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HomeMy WebLinkAboutOB 2 HAUL'G/RECYCL'G 12-02-91OLD BUSINESS NO. 2 y 12-2-91 PM LM� •.� � is a ,ATE: inter -Corn NOVEMBER 26, 1991 � TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: WILLIAM A. HUSTON, CITY MANAGER .SUBJECT: FRANCHISE AGREEMENT - REFUSE HAULING AND RECYCLING Councilmember Potts requested a staff report regarding the status of the City's agreement with Great Western Reclamation for trash hauling and recycling services. Attached is a memorandum from the City Attorney's office which explains the key provisions of the agreement. The City Attorney's memorandum includes a survey of residential refuse rates for Orange County cities with recycling programs. In reviewing the rates, it is important to keep in mind that there are a variety of recycling programs and rates are affected by the type of program provided. The City of Tustin utilizes a material recovery facility (MRF) system for its recycling program. Some cities utilize curbside recycling which requires that the resident sort materials. All the ,research conducted by the City, advice from its consultants and other agencies clearly demonstrates that a MRF program offers the best, and most cost-effective, way of achieving the recycling goals mandated by AB939. WAH (,) e Attachment New — 2 6— 9 1 TUE t : 0.4 R O U R K E& W O O D R 1 1= P P _ 02 4 s , PATE: NOVEMBER 26, 19 91 Inter-00M TO: RONOR"L$ XAYOR AND CITY COUNCIL FROM: CYTY ATTORNEY SUBJECT: GOLXD WASTE DISPOSAL 1. The City's contract for solid waste disposal was entered into in 1988 with an original term of five years, running to June 30, 1993, with the additional proviso that in each year of the contract the term is extended for an additional term of five years unless the City Council gives a written notice of intention not to Continue at least six months prior to the end of a contract year (June 30). Accordingly, the City Council can at any time direct that a written notice of intention not to continue be given to the City's solid waste disposal company and then the term of the contract would terminate in five years. The contract also prescribes that if the City determines that the service provided by the contractor has fallen below standards acceptable to the City, the City can give notice of the services shortcomings and if not corrected within forty-five days, the City Council can hold a hearing, make appropriate findings and terminate the contract effective one year after the City Council's action. In addition, the City can at any time terminate the contract based upon any breach by the contractor in the performance of its obligations prescribed in the contract. Copies of the Agreement for Collection and Transportation of Solid waste Refuse Produced or Accumulated in the City of Tustin dated December 18, 1988 and the Amendment to agreement for Collection and Transportation of solid Waste Refuse Produced or Accumulated in the City of Tustin effective June 281 1991 are attached hereto. 10RjsbA1126914C-1R jab) NOV-26-91 TUE 1--v:05 R0URKE9,W003DR1'F7F P.03 .r Honorable Mayor and City Council November 26, 1991 Page Two 2. Contract Rate Provisions. The City's contract with Great Western Reclamation prescribes rates as follows: a. The rates at present and continuing to July 11 1992 are as set forth in Schedule A to the Amendment of June 28, 1991. b. The rates are subject to the allocable amounts of any increases in County of Orange landfill charges after July 1, 1991 and after July 1, 1992 to adjustments pursuant to the Consumer Price Index Weighted Average provisions prescribed in Schedule B of the Amendment. 3. Rate Comparison Information. Attached hereto is material regarding solid waste disposal charges of other Orange County jurisdictions. It should be noted that some of the rates for other jurisdictions are difficult to use for purposes of comparison because they involve arrangements for solid waste disposal different than specified in Tustin's contract. Some examples are i) some cities are required to do the customer billing and collection at additional city expense rather than the contractor performing that work as Tustin's contractor is required to do, ii) some cities subsidize certain aspects of solid waste disposal, iii) some cities pay the landfill charges, in addition to the specified rates, iv) some cities additionally pay the costs of a Material Recovery Facility (MRF), v) some jurisdictions (e.g, the County of Orange) have less expensive "first stagelt recycling systems which put separation of trash responsibilities on the homeowner, vi) Tustin's recycling program is a second stage program utilizing a MRF and vii) various other variations. URKH, City Attorney CC: WH RESIDENTIAL REFUSE RATES ORANGE COUNTY CITIES WITH RECYCLING PROGRAMS Orange County Unincorporated 13.78 Yorba Linda 13.52 Orange 12.00 Los Alamitos 11.96 Cypress 11.87 Mission Viejo 11.85 Stanton 11.85 Brea 11.65 San Juan Capistrano 11.58 La Palma 11.55 Placentia 11.43 Costa Mesa 11.35 Anaheim 10.99 La Habra 10.56 Buena Park 10.12 San Clemente 9.84 Irvine 9.50 Laguna Beach 8.25 AVERAGE 11.31 MEDIAN 11.57 TUSTIN 11.73. Note: All the above cities have recycling programs. The rates do not take into account any special services required of the franchise hauler. For example, in Tustin the hauler must provide recycling program publicity at no cost and a special pick up service at no charge for certain items such as abandoned furniture and appliances. AGREEMENT FOk COLLECTION AND TRANSPORTATION OF SOLID WASTE REFUSE PRODUCED OR ACCUMULATED IN THE CITY OF TUSTIN THIS AGREEMENT is made and entered into this 19th day of _ December , 1988, by and between the City of Tustin, a municipal corporation of the State of California (hereinafter referred to as "City") and Great Western Reclamation, Inc., a California corporation (hereinafter referred to as "Contractor"). W I T N E S S E T H RECITALS: A. The Legislature of the State of California, by enactment of California Government Code Section 66755 et seq., declares that it is in the public interest to authorize and require local agencies to make adequate provisions for solid waste handling within their jurisdictions. B. In the determination of the City Council of the City of Tustin, the public health, safety and well-being require that solid waste refuse collection, including, but not limited to, frequency of collection, means of collection and transportation, level of services, charges and fees, nature, location and extent of such services, be provided by contract without competitive bidding. C. The City Council of the City further declares its intention of maintaining reasonable rates for collection and disposal of solid waste refuse. D. The parties hereto have been operating under the terms of that certain agreement dated May 15, 1972, originally entered into between Holthe Disposal Service and the City, as the same has been amended from time to time, and have been generally satisfied with the performance under said agreement. E. The City Council of the City of Tustin, having determined that Contractor by demonstrated experience, reputation and capacity is qualified to continue to -provide for the collection of refuse within the corporate limits of the City of Tustin and to transport such refuse to places of disposal, desires that Contractor be engaged to perform such services on the basis set forth in this Agreement. F. Special provisions and arrangements for the collection and disposal of hazardous waste exist and therefore this agreement does not provide for or pertain to the collection or disposal of hazardous waste, including, but not limited to flammable waste, waste transported in a bulk tanker, liquid -- waste, sludge waste, waste from any industrial process, waste from any pollution control process, residue "and debris from the clean-up of a spill or release of chemical substances, commercial 1 products or any other special wastes, contaminated soil, waste, residue, debris and articles from the clean-up of a site or facility formerly used for the generation, storage, treatment, recycling, reclamation or disposal of any other special waste, dead animals, manure, sewage waste, wastewater, explosive substance, radioactive material, and any material which has been exposed to highly infectious or contagious diseases. G. Great Western Reclamation, Inc. is a corporation organized and existing under the laws of California and has been and is now a wholly-owned subsidiary of Waste Management of North America, Inc., an Illinois corporation, which is a wholly-owned subsidiary of Waste Management, Inc. a publicly owned Delaware corporation with more than ten thousand (10,000) shareholders and its shares of common stock, of which there are in excess of forty-eight million (48,000,000) shares outstanding, are traded on the New York Stock Exchange. NOW, THEREFORE, in consideration of the respective and mutual covenants and promises hereinafter contained and made, and subject to all the terms and conditions hereof , the parties hereto do hereby agree as follows: 1. Grant of Contract and Franchise: City hereby grants to Contractor, for the term hereinafter set forth, the exclusive contract, right and privilege to collect and transport to a legally authorized disposal site or sites all solid waste produced, kept, and/or accumulated in the City of Tustin, and Contractor, subject to the terms hereof, hereby accepts and agrees to faithfully perform such contract and obligation. It is agreed that the Contractor shall have the obligation and duty as well as the exclusive right during the term of this Agreement, and all renewals thereof, to collect, receive, transport and dispose of any and all general refuse, construction refuse and bulky items generated by or within the City or under its jurisdidtion in an efficient, safe, orderly, sanitary manner, with a minimum of disturbance of the peace and quiet of the residents of Tustin, and to charge the fees then in effect for such services. The area to be serviced by Contractor herein shall include the areas of the City within both the present and any future boundaries of the City. Provided, however, that "solid Waste", "refuse", "general refuse", "construction refuse" shall not for the purposes of this agreement 'be construed to include hazardous waste, including, but not limited to, any of the materials described in recital F hereinabove and Contractor shall have no duty, obligation or exclusive rights in connection with the collection or disposal of hazardous waste. 2 2. Term: The term of this Agreement shall be for a period of five (5) years commencing on the first day of July -r 1988, and ending on the last day of June, 199-3, and each year thereafter shall automatically be renewed for an additional period of five (5) years unless City shall have given Contractor written notice of intention not to continue at least six (6) months prior to the end of any such contract year. Provided, however, that after July 1, 1993 City may terminate this agreement upon one (1) year's prior written notice to Contractor following a noticed public hearing and a finding by the City Council in the reasonable exercise of its discretion that: (1) the service provided by Contractor has fallen below acceptable standards, and (2) Contractor has continued to fail to achieve and maintain reasonable, acceptable standards after a forty-five (45) days written notice by City to Contractor specifying the shortcomings in Contractor's performance. This right of termination is in addition to any other rights of City upon a failure of Contractor to perform its obligations under this agreement. 3. Contract Documents: The contract documents consist of the ordinances of the City of Tustin regulating solid waste collection as' the same exist or as may be amended, this Agreement, the performance bond, and all other required documents which are hereby incorporated and made a part of this Agreement as though set forth in full herein and are considered as one and not severable. 4. Service: All persons occupying or maintaining a place of residence in a single-family dwelling unit or in a multi -family dwelling of three (3) or fewer units within the contract area shall be provided can service with regular collection service under this Agreement, not less often than weekly, and on a schedule approved by City. All persons occupying or maintaining other premises within the contract area shall also be provided regular collection service under this Agreement. Multi -family dwellings of four (4) or more units and commercial service accounts shall be' provided bin service with collection at the frequency for which they shall- contract, such frequency to be not less than that which shall.. be adequate to maintain service; provided, however, that for premises deemed by the Finance Director to be impractical- for bin service, can service shall be provided at commercial can service rates. in a healthful and unlittered condition. 5. Conformance with City Ordinances: Collection shall be made and the Contractor shall operate in conformance with the ordinances, rules and regulations of the City of Tustin regulating solid waste collection and disposal.- City shall take reasonable and appropriate steps to require citizens to comply with the provisions of the Tustin City Code relative to collection and disposal of solid waste. 3 6. Office: The Contractor shall establish and maintain a local office and other facilities through which it can be contacted, where service may be applied for, and complaints can be made. It shall be equipped with sufficient local -call area telephones, shall have a responsible person in charge during collection hours, and shall be open during collection hours. 7. Equipment: (a) Vehicles used by Contractor in the collection and disposal of solid waste shall be in a safe and operable condi- tion. No materials shall be permitted by Contractor to leak, fall or be spilled from any such vehicles or bins attached there- to. (b) Containers 'to be used by multi -family (four or more units) , industrial and commercial units shall be provided by Contractor. Said containers shall be of proper design and adequate size and with suitable operable lids, where needed, so as to contain all contents therein in such manner so as to promote good housekeeping conditions. Containers shall be maintained in a reasonable state of repair, painted and of presentable appearance. Users shall be responsible for the cleanliness, sanitation, and deoderizing of such containers provided, however, contractor shall provide in its customer contracts for extraordinary cleaning service to be performed at the request of the customer or the city for a reasonable fee specified in such contract to be paid by its customer. 8. Charges and Rates: For services required to be performed under this Agree- ment, the charges shall not exceed the rates as fixed by the City from time to time pursuant to the provisions of this Agreement. For solid waste collected in the manner herein provided, the rates shall not exceed the following: (a) Residential: For single residential properties and- three ( 3 ) or fewer multi -f amily units with non -bin regular service once weekly at curb or alley with materials stored in approved containers or manner, and collection limited to 200 pounds of solid waste per week, the charges to be collected on the tax roll paid by City to Contractor in accordance with attached Schedule "A". (b) Commercial Can Service: Can service to commercial premises which can reasonably be served with basic non -bin service, shall be once weekly at curb or alley, with materials stored in approved containers and manner, collection limited to 200 pounds of solid waste per week at one location 4 only, with charges to be collected on the tax roll and paid by City to Contractor in accordance with attached Schedule "A". (c) Multi -Family Can Service: Multi -family can service shall be provided to multi -family premises of four (4) or more units which, in the determination of the Finance Director of City, cannot reasonably and practicably be served by bin service. Multi -family can service shall be provided once weekly at curb or alley, with materials stored in'approved containers and manner, collection limited to 200 pounds of solid waste per week at one location only, with charges to be collected on the tax roll and paid by City to Contractor in accordance with attached Schedule "A" (d) Commercial, Multi -Family and Other: Service to premises other than those covered by paragraphs (a) , (b) and (c) above shall be as follows: Commercial, multi -family (four or more multi- family units) (except as covered by 8(c) above) and other services shall be by bin service at such frequency and at such location as shall be agreed upon by Contractor and the customer, with materials stored in containers and manner approved by City for such service, charges to be paid by customer and collected directly by Contractor, in accordance with' attached Schedule "A". Special handling charges may be nece s*sary in addition to the attached schedule. The Contractor shall pay to City a Franchise Fee of two percent (2%) of the gross receipts for services provided pursuant to this paragraph 8 (d) . (e) Special Rauling Service: For (i) collections re- quested by occupants or owners of bulky materials, (ii) large items requiring special handling and pickup at times other. than normally schedule, (iii) solid waste (not including hazardous waste, as defined in the Tustin City Code) contained in approved containers, containers provided by the Contractor or approved bundles at approved locations, and (iv) items requiring special handling due to size, weight, type of material, or method of placement, the charges are to be negotiated between Contractor and generator prior to collection.' If agreement cannot be reached, the matter may be submitted to the City, and its decision shall be binding. The charges shall be paid by customer and collected directly by the Contractor. Contractor shall pay to City a Franchise Fee of two percent (2%) of the gross 5 receipts for services provided pursuant to this paragraph 9 (c) . (f) Rate Adjustments: ( i ) Annual Unit Recomputations: The number of single-family and multi -family dwellings of three (3) or fewer units on a per unit basis shall be recomputed annually by the City not later than to be effective prospectively July 1st of each year commencing July 1 , 1989, for the fiscal year July 1, 1989 to June 30r 1990 and the per unit fees to be paid by City to Contractor for services to be rendered during that year will be based on that recomputation. It is agreed that as of July 1, 1988, the number of such residential units is 5,390 and the number of commercial can units is 707. (ii) Annual Regular Rate Adjustment: Refuse collection rates covering the fee classifications of rates and charges ref erred to in paragraphs 9 (a) , 9 (b) and 9 '(c) shall be adjusted not less than annually to be effective prospectively on July 1 of each year of the term of this Agreement, commencing July 1, 1989. The components of costs and the percentages of total cost allocated to each as set forth in attached Schedule B shall be applied to the increases and/or decreases in each of the categories of costs derived from the in- dices set forth in attached Exhibit B to calculate the Consumer Price Index weighted average percentage of increase or decrease which shall then be applied to the latest, previously fixed fees to arrive at the adjusted fees which shall be applicable for the succeeding year. In lieu of the use of - the cost components, the weights thereof and the indices described above, City, may in its discretion use the cost components, weights thereof and indices used by the County of Orange in establishing refuse collection rate adjust- ments. An example -of computation of this method is set forth on Schedule C attached hereto. The percent- age of rate increase or decrease utilizing the foregoing methods shall be determined by City, provided however, Contractor shall have the right to review the calculations for the purpose of verifying the authenticity of the index and the percentages utilized. Extraordinary Rate of Adjustment: Contractor may petition City for rate adjustments at reasonable times on the basis of unusual changes in its cost A of doing business, including, but not limited to items such as revised laws, ordinances or regula- tions, changes in location of disposal sites, changes in disposal charges, etc. (iv) Gate and Transfer Station Fees: In addition to the charges prescribed in this paragraph 81 there shall be added, from time to time, the amount which will be the actual, proportional, additional amount necessary to compensate Contrac- tor for any increase in gate fees imposed by the County of Orange after July 1, 1988, at solid waste disposal sites utilized by Contractor for disposal of solid waste collected within the City of Tustin and for any fees imposed by the County of Orange for utilization of transfer stations. 9. Changes in Manner of Collection and Payment of Charges: City shall pay Contractor for the services as provided in paragraph 8 above. All other fees and charges for services to be provided by Contractor shall be paid for by the generator of solid waste and collected directly by Contractor. Provided, however, that City shall have the option f rom time to time upon thirty (30) days written notice to Contractor to have the charges f or services paid by the customer and collected by Contractor directly from the customer, provided that the amount which may be charged by Contractor directly to customers may be increased by one dollar and twenty cents ($1.20) per month per dwelling unit or such other amount as to which City and Contractor may agree as an added cost of collection during any period that Contractor is effecting collection directly. During such time as the fees for new premises can not be collected via the tax roll, Contractor shall bill the customer directly. Contractor shall pay to City a franchise fee of two percent (2%) of -the gross receipts paid by customers and collected directly by Contractor. 10. Location: All solid waste shall be placed at a location that is readily accessible to the Contractor's personnel, as described in • the City ordinances. 11. Recycling Rights: The City shall not grant to any other person or firm the exclusive right to collect any specified type of refuse for recycling purposes until Contractor has been offered such right on the same terms and conditions and has declined to accept it. 12. Containers in Public Streets and Rights -of -114y: Contractor shall not place or permit to remain any of its bins, dumpsters or other containers Vi -thin any street, high- way, alley, public right of way or property of City without the 7 prior, express, written approval of the Director of Public Works of City and in full conformity with each, every and all terms, conditions and limitations of such approval. 13. Compliance With Law: Contractor shall secure and maintain a business license to operate within the City of Tustin and any other licenses or permits required by Federal, State, County or local law, ordinance or regulation. Contractor shall fully comply with each, every and all of the laws of the United States of America, the State of California, the ordinances of the City of Tustin and the Tustin City Code, specifically including Chapter 3 of Article IV commencing with Section 4311, and all rules and regulations of the City of Tustin as said laws, ordinances, code rules and regulations now provide and as they may be amended hereafter.. 14. Insurance: (a) Public Liability Insurance: At all times during the term of this Agreement, or any extension thereof, and prior to the commencement of any work hereunder, the Contractor, and any subcontractor doing work hereunder, shall secure, maintain and pay all premiums for such public liability and property damage insurance as shall protect it from claim for damages for personal injury, including accidental death, as well as from claim for property damages, which may arise from operations under this Agreement, whether such operations be by itself or by any subcontractor, or by anyone directly or indirectly employed by either of them. Said insurance shall be in a form approved by the City Attorney. The amounts of such insurance shall be as follows: Public liability insurance in an amount not less than $3,000,,000.00 for injuries, including accidental death, to any one person, and subject to the same limits for each person, in an amount not less than $5 ,000 ,000 .00 on account of any one occurrence, and property damage insurance in an amount of not less than $500 ,000 .00 . Current policies or certificates evidencing the above - required coverage shall. be filed and maintained at all times with the City and the City shall be named therein as an addit.ional named insured. Said policies shall include the following provisions: "The unqualified word "insured"., wherever used in this policy, also includes the City of Tustin, California, but solely as respects any liability arising out of the operations of the named insured and its employees and agents. It is further agreed that such insurance as is afforded by this policy to the City of Tustin, California, as additional named insured under this policy, shall be primary insurance and not contributing with any other insurance available to the City of Tustin, California, under any third party liability policy. I:t is further, agreed that the "other insurance" condition of this policy is amended to conform therewith. It is further agreed that the above insurance for the City of Tustin, as additional named insured, affords coverage for accidents attributable to the general supervision by the City of such operations, but excludes liability for accidents caused by the sole negligence or sole willful act of City or any of its employees. The policy shall not be cancelled without thirty (30) days' prior written notice mailed to the City by certified or registered mail". (b) Workers' Compensation Insurance: The Contractor and his subcontractors, if any, shall obtain, and pay all premiums on and maintain in full force and effect throughout the entire term of the contract, full workers' compensation insurance in accord with the provisions and requirements of the Labor Code of the State of California, and any other applicable law. Certificates of such insurance approved as to form by the City Attorney, shall be filed with the City Clerk prior to commencing any work -under the terms of this Agreement. The Contractor shall immediately provide the City with written notice of any cancellation, withdrawal and/or change of any such insurance. 15. Faithful Performance Bond: The Contractor shall furnish to the City and maintain and file with the City Clerk a corporate surety bond, or other acceptable surety, approved as to form by the City Attorney executed by the Contractor as principal and by a corporate surety as surety, in the sum of $100,000.00 conditioned upon the faithful performance of this Agreement by the Contractor and his subcontractors. 16. Indemnification: All work provided by this Agreement' to be performed by Contractor shall be at the risk of Contractor alone and Contractor agrees to save, indemnify and keep harmless City against any and all liability, claims, judgments or demands, including demands arising from injuries or death of persons (Contractor's employees included) and damage to property, arising directly or indirectly out of the obligations herein undertaken or out of the operations conducted by Contractor, save and except claims or litigation arising through the sole negligence or sole willful misconduct of City and will make good to and reimburse City for any expenditures, including reasonable attorneys' fees, City may make by reason of such matters and, if requested by City, shall defend any such suits at the sole cost and expense of Contractor. 17. Assignment: The Contractor shall not assign, transfer, subcontract or sell this Agreement or any interest therein, or any privileges or rights granted herein .without the written consent of the City first bein.g obtained, and then only to a person or persons approved by the City and subject to such terms and conditions as the City may require. Consent to one assign - D ment shall not be deemed a consent to any subsequent assignment. Any assignment without such consent and approval shall be void and shall, at the option of the City terminate this Agreement and the rights and privileges granted herein. This prohibition extends to the sale or assignment of a majority or controlling interest in the stock of Contractor. 18. Def ault : (a) Labor Disputes: In the event of labor disputes during which time the Contractor is unable to perform the ser- vices described herein and as a result of said inability to perform, an ascertainable health hazard or public nuisance is created, as determined by City, Contractor agrees to permit City to take temporary possession and to operate all of Contractor's equipment and facilities necessary to continue the service and eradicate said health hazard and/or public nuisance. The City shall have the right to retain possession of and operate such equipment and facilities until said labor dispute is settled or until Contractor can demonstrate to the satisfaction of City the capability to provide the required services. All costs incurred by the City for the operation and maintenance of said equipment and facilities, including salaries, in providing collection and disposal services shall be deducted from the monthly compensation due to the Contractor. In addition to these costs the City shall deduct an additional twenty percent (20%) of all salary costs as overhead. (b) Bankruptcy: In the event: (1) the Contractor files a voluntary petition in bankruptcy, (2) involuntary proceeding in bankruptcy is instituted against the Contractor, (3) the Contractor is adjudicated bankrupt by a court of compe- tent jurisdiction, (4) a court takes jurisdiction of the Contractor's assets under the provisions of any federal reorganization act, (5) the Contractor files a petition under any part of the Bankruptcy Act, (6) a receiver of the Contractor's, assets is appointed, or (7) the Contractor is divested of its estate or other interest herein by any other operation of law or is uanble to perform hereunder by virtue of any operation of law, this Agreement shall immediately terminate, and, in that event, this Agreement shall not be deemed or treated as an asset of the Contractor. In the event that this Agreement is terminated as provided in this section, the Contractor agrees to permit the City to take temporary possession and to operate all of the Contractor's equipment and facilities necessary to perform the services agreed to be performed hereunder by the Contractor. The City shall have the right to retain possession of said equipment and facilities for a period not to exceed twelve (12) months. The City shall pay the Contractor a reasonable rental for such equipment and facilities during the time the same are used -by the M City. Such rate shall not exceed Five Hundred Dollars ($500.00) per -day; however, said maximum rental rate shall be adjusted commensurate with any increase or decrease of operational costs, exclusive of labor, as determined by the City. (c) Failure to Perform: In the event the Contractor fails in the performance of any material term, condition or covenant hereunder, the City shall give written notice of said failure to the Contractor or'its designated agent. The Contrac- tor shall have thirty (30) days within which to cure or remedy same; however, if the Contractor fails, neglects, or refuses to cure or remedy said failure for a period of more than thirty (30) days after service of said notice, then the City, without further notice and without suit or proceedings, may cancel and annul the rights and privileges granted hereunder and terminate this Agree- ment. Termination, as provided for in this section, shall not be deemed as a waiver of any damages occasioned by the Contractor's failure to complete the contract according to its provisions. It is further understood and agreed that should the Contractor fail or refuse to furnish the labor, materials, and equipment to do and perform all the work and labor provided for herein, in the manner set forth, and in a good and workmanlike manner, it shall, in addition to any other provisions present in the contract documents, be liable to the City for all losses or damages that the latter may suffer on account thereof. 19. Number of Copies: This Agreement may be executed in any number of counterparts, all of which shall have full force and effect of an original for all purposes. .20. Law to Govern: This Agreement shall be governed by the laws of the State of California both as to interpretation and performance. 21. Modification: • This Agreement constitutes the entire Agreement and understanding between the parties hereto, and it shall not be considered modified, altered, changed, or amended in any respect unless in writing and signed by the parties hereto. 22. Waiver: The failure of the City at any time to require performance by the Contractor of any provisions hereof shall in no way affect the right of the City -thereafter to enforce same. Nor shall waiver by the City of any breach of any provisions hereof be taken or held to be a waiver of any succeeding breach of such provisions or as a waiver of any provision itself. 11 23. Point of Contact: All dealings, contacts, etc. between the Contractor and the City shall be directed by the Contractor to the City Manager. 24. Illegal Provisions: If any provision of the Agreement shall be declared illegal, void or unenforceable, the other provisions shall not be affected but shall remain in full force and effect. 25. Notice: A letter addressed and sent by certified United States mail to either party at its business address shown below, or as hereafter prescribed in writing by either party to the other, shall be sufficient notice whenever required for any purpose in this Agreement: City of Tustin 300 Centennial Way Tustin, Ca. 92680 ATTN: City Manager Great Western Reclamation Inc. Post Office Box 2005 Santa Ana, Ca. 92707 26. Attorneys' Fees and Costs: If any action is filed to enforce or interpret any of the provisions of this Agreement, the non -prevailing party agrees to pay the prevailing party reasonable attorneys' fees and costs. 27. Effective Date: This Agreement shall become effective forthwith upon execution and the Contractor shall begin collection of the solid waste as provided herein on Decemher 19_, 198P CITY: CITY OF TUSTIN CONTRACTOR: GREAT W TERN�REC rMATION, INC. Mayor ' ATTEST: y Cle � APPR RM JAM6>4�". WURKE, City Attorney JGR: se :R:11/21/88 (53 4) 12 SCHEDULE A CHARGES AND RATES i a. Residential: Single and three (3) or fewer mult-family units: non -bin regular service once weekly at curb or alley; materials stored in approved containers or manner, collec- tion limited to two hundred (200) pounds of solid waste per week. Charges to be paid by City to Contractor: MONTHLY CHARGE Per Dwelling Unit Served $4.07 b. Commercial Can Service: Can service to commercial premises and such other premises as are determined by the'Finance Director to be impractical for bin service which can reasonably be served with basic non -bin service, once weekly at curb or alley, with materials stored in approved containers and manner, with collection limited to 200 pounds of solid waste per week at one location only, with charges paid by City to Contractor. MONTHLY CHARGE Per Billing Units Served $4.45 (One business or building represents one billing ' unit) C. Commercial, Multi -family and Other: Service to premises other than those covered by paragraphs "a" and "b" above shall be provided by bin service of size, frequency and location as shall be agreed upon by Contractor and customer; materials shall be stored in approved containers and manner; charges shall be paid by customer_ and collected by Contractor. Contractor shall pay a franchise fee to City of two percent (2%) of the gross receipts for such services. Charges for such bin service shall be as follows: SCHEDULE A - Page 1 SCHEDULE A SCHEDULE A (Continued) Multi -family units of four or more units which are physically situated in such a way as to make bin service impracticable, may, upon concurrence of Contractor and City be served by commercial can service. d. Special Haul Services: Collections requested by occupants or owners for items requiring special handling due to size, weight, type of material, or method of placement, the charges are to be negotiated between Contractor and generator prior to collection. If agreement cannot be reached, the matter may be submitted to City, and its decision shall be binding. . Charges to be paid by customer and to be collected directly by Contractor. Contractor shall pay a Franchise Fee to City of two percent (2%) of the gross receipts for such services. SCHEDULE A -Page 3 SCHEDULE B WE IGHTED AVERAGE REFUSE RATE INCREASE COMPUTATION CCNSUMER PRICE INDEX WEIGHTED AVERAGE METHOD Cost Component Average Hourly Earnings Gasoline Motor Trucks General Purpose Machinery and B guipment Automobile Parts and Dguipment Fabricated Structural Metal Products All Other TOTAL RATE INCREASE: SCHEDULE B % Increase (From Sep. Weight Indexes) Index Source 0.3325 Establishment Data Employment Hours & Earnings & Earnings (E&E) Sanitary Services Published Mon - (SIC) 495 Average thly by Bureau Hourly Earnings of Labor Statistics (BLS) 0.0800 Consumer Price In- Monthly labor dex (CPI) Unadj usted review (MLR) U.S. City Average Published mon- All Urban Consumers thly by Bureau Gasoline of Labor Statistics 0.0700 Producer Price Index Proclacer Prices (PPI), Motor Trucks and Price Indexes ( Code 14110 2) Published Monthly by BLS PPI, General Purpose MLR & Equipment (Code 11-4) 0.1431 PPI, . General MLR 0.0244 Purpose Machinery and Equipment • PPI, Fabricated Structural Metal 0.0200 Products (Code 10-7) MLR 0.3300 CPI,Los Angeles- CPI Detailed Long Beach,Anaheim, Report Published (Unadjusted) , All Monthly by BLS Urban Consumers, All Items 1.0000 _ SCHEDULE B Index Average Hourly Earnings Gasoline Motor Trucks General Purpose Machinery and Equipment Automotive Parts and Equipment Fabricated Structural Metal Products All other (CPI, L.A., Long Beach, Anaheim, All Items) SCHEDULE C CPI WEIGHTED AVERAGE EXAMPLE OF COMPUTATION Percent Increase Weight Amount 7.37 0.3300 2.4321 (7.36) 0.0900 (0.6624) 2.63 0.0650 0.1710 5.20 0.1325 0.6890 3.37 0.0225 0.0758 3.08 5.24 TOTAL Adjusted Rate Increase SCHEDULE C 0.0200 0.0616 0.3400 1.7816 1.0000 5.3822 5.38% RESIDENTIAL COLLECTION SERVICE AND CHARGES BY JURISDICTION 1988/1989 ----------- Commercial Bins S.F. Typical Monthly Resident 3 Yard Jurisdiction -------------------- Rate --------- Billed --------- Lo/High --------------- Anaheim $6.11 Utility $52.75 $156.18 Bill Brea $4.17 Utility $42.11 $149.11 Bill Buena Park $5.75 Utility $48.50 $185.75 r Bill Costa Mesa $6.45 Tax Roll $60.50 $190.00 Cypress $6.50 Utility $65.00 $200.00 Bill Fountain Valley $7.05 Utility $60.50 $190.00 Bill Fullerton $5.50 Utility $59.05 $161.80 Bill Garden Grove $5.27 Utility $60.50 $190.00 Bill Huntington Beach $5.00 Tax Roll $59.00 $185.00 Irvine $6.87 Tax Roll $48.00 $148.00 Laguna Beach $6.00 Tax.Roll $56.00 $139.00 La Habra $5.77 Utility $50.96 $167.44 Bill La Palma $6074 Utility $54.44 $217.74 Bill Los Alamitos $6.40 Utility $65.00 $200.00 Bill Mission Viejo $6.90 Hauler. $42.49 $67.68 Newport Beach $4.30 Tax Roll Orange $6.35 Utility $51.15 $134.50 Bill Placentia $5.97 Hauler $49.97 $135.85 RESIDENTIAL COLLECTION SERVICE AND CHARGES BY JURISDICTION 1988/1989 ----------- Commercial Bins S.F. Typical Monthly Resident 3 Yard Jurisdiction -------------------- Rate --------- Billed --------- Lo/High --------------- San Clemente $5.30 Utility $56.05 $147.30 Bill San Juan Cap. $5.01 Hauler $43.91 $135.62 Santa Ana $7.34 Utility $66.00 $191.00 Bill Seal Beach $8.60 Utility $83.00 $135.00 Bill Stanton $6.90 Utility $59.50 $199.20 Bill Tustin $6.06 Tax Roll $38.09 $129.06 Villa Park $7.05 Hauler $60.00 $165.00 Westminster $4.00 Tax Roll $60.50 $190.00 Yorba Linda $6.40 Hauler $50.00 $200.00 Unincorporated Area $7.02 Hauler $42.49 $67.68 County Wide Average $6.10 $55.02 $162.14 Tustin Rate as of County Ave. 99.36% 69.23% 79.60% N AMENDMENT TO AGREEMENT FOR COLLECTION AND TRANSPORTATION OF SOLID WASTE REFUSE PRODUCED OR ACCUMULATED IN THE CITY OF TUSTIN This Amendment is made and entered into by and between the CITY OF TUSTIN, a municipal corporation (hereinafter "City"), and GREAT WESTERN RECLAMATION, INC., a California corporation (hereinafter "Contractor"), to be effective as of the 28th day of June, 1991. For and in consideration of the mutual promises and agreements contained herein and other good and valuable consideration the receipt of which is hereby acknowledged, the parties hereby agree that the Agreement for Collection and Transportation of Solid Waste Refuse Produced or Accumulated in the City of Tustin, between the parties dated December 19, 1988 (hereinafter referred to as the "Solid Waste Collection Agreement"), is hereby amended in the following particulars only: 1. Contractor shall continue to collect all residential, commercial, industrial, roll -off, construction waste and recyclables in the City of Tustin pursuant to schedules, agreements and procedures authorized, established, and prescribed as provided in the Solid Waste Collection Agreement. 2. On or before July 1, 1991, all solid waste collected by Contractor within the City of Tustin shall be collected by Contractor and transported to a Material Recovery Facility (hereinafter "MRF") , as defined and prescribed in the California Integrated Waste Management Act of 1989 (hereinafter "AB 939"), acceptable to City, for processing of recyclables in amount by type of waste in accordance with the City's Source Reduction and Recycling Element (hereinafter "SRRE") to' ensure that City meets .the diversion requirements of AB 939. 3. For purposes of determining compliance with AB.939, the final -waste characterization and diversion information contained in City's final SRRE shall be used as the base data, unless City identifies errors in such data and corrections are subsequently made by.City or by the County of Orange, or both. 4. Contractor shall provide information to City to substantiate that collected waste when combined with present total diversion will meet the diversion requirements of City pursuant to AB 939. All wastestream collected by Contractor shall be taken to the MRF commencing July 1, 1991 in order to meet AB 939 requirements. 70R:jib:R15:082991(A060. jab) —1— 5. In the event the MRF approved by City is not operated by Contractor, Contractor will subcontract for use f such a t Sunset Environment alfa facnc.ility. City has agreed with Contractnat"Sunset" ) will be an acceptable California corporation (hereiafte MRF. Sunset will charge Contractor no moervithan $durin per the ton first delivered mixed solid waste fov� Ceservices In subsequent years, s ces twelve (12) months of thiss r adjustments to the MRF charges shall .be based 8on 1984 Col0omeforrice Index for All Urban Consumers (base years 'shed9b the United States Los Angeles -Anaheim -Rivers B re uSAof published Statistics, with a four Department of Labor, percent (4%) minimum and seven percent (7%) maximum adjustment per year. (This adjustment will not be applicable to landfill charges.) Seventy-five percent ( 75%) of County of Opassednge through ill gate fee increases after July 1, s991 of thelbe MRF be other than fair to City. In no event shall the charge and reasonable, and in the event Contractor owns or t be controls ant he MRF it agrees that the charges of anF of shall char es of all MRFs in excess of the then current medig processing Orange County waste. 6. City shall pay to Contractor monthly per unit charges for hauling as set forth on Attachment A hereto. These e extent ofcharges any remain fixed until July 1, 1992 (except if and to t and thereafter increase in landfill charges prior to July t the modified Consumer shall be subject to modification based on Price Index adjustment as prescribed in Schedule C attached hereto and incorporated herein by this reference. 7. After initial submittal to and acceptance e County of tYof Source Reduction and Recycling Element (SRRZ) by Orange, all further modifications to and compliance with the.SRRE required by the State of California or the County of orangeduring effected b wring the term of the .existing Solid eAgreement etween City and Contractor shall be Y Contractor, subject to final approval of City and at no cost to City. The consultant to perform such work shall be selected by City after consultation with Contractor. 8. Contractor shall provide an at -demand bulky item collection service for all single family residences and individual tenants .of multi -family residences within the City at no additional cost to residents or to City. Such collection service will enable residents to discard and -Contractor to collect from residences an recycle or dispose large items such as furniture rash collect ods which are not picked up as part of regular Contractor shall pick up such items from residences withino(2 ) business days of request by residents. Requests shall be m ade directly to Contractor, which shall provide satisfactory telephone message receiving, transmitting and response procedures. -2- 9. Contractor shall provide recycling and source reduction technical assistance to the City upon request by City from time to time and without cost to City. 10. Contractor shall cause the following written reports to be prepared, obtained and submitted to City on forms approved by City which will enable City to meet the reporting requirements of AB 939: a. Within fifteen (15 ) days following the last day of each month: (1) Contractor shall obtain from the MRF and deliver to City a report and written certification of the tonnages (a) received, (b) diverted, and (c) landfilled, detailing material types and percentages of diversions. (2) Contractor shall also obtain from the MRF and deliver to City monthly information and written certification to substantiate the recovery of not less than twenty-five percent (25%) of the waste generated within City collected by Contractor when combined with other diversion programs, thereby causing City to meet the mandates of the first phase of AB 939 when required thereunder. (3) Contractor shall also deliver to City a report detailing tonnages collected and not taken to the MRF but either transferred to a solid waste landfill or transfer station or other recycling facility or salvage vendor and the tonnage of recyclable materials recovered, by material category, - and the tonnage of materials sold, by separate material category, including the type of customer from which the waste diversion originated (i.e., residential, commercial, industrial). The per unit price for which recyclable materials were sold, by each. separate material category, shall also be provided. This report shall also include the number of requests for the bulky item collection service. b . Not later than thirty.. (3 0.) ' dais after the end of each calendar, year .during the -term of the . So*lid Waste Collection Agreement, as amended, Contractor shall submit to -City a year-end annual report to include at least the following: • • (1) A collated summary of the information contained in the monthly reports;. (2) A narrative description of public awareness activities and their impact on participation and recovered volumes; -3- (3) A discussion of program highlights and other noteworthy experiences, as well as measures taken to resolve problems and increase efficiency and participation. All reports shall be delivered to: City of Tustin P.O. Box 3539 Tustin, CA 92681-3539 Attention: Ronald A. Nault and Christine Shingleton 11. Contractor shall cause to be developed and implemented a Public Awareness Program of the City's Source Reduction and Recycling Program. This program shall include preparation of an introductory packet of information regarding the recycling program and shall be approved in advance by City. Prior to October 1, 1991, this material shall be distributed to each of the residential premises and to all commercial and industrial accounts in the City of Tustin. Contractor with .approval of City shall cause two recycling brochures to be prepared and delivered during each of the five (5) years following execution of this amendment. All of the foregoing will be at the sole cost and expense of Contractor. 12. Contractor will act as the contracting body and lead agency with the MRF with respect to the Solid Waste Collection Agreement, as amended, and shall be responsible for and insure that the MRF acts' so as to meet the requirements of the Solid Waste Collection Agreement, as amended. 13. Schedule A of the Solid Waste Collection Agreement is hereby amended to read as set forth in Schedule A attached hereto and incorporated herein by this reference. 14. Contractor hereby agrees and guarantees to City that Contractor will do each, every and all things required to ensure that City will at all times be in full conformance with all of the provisions of AB 939 and amendments thereto adopted hereafter and will pay, save, defend, and hold City harmldss from any and all loss, expense, damage, fines,,... penalties and liability, of every kind _ and nature whatsoever by virtue of any non-compliance with such statutory requirements, provided, however, that Contractorshall i not be responsible to the extent solid waste is generated n the City and -collected or disposed, or both, by other than Contractor. 15. Contractor shall pay to City within thirty (30) days following execution of this Amendment Ninety Thousand Dollars ($90,000) as and for reimbursement to City of the cost of its recycling consultant and Forty -Four Thousand Dollars ($441000) for City staff time in establishing the recycling program. -4- 16. Notices shall be given to the parties by mail addressed and sent by certified U.S. mail as follows: To City: City of Tustin P.O. Box 3539 Tustin, CA 92681-3539 Attention: Ronald A. Nault, Finance Director To Contractor: Great Western Reclamation, Inc. P.O. Box 2337 Santa Ana, CA 92705 17. The Solid Waste Collection Agreement shall in all particulars remain in full force and effect, amended only insofar as specifically and expressly provided in this Amendment. CITY CITY OF TUSTIN, a municipal corporation By. illiam A. Huston, City Manager APPROVED AS Z Ja G Auke, City Attorney, City of Tustin CONTRACTOR GREAT WESTERN RECLAMATION, INC., a Californ' ation By: President By: Secretary -5- SCHEDULE A CHARGES AND RATES EFFECTIVE JULY 11 1991. A. Residential: Single and three (3) or fewer multi -family units: non -bin regular service once weekly at curb or alley; materials stored in approved containers or manner, collection limited to two hundred (200) pounds of solid waste per week. Charges to be paid by City to Contractor. Hauling Charge $ 5.20 per month Disposal Charge 6.43 per month Total Residential Rate $11.63 per month The foregoing hauling charge will not be subject to the modified CPI adjustment until July 1, 1992. The foregoing disposal rate includes the charges for recycling at the MRF operated by Sunset Environmental, Inc., of Thirty -Six and 75/100 Dollars ($36.75) per ton.. In the event the County. of Orange increases the landfill disposal fee after July 1, 1991, the disposal fee may be appropriately increased. The foregoing disposal charge is based upon an estimated average of 81 pounds of disposable solid waste -per residence per month. . This estimated poundage shall be used for the entire July 1, 1991 to June 30, 1992 period. If, at the end of that period, weight records disclose that the actual average weight per residence per month is other than 81 pounds, then that actual weight shall be used for establishing the new disposal rate for July 1, 1992 to June 30, 1993. Additionally, a credit or charge shall be added to or subtracted from the newly calculated total residential rate as a separate line item for July 1, 1992 to June 30, 1993 so as to reimburse City or Company for the total dollar value of the undercharge or overcharge for the period of July 1•, 1991 --to June 30, -, 1992.. 'Similar' annual *adjustments shall be made each June during the term of the agreement so as to reflect actual average weight per residence per month. B. Commercial Can Service: Can service to commercial premises which can reasonably be served with basic non -bin service, once weekly at curb or alley, with materials stored in approved containers and manner, with collection limited to 200 pounds of solid waste per week at one location only, with charges paid by City to Contractor. A-1 Multi -family developments of four or more residential units which are physically determined by City to be situated in such a way as to make bin service impractical shall be served by commercial can service. Per Billing Unit Served (one business or building represents one billing unit.) Hauling charge $5.62 Disposal charge 6.43 Total $12.05 C. Commercial. multi -Family -an d Other: Service to premises other than those covered by paragraphs A and B above shall be provided by bin service of size, frequency and location as shall be agreed upon by Contractor and customer; materials shall be stored in approved containers and manner; charges shall be paid by customer and collected by Contractor. Contractor shall pay a franchise fee to City of two percent (2%) of the gross receipts for such services. Charges for such bin service shall be as follows: Category Collection Disposal T_ 2 yd 1X $ 42.23 $ 15.93 $ 58.16 2 yd 2X 62.30 31.85 94.15 2 yd 3X 82.31 47.78 130.09 2 yd 4X 102.39 63.70 166.09 2 yd 5X 122.41 79.63 202.04 3 yd 6X 142.43 95.55 237.98 I 3 yd 1X 80.71 _ 56.82 23. 89 3 yd 2X 81.51 47.78 129.29 3 yd 3X 106.26 71.66 177.92 3 yd 4X 129.10 95.55 224.65 3 yd 5X 153.85 119.44 273.29 3 yd 6X 178.54 143.33 321.87 4 yd 1X 59.42 31.85 _ 91.27 4 yd 2X 89.51 63.70 153.21 4.yd 3X 119.16 95.55 214.71 4 yd 4X 149.08 127.40 276.48 4 yd 5X 179.02 159.25 338.27 4 yd 6X 208.91 191.10 400.01 u n Sched111 P. R • SCHEDULE "B" COf4SUIIER PRI Cc IND: : WEIGHT 7D r;;,'cR�+CE Mc HOLD ;: I.ncrease Cast (From Seo. ' Conoonent Weight _ Indexes) Index Source Average Hourly ^^?5 0 •.,..- Es tabl i shmen t Data - Emo 1 o)•rnen t &Earnings ' Hours & Earn i no= - tarn i no, E) Sanitary Services Published Mon- (,SIC)4?5 Average thly b:- Bureau Hourly Earnings o; Labor ., ..�a�Jstics'..3L..) Gasoline 0.0800 Consumer Price In- Monthly labor dex (CPI )Unad.ius ted review (MLR) U.S. Citi Average Published mon- All Urban Consuamers th 1 y by Bur: au • Gasoline o: Labor Statistics Motor Trucks 0.0700 Producer Price inde:: Producer Prices .;rPi) . Motor Truck's and Price Inde :e {Code•14110?) Publ ished Nonth1, b�, SLS ' General Purpose DOT General Purpose ••-: MLR Machinery and Equipment (Code 11-4) ' Ecu i omen t 0 .1431 L Parts- Au ornobi 1 e Part1 PPI. General MLP. and Ecuioment 1 0.0?4 - ' Purpose Machinery ' an d Eau i orae n t Fabricated p=i; Fabricated- • Structural Structural. Me tal Metal 'Products 0.0200 • Products %Code 10-71 M rG Al^^ A1 O.her 0 .....�00 C?i;Los Angeles.- CPI Detailed Report Publ i shed Lona Beach;i�rral'reirn; *Unad.lU.ted) ;rill Mon tilt' b`' 8' S Urban Con =urriers: Nl 1 I terns , TOTAL 1.0000 RATE INCREASE u n Sched111 P. R +]F C+'Mr1 r! i 1 u,•1 -Schedule "C" Percen t Increase We i oh t Amount I ndex A-veraoe Hourly � p '=^-.pp =.4�1.1Z1 Earn i nas 7. Gasoline 7• 3 Motor i rucKs ., •� • �-� p.p��U 0.1710.. General Purpose Ma hiner , and 0 i "S. '-':'5 ,_•�•p . �.. , Equ i orrmen t . Automotive Farts n � p and Equipment � • �•% `' .'U F b i c•y.Lr,J Ctructurc i0 Q.�+.::+:�n n.���i.� �. .. �1 1 other Lana Beach, Ana -beim; 0 '%3400 . rill I'^•� TOTrIL 1 .0000 - Pld.iusted Fate Increase ,�.__•:. -Schedule "C"