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HomeMy WebLinkAboutCC 11 WASTE COLLEC AG 7-18-83DATE: JULY 12, 1983 CONSENT CALENDAR 4o. 11 7-18-83 I nt r - C om TO: WILLIAM HUSTON, CITY MANAGER ~Oa: BOB LEDENDECKER, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER SUBJECT: SOLID WASllE COLLECTION AGREEMENT RECOMMENDATION: i,at the Tustin City Council, at their meeting of July 18, 1983, approve the attached Solid Waste Collection Agreement for 1983-84 and authorize the Mayor to execute the same on behalf of the City. BACKGROUND: Dn June 30, 1983, the franchise agreement held by SCA Services of Orange County expired. This agreement was initiated in Ma~V, 1972 and was extended by previous City Council action through the June 30, 1983 expiration date. Initially, the franchise agreement was held by Holthe Disposal. In May, 1977,- S.C.A. Servi'ces of Orange County purchased Holthe Dispbsal and. provided the collection services within the City of Tustin per the terms of the agreement. DISCUSSION: Staff has completed negotiations with S.C.A. Services of Orange County and is recommending the execution of the attached agreement which has been prepared by the City Attorney's office. This agreement provides for the following: A five (5) year exclusive franchise to S.C.A. Services of Orange County with an option for a five year renewal term. An annual fee adjustment based upon a weighted C.P.I. average, comparable with the method utilized by the County of Orange. Commercial bin rates will remain the same for a period of one year. All County of Orange gate fee amounts will be a direct pass through and in addition to the basic monthly fee. The estimated gate fee for once a week pick-up is $0.74 per month per parcel. e. Residential fee for once per week pick up will be established at $3.50 per month plus the pass through gate fee charge of $0.74. The following is a recap of existing and proposed solid waste collection fees for the City and other agencies within the county: SOLID WASTE COLLECTION AGREEMENT JULY 12, 1983 PAGE TWO Residential Units Commercial Can Units CURRENT CITY FEE + GATE FEE $2.78+$0.60~$3.38 $3.28+$060=$3.88 PROPOSED CITY FEE + GATE FEE $3.50+$0.74=$4.24 $4.00+$0.74-$4.74 CURRENT COUNTY FEE + GATE FEE $6.19 CURRENT AVERAGE OF OTHER ORANGE COUNTY CITIES BASIC FEE + GATE FEE $5.01 Bob Led~ Director of Public Works/City Engineer db Attachment AGREEMENT FOR COLLECTION AND TRANSPORTATION OF SOLID WASTE REFUSE PRODUCED OR ACCUMULATED IN THE CITY OF TUSTIN THIS AGREEMENT is made and entered into this day of , 1983, by an~ between the City of Tustin, a municipal corporation o~ the State of California (hereinafter referred to' as "City") and SCA Services of Orange County (hereinafter referred to as "Contractor"). W I T N E S S E T H RECITALS: 1. The Legislature o~ 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 auencies to make adequate provisions for solid waste handling within their jurisdictions. 2. In the opinion 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 o~ services, charges and fees, nature, location and extent of such services, be proviaed by contract without competitive bidding. 3. The City Council of the City ~urther declares its intention of maintaining reasonable rates for collection and disposal of solid waste refuse. 4. 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 generally been satisfied with the performance under said agreement. 5. The City Council o~ the City of Tustin, having determined that Contractor by demonstrated experience, reputation and capacity is qualified to continue to provide for the collection of re~use within the corporate limits of the City of Tustin and to transport such refuse to places of disposal, ~esires t~at Contractor be en~aged to perform such services on the basis set forth in this Agreement. NO~, THEREFORE, in consideration of the respective and mutual covenants and promises hereinafter contained and made, and sub3ect to all the terms and conditions hereof, the parties hereto ~o hereby agree as follows: 1. brant o~ Contract: 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 producea, 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 anO obligation. It is agreed that the Contractor shall have the exclus- ive right Guring 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 3urisdicti.on, and to charge the fee then in effect for such services. The area to be serviced by Contractor herein shall incluOe both the present and future bounGaries of the City. 2. Term: The term of this Agreement shall be for a period of five' (5) years commencing on the first day of July, 1983, and ending on the last Gay of June, 1988. Option: This Agreement may be reneweG ~or an additional period of five (5) years from and after the eno of the termination year, at the option of City, upon giving notice of intention to exercise this option to Contractor, in writing, on or before sixty (60) days prior to June 31, 1988. 3. Contract Documents: The contract documents consist of the ordinances of the City of Tustin reuulating solio waste collection as the same exist or as may be amenOed, 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 single-family dwelling units or in multi-family dwellings of three (3) or fewer units within the contract area shall be proviGed regular collection service unGer this Agree- ment, not less often than weekly, and on a scheGule approved by City. Ail persons occupying or maintaining other within the contract area shall also be provided collection service unaer this Agreement. premises regular Multi-family Gwellings ot ~our (4) or more units and con~ercial service accounts shall be collected at the frequency fo'r which they shall contract providing it is adequate to maintain the premises so served in a healthful and unlittered condition. 5. Conformance with City ordinance: Collection shall be made and the Contractor shall operate in conformance with the ordinances of the City of Tustin regulating solid waste collection. 6. Special and Hazardous Materials: The Contractor shall provide haul service for materials not routinely generated in resiaential areas. Said materials shall be stored and placed in a manner approved by the City and the Contractor. No hazardous wastes will be collected by the Contractor unless specifically requested by the generator, approve~ by the City, and agreed to by the Contractor. 7. 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. 8. 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 leak, fall or be spilled from any such vehicles or bins attached thereto. (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 ~o 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. 9. Charges and Rates: For services required to be performed under this Agreement, the charges shall not exceed the rates as fixed Dy the City from time to timepursuant to the provisions of this Agree- ment. For solid waste collected in the manner herein provided, the rates shall not exceed the following: (a) Residential: For single and three (3) or fewer multi-family units with non-bin regular service (b) (c) Once weekly at curb or a~ley with materials stored in approved containers or manner, and collection limited to 200 pounds o~ solid waste per week, the charges shall be paid by City to Contractor in accordance with attached Schedule "A". Commercial, Multi-Family and other: Service to premises other than those covered by paragraph (a) above shall be as follows: Commercial, multi-family (four or more multi- iamily units) and other service shall at such ~requency anO at such location as shall be agreea upon by the Contractor and the customer, with materials stored in approvec containers or manner, caarges to be paid by customer and collected by the Contractor, in accordance with attached Sched- ule "A". Special handlin9 charge~ may be necessary in addition to the attached scheoule. The Contractor shall pay to City a Franchise Fee of two percent (2%) of the gross receipts of commercial service. Special Hauling Service: For (i) collections requested Dy occupants or owners of bulky materials, (ii) large items requiring special handling and pickup at times other than normally schedule, (iii) solid waste 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 ~ecision shall be binding. The charges shall be paid by customer and collected by the Contractor. Contractor shall pay to City a Franchise Fee of two percent (2%) of the gross receipts for such service. (d) ~ate Ao3ustments: (i) Annual Unit ~ecomputations: 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 July 1st of each year commencing July !, 1984, to be effective prospectively for the fiscal year commencing on July 1, 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 agreeo that as of July 10. 1, 19~3, the number of residential units is (ii) Annual Regular Rate Adjustment: Refuse collection rates covering all fee classifications of rates and charges herein referred to 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, 1984. The formula to be utilized for such adjustment shall be based upon the following: The City and Contractor agree to use a weighted average for the purpose of computinG any such rate adjustments. The cost components of said weighted average, as hereinafter set forth in Schedule "S" applied to each cost component set forth on Schedule "B" will be a percentage of increase or decrease that is 'obtained from an established inaex, e.g., County of Orange, utilizin9 cost components to which the percentage increase in said index results in a final figure which will be a portion of the percentage of rate adjustment to be applied. The total of said rate adjustment of each cost component shall then be the percentrage of rate increase that is to be applied to all refuse collection rates previously established udner .the terms of this Agreement. It is understood that the cost components in. the aggregate set torth in Schedule "B" are the said cost components agreed upon by the Contractor and City. The other num- bers set forth 'in the column of percentages and rate of increase are by way of example only. The percentage of rate increase utilizing the foregoinG method shall be determined by the City however, the Contractor shall have the right to review the calculations for the purpose of verify- ing the authenticity of the index and the percentages utilized. (iii) Gate and Transfer Station Fees: In addition to the charges prescribed in this paragraph 9, there shall be added, from time to time, the amount which will be the actual, proportional, additional amount necessary to compensate Contractor for any increase in gate fees imposed by the County of orange after July 1, 1983, at solid waste disposal sites uutilized 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 sta- tions. Changes in Manner of Collection and Payment of Charges: City shall pay Contractor for the services to be pro- vided in paragraph 9(a) and all other ~ees and charges ~or ser- vices to be proviGed by Contractor shall be paid for by the generator of solid waste and collected by Contractor. ?rovide~, however, that City shall have the option from time to time and upon thirty (30) days written notice to Contractor, to have the charges for services provided to single-family residences and to multi-family residences o~ three (3) or fewer units paid by customer and collected Dy Comtractor directly, provided that the amount which may be charged by Contractor ~irectly to customer may be increase~ Dy sixty cents ($0.60) per dwellin~ unit as an a~Ge~ cost of collection auring any period that Contractor is e~fecting collection directly. 11. Location: Ail solid waste shall be placed at a location that is readily accessible to the Contractor's personnel, as described in the City ordinances. 12. Recycling Rights: The City shall not 9rant 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 declinea to accept it. 13. Compliance With Law: Contractor shall fully comply with each, every and all o~ the laws of the United States of America, the State o~ California, the ordinances of the City of Tustin and the Tustin City Code, specifically including Chapter 3 of Article IV commencing with Section 4311, as said laws, ordinances and code now provide and as may be amended hereafter. 14. Number of Copies: This Agreement may be execute~ in any number counterparts, all o~ which shall have full force and effect of an original for all purposes. 15. Law to Govern: This Agreement shall be ~overned by the laws of the State of California both as to interpretation and performance. 16. Modification: This Agreement constitutes the entire Agreement and understanding between the parties hereto, and it s~all not be considered modified,, altered, changed, or amen~e~ in any respect unless in writing an~ signed by the parties hereto. 17. Right to Require Performance: 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 helG to be a waiver of any succeeding breach of such provisions or as a waiver of any provision itself. 1~. Point of Contact: Ail dealings, contacts, etc. between the Contractor and the City shall be directed by the Contractor to the City Manager. 19. 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 amd effect. 20. Notice: A letter adaressed and sent by certified bnited 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 o~ Tustin 300 Centennial Way Tustin, Ca. 92680 SCA Services of Orange County Post Office Box 2005 Santa Ana, Ca. 92707 ATTN: City Manager 21. If any action is filed to enforce or interpret any of the provisions of ~his Agreement, the non-prevailing party ag'rees to pay the prevailing party reasonable attorneys' fees and costs. 22. Effective Date: This Agreement shall become effective forthwith upon execution and the Contractor shall begin collection of the solid waste as provided herein on July 1, 1983. CITY: CITY OF TUSTIN CONTRACTOR: SCA SERVICES OF ORANGE COUNTY BY: ATTEST: Mayor BY: City Clerk APPROVED AS TO FORM: JANES G. ROURKE, City Attorney JGR:se:R:6/23/83 (9.se) SCHEDULE A CHARGES AND RATES Residential: Single and three (3) or fewer multi-family units; non-bin regular service once weekly at curb or alley; maAerials 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: Per Dwelling Unit Served MONTHLY CHARGE $3.50 Commercial and Other: Service to premises other than those covered by paragraph "a" 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 ~or such bin service shall be as follows: BIN ~CHEDULE: Full Service, Lids, Wheels, Normal Rollouts, Normal Cleaning and Maintenance: SIN 5IZE Cubic Yards FREQUENCY OF COLLECTION Times Per Week MONTHLY CHARGE 1 2 $ 3 4 $ 5 6 $ 1 2 3 4 $ 5 1 $ 2 $ 3 4 5 6 $ ¸Co Special Haul Services: Collections requested by occupants or owners, of bulky material, large items requiring special handling and pickup at times other than normally schedule~: (1) For solid waste contained in UNIT PRICE approved containers, contain- ers provided Dy Contractor or approved bundles at approveG locations. bp to 3 cubic yards, left on left on premises for at least 3 days: Per cubic yara In'excess of 3 cubic yards, le~t on premises for at least 3 days: Per cubic yard 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. (2) 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 by Contractor. Contractor shall pay a Franchise Fee to City of two percent (2%) of the gross receipts'for such services. SC~£DUL£ B W~IGHTED AVERAGE REFUSE RATE INCREASE COMPUTATION COST COMPONENTS Example No. 1 Average Hourly Earnings Gasoline Motor Trucks General Purpose Machinery and Equipment Automobile Parts anG Equipment Fabricated Structural Metal Products All Other WEIGHT 0.3325 0.O800 0.0700 0.1431 0.0244 0.0200 0.3300 TOTAL 1.0O00 Example No. 2 CONSUMER PRICE INDEX WEIGHTED AVERAGE METHOD Percentage Change in Components Percentage Change in InGex Weighted Increase Factor For For Rate Component Calculation LABOR COSTS 5.5% 46% 2.5% This percentage increase comes from the Bureau of Labor Statistics for Sanitary Industry or Collector contracts. VEHICLE OPERa, TING COSTS Fuel Costs Finished Lubricants Tires and Tubes Motor Trucks 58 32 18 6 114 Total % Increase 28.5% 33% 9.4% divided by 4 = average change in index These percentawe increases come ~rom the Bureau o~ LaDor Statistics (Proauce Price Index for Commodity Groupings) 10 15.0% 21% 3.2% ALL OTHER Index Change ~or this category would come from Bureau .of Labor Statistics (Consumer Price Index for Los Angeles, Long Beach and Anaheim ~or all itemS) TOTAL INDUSTRY INCREASE 15.1% 11