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HomeMy WebLinkAbout07 APPROVE FIRST AMENDMENT TO CR&R AGREEMENT DocuSign Envelope ID: 1 E2128A4-9002-4441-BADO-59ED70CC63B8 O D Agenda Item 7 AGENDA REPORT Reviewed: s City Manager 5�5w Finance Director N/A MEETING DATE: JUNE 1, 2021 TO: MATTHEW S. WEST, CITY MANAGER FROM: DOUGLAS S. STACK, DIRECTOR OF PUBLIC WORKS / CITY ENGINEER SUBJECT: APPROVE FIRST AMENDMENT TO AGREEMENT WITH CR&R SUMMARY Consider approving an amendment to the City's agreement with CR&R Incorporated providing a six (6) month extension for program implementation due to difficulties arising from COVID-19 restrictions. RECOMMENDATION Staff recommends the City Council approve the First Amendment to Agreement for the Collection, Transportation, Processing and Diversion of Recyclable Materials, Food Scraps, Yard Trimmings, Wood, Construction and Demolition Debris and Other Materials and for the Collection, Transportation and Disposal of Municipal Solid Waste; and authorize the City Clerk and Mayor to execute the Amendment. FISCAL IMPACT There is no fiscal impact associated with this item. CORRELATION TO THE STRATEGIC PLAN The recommended actions contribute to the fulfillment of the City's Strategic Plan Goal B, Public Safety and Protection of Assets. Specifically, this item addresses Strategy 6 by reducing waste within the community. DISCUSSION The City entered into an agreement with CR&R Incorporated (CR&R) on October 2, 2018 for communitywide solid waste and recycling services. The agreement requires CR&R to implement recycling programs, including organics recycling, at a minimum of seventy-five percent (75%) of businesses and Multi-Family complexes required to have such programs under state law by March 31, 2021. Implementation of these programs requires CR&R's recycling coordinators to make in person visits to customers and provide on-site training to interested parties. The variety of measures and restrictions put in place to curb the spread of COVID-19 limited CR&Rs ability to meet the minimum program implementation requirements in the agreement. The attached First Amendment to the agreement provides CR&R with an additional six (6) months to meet the requirements. No other modifications to the agreement are recommended at this time. oDolasA. Stack, P.E.ublic Works/City Engineer Attachment 1: First Amendment to Agreement for the Collection, Transportation, Processing and Diversion of Recyclable Materials, Food Scraps, Yard Trimmings,Wood, Construction and Demolition Debris and Other Materials and for the Collection, Transportation and Disposal of Municipal Solid Waste DocuSign Envelope ID: 1 E2128A4-9002-4441-BADO-59ED70CC63B8 FIRST AMENDMENT TO AGREEMENT FOR THE COLLECTION, TRANSPORTATION, PROCESSING AND DIVERSION OF RECYCLABLE MATERIALS, FOOD SCRAPS, YARD TRIMMINGS, WOOD, CONSTRUCTION AND DEMOLITION DEBRIS AND OTHER MATERIALS AND FOR THE COLLECTION, TRANSPORTATION AND DISPOSAL OF MUNICIPAL SOLID WASTE This FIRST AMENDMENT is entered into as of the day of June 2021, 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. City and Contractor entered into an Agreement for the Collection, Transportation, Processing and Diversion of Recyclable Materials, Food Scraps, Yard Trimmings, Wood, Construction and Demolition Debris and Other Materials and for the Collection, Transportation and Disposal of Municipal Solid Waste on October 2, 2018 (hereinafter referred to as "(Agreement"). 2. The Agreement requires Contractor to implement AB 341 and AB 1826 Diversion programs at a minimum of seventy-five percent (75%) of businesses and Multi-Family complexes required to have such programs under state law by March 31, 2021. 3. Implementation of AB 341 and AB 1826 Diversion programs requires Contractor's Recycling Coordinators to make in-person site visits and hold on-site implementation and training meetings with owners, managers and employees of businesses as well as owners, managers and tenants of Multi-Family properties served by Contractor. 4. Due to the COVID-19 pandemic during calendar year 2020 and continuing into 2021, Executive Orders were issued by the Governor of the State of California and restrictions were enacted by the County of Orange including, but not limited to, stay-at-home orders, prohibitions on gatherings of persons other than those living together, mandatory closure of numerous types of non-essential businesses, travel restrictions, requirements for the wearing of masks, and requirements for social distancing. Said Orders and restrictions significantly limited Contractor's ability to meet the minimum program implementation requirements in the Agreement. 5. The City and Contractor wish to amend the Agreement to extend the timeframe for Contractor to complete implementation of AB 341 and AB 1826 programs at a minimum of seventy-five percent (75%) of the state-required businesses and Multi-Family properties. NOW, THEREFORE, in consideration of the mutual promises contained in this FIRST AMENDMENT, and for other good and valuable consideration, the parties agree to amend the Agreement as follows: Page 1 of 4 DocuSign Envelope ID: 1 E2128A4-9002-4441-BADO-59ED70CC63B8 Section 1. Extension of Timeframe for Contractor to Implement AB 341 and AB 1826 Diversion Programs. Section 14.11A "Minimum Level of Diversion Program Implementation Required By March 31, 2021" is hereby deleted in its entirety and replaced with the following: "14.11A Minimum Level of Diversion Program Implementation Required By September 30, 2021. The minimum required level of program implementation that must be completed by Contractor on or before September 30, 2021 includes implementation of the AB 341 and AB 1826 Diversion programs as follows: 1. AB 341 Diversion Program. Contractor must have fully implemented an AB 341 Single Stream and/or Single Material Recyclables Diversion program at a minimum of seventy-five percent (75%) of all Multi-Family complexes within City (as described in Section 2.3.5.3.1 of Attachment B), at a minimum of seventy-five percent (75%) of all Commercial and Business Establishments (as described in Section 3.2.1 of Attachment B) and at a minimum of seventy-five percent (75%) of all Gated Developments, HOA's and Mobile Home Parks that have centralized Bin/Cart/Roll Off/compactor service (as described in Section 2.3.5.4 of Attachment B). 2. AB 1826 Diversion Program. Contractor must have fully implemented an AB 1826 Food Scrap Diversion program at a minimum of seventy-five percent (75%) of all Commercial and Business Establishments as described is Section 3.3.2 of Attachment B. During the period July 1 through September 30, 2021, City will evaluate Contractor's performance to determine whether or not the minimum level of Diversion program implementation has been achieved. City will review the Red/Green Tracking Spreadsheets, time and work logs of the Recycling Coordinators, all the Monthly, Quarterly, and Annual Reports listed in Attachment K submitted by Contractor up to and including the Monthly Report for September 2021. City may also conduct site visits at Customers' Premises to determine whether Contractor has achieved the minimum required Diversion program implementation. Customers that are required to have an AB 341 Diversion program and/or an AB 1826 Diversion program that, as of July 1, 2021, are on the list of"Non-Compliant Customers Referred to City for Compliance Action Under Mandatory Ordinance" in Attachment K, Monthly Reports, Item #8, shall not count against Contractor in City's determination as to whether the requirements of this Section 14.11A have been met. If Contractor fails to achieve the minimum level of program implementation as described herein, (a) Contractor forfeits its opportunity to earn the Phase I Extension Incentive described in Section 6.09 of the Agreement, and (b) Contractor shall pay the City's costs of hiring one or more third parties including but not limited to, consultants, part-time employees, Page 2 of 4 DocuSign Envelope ID: 1 E2128A4-9002-4441-BADO-59ED70CC63B8 and/or other Persons as determined by City (hereinafter referred to as "City's Agents"), to implement said programs. On or before November 1, 2021 City will notify Contractor as to whether or not Contractor has achieved the minimum required level of Diversion program implementation. In the event Contractor has not met the minimum level of Diversion program implementation, City may retain the services of one or more Persons as described herein, to complete implementation of the Diversion programs until one hundred percent (100%) of the AB 341 and AB 1826 Diversion programs are fully implemented. In such event, Contractor shall reimburse City on a monthly basis for the work performed by City's Agents to implement the Diversion programs. City will invoice Contractor for this expense and Contractor shall pay said invoices within thirty(30) days of receipt. Contractor shall cooperate with City and City's Agents to implement Diversion programs. Such cooperation shall include sharing information and data on Customers with City and City's Agents, providing Containers for Recyclable Materials, Yard Trimmings/Wood, Food Scraps and any other Divertable Materials in a timely manner as described in the Agreement including Attachment B, Collecting Containers of Divertable Materials on the schedule agreed upon with the Customer and City and/or City's Agents, and processing the Collected materials at the City-approved Processing Facilities described in Articles 5 and 6. Contractor shall not impair, impede or in any way frustrate or otherwise interfere with the actions or efforts of City and/or City's Agents to successfully complete all steps to fully implement the required Diversion programs as described herein. As Diversion programs are implemented by City's Agents, City's Agents will monitor and troubleshoot said programs and provide additional training, education and site visits for the initial ninety (90) day period following program startup. At the end of the ninety (90) day period, City's Agents will transfer responsibility for all aspects of the fully implemented program to Contractor. Contractor shall fully maintain each fully implemented program at the Customer's Premises from that point forward, including completing any and all applicable steps described in Section 3.3.4 of Attachment B. Contractor shall continue to pay for the work of City's Agents until all of the following conditions have been met: (a) The City's Agents have implemented the remaining AB 341 and AB 1826 Diversion programs at one-hundred percent (100%) of all Customers, (b) City's Agents have transferred responsibility for all aspects of each fully implemented program to Contractor, and (c) Contractor is fully maintaining each implemented program as described in Section 3.3.4 of Attachment B. At such point, City shall notify Contractor in writing, and shall submit any final invoice(s) for the work of City's Agents to Contractor for payment." Section 2. All Other Provisions of the Agreement Remain Unchanged and in Full Force and Effect. Except as specifically modified by this Amendment, all provisions of the Agreement shall remain unchanged and in full force and effect. City's agreement to amend the Agreement as stated Page 3 of 4 DocuSign Envelope ID: 1 E2128A4-9002-4441-BADO-59ED70CC63B8 herein does not waive or excuse Contractor's compliance with any other duties, obligations, terms or conditions of the Agreement due to the COVID-19 pandemic or for any other reason. IN WITNESS WHEREOF, City and Contractor have executed this First Amendment as of the day and year first above written. CONTRACTOR CITY OF TUSTIN By: Clifford Ronnenberg By: Chairman and Chief Executive Officer Letitia Clark, Mayor ATTEST: CITY CLERK By: Erica N. Yasuda, City Clerk APPROVED AS TO FORM By: David E. Kendig, City Attorney Page 4 of 4