HomeMy WebLinkAbout06 THIRD AMENDMENT TO THE CONTRACT WITH CR&R FOR SOLID WASTE AND RECYCLING SERVICESMEETING DATE
TO:
FROM:
SUBJECT:
AGENDA REPORT
APRIL 7, 2015
JEFFREY C. PARKER, CITY MANAGER
Agenda Item 6
Reviewed:
City Manager
Finance Director N/A
DOUGLAS S. STACK, DIRECTOR OF PUBLIC WORKS /CITY ENGINEER
THIRD AMENDMENT TO CONTRACT WITH CR &R INCORPORATED
FOR SOLID WASTE AND RECYCLING SERVICES
SUMMARY
CR &R Incorporated (CR &R) is the City's exclusive provider for solid waste and recycling
services. The Contract between the City and CR &R allows for annual rate increases to
offset increases in the cost to provide the service. Rate increases have been adjusted
using the Producer Price Index (PPI) for the month of December. The City and CR &R
have agreed to use the October PPI to determine the rate adjustment that will take effect
on July 1, 2015 to ensure the City is able to comply with the requirements of Proposition
218 and is not found to be in breach of the contract with CR &R. Additionally,
miscellaneous operational changes found to benefit the community are being captured in
this amendment.
RECOMMENDATION
That the City Council:
1. Approve the Third Amendment to the Contract for the Collection, Transportation and
Disposal of Municipal Solid Waste and for the Collection, Transportation, Processing
and Diversion of Recyclable Materials; and
2. Authorize the Mayor and City Clerk to execute the amendment on behalf of the City
with any non - substantive changes recommended by the City Attorney.
FISCAL IMPACT
The proposed action has no fiscal impact to the City.
CORRELATION TO THE STRATEGIC PLAN
This item contributes to the fulfillment of the City's Strategic Plan Goal D, Strong
Community and Regional Relationships, specifically addressing Strategy 3, by obtaining
feedback from the community about expanding solid waste and recycling services.
BACKGROUND
In 2007, the City and CR &R entered into a Solid Waste and Recycling Contract (Contract). Under
the terms of the Contract, customer rates are adjusted annually in accordance with a formula
established in the Contract, which has four components: Collection, Processing, Disposal, and
Diversion Incentive. The Collection and Processing components are calculated based on
Third Amendment to Contract with CR &R Incorporated
April 7, 2015
Page 2
variables in the PPI, specifically, Natural Gas and Finished Goods Less Food and Energy. The
Disposal component is calculated based on the actual change in the tipping fee at Orange County
landfills. The Diversion Incentive is a 1% incentive bonus for diverting 50% of the waste stream
from all sectors within the City.
This year, the City is required to conduct a protest hearing in accordance with Proposition 218
prior to approving an increase in rates. As part of the notification process, the City must send
each affected property owner a written notice that states the proposed rates and the date of the
public hearing. This notice must be mailed at least 45 days prior to the date of the public hearing.
Per the Contract, the December PPI is to be used to calculate the annual rate adjustment. The
December 2014 PPI will not be finalized and made available until May 17, which will delay the
public hearing until August 4. Staff has considered alternatives but found each to either not meet
the requirements of Proposition 218 or place the City in the position of breaching the Contract with
CR &R. City staff and CR &R believe the best course of action is to amend the Contract to allow
for the use of the October 2014 PPI to calculate the current rate adjustment, which will ensure the
protest hearing will occur before July 1, 2015.
Other operational changes being captured in this amendment include:
1. Providing a rate for Back Yard/Wheelout Service to customers who are not disabled.
2. Establishing rates for a permanent Commercial Food Scrap Program.
3. Providing Scout Service for commercial and multifamily facilities where it is impractical for
large commercial vehicles to enter the property or where there are numerous bins and
collection by heavy duty vehicles will impact the condition of the asphalt.
4. Expanding the Commercial Collection Program to include 3 -yard split bins for small properties
that cannot accommodate a 4 -yard split bin.
5. Billing for shared containers in commercial and multifamily facilities where space constraints
make it impractical for each customer to have a container.
Each of these operational changes provides additional service to the community and has the
potential to increase recycling. Staff has reviewed the proposed rate for each service and has
found them to be in line with those established in other communities.
Staff recommends the attached amendment to CR &R's contract be approved.
s Stack, P. E.
r bf Public Works /City Engineer
Attachment: Third Amendment to Contract for the Collection, Transportation and Disposal of Municipal Solid Waste and for the
Collection, Transportation Processing and Diversion of Recyclable Materials
S: \City Council Items2015 Council Items \04 -07- 2015 \Third Amendment to CR &R Contract.docx
THIRD AMENDMENT TO
CONTRACT FOR THE COLLECTION, TRANSPORTATION AND DISPOSAL
OF MUNICIPAL SOLID WASTE AND FOR THE COLLECTION,
TRANSPORTATION, PROCESSING AND DIVERSION OF RECYCLABLE
MATERIALS
THIS THIRD AMENDMENT is entered into as of the _ day of April,
2015, by and between the CITY OF TUSTIN, a municipal corporation (hereinafter
referred to as the "City ") and CR &R INCORPORATED, a California corporation
(hereinafter referred to as "Contractor ").
RECITALS
1. The City and Contractor entered into a contract for Collection,
Transportation, and Disposal of Municipal Solid Waste and for the
Collection, Transportation, Processing and Diversion of Recyclable
Materials on June 13, 2007 (hereinafter referred to as "Contract ").
2. The parties executed the First Amendment to the Contract on April 6,
2010 to delete the requirement for Contractor to establish a Buy -Back
recycling center and to add services to be provided by Contractor
including: provision of ten (10) compact fluorescent light and battery
collection points, one (1) annual household hazardous waste, Electronic
and Universal Waste collection event, two (2) free yard mulch distribution
events per year plus printing and mailing of certain legal notices of
proposed annual rate adjustments.
3. The parties executed the Second Amendment to the Contract on August
5, 2014 to extend the Term of the Contract to September 30, 2017;
eliminate annual rate adjustments for Contractor's Collection and
Processing costs and for the Disposal Charge, for the period July 1, 2014
through June 30, 2015; eliminate payment of any Diversion Incentive for
Calendar year 2013; increase the amount of the annual AB 939 Fee
described in Article 12.06 to one - hundred nine thousand nine hundred
eight -seven dollars and thirty -nine cents ($109,987.39) to be paid
quarterly as described in the Amendment; to add collection of MSW at bus
shelters and bus stops and provision of Toter -brand MSW receptacles as
described in the Amendment; to require Contractor to provide four (4)
cubic yard Split Bins to Commercial and Business Establishments, City
Facilities,-and Multi- family complexes for storage and Collection of MSW,
Source Separated Recyclable Materials and Single Stream Recyclable
Materials; and to add and amend certain definitions in Attachment A.
4. The purpose of this Third Amendment is to change the date for the final
indexes used to calculate adjustments to Contractor's compensation and
to incorporate new services and costs for those services into the Contract.
NOW, THEREFORE, in consideration of the mutual promises contained in this
THIRD AMENDMENT, and for other good and valuable consideration, the parties
agree as follows:
Section 1. Change in Date For Final Indexes Used to Calculate
Adjustments to Contractor's Compensation.
Attachment J "Annual Rate, Disposal and Incentive Cost Adjustment Method"
as revised by the Second Amendment to the Contract is hereby deleted and
replaced in its entirety by revised Attachment J attached hereto and
incorporated herein as Exhibit 1.
Section 2. Addition of New Services and Changes to Existing Services
Attachment B "Detailed Scope of Work ", as revised by the First and Second
Amendments, is hereby further amended as follows:
A. New Section 1.01.8 "Billing For Shared Containers" is hereby added to
Attachment B as follows:
"1.01.8 Billing For Shared Containers
Contractor shall, at Customer request, divide the rate for a single Container
between Customers that are sharing said Container for MSW, Recyclable
Materials, Yardwaste or Food Scraps. Contractor shall issue separate
monthly bills to each Customer for their proportionate share of the cost listed
in Attachment D for the size of Container and for the type and frequency of
service being provided. Contractor shall provide such billing for shared
Containers at no additional charge to the Customers requesting this service."
B. Section 2.02.1 "Back Yard/Wheelout Service" is amended by adding the
following as the last sentence in the section:
"In the event there is no current letter on file from a physician, Contractor
shall charge the rate for Back Yard/Wheelout Service in Attachment D."
C. The following new Section 3.03.4 "Commercial Food Scrap Collection" is
added:
1.03.4 Commercial Food Scrap Collection
Contractor shall offer a Food Scrap diversion program to Commercial and
Business Establishments at the rates set forth in Attachment D. Contractor
shall provide appropriate -sized Containers (thirty -five (35) gallon or sixty -five
(65) gallon wheeled Carts and /or two (2) cubic yard Bins) to participating
PA
businesses. The collected Food Scraps shall be Composted at a City -
approved Composting Facility. The current City- approved Composting Facility
is the American Organics, Victor Valley Regional Composting Facility located
in Victorville, California as described in Attachment DD.
In the event the City- approved Composting Facility becomes unavailable, the
procedures outlined in Section 5.05 of the Contract shall be followed. In the
event the cost of using the City- approved Composting Facility exceeds the
cost of using another available, fully permitted and operating facility capable
of processing the City's Food Scraps, and use of such alternate facility would
reduce the rates charged by Contractor to Customers for the Food Scrap
diversion program, Contractor may submit a request to take the Food Scraps
Collected in City to the alternate facility for processing. In such event, the
process described in Section 4.12 of the Contract may be used by the City.
The decision of the City as to whether or not to approve Contractor's request
shall be final."
D. New Attachment DD "City- Approved Composting Facility for Composting
of Food Scraps Collected in City" is attached hereto and incorporated herein as
Exhibit 2.
E. The following sections of Attachment B are renumbered as follows:
Section 3.03.4 "Clean Your Files Day" is renumbered to Section 3.03.5.
Section 3.03.5 "Manual Can Service" is renumbered to Section 3.03.6
Section 3.03.6 "Business Recycling Plans" is renumbered to Section 3.03.7
F. The following sections of Attachment B are amended to add the
requirement that Contractor provide three (3) cubic yard split bins to Customers:
The third sentence in Section 1.04.3 of Attachment B "Containers for Commercial
and Business Establishments and City Facilities" is amended to read as follows:
"Contractor shall also furnish three (3) cubic yard, four (4) cubic yard, and
six (6) cubic yard bins; three (3) cubic yard and four (4) cubic yard Split
Bins; ten (10) cubic yard, twenty (20) cubic yard, thirty (30) cubic yard and
forty (40) cubic yard Roll Off Boxes; and shall provide Compactor pull
service for Commercial and Business Establishments and City Facilities,
except that Customers located at any of the above Premises may, at their
sole discretion, lease and /or purchase Compactors from any Person,
company, manufacturer, or distributor, including but not limited to,
Contractor for use at their Premises."
The third sentence in Section 2.02.3 of Attachment B "Multi- family Service" is
amended to read as follows:
3
"Contractor shall provide separate Bin(s), wheeled Carts (as identified in
Attachment E) and three (3) cubic yard and four (4) cubic yard Split Bins
for Collection of Single Stream or Source Separated Recyclables."
The eighth sentence in Section 2.02.3 of Attachment B "Multi- family Service" is
amended to read as follows:
"Contractor shall provide two (2) cubic yard, three (3) cubic yard, four (4)
cubic yard, and six (6) cubic yard Bins; three (3) cubic yard and four (4)
cubic yard Compactors; and three (3) cubic yard and four (4) cubic yard
Split Bins for storage of MSW."
The third paragraph in Section 3.2 of Attachment B "MSW. Collection" is
amended to read as follows:
"Contractor shall provide thirty -five (35) gallon Carts, sixty -five (65) gallon
Carts, ninety -five (95) gallon Carts, three (3) cubic yard Bins, four (4) cubic
yard Bins, six (6) cubic yard Bins, three (3) cubic yard and four (4) cubic
yard Split Bins, as well as four (4) and six (6) cubic yard Compactors to
Commercial and Business Establishments for storage and Collection of
MSW at the rates in Attachment D."
The second sentence in Section 3.03.1 of Attachment B "Single Stream
Recyclable Materials" is amended to read as follows:
"Contractor shall provide thirty -five (35) gallon Carts, sixty -five (65) gallon
Carts, ninety -five (95) gallon Carts, three (3) cubic yard Bins, four (4) cubic
yard Bins, six (6) cubic yard Bins and three (3) cubic yard and four (4)
cubic yard Split Bins to said Establishments for storage and Collection of
Recyclable Materials at the rates in Attachment D."
The second sentence in Section 3.03.2 of Attachment B "Source Separated
Recyclable Materials" is amended to read as follows:
"Contractor shall provide thirty -five (35) gallon Carts, sixty -five (65) gallon
Carts, ninety -five (95) gallon Carts, three (3) cubic yard Bins, four (4) cubic
yard Bins, six (6) cubic yard Bins and three (3) cubic yard and four (4)
cubic yard Split Bins to said Establishments for storage and Collection of
Recyclable Materials at the rates in Attachment D."
G. The following new Section 4.8 is added to Attachment B:
"Section 4.8. Scout Service.
4
Contractor shall provide Scout Service to Multi- family and Commercial and
Business Establishments upon request at the rates set forth in Attachment
D."
Section 3. Changes and Additions to Attachment A "Definitions"
A. The following definition is hereby added to Attachment A of the Contract:
"Scout Service: "Scout Service" means moving individual Bins
containing MSW, Recyclable Materials, Yardwaste and /or Food Scraps to
a centralized location on the property so the Bins can be emptied by a
frontloader vehicle and then returned to their original locations. The Bins
are moved by a pickup truck, motorized utility cart or other similar
lightweight vehicle. Scout Service is used to save wear and tear on
pavement in parking lots and driveways. Instead of traveling to the
location of each individual Bin to empty the Bin, the frontloader vehicle
only travels to one centralized location and empties all the Bins at that
location."
B. The following definitions in Attachment A of the Contract are revised as
follows:
The definition of "Food Waste" is hereby deleted and replaced by the following
definition of "Food Scraps ". All references in the Contract to "Food Waste" are
hereby changed to "Food Scraps ":
"Food Scraps: "Food Scraps" means material resulting from the
production, processing, preparation or cooking of food for human
consumption, that is no longer intended for such consumption and that is
separated from MSW. Food Scraps includes surplus, spoiled or unsold
food such as vegetables and culls, raw food left over after food
preparation, and leftover cooked food and plate scrapings. Food Scraps
includes, without limitation, food scraps from food facilities as defined by
California Health and Safety Code Section 113789, food processing
establishments (as defined in California Health and Safety Code Section
111955), grocery stores, institutional cafeterias (such as schools, hospitals
and assisted living facilities), restaurants, and residential food scraps."
The second paragraph of the definition of "Municipal Solid Waste" is hereby
revised to read as follows:
"MSW does not include (1) Hazardous Waste, (2) low -level radioactive
waste regulated under California Health and Safety Code Sections 25800
et seq., (3) untreated medical waste which is regulated pursuant to the
Medical Waste Management Act, California Health and Safety Code
Sections 25015 et seq., (4) Recyclable Materials which have been source
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separated or otherwise segregated from other waste material, or (5) Food
Scraps which have been source separated or otherwise segregated from
other waste material."
Section 4. Rates Added to Attachment D
Attachment D is hereby amended by adding the new rates listed in Exhibit 3
which is attached hereto and incorporated herein by this reference.
The parties agree that the new rates listed in Exhibit 3 will be presented to the
City Council at a public hearing that has been noticed in accordance with Article
13D, Section 6 of the California Constitution, and if the rates are approved by the
City Council, and the City has not received a majority protest against the new
rates, said rates shall become effective July 1, 2015. If the rates listed in Exhibit
3 are not approved by the City Council, or in the event of a majority protest,
Contractor shall not be required to provide the new services corresponding to the
new rates listed in Exhibit 3, until such time as rates for said services are
approved by the City Council in accordance with Article 13D, Section 6 of the
California Constitution.
Section 5. Full Force and Effect.
Except as expressly modified by this Third Amendment, all terms and conditions
contained in the Contract dated June 13, 2007 as amended on April 6, 2010, and
on August 5, 2014 shall remain in full force and effect.
IN WITNESS WHEREOF, City and Contractor have executed this Third
Amendment as of the day and year first above written.
(The signature page follows this page)
no
0
Chairman and
Executive Officer
VA
CITY OF TUSTIN
Charles E. Puckett, Mayor
ATTEST:
CITY CLERK
By:
Jeffrey C. Parker, City Clerk
APPROVED AS TO FORM
David E. Kendig, City Attorney
Exhibit 1
ATTACHMENT
Annual Rate, Disposal, and Incentive Cost Adjustment Method
The original "Collection ", "Processing ", and "Disposal' components of rates are
identified in Attachment D and each component shall be adjusted according to the
following procedures. No Adjustments will be made to any rate component that was
proposed as "0" upon the effective date of the Contract.
The Following Rounding Protocol Shall be Used In the Calculations Described
Herein: For the calculation of the percentage change in all indexes described in this
Attachment J, the calculations shall be rounded to one decimal place. (Example: 2.3 or
0.2.) The numbers 1, 2, 3 and 4 in the calculation shall be rounded down. (Example: if
the result of the calculation were 7.344, the final figure would be 7.3.) The numbers 5,
6, 7, 8 and 9 in the calculation shall be rounded up. (Example: If the result of the
calculation were 4.278, the final figure would be 4.3.)
For the calculation of all rates described in this Attachment J, the calculations shall be
rounded to two decimal places. (Example: $16.23 or $32.02.) The numbers 1, 2, 3 and
4 in the calculation shall be rounded down. (Example: if the result of the calculation
were $16.3442, the final figure would be $16.34.) The numbers 5, 6, 7, 8 and 9 in the
calculation shall be rounded up. (Example: If the result of the calculation were $3.468,
the final figure would be $3.47.)
The above - described rounding protocol shall be used for the calculation of the rates to
become effective July 1, 2011 and for the remainder of the Contract Term.
1. ANNUAL RATE ADJUSTMENT METHOD AND DISPOSAL COST
ADJUSTMENT METHOD
A. ADJUSTMENT FOR COLLECTION COMPONENT OF ANNUAL RATE BASED
ON PPI
Perform the following calculations of the most current adjusted Collection component of
the rate. The initial adjustment shall be applied to the Collection component of the rate
as identified in Attachment D beginning July 2009.
Step One. Calculate the percentage change in the Producer Price Index for Natural
Gas (Series ID WPU0531). The first adjustment to be made in July 2009 shall be
calculated using the Natural Gas PPI percentage change from October 31, 2008 to
December 31, 2008.
For adjustments made in July 2010 through July 2014 (with the exception of the period
July 1, 2014 through June 30, 2015 as described in Contract Section 12.03), the annual
adjustment will be based upon the change in the index for a twelve -month period ending
on December 31 of each year.
Attachment J
Page 1 of 7
Exhibit 1
ATTACHMENT
Annual Rate, Disposal, and Incentive Cost Adjustment Method
Commencing with the calculations for the adjustment to become effective July 1, 2015,
the annual adjustment will be based upon the change in the index for a twelve -month
period ending on October 31 of each year of the Term (example: for the 2015
adjustment the change in the index for a twelve -month period ending on October 31,
2014).
Commencing with the calculations for calendar year 2012 and through the end of the
Term, the "final" version of the index, published by the U. S. Bureau of Labor Statistics
( "BLS ") in approximately March of each year, shall be used, and the "preliminary"
version of the index published by the BLS shall not be used. Thus, the adjustment that
will become effective July 2015 will be based upon the change in the final index for the
twelve -month period ending October 31, 2014.
Step Two. Calculate the fuel costs by subtracting the portion of the Collection
component of the rate attributed to fuel by multiplying Collection by 15 %.
Step Three. Multiply the fuel cost (15% of Collection) by 1 plus the percentage change
in PPI for Natural Gas. If the PPI percentage change is negative, then 15% of
Collection will be adjusted downward; and if the PPI percentage change is positive, then
15% of Collection shall be adjusted upward. The percentage change shall not exceed
25% for a percentage increase, or -25% for a percentage decrease, per annum.
Step Four. Calculate the percentage change in the Producer Price Index for Finished
Goods Less Food and Energy (Series ID WPUSOP3500). The first adjustment to be
made in July 2009 shall be calculated using the Finished Goods Less Food and Energy
PPI percentage change from October 31, 2008 to December 31, 2008.
For adjustments made in July 2010 through July 2014 (with the exception of the period
July 1, 2014 through June 30, 2015 as described in Contract Section 12.03), the annual
adjustment will be based upon the change in the index for a twelve -month period ending
on December 31 of each year. Thus, the adjustment that will become effective July
2010 will be based upon the change in the index for the twelve -month period ending
December 31. 2009.
Commencing with the calculations for the adjustment to become effective July 1, 2015,
the annual adjustment will be based upon the change in the index for a twelve -month
period ending on October 31 of each year of the Term (example: for the 2015
adjustment the change in the index for a twelve -month period ending on October 31,
2014).
The percentage change shall not exceed four percent (4 %) per annum. In the event the
calculated percentage change in the PPI is negative, the rate adjustment shall be zero
(0).
Attachment J
Page 2 of 7
Exhibit 1
ATTACHMENT
Annual Rate, Disposal, and Incentive Cost Adjustment Method
Step Five. Multiply the Collection component of the rate by 85% to calculate the
Collection fee less fuel costs.
Step Six. Multiply the Collection fee, less fuel costs (85% of Collection) by 1 plus the
percentage change in PPI for Finished Goods similar to the calculation shown in Step
Four above.
Step Seven. Add the Collection component adjusted for fuel costs (15% of Collection)
to the Collection component less fuel costs (85% of Collection) for the total adjusted
Collection component of the rate.
Sample Rate Adjustment Calculation for Change in PPI
(All numbers are examples only and are used here for illustration purposes.)
Example Assumptions
PPI for Finished Goods (old) 140.00
PPI for Finished Goods (new) 144.00
PPI for Natural Gas (old) 237.4
PPI for Natural Gas (new) 270.7
Current Residential Recycling Cart Collection Rate $ .91
Current Commingled 3 yd bin Collection Rate $32.28
Step One. Calculate percentage change in PPI for Natural Gas.
237.4 — 270.7 = (33.3/237.4) 100 = 14%
Step Two. Calculate percentage of Collection attributable to fuel costs (= 15 %).
Residential Collection Rate: $.91 X .15 = $.14
3 yd. Bin Collection Rate: $32.28 X .15 = $4.84
Step Three. Apply percentage change of PPI for Natural Gas to fuel costs calculated in
Step Two.
Residential Collection Rate: $.14 X 1.14 = $.16
3 yd. Bin Collection Rate: $4.84 X 1.14 = $5.52
Step Four. Calculate percentage change in PPI for Finished Goods.
144 — 140 = (4/140) 100 = 2.8%
Step Five. Calculate Collection less fuel costs (= 85 %).
Residential Collection Rate: $.91 X .85 = $77
Attachment J
Page 3 of 7
3 yd. Bin Collection Rate: $32.28 X .85 = $27.43
Step Six. Apply percentage change of PPI for Finished Goods to Collection fee less
fuel costs calculated in Step Five.
Residential Collection Rate: $77 X 1.028 = $.79
3 yd. Bin Collection Rate: $27.43 X 1.028 = $28.21
Step Seven. Add the rates calculated in step three and step six to calculate the total
adjusted Collection rate.
New Residential Collection Rate: $16 + $79 = $.95
New 3 yd. Bin Collection Rate: $5.52 + $28.21 = $33.73
B. ADJUSTMENT FOR PROCESSING COMPONENT OF ANNUAL RATE BASED
ON PPI
Perform the following calculations of the most current adjusted Processing component
of the rate. The initial adjustment shall be applied to the Processing component of the
rate as identified in Attachment D beginning July 2009.
Step One. Calculate the percentage change in the Producer Price Index for Finished
Goods Less Food and Energy (Series ID WPUSOP3500). The first adjustment to be
made in July 2009 shall be calculated using the percentage change in the index from
October 31, 2008 to December 31, 2008.
For adjustments made in July 2010 through July 2014 (with the exception of the period
July 1, 2014 through June 30, 2015 as described in Contract Section 12.03), the annual
adjustment will be based upon the change in the index for a twelve -month period ending
on December 31 of each year. Thus, the adjustment that will become effective July
2010 will be based upon the change in the index for the twelve -month period ending
December 31, 2009.
Commencing with the calculations for the adjustment to become effective July 1, 2015,
the annual adjustment will be based upon the change in the index for a twelve -month
period ending on October 31 of each year of the Term (example: for the 2015
adjustment the change in the index for a twelve -month period ending on October 31,
2014).
The percentage change shall not exceed four percent (4 %) per annum.
Step Two. Multiply the Processing component of the rate by 1 plus the percentage
change in the PPI for Finished Goods Less Food and Energy.
Step Three. In the event the calculated percentage change in the PPI is negative, the
rate adjustment shall be zero (0).
Attachment J
Page 4 of 7
Sample Rate Adjustment Calculation for Change in PPI
(All numbers are examples only and are used here for illustration purposes).
Example Assumptions
PPI (old) 140.00
PPI (new) 144.00
Current Residential Recycling Cart Processing Rate $ 2.48
Current Commingled 3 yd bin Processing Rate $18.16
Step One. Calculate percentage change in PPI
144 -140 = (4/140) 100 = 2.8%
Step Two. Apply percent change to Processing component of rate.
Residential Processing Rate: $2.48 X 1.028 = $2.55
3 yd. Bin Processing Rate: $18.16 X 1.028 = $18.67
C. ADJUSTMENT FOR CHANGE IN DISPOSAL CHARGE (TIP FEES) APPLIES
ONLY WHEN TIPPING FEE ACTUALLY CHANGES (INCREASES OR
DECREASES))
Step One. Calculate the percentage change in the Disposal Charge per ton, based
upon the change between the most recent tipping fee on which rates are based, and the
new tipping fee. Note: Pursuant to Contract Section 12.04 there will be no adjustment
for any increase in the Disposal Charge that becomes effective during the period July 1,
2014 through June 30, 2015. In the event the Disposal Charge decreases during this
period, the adjustment shall be made in the rates.
Step Two. Apply the resulting percentage change to the most current Disposal
component of rate by multiplying the Disposal component by 1 plus the percentage
change. If the percentage change is negative, then the Disposal Charge will be adjusted
downward; and if the percentage change is positive, then Disposal Charge shall be
adjusted upward.
Sample Rate Adjustment Calculation for Change in Disposal Charge
(All numbers are examples only and are used here for illustration purposes)
Example Assumptions:
Disposal Tip Fee (old) $30.00 /ton
Disposal Tip Fee (new) $35.00 /ton
Current Disposal Charge
Component of Residential MSW Cart rate $ .11
Current Disposal Charge
Attachment J
Page 5 of 7
Component of 3 yd bin rate $1.01
Step One. Calculate percentage change in Tip Fee.
$35.00 - $30.00 = ($5/$30.00) 100 = 16.6%
Step Two. Apply percent change to Disposal Charge component of existing
rates.
Residential Disposal rate: $.11 x 1.166 = $.13
3 yd bin Disposal rate: $1.01 x 1.166 = $1.18
D. CALCULATE TOTAL ANNUAL RATE
Step One. Add the Collection Component of the Rate (as adjusted in A. above), the
Processing Component of the Rate (as adjusted in B. above), and the
Disposal Component of Rate (as adjusted in C. above) to calculate total
rate for service. (Note: the Disposal Component of Rate will not be
adjusted up or down if the tipping fee has not changed).
Example:
Adjusted Residential Rate: $.94 + $2.55 + $.13 = $3.62
Adjusted 3 yd. Bin Rate: $33.37 + $18.67 + $1.18 = $53.22
2. ADJUSTMENT FOR DIVERSION INCENTIVE
If the diversion requirements as described in Sections 6.06, 6.07 and 6.09, of the
contract are satisfied, a 1 % rate increase will be added to the rates as shown in the
following example.
Sample Rate Adjustment Calculation for Diversion Incentive
(All numbers are examples only and are used here for illustration purposes).
Example Assumptions:
Current Residential Recycling Cart Collection Rate $ .91
Current Commingled 3 yd bin Collection Rate $32.28
Current Residential Recycling Cart Processing Rate $ 2.48
Current Commingled 3 yd bin Processing Rate $18.16
Step One. Multiply the current Residential Collection Cart rate by 0.01.
0.01 x $0.91 = $0.01
Attachment J
Page 6 of 7
Step Two. Multiply the current Residential Processing rate by 0.01
0.01 x $2.48 = $0.02
Step Three. Add each of the 1 % increases to the Adjusted Residential Rate calculated
in 1 D.
Residential Collection Rate: $3.62 + $0.01 + $0.02 = $3.65
Step Four. Multiply the current 3 yd bin Collection Rate by 0.01.
0.01 x $32.28 = $0.32
Step Five. Multiply the current 3 yd bin Processing rate by 0.01.
0.01 x$18.16 =$0.18
Step Six. Add each of the 1% increases to the Adjusted 3 yd bin Rate calculated in
1 D.
3 yd. Bin Collection Rate: $53.22 + $0.32 + $0.18 = $53.72
Attachment J
Page 7 of 7
Exhibit 2
ATTACHMENT DD
City- Approved Composting Facility For Composting of Food Scraps Collected In City
The City- approved Composting Facility for Composting Food Scraps Collected in City is:
American Organics
Victor Valley Regional Composting Facility
20055 Shay Road
Victorville, CA 92394
Manager: Pete Townsend, General Manager
Attachment DD
Page 1 of 1
Exhibit 3
RATES ADDED TO ATTACHMENT D
The following rates are added to Attachment D and will become effective July 1, 2015 as
described in Section 4 of the Third Amendment:
New Section 20 of Attachment D:
Commercial Food Scrap Collection Rates
Table 1: 35- aallon Food ScraD Cart
Tahle 2 65- nallnn Fond Scrap Cart
Collection
Processing
Disposal
Total Rate
1 day per week
$20.84
$ (6.74)
$-
$14.10
2 day per week
$41.70
$(13.50)
$-
$28.20
3 day per week
$62.56
$(20.24)
$-
$42.32
4 day per week
$83.39
$(27.00)
$-
$56.39
5 day per week
$104.25
$(33.74)
$-
$70.51
6 day per week
$125.09
1 $(40.50)
$-
$84.59
Tahle 2 65- nallnn Fond Scrap Cart
Table 3 2 -vard Food ScraD Bin
Collection
Processing
Disposal
Total Rate
1 day per week
$23.03
$(7.28)
$-
$15.75
2 day per week
$46.07
$(14.57)
$-
$31.50
3 day per week
$69.12
$(21.85)
$-
$47.27
4 day per week
$92.18
$(29.13)
$-
$63.05
5 day per week
$115.21
$ (36.42)
$-
$78.79
6 day per week
$138.25
1 $(43.71 )
$-
$94.54
Table 3 2 -vard Food ScraD Bin
New Section 21 of Attachment D:
Three (3) and Four (4) Cubic Yard Split Bin Rates for Commercial and Multi- family
Service
Tahle 4* 3 -cubic vard Solit Bin with same day MSW and Recvclina service
Collection
Processing
Disposal
Total Rate
1 day per week
$55.72
$(14.76)
$-
$40.96
2 day per week
$90.59
$(20.91)
$
$69.68
3 day per week
$125.48
$(27,06)
$
$98.42
4 day per week
$160.37
$(33.21 )
per week
$127.16
5 day per week
$195.22
$(39.36)
$
$155.86
6 day per week
1 $230.08
$(45.51)
$-
$184.57
New Section 21 of Attachment D:
Three (3) and Four (4) Cubic Yard Split Bin Rates for Commercial and Multi- family
Service
Tahle 4* 3 -cubic vard Solit Bin with same day MSW and Recvclina service
Exhibit 3
Page 1 of 3
Collection
Processing
Disposal
Total Rate
1 day
per week
$66.77
$10.72
$18.75
$96.24
2 day
per week
$97.79
$21.46
$37.48
$156.73
3 day
per week
$119.65
$32.16
$56.23
$208.04
4 day
per week
$150.69
$42.87
$74.96
$268.52
5 day
per week
$181.70
$53.62
$93.71
$329.03
6 day
per week
$212.73
$64.35
$112.44
$389.52
Exhibit 3
Page 1 of 3
Commercial 3 -cubic yard Split Bin Service - Different Days for
MSW and Recycling Collection
Commercial split bin service with different collection days for collection of the
MSW and the recycling sides of Bins is also provided by Contractor. For the 3
cubic yard Split Bin, rates are calculated by adding the rate for the 1.5 -cubic
yard single- stream recycling Bin at the desired collection frequencies shown in
Table 3 and the rate for the 1.5 cubic yard MSW Bin shown in Table 2 at the
desired collection frequencies. For example, a 3 cubic yard Split Bin with the
MSW side collected 2x/week and the recycling side collected 1x/week would
cost $132.46 per month ($93.85 MSW + $38.61 Recycling = $132.46).
Table 2: 3 -cubic yard Split Bin - 1.5 cubic yard MSW side of bin
Table 3: 3 -cubic yard split bin - 1.5 cubic yard single- stream recycling side of
bin
Collection
Processing
Disposal
Total Rate
1 day per week
$39.98
$6.42
$11.23
$57.63
2 day per week
$58.56
$12.85
$22.44
$93.85
3 day per week
$71.65
$19.26
$33.67
$124.58
4 day per week
$90.24
$25.67
$44.89
$160.80
5 day per week
$108.80
$32.10
$56.12
$197.02
6 day per week
$127.38
$38.53
$67.33
$233.24
Table 3: 3 -cubic yard split bin - 1.5 cubic yard single- stream recycling side of
bin
Table 4: 4 -cubic yard Split Bin with same day MSW and Recycling service
Collection
Processing
Disposal
Total Rate
1 day per week
$26.79
$4.30
$7.52
$38.61
2 day per week
$39.23
$8.61
$15.04
$62.88
3 day per week
$48.00
$12.90
$22.56
$83.46
4 day per week
$60.45
$17.20
$30.07
$107.72
5 day per week
$72.90
$21.52
$37.59
$132.01
6 day per week
$85.35
$25.82
$45.11
$156.28
Table 4: 4 -cubic yard Split Bin with same day MSW and Recycling service
Commercial 4 -cubic yard Split Bin Service - Different Days for
MSW and Recycling Collection
Commercial split bin service with different collection days for collection of the
MSW and the recycling sides of Bins is also provided by Contractor. For the 4
cubic yard Split Bin, rates are calculated by adding the rate for the 2 -cubic yard
single- stream recycling Bin at the desired collection frequencies shown in
Table 6 and the rate for the 2 -cubic yard MSW Bin shown in Table 5 at the
desired collection frequencies. For example, a 4 cubic yard Split Bin with the
MSW side collected 2x/week and the recycling side collected 1x/week would
cost $180.71 per month ($139.75 MSW + $40.96 Recycling = $180.71).
Exhibit 3
Page 2 of 3
Collection
Processing
Disposal
Total Rate
1
day
per week
$111.44
$(5.81)
$15.64
$121.27
2
day
per week
$181.18
$(3.02)
$31.27
$209.43
3
day
per week
$250.96
$(0.22)
$46.92
$297.66
4
day
per week
$320.74
$2.58
$62.57
$385.89
5
day
per week
$390.44
$5.37
$78.22
$474.03
6
day
per week
$460.16
$8.19
$9185
$562.20
Commercial 4 -cubic yard Split Bin Service - Different Days for
MSW and Recycling Collection
Commercial split bin service with different collection days for collection of the
MSW and the recycling sides of Bins is also provided by Contractor. For the 4
cubic yard Split Bin, rates are calculated by adding the rate for the 2 -cubic yard
single- stream recycling Bin at the desired collection frequencies shown in
Table 6 and the rate for the 2 -cubic yard MSW Bin shown in Table 5 at the
desired collection frequencies. For example, a 4 cubic yard Split Bin with the
MSW side collected 2x/week and the recycling side collected 1x/week would
cost $180.71 per month ($139.75 MSW + $40.96 Recycling = $180.71).
Exhibit 3
Page 2 of 3
Table 5: 4 -yard split bin - 2 cubic and MSW side of bin
Table 6: 4 -vard split bin - 2 cubic vard Recvclina side of bin
Collection
Collection
Processing
Disposal
Total Rate
1 day
per week
$55.72
$8.95
$15.64
$90.59
$80.31
$-
2 day
per week
$90.59
$17.89
$31.27
$98.42
$139.75
$160.37
3 day
per week
$125.48
$26.84
$46.92
$ 39.36
$199.24
$155.86
4 day
per week
$160.37
$35.79
$62.57
(Contractor
$258.73
5 day
per week
$195.22
$44.73
$78.22
$318.17
weight vehicle &
6 day
per week
$230.08
$53.70
$93.85
$377.63
Table 6: 4 -vard split bin - 2 cubic vard Recvclina side of bin
3. Miscellaneous Rates
The following miscellaneous rates are added to Section 19 "Other Services" of
Attachment D:
Collection
Processing
Disposal
Total Rate
1 day per week
$55.72
$(14.76)
$-
$40.96
2 day per week
$90.59
$(20.91)
$-
$69.68
3 day per week
$125.48
$ 27.06
$-
$98.42
4 day per week
$160.37
$(33.21)
$-
$127.16
5 day per week
$195.22
$ 39.36
$-
$155.86
6 day per week
$230.08
$(45.51)
$-
$184.57
3. Miscellaneous Rates
The following miscellaneous rates are added to Section 19 "Other Services" of
Attachment D:
Exhibit 3
Page 3 of 3
Collection
Processing
Disposal
Total Rate
Overweight
Clean -up Bin
Charge
$-
$62.23
$-
$62.23
Compactor Steam
Cleaning
$140.00
$-
$-
$140
Scout Service
(Contractor
provides a light-
weight vehicle &
brings Bins to
centralized
location before
$12.52 x
$12.52 x
servicing - rate is
Frequency
Frequency
per Bin per
of collection
of collection
month)
1,2,3,4,5,6
1,2,3,4,5,6
Residential
Backyard
Wheelout Service
(If no physician's
note) rate is per
month
$40.00
$40.00
Exhibit 3
Page 3 of 3