reflecting both disposal and service cost components is 4.4%. (See attached
Table labeled Exhibit 5A, Row 24 G).
However, the FY 16-17’s one-time temporary correction of 0.28% (due to delay in Prop
12 notification) is hereby reversed. Therefore, the total rate adjustment for FY 18-19
would be 4.12%.
C-2
Examples of EDCO’s proposed maximum rates for FY 18 -19 reflecting the 4.12%
adjustment are listed below:
Service Level
Single-family
(one trash cart)
Current
Maximum
Monthly
Rates
FY 17-18
Proposed
Increase in
Maximum
Monthly Rates
FY 18-19
Proposed
Maximum
Monthly
Rates
FY 18-19
Proposed
Maximum Monthly
Rates for Seniors
(10% discount)
FY 18-19
Curbside 35-gallon $20.36 $0.84 $21.20 $19.08
Curbside 64-gallon $26.21 $1.08 $27.29 $24.56
Curbside 96-gallon $32.03 $1.32 $33.35 $30.02
Backyard Manual
Unlimited (former
UWS customers)
$63.61 $2.62 $66.23 $59.61
Multi-family accounts would have a similar proposed increase Maximum of 4.12%. For
example, the Maximum on the rate for a 3 -yard bin picked up twice a week would
increase by $6.68/mo. from $162.24/mo. to $168.92/mo.
C-3
Row Adjustment Factor Index
Service Component
1 Labor (hrly rate)(1)24.60 25.30 2.8%
2 Fuel (Natural Gas)(2)96.6 119.1 23.3%
3 Equipment (3)144.9 147.7 1.9%
4 All Other (4)247.602 252.169 1.8%
5 Disposal Component (5)$33.07 35.38$ 7.0%
Row
Service Component
9 Labor 31.6%2.8%0.9%
10 Fuel 4.4%23.3%1.0%
11 Equipment 21.6%1.9%0.4%
12 All Other 42.4%1.8%0.8%
13 Service Sub-Total 100.0%3.1%3.1%(7)
14 Disposal Sub-Total 100%7.0%7.0%7.0%(8)
Total Rate Adjustment
22 Service 67.3%3.1%2.1%2.1%
23 Disposal 32.7%7.0%2.3%2.3%
24 Total Rate Adjustment 100.0%4.4%
K-A
Row Rate Category
20 Residential Service - 64 gal 26.21$ 4.4%(9)1.15$ 27.36$ (9-A)27.29$
21 Additional Refuse Cart 9.34$ 4.4%0.41$ 9.75$ 9.72$
22 3 Yd Bin, 1x week 126.52$ 4.4%5.57$ 132.09$ 131.73$
23 3 Yd Bin 2x week 162.24$ 4.4%7.14$ 169.38$ 168.92$
24 Extra Pick-up - 2 yd 64.72$ 4.4%2.85$ 67.57$ 67.39$
25 Extra Bulky Item 29.19$ 4.4%1.28$ 30.47$ 30.39$
26 Extra Bin Cleaning 52.53$ 4.4%2.31$ 54.84$ 54.69$
Row Adjustment Factor Index
27 Labor (1)31.6%2.8%0.9%32.5%31.5%
28 Fuel (2)4.4%23.3%1.0%5.4%5.2%
29 Equipment (3)21.6%1.9%0.4%22.0%21.3%
30 All Other (4)42.4%1.8%0.8%43.2%41.9%
31 Service Sub-Total 100.0%103.1%100.0%
38 Service Component 67.3%3.1%2.1%69.4%66.5%
39 Disposal Component 32.7%7.0%2.3%35.0%33.5%
40 Total 100.0%104.4%100.0%
(8) Total disposal increase in 2018 of 7% did not exceed the 8% cap.
(9) The actual rate adjustment is 4.4%. However, due to a one time adjustment of (-0.28%), rates for FY 18-19 will increase by 4.12%. The rates demonstrated
on the subsequent rate sheets for Area 1 and 2 reflect a 4.12% increase.
(9-A) Example of Rates: Row 20, Column K on Exhibit 5A indicates $27.36/month a 4.4% increase, while column K-A & the Rate Sheet for Area 1 both incidate
$27.29/month, a 4.12% increase.
K
(4) Consumer Price Index for All Urban Consumers (CUUR0000SA0L1E), all items less food and energy index – U.S. city average - average annual change.
Increase in Cost
Components (Column L
x Column M)
Total Weighted
Percentage Change
(Row 24, Column G)
Cost Component
Weighting (Column
D)
H I J
Adjusted Max. Rate
(Column H + Column J)
FY 2018/19 @ 4.4%
N
Rate Increase or
Decrease (Column H x
Column I)
Existing Customer
Maximum Rate
FY 2017/18
(2) Producer Price Index, WPU 0531 not seasonally adjusted, Fuels and related products and power, natural gas - average annual change. (Preliminary numbers used in
March)
(1) Driver A/B rate from Agreement between local haulers and Package and General Utility Drivers Local Union 396, International Brotherhood of Teamsters.
Adjusted Max. Rate
(Column H + Column J)
FY 2018/19 @ 4.12%
(7) Service component change is limited to 4% in any one year with carryover to subsequent years
Cost Component
Increased (Column L +
Column N)
(5) As determined in Exhibit 5B.
(3) Producer Price Index, PCU336120336120, Heavy duty truck manufacturing - average annual change (Preliminary numbers used in March).
(6) This column comes from Column P of the previous year's rate adjustment worksheet.
EDCO Disposal Corporation
Cost Components
Reweighted to Equal
100% (To be used for FY
2018/19)
PL
Step Four: Re-weight cost components
M
Step Three: Apply percentage change to sample rates
Percent Change as
Applied to Rate
Adjustment
(Column E)
O
C
F G
Adjustment Factor
Old Index Value (prior
year's "New Index")
2017
Step Two: Determine components
Percent Change In
Index (from Column
C)
Total Weighted Change
(Column D x E)
Total Weighted Change,
Subject to Increase Cap
EXHIBIT 5A
RATE ADJUSTMENT FORMULA - Effective 7/1/2018
Step One: Calculate percentage change in indices
A B
New Index Value
2018
Percent Change In Index
((Column B/
Column A) -1)
D
Cost Component
Weighted as a % of
Component Total (6)
E
Draft, 5/4/2018 City of Rancho Palos Verdes/EDCOC-4
Row Adjustment Factor Index
Service Component
1 Labor (hrly rate) (1) 24.60 25.30 2.8%0.9%
2 Fuel (Natural Gas) (2) 96.6 119.1 23.3%1.0%
3 Equipment (3) 144.9 147.7 1.9%0.4%
4 All Other (4) 247.602 252.169 1.8%0.8%
3.1%
Row Adjustment Factor Index
Service Component
1 Labor (hrly rate) (1) 23.90 24.60 2.9%0.9%
2 Fuel (Natural Gas) (2) 106.3 96.6 -9.1%-0.4%
3 Equipment (3) 142.1 144.9 2.0%0.4%
4 All Other (4) 242.247 247.602 2.2%0.9%
1.8%
Row Adjustment Factor Index
Service Component
1 Labor (hrly rate) (1) 23.30 23.90 2.6%0.8%
2 Fuel (Natural Gas) (2) 183.1 106.3 -41.9%-3.4%
3 Equipment (3) 139.3 142.1 2.0%0.4%
4 All Other (4) 237.897 242.247 1.8%0.7%
-1.5%
Row Adjustment Factor Index
Service Component
1 Labor (hrly rate) (1) 22.80 23.30 2.2%0.7%
2 Fuel (Natural Gas) (2) 152.7 183.1 19.9%1.4%
3 Equipment (3) 136.7 139.3 1.9%0.4%
4 All Other (4) 233.806 237.897 1.7%0.7%
3.2%
Row Adjustment Factor Index
Service Component
1 Labor (hrly rate) (1) 22.80 22.80 0.0%0.0%
2 Fuel (Natural Gas) (2) 118.3 152.7 29.1%1.6%
3 Equipment (3) 134.4 136.7 1.7%0.4%
4 All Other (4) 229.755 233.806 1.8%0.8%
2.8%Total % Change
Percent Change In
Index ((Column B/
Column A) -1)
Total Weighted
Change
Old Index Value
(prior year's "New
Index")
2017
New Index Value
2018
Percent Change In
Index ((Column B/
Column A) -1)
Total Weighted
Change
Old Index Value
(prior year's "New
Index")
2016
New Index Value
2017
Percent Change In
Index ((Column B/
Column A) -1)
Total Weighted
Change
Rancho Palos Verdes EXHIBIT 5A Indicies 2013-2018
EDCO Disposal Corporation
Old Index Value
(prior year's "New
Index")
2013
New Index Value
2014
Percent Change In
Index ((Column B/
Column A) -1)
Total Weighted
Change (Column D
x E)
Total % Change
Total % Change
Total % Change
Total % Change
Old Index Value
(prior year's "New
Index")
2015
New Index Value
2016
Percent Change In
Index ((Column B/
Column A) -1)
Total Weighted
Change
Old Index Value
(prior year's "New
Index")
2014
New Index Value
2015
C-5
P:\7 City Council\Draft Staff Report Review 20180515\1 Pending\EDCO rate adjustment\Attach D Collector and env Fees 2018 19 5 2
18.docx5/3/2018
Attachment D
FY18-19
Collector Fee, Environmental Fee
and Recycling Rebate/Credit
The City receives a Collector Fee and an Environmental Fee from EDCO. Per EDCO’s
agreement the amount of the annual fees are fixed amounts and they could automatically
get adjusted when the rates are adjusted. These fees are incorporated in the rates, and
are not a separate line-item in EDCO’s quarterly invoices.
The City Council may allocate these fees among City funds as deemed appropriate. The
current Council approved distribution of these two fees among City funds are as follows:
1. Collector Fee: EDCO’s Collector Fee is currently the fixed annual amount of
$568,500. If the FY 18-19 rate adjustment request is approved, the Collector Fee
increases by 4.12% (or ~$23,400) from $568,500 to $ $592,000. Currently 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, 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 and
programs, awarding recyclers of the month, organizing special events such as the
household hazardous waste and electronic waste roundup, complying with State
mandates including mandatory commercial recycling (AB 341) and mandatory
commercial organic waste recycling (AB 1826), and preparing annual reports for
CalRecycle are paid through the restricted Waste Reduction Fund.
Staff recommends maintaining the revised percentage allocation for FY18 -19. (See
below)
Collector Fee
Fund Allocation
Current
Percentage
FY17-18
Proposed *
Percentage
FY18-19
Proposed Amount
(rounded)
FY18-19
General Fund- Various 75% 80% $473,600
Waste Reduction Fund 25% 20% $118,400
Total ($ rounded) 100% 100% $592,000
* Finance Department proposing these percentages based on the increased cost of road maintenance
and repair in the past few years, and the estimated Waste Reduction fund balance.
D-1
P:\7 City Council\Draft Staff Report Review 20180515\1 Pending\EDCO rate adjustment\Attach D Collector and env Fees 2018 19 5 2
18.docx5/3/2018
2. Environmental Fee:
EDCO’s current Environmental Fee is the fixed annual amount of ~$143,600, which is
deposited 100% into the Storm Water Quality Program of the General Fund and it
supports sweeping of residential and arterial streets, servicing trashcans at bus
shelters, and assisting in storm water quality/NPDES program implementation,
compliance and outreach. If approved, the FY18-19 Fee would also increase by 4.12%
(or ~$5,900) for a total of ~$149,500.
Recycling Rebate/Credit:
Until 2013, the City received an annual recycling rebate of $960,000 from EDCO. All the
funds were deposited into the City’s Recycling Fund for use on median improvement
projects and/or median maintenance, and Beautification Grants. However, since 2013 at
the direction of City Council the entire $960,000 is refunded back to customers in their
billing statements as a separate line item “Recycling Credit or Rebate”. EDCO would
continue to provide their existing customers with the City Council approved recycling
rebate/credit of $1.58/month/customer/unit. The customers in the former UWS area would
continue also to receive their Council approved recycling rebate/credit of
$1.31/month/customer per unit. The minor difference ($0.27/mo.) is due to the difference
in the ratio of the number of former UWS customers to its contractual annual recycling
revenue due to the City, as compared to EDCO’s.
For FY18-19 there will be no change in the amount of the recycling credit, since there has
been no change in the California Redemption Value of containers.
D-2
EXHIBIT E
Contract Extension and Cancellation Options
a. One-Year Extensions: EDCO’s agreement includes a maximum of seven (7) automatic
one-year (1) extensions/renewals, based on mutual consent. Therefore, the 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 agreement also includes a mutual annual
cancellation/non-renewal option that could be exercised during any of the vario us
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 Jan uary
1 of each year of the agreement” to be affective June 30 th 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 then 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 ne w
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. See example of the notification process and
effective dates:
If the Council would like to consider this cancellation option, staff can agendize the item
and conduct a rate survey of neighboring cities’ trash rates.
Cancellation Notice Period
“60-day window”
Contract Cancellation Effective Date
November - December 2019 June 30, 2020 (6-8 months’ notice)
No Action/ No notice issued during 2019 June 30, 2021
November - December 2020 June 30, 2021 (6-8 months’ notice)
No Action/ No notice issued during 2020 June 30, 2022
E-1