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Home My WebLink About10 APPROVE AMENDMENT 1 TO SOLID WASTE SERVICES CONTRACT WITH CR&Rs~~~ ~ `~ Agenda Item 10 ~~ AGENDA ~.EPORT Re~,ewed: ~~- ~~ ~ ~ . -' -~~ "' City Manager Finance Director MEETING DATE: APRIL 6, 2010 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: DOUGLAS S. STACK, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER SUBJECT: APPROVE AMENDMENT NO. 1 TO THE CONTRACT FOR SOLID WASTE SERVICES BETWEEN THE CITY AND CR&R, INC. SUMMARY CR&R, Inc. has requested that it be relieved of contract requirements to establish a local buyback center and to maintain a local office. In exchange, CR&R is offering to provide free Household Hazardous Waste collection services, distribute free yard mulch to residents and assume responsibility for mailing legal notices for annual solid waste rate adjustments. Staff is recommending that the City Council approve the contract amendment and authorize the Mayor and City Clerk to execute the amendment. RECOMMENDATION It is recommended that the City Council approve Amendment No. 1 to the solid waste contract between the City and CR&R, Inc. and authorize the Mayor and City Clerk to execute on behalf of the City. FISCAL IMPACT Approval of the proposed contract amendment with CR&R will result in annual savings of approximately $18,000 to the General Fund due to avoided costs for battery and compact fluorescent lights (CFL) collection services and for printing, postage and mailing services. DISCUSSION The contract for solid waste services between the City and CR&R, Inc. requires that CR&R establish a recyclable buyback center in Tustin and maintain an office within a five mile radius of Tustin. CR&R has requested to the City to consider alternative services in lieu of these requirements due to economic infeasibility and limited public demand. The buyback center was intended to provide a location where residents could recover the cash redemption value for cans, glass bottles and plastic bottles. At the time that the contract was developed in 2007, the City had no buyback centers located in the City and citizens were required to go into Santa Ana to cash in their cans and bottles. Since the contract was approved and implemented, automated buyback facilities have been established at the Albertson's on Newport Avenue and another at the Ralph's on Jamboree Road. Over the past two years, staff has been monitoring CR&R's efforts to comply with this contract requirement and is satisfied that CR&R has conducted a good faith effort to locate a suitable site to establish a recyclable buyback center. CR&R now believes that an additional buyback center is not needed due to limited demand and that it would not be cost effective to establish a standalone center. Consequently, CR&R is requesting that it be relieved of this requirement and staff concurs with this request. CR&R Contract Amendment No. 1 April 6, 2010 Page 2 CR&R has also expressed concerns regarding the requirement to provide an office within five miles of Tustin. The office was intended to provide a location where general customer service activities would be conducted by residents and businesses. CR&R established an office in Old Town in mid 2007 and has provided work week staffing at the location since that time. CR&R believes that all of the services offered here can easily be accessed via phone and the Internet. Additionally, the contractually required CR&R recycling coordinator continues to provide direct service to customers at their place of business and at residential locations. Staff has monitored activity at this location for some time and has observed no customer utilization of the office. Staff and CR&R have discussed service alternatives to each of these contract requirements and have negotiated a proposed contract amendment to resolve the issues. The proposed contract amendment consists of the following elements: 1. The City agrees to remove requirements for CR&R to establish and maintain a local office and a recyclable buyback center, and 2. CR&R will: a. Conduct a free annual household hazardous waste collection event for City residents; b. Conduct two annual events to distribute free bagged recycled yard waste mulch to residents; c. Maintain ten free battery and compact fluorescent light collection sites in the City; and d. Assume responsibility for the annual distribution of rate adjustment notices as required by the City. This conciliation will provide a fair exchange of services that will provide new benefits to the residents of Tustin. Staff is recommending that the City Council approve the contract amendment and authorize the Mayor and City Clerk to execute on behalf of the City. The City Attorney has reviewed and approved as-to-form. Upon execution, the amendment will become effpFtive immediately. S. Stack, P.E. Joe e, ers of Public Works/City Engineer Administrative Services Manager Attachment: Current Contract Sections Proposed Contract Amendment No. 1 S:\City Council Items\2010 Council Items\Approve Amendment No 1 to Solid Waste Contract with CR&R.docx AMENDMENT NUMBER ONE (1) TO THE CONTRACT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL WASTE BETWEEN THE CITY OF TUSTIN AND CR&R, INCORPORATED RELATING TO CHANGES IN SCOPE OF SERVICES Whereas, the City of Tustin (City) entered into a franchise agreement (Agreement), dated June 13, 2007, with CR&R Incorporated for (CR&R) the collection, transportation and disposal of municipal solid waste and related recycling services, and Whereas, Section 4.12, titled "City Right to Change Scope of Work", of the Agreement permits the City and CR&R to mutually agree to modify the scope of services contained in the Agreement. Now, Therefore City and CR&R mutually agree as follows: Section 1. Buy-Back Recyling Center. City and CR&R agree that CR&R shall no longer be required to establish aBuy-Back recycling center. Accordingly, Section 4.7 of Attachment B to the franchise agreement, requiring the establishment of a Buy-Back facility is hereby deleted from the contract. Section 2. Office Hours and Location. Section 8.04 A of the Franchise Agreement is modified in its entirety to read as follows: A. Office Hours and Location. Contractor shall maintain an office that will be available for customers to pay bills, subscribe to service, change service, stop service and otherwise contact Contractor. Contractor's office shall be open to the public from 8 a.m. to 5 p.m. Monday through Friday and from 8 a.m. to 12 p.m. on Saturdays. Section 3. Effective July 1, 2010, CR&R will establish and maintain no less than ten (10) Compact Fluorescent Light and Battery collection points within the City boundaries for use by the public at large. CR&R may utilize existing collection boxes owned by the City at eight existing locations until such time as City determines to terminate the use of such boxes at City's discretion. In such event, CR&R shall install appropriate collection boxes at replacement locations agreeable to City. City will provide two (2) other collection locations, one at the Civic Center and one at the Senior Center. CR&R may utilize a subcontractor for this function subject to the approval of the City. Section 4. CR&R shall hold and conduct one (1) annual collection event for the following materials: Paints, motor oil and filters, Universal Wastes (U-Wastes), and Electronic Wastes (E-Wastes). Other items may be added in the future as mutually agreed upon. City agrees to provide the collection event location on city property at a particular site of City's choosing. The site plan layout, date and time of the event will be mutually worked out between the parties. Section 5. On an annual basis, CR&R will perform two (2) free "yard mulch" distribution events within the City for residential customers. The product will be bagged and the City agrees to provide a suitable distribution location. The site plan layout ,date and time will be mutually agreed upon between the parties. Section 6. Effective immediately, CR&R shall assume financial and administrative responsibility for printing and distribution by mail of required legal notices of proposed annual rate adjustments for services provided by CR&R under its franchise agreement with City. Prior to assembling written notices of proposed increases to its customers and/or property owners, CR&R shall coordinate with City in finalizing the content of such notices. City agrees to promptly submit the required legal content for said notices. CR&R shall utilize the content of such notices as recommended by City. IN WITNESS WHEREOF, City and CR&R have executed this amendment to the franchise agreement this day of 2010. CITY OF TUSTIN ("City") Jerry Amante ATTEST: APPROVED AS TO FORM: City Attorney 13y _- MAYOR, CITY OF TUSTIN CR&R INCORPORATED (CR&R) Title ~ ~~;„~ ~~I~.e ~tts ~,~s,,rr-