Loading...
12-0605_CR&R, INCORPORATED_G3a_Supplemental Agenda Report 6/5/2012 SUPPLEMENTAL AGENDA RERO TO: Karen P. Brust, City Ma a G3a FROM: Keith Van Der Maaten, liti s Director SUBJECT: Consideration of the Solid Waste Rates and an Amendment to the Integrated Solid Waste Collection Agreement(CR&R, Inc.) RECOMMENDATION: By motion, 1 . Receive and file the proposed 2012-2013 solid waste rates; and, 2. Approve the Sixth Amendment to the Integrated Solid Waste Collection Franchise Agreement. SITUATION: After further review of the distributed agenda report, staff found a typographical error in the body of the report and in the table header of the embedded table, incorrectly identifying the tipping fee. Staff had identified the tipping fee rate increase as 3.35%; however, the actual tipping fee increase is 3.53%. The rates included in the embedded table were accurately calculated using the 3.53% rate; however, they were mislabeled in the body of the report and the table of the report. Below is an updated table. Current Rate (eff. 71112011) New Rate (eff. 71112012) Base Total Rate Tipping Total Total Residential Base Tipping Monthly Inc. Fee inc. Monthly. Rate Customer Classes Rate Fee Rate (4.00%) (3.53%) Rate Increase (2)35 Gallon $13.19 $1.91 $15.11 $0.53 $0.07 $15.70 3.93% (3)35 Gallon $13.61 $2.55 $16.15 $0.54 $0.09 $16.78 3.90% (2)67 Gallon $13.29 $3.18 $16.47 $0.53 $0.11 $17.12 3.9496 (3)67 Gallon $13.83 $3.63 $17.46 $0.55 $0.13 $18.14 3.89% (2)90 Gallon $13.61 $4.44 $18.05 $0.54 $0.16 $18.75 3.88960 (3)90 Gallon $13.96 $4.95 $18.91 $0.56 $0.17 $19.65 3.8996o Additional 35 Gal $1.32 $1.91 $3.24 $0.05 $0.07 $3.36 3.79910 Additional 67 Gal $1.32 $3.18 $4.50 $0.05 $0.11 $4.67 3.70% Additional 90 Gal 1 $1.32 $4.44 $5.771 $0.05 $0.16 $5.98 3.66% The correction of this typographical error does not impact staff s previous analysis or recommendation. Agenda Report Page 2 June 5. 2012 NOTIFICATION: Dean Ruffridge, CR&R, Inc. RECOMMENDATION: By motion, 1 . Receive and file the proposed 2012-2013 solid waste rates; and, 2. Approve the Sixth Amendment to the Integrated Solid Waste Collection Franchise Agreement. Respecffull s tted, Prepared by, Keith Van Der Maaten, P.E. Ziad Mazboudi, PE Utilities Director Senior Civil Engineer 615/2012 AGENDA REPORT Gia TO: Karen P. Brust, City M a FROM: Keith Van Der Maaten, Utieies ector SUBJECT: Consideration of the Solid Waste Rates and an Amendment to the Integrated Solid Waste Collection Agreement(CR&R, Inc.) RECOMMENDATION: By motion, 1 . Receive and file the proposed 2012-2013 solid waste rates; and, 2. Approve the Sixth Amendment to the Integrated Solid Waste Collection Franchise Agreement. SITUATION: As provided in the Franchise Agreement between the City of San Juan Capistrano and CR&R, Inc., the base rates for solid waste collection shall be adjusted annually to reflect the change in the Producer Price Index (PPI) based on the November twelve-month change supplied by the Bureau of Labor Statistics (Attachment 1). Additionally, the Franchise Agreement allows the rates to be automatically adjusted for changes in the Orange County Landfill Tipping Fee. Effective July 1, 2012, a 4% increase will be applied to the base rate and an additional 3.35% increase will be applied to the tipping fee. Below is a table of the rate increases for the residential customers (a complete list of new rates for all customer account types is included as Attachment 2): Current Rate (of. 7/1/2011) New Rate (eR. 7/1/2012) Base Total Rate Tipping Total Total Residential Base Tipping Monthly Inc. Fee Inc. Monthly Rate Customer Classes Rate Fee Rate (4.00%) (3.35%) Rate Increase (2)35 Gallon $13.19 $1.91 $15.11 $0.53 $0.07 $15.70 3.93% (3)35 Gallon $13.61 $2.55 $16.15 $0.54 $0.09 $16.78 3.90% (2).67Gallon $13.29 $3.18 $16.47 $0.53 $0.11 $17.12 3.94% (3)67 Gallon $13.83 $3.63 $17.46 $0.55 $0.13 $18.14 3.89% (2)90 Gallon $13.61 $4.44 $18.05 $0.54 $0.16 $18.75 3.88% (3)90 Gallon $13.96 $4.95 $18.91 $0.56 $0.17 $19.65 3.89% Additional 35 Gal $1.32 $1.91 $3.24 $0.05 $0.07 $3.36 3.79% Additional 67 Gal $1.32 $3.15 $4.50 $0.05 $0.11 $4.67 3.70% Additional 90Ga1 1 $1.32 $4.44 $5.771 $0.05 $0.16 $5.98 3.66% Agenda Report Pa-ge 2 June 5. 2012 Staff obtained a recent survey that was performed by the City of Anaheim that compared rates Countywide (Attachment 5). Staff analyzed its current rates based on the survey provided and the following is a summary comparison: Average Month l Rate City of San South Juan Orange Orange Customer Class Capistrano County County Residential $ 16.15 $ 16.69 $ 16.01 Commercial $ 93.75 $ 119.19 $ 106.40 The City of San Juan Capistrano's average residential rate is $16.15, which is 3% below the average of $16.69 and 6% below the median for the entire County. When compared to just the South County Cities, the City's rate is 1% above the average of $16.01 and 3% above the median of $15.66. The City has the sixth lowest commercial rate countywide, at $93.75, and is 20% lower than the average rate of $119.19, and about 25% lower than the median of $124.63. When comparing South County Cities, the City's commercial rate is the second lowest and is 12% lower than the average of $106.40 and 11% lower than the median of $105.96. The City has 9,364 residential accounts and 346 commercial accounts. Upon City Council direction, staff met with CR&R representatives and negotiated an amendment that provides additional services and benefits to the City and.its businesses and residents. The additional benefits and services are included in the proposed 6th amendment (Attachment 3). None of the negotiated and agreed upon benefits and services will have an impact on the City's rates. The following is a summary of these benefits and services: • CR&R will pay the City an annual administrative fee of$30,000, to assist the City in administrating this agreement and other solid waste programs. This fee is adjusted annually based on the Consumer Price Index. This additional service provided by CR&R will benefit the City by providing funds to offset staff costs charged to the General Fund. • CR&R will develop and implement a Universal Waste Collection program at six locations at no cost to the City or customers. The City currently pays to provide this service to the community at three locations. . This additional service provided by CR&R will help the City to comply with State law, will provide convenient locations for the public to dispose of universal waste, and will reduce General Fund costs for the three locations that are currently paid for by the City. • CR&R will establish at least one household sharps drop off location in or near the city with pharmaceutical establishments. The City currently pays to provide this service to the community at one location. This additional service provided by CR&R will help the City to comply with .State law, will provide a convenient Agenda Report Page 3 June 5. 2012 location for the public to dispose of sharps, and will reduce General Fund costs for the one location that is currently paid for by the City. • After completing a successful food composting pilot program, and in order to promote food recycling at food facilities, CR&R will offer food waste collection at the commercial recycling cart rate. This rate will encourage food facilities to participate and will reduce their solid waste disposal rates since food waste is currently disposed of as trash, at a higher rate than the recycling rate. This additional service provided by CR&R will help the City by placing it on a path to achieve future diversion requirements, and will help local food facilities with their diversions at lower rates. The City's commercial diversion rate in 2011 was 71.13%. • Single family dwelling unit customers currently receive two free bulky items pickups per year. This will be increased to four pickups per year. This additional service provided by CR&R will benefit residents by providing additional bulky item pick up at no additional cost. • CR&R will exchange damaged, stolen or graffitied carts once per calendar year for residential accounts for any customer requesting the exchange at no cost to the residents. This additional service provided by CR&R will benefit residents by providing the exchange of damaged bins at no additional cost. • CR&R will conduct annual residential audits of a minimum of 10% of the single family residential customers to determine contamination rates and excessive recyclables in the trash cart. This will be used in order to educate the community on ways to improve recycling. This additional service provided by CR&R will help the City to comply with State law and helps place the City on a path to achieve future diversion requirements by educating our residents on recycling. The City's residential diversion rate in 2011 was 43.99%. The overall diversion rate in 2011 for both commercial and residential was 67.84% (50% is required under A13939). • CR&R will provide the City with indemnification of Assembly Bill 341 (AB341), mandatory commercial recycling, against all fines and/or penalty imposed by the State of California or Cal-Recycle for non-compliance. This additional service provided by CR&R will protect the City from fines and/or penalties. • CR&R will collect all abandoned items in the City's right of way and on City's public properties within 24 hours of notification from the City. This additional service provided by CR&R will reduce City costs from having to pick up and dispose of materials illegally dumped in the public right-of-way. • CR&R will provide the City, upon request, with a contingency plan of its operation during natural disaster or emergencies. In addition, CR&R will assist the City with emergency collection and disposal in the event of a major disaster or emergency Agenda Report Page 4 June 5, 2012 at rates negotiated and approved by both parties. This additional service provided by CR&R will assist the City in debris removal following a disaster. • CR&R will provide non-profit groups with roll-off or storage bins at rates not to exceed the cost of transportation. This additional service provided by CR&R will reduce costs to non-profit groups in the City. • CR&R will accept all clean dirt resulting from City operations (e.g. water main breaks) at no cost to the City. Contaminated soil shall be accepted at the processing disposal rates. This additional service provided by CR&R will benefit the City by increasing diversion rates and decreasing or eliminating landfill disposal fees. • CR&R has been accepting at no cost to the City, its businesses or residents, all green waste generated by the City, street sweeping debris collected and the storm drain cleaning debris. The City used to pay for disposal of these materials. This additional service provided by CR&R will benefit the City by providing funds to offset costs charged to the general fund. Staff recommends that the City Council receive and file the proposed 2012-2013 solid waste rates and approve the sixth amendment to the Integrated Solid Waste Collection Franchise Agreement. FINANCIAL CONSIDERATIONS: The amendment provides the City with reductions in General Fund expenses, such as street sweeping debris disposal, green waste disposal, and catch basin debris collection disposal. Additionally, CR&R will pay the City an annual administrative fee of $30,000, to assist the City in administrating this agreement and other solid waste programs. This fee is adjusted annually based on the Consumer Price Index. The City has received the following in franchise fees over the past 4 years: • Fiscal Year 2008-09: $163,100.39 • Fiscal Year 2009-10: $207,856.64 • Fiscal Year 2010-11: $222,318.52 • Fiscal Year 2011-12: $171,224.64 (up to March) The franchise fees are discretionary and are allocated to the General Fund to provide general services Citywide. NOTIFICATION: Dean Ruffridge, CR&R, Inc. Agenda Report Page 5 June 5, 2012 RECOMMENDATION: By motion, 1 . Receive and file the proposed 2012-2013 solid waste rates; and, 2. Approve the Sixth Amendment to the Integrated Solid Waste Collection Franchise Agreement. Respectfully submitted, Prepared by, Keith Van Der Maaten, P.E. Ziad Mazboudi, PE Utilities Director Senior Civil Engineer Attachments: 1. Bureau of Labor Statistics Producer Price Index 2. 2012-13 solid waste rates 3. Sixth Amendment to the Integrated Solid Waste Collection Agreement 4. Rate comparison graphs Bureau of Labor Statistics Data Page 1 of 2 A to z Inde: I FAQs I About Bis I contact us subsume to E-mall updates What's New I Release Calendar I Site Map search W.sov Home I Subject Areas I Databases&Tools I Publications I Economic Releases ( Beta Databases, Tables & Calculators by Subject FONT SIZE' Change Output Options: From: i oozes To: ioli El[ ndudeoraahs More Formatting oationsua► Data extracted on:April 30,2012(5:52:36 PM) Producer Price Index-Commodides Series We WPUSOP3000 Not Sonsonally Adjusted Gran . Stage of processing Item: Finished goods Base Date: 198200 Download: a71if Year Nov 139.7 2003 1445 2004151.7 2005 _ 158.3 2006 _159.8 f 2007 171.4' 2008 1; 2A j 2009 17S.7(R), 2010 181A 2011 191.7 iced 12 Month Change Series Id: WPUSOP3000 Not Seasonally Adjusted Group: Stage of processing Items Finished goods Rase Date: 198200 Download: Year rNDv 2002 1.0 3.4 1 12004 5.0 l 2005 4.4 j 2006 _ 0.9 `2007 7.3 2008 0.4 12009 2 2�R 12010 2011 5.6 R:RtNsed http://data.bls.gov/pdq/SurveyOutputServiet ATTACHMENT 1 EXHIBIT"A CITY OF SAN JUAN CAPISTRANO SOLID WASTE COLLECTION RATE SCHEDULE July 1,2012 Residential- Monthly 35 Gallon Automated Containers set of 2 $15.70 set of 3 $16.78 Extra Trash,Green Waste or 3rd Recycling $3.36 67 Gallon Automated Containers set of 2 $17.12 set of 3 $18.14 Extra Trash,Green Waste or 3rd Recycling $4.67 90 Gallon Automated Containers set of 2 $18.75 set of 3 $19.65 Extra Trash,Green Waste or 3rd Recycling $5.98 Vacancy/Self-Haul $8.64 Bulky Items First 2 at No Charge;$10 thereafter Commercial Automated Containers Service in lieu of Bin Service (2)67 Gallon Automated Containers $23.97 (2)90 Gallon Automated Containers $27.00 Extra 67 Trash $13.87 Extra 90 Trash $16.25 Extra 67 Recycle $8.45 Extra 90 Recycle $8.68 Mixed Waste Commercial Bin Service Disposal RecyclinaProcessing 3 Yard xl/week $97.39 $60.81 $126.29 3 Yard x2/week $150.91 $97.30 $208.71 3 Yard x3/week $196.99 $145.95 $283.71 3 Yard x4/week $256.31 $194.60 $371.94 3 Yard x5/wesk $307.54 $243.25 $452.06 3 Yard x6/week $356.66 $291.90 $530.08 Overflow Charge per Occurrence $45.77 $45.77 $45.77 (1)67 gallon automated container per unit with Bin Service $8.45 (1)90 gallon automated container per unit with Bin Service $8.68 4 Yard xl/week $127.38 $79.06 $165.92 4 Yard x2/week $197.37 $127.69 $274.43 4 Yard x3/week $258.12 $189.11 $373.74 4 Yard x4/week $335.24 $252.98 $489.37 4 Yard x5/week $402.14' $316.22 $594.19 4 Yard x6/week $466.22 $379.47 $697.43 Overflow Charge per Occurrence $45.77 $45.77 $45.77 Automated Barrel Recvclino(with Commercial Bin Trash Servicel 67 or 90 Gallon xl/week $18.24 67 or 90 Gallon x2/week $36.49 67 or 90 Gallon x3/week $54.73 67 or 90 Gallon x4/week $72.97 67 or 90 Gallon x5/week $91.22 67 or 90 Gallon x6/week $109.47 Rall-Off Rates Drop-Off Box $176.72 plus landfill fee or processing fee Compactor $189.86 plus landfill fee or processing fee On-Call DOB $424.77 $636.00 On-Call Lowboy $503.11 $761.68 Clean-up Bin Daily $52.68 n.a AS Clean-up Bin Weekly $67.72 $60.81 $85.09 ATTACHMENT 2 SIXTH AMENDMENT TO THE INTEGRATED SOLID WASTE COLLECTION AGREEMENT This Sixth Amendment to the Integrated Solid Waste Collection Agreement (this "Agreement") is made and entered into this day of June, 2012, by and between the City of San Juan Capistrano (the "City") and CR&R Incorporated (the "Contractor"); collectively referred to as the "Parties." RECITALS WHEREAS, the City of San Juan Capistrano and Solag Disposal entered into that certain Integrated Solid Waste Collection Agreement, dated December 17, 1996, (hereinafter "Original Agreement") to provide for the exclusive collection, transportation, recycling, composting, and disposal of all solid waste within the City; and, WHEREAS, a First Amendment was entered into on February 5, 2002, by Solag Disposal Company and the City to transfer and assign this exclusive Franchise to CR&R Incorporated; and, WHEREAS, a Second Amendment was entered into on October 1, 2002, establishing new services and rates; and WHEREAS, a Third Amendment was entered into on August 19, 2003 by CR&R Incorporated for purposes to comply with Rule 1193 of the South Coast Air Quality Management District, which requires all refuse collection vehicles purchased after July 1, 2002 to be alternate fuel powered. Contractor replaced its entire fleet of commercial and residential refuse collection vehicles with vehicles that comply with the Rule, Contractor received an extension to the Term of the Franchise Agreement, to enable Contractor to depreciate some of the additional costs it incurred as the result of said replacement, without cost increases to the rate payer; and WHEREAS, the Third Amendment also identified that space constraints are a barrier to a successful commercial recycling program, the City and its Contractor desired to offer mixed-waste recycling services as an option; and WHEREAS, the Fourth Amendment extended the term Agreement in order to facilitate the design and relocation of it's South Orange County solid waste operations center and to develop, permit, and construct a Material Recovery Facility (MRF) to facilitate recycling options for the City and south Orange County municipalities and thereby depreciate its investment over a longer period of time; and WHEREAS, the Fourth Amendment further increased services to the City, enabled Electronic Waste Collection services, a Food composting program, manure collection, and adjusted Franchise Fee payments to the City without any rate impact to customers; and 1 ATTACHMENT 3 WHEREAS, the Fifth Amendment established July instead of January as the month within which automatic adjustments to rates would be made. AMENDMENTS NOW, THEREFORE, in consideration of the foregoing recitals, which are incorporated herein by this reference, and the terms, covenants, and conditions set forth in this Amendment, the Parties hereby agree as follows: SECTION 1. Administrative Fee Established. Section 12.5 is hereby added to the Original Agreement to read as follows: 12.5. Administrative Fees. Contractor agrees that beginning July 1, 2012 and each July of successive years as long as the Franchise Agreement is in place between the parties, to pay the City an Administrative Fee of $30,000 to assist the City in administering this agreement and other solid waste programs. This fee will be adjusted annually by the change of the Consumer Price Index for All Urban Consumers, all items index (CPI-U) — U.S. city average as measured over 12 months ending the December 31 preceding the payment due date. This fee is in addition to and separate from other fees collected by Contractor and supplied to the City. There shall be no adjustment to customers' rates for this fee. SECTION 2. Additional Universal Waste Collection Services. The following paragraph is added to Section H of Exhibit C as amended by Section 6 of the Fourth Amendment: Contractor shall develop and implement a Universal Waste Collection program at no cost to the City or Customers. Company shall provide Universal Waste collection drop- off areas when requested by the City (up to 6 locations, including City Hall) at public or private facilities subject to City approval. Included items shall be batteries and fluorescent tubes. Universal Waste collected by Contractor shall be processed as to recycle, re-use, and otherwise diverted from disposal facilities to the greatest extent practical. To the extent that Universal Waste is placed in the waste stream of the City, it shall be disposed of in compliance with all applicable laws and regulations. SECTION 3. Additional Household Sharps Collection Services. The following paragraph is added to Section H of Exhibit C as amended by Section 6 of the Fourth Amendment: Contractor shall establish at least one Household Sharps Waste drop off location in or near the City with pharmaceutical establishments or other facilities as approved by City. Sharps collected by Contractor shall be processed as to divert from disposal facilities these materials to the greatest extent practical. To the extent that Household Sharps Waste is placed in the waste stream of the City, it shall be disposed of in compliance 2 with all applicable laws and regulations. City facilities shall not be used as a Household Sharps Waste drop off locations. SECTION 4. Additional Food Waste Collection Services. Subdivision (3) is added to Subsection (c) of Section 6 of the Original Agreement to read as follows: (3) Contractor shall establish a food waste collection program, at existing 64-gallon recycling cart rates (with Commercial Bin Trash Service) noted in Exhibit A. The program shall be made available to City businesses for voluntary enrollment into the program. SECTION 5. Residential Bulky Waste Pickup Services Increased. Subdivision (3) of Subsection B of Section 6 of the Original Agreement is hereby amended to read: Contractor shall provide Bulky Waste pickup service to Single-Family Dwelling Unit Customers. Single-Family Dwelling Unit Customers will be entitled to four(4) pickups per dwelling unit per calendar year, with a maximum of four items per pickup, or up to 20 bags of Green Waste, for no additional charge. Customers will provide the Company with 48 hours notice and the items will be collected on the Customer's regular Collection day. Additional pickups will be charged as outlined in Exhibit A. SECTION 6. Residential Replacement Carts Services Updated. The following paragraph is added to Subdivision (9) of Subsection-A of Section 8 of the Original Agreement to read as follows: Contractor shall be responsible for Residential Cart repair and maintenance, graffiti removal and replacing lost, stolen or damaged Carts within 24 hours at no additional charge to the Customer or to the City. If approved in advance by the City on a case by case basis, Contractor may charge Customer a fee no. higher than the Contractor's actual cost of repair and replacement in the event of willful neglect or abuse of the Cart by the Customer, provided that the Contractor shall exchange carts once per calendar year at no charge to the Customer for any Customer requesting the exchange. Each cart so exchanged shall be new or in a "like new"condition. SECTION 7. Residential Audits Added. Subdivision (4) is added to Subsection B of Section 6 of the Original Agreement to read as follows: (4) Contractor shall conduct annually residential audits of at a minimum 10% of the single family residential customers to determine either 1) Contamination of trash in the recycling cart, or 2) Excessive recyclables in the trash cart. Contractor shall inspect carts and leave notification tags on the cart instructing customer "how to" do better in source separation procedures. Tags must be approved by City in advance and shall leave a positive message to customer to improve recycling habits. Contractor shall report results of each annual audit, including results from a second follow up inspection to those premises previously "tagged" and report to City in its Annual Report. SECTION 8. Material Recovery Facility Adjustment. The following paragraph is added to Exhibit B: 3 It is understood that the annual landfill component adjustment shall also be applied to the Processing Component. Roll-off Box Rate Adjustment shall include an annual adjustment for the Material Recovery Facility for processing of mixed waste. SECTION 9. AB 341 Indemnification Added. The following paragraph is added to Subsection D of Section 26 of the Original Agreement to read as follows: AB-341 (2011) Indemnification. Contractor agrees to indemnify and hold harmless the City against all fines and/or penalties imposed by the State of California or CalRecycle (i) based on the Contractor's failure to comply with laws, regulations or permits issued or enforced by the State or CalRecycle; (ii) caused or contributed to by the Contractor's failure to perform its obligations under this Franchise Agreement, including the annual diversion rate requirement. Contractor shall indemnify City regarding existing and future Diversion and Solid Waste Compliance requirements in connection with the execution of this Franchise Agreement. This indemnification shall include any changes in legislation including diversion rate requirements and mandatory commercial recycling mandates and reporting per AB 341 (2011). This indemnity obligation is subject to the limitations and conditions in Public Resource Code Section 40059.1 but is enforceable to the maximum extent allowable by that Section. SECTION 10. Abandoned Items Collection Services Added. Subdivision (7) is added to Subsection E of Section 6 of the Original Agreement to read as follows: (7) Contractor will collect all items abandoned in City's public right-of-ways or on City's public property within 24 hours of notification from the City to do so. Contractor shall not charge the City for this service. SECTION 11. Disaster Preparedness Plan Services Added. Subdivision (8) is added to Subsection E of Section 6 of the Original Agreement to read as follows: (8) If requested by the City, Contractor shall submit to City within 60 days of the request, a written contingency plan demonstrating Contractor's arrangements to provide vehicles and personnel and to maintain uninterrupted service during breakdowns, and in case of natural disaster or other emergency (not including labor dispute). SECTION 12. Emergency Collection and Disposal Services Added. Subdivision (9) is added to Subsection E of Section 6 of the Original Agreement to read as follows: (9) Contractor will assist City at the City's request with emergency Collection and Disposal service (in the event of a major disaster, such as an earthquake, storm, riot, or civil disturbance), or as otherwise assigned to the City, at rates negotiated and approved by both parties. 4 SECTION 13. Nonprofit Organization Assistance Added. Subsection K is added to Section 6 of the Original Agreement to read as follows: K. Non Profit Organization Assistance. Contractor shall provide Roll-off or Storage Bins to any qualified or certified non- profit group, e.g. Boy Scouts, Girl Scouts, Boys' and Girls' Clubs, churches, Earth Clubs, etc. The rates charged by Contractor to such groups shall not exceed the actual transportation costs incurred by Contractor in dropping off and picking up the Bins; and, Contractor shall impose no such charge for this service unless the non-profit group in question receives a monetary payment from recycling any materials collected in the Bins and such proceeds exceed Contractor's actual transportation costs. Contractor shall appropriately dispose of or divert for recycling pursuant to the terms hereof any Solid Waste or Recyclable Material collected in Bins it provides pursuant to this paragraph, and shall pay non-profit organizations the prevailing market rate for any Recyclable Material collected in Bins provided by Contractor pursuant to this paragraph. SECTION 14. Increased Disposal Services to City. Subdivision (6) of Subsection E of Section 6 of the Original Agreement is added to read as follows: In addition to those items identified in Amendment Number 4, City shall be allowed to deliver clean dirt from City Streets and utility repair operations to the CRBR Material Recovery Facility at no charge. Any load that has contamination of trash, concrete, asphalt, wood or other material other than clean dirt will be charged for processing at the then current processing rate for the facility. SECTION 15. All other terms and conditions of the Original Agreement dated December 17, 1996, and as amended by the First Amendment dated February 15, 2002, the Second Amendment dated October 1, 2002, the Third Amendment dated August 19. 2003, the Fourth Amendment dated April 21; 2009, and the Fifth Amendment dated September 7, 2010, shall remain in full force and effect. Changes incorporated herein to the original Agreement or any of the Amendments preceding shall become effective on July 1, 2012. SECTION 16. The invalidity or unenforceability of any provision or covenant contained in this Amendment shall not affect the validity or enforceability of any other provision or covenant herein contained and any such invalid provision or covenant shall be deemed to be severable. [SIGNATURE PAGE FOLLOWS] 5 IN WITNESS WHEREOF, the parties have executed this Amendment as of the date and year first written above. CITY OF SAN JUAN CAPISTRANO By: MAYOR ATTEST: By: City Clerk APPROVED AS TO ORM: By: , City Attorney CR&R INCORPORATED "CONTRACTOR" Date: By : ITS: Date: By : ITS: 6 Gmmertialrrte B.nrnovnv M. .no vB.1. Countywide Commercial 2011-12 solid waste rates comparison a wuWs 550.n weBWen ss1:, 3cyz1/week MU' nVle S63.fin SEmW � 593.fi3 i 61eo.W Irvine IG1.33 Dana Bam 101.3. i wnunBmer los. S$6,.m Tm 5106.1 ul{0I SM71651aa.W MYIi 5113.30 8163 CF ft. Un a[ed SII353 119'9] SI30W In54aTi101 $1]].33 Ia PaYna 531886 S913s Ora a 5133 W 61m W - - - U... 513a 63 WWpa 513346 W. - - Bueunh 513014 &n $133, $]31SW.W YID 33] YOrW 4nEa 13].3] $ Be $14098 Sb-W - - - icunWnV MOS San Clvmnie AI9B SP.W - Ma.ein IM 93 Rx G 9 Gvdm rbe IM.Si So-W -tea. - g� U.1 Beaty I,a. ,0i'3C F j ..9¢dFp'pC .ta.'�TAm 5� 3a P Y" V' y aF�J�,ta g`'Od eatF+li ltO`•`� q^`T` Hanlon mBeacO Sum Y.p }� sJ�afa Ny1' J�,iC .S'eVi'J J 1�dd, -�3�efT V" 41/F wllenW 51f a^ •9 " •r (1 Yf 1# to C 51 W` Masan 121$ ._ ' J �1 z Cit Commertial rade Ballm Santa Mat ata. s 49,14 South County Commercial 2011-12 solid waste rates Sln ma Calmam, — .-93.7S 3cyx1/week Dana Point $ 101.34 Laguna Nl uel 104]6 516060 — AlisoVie a 107.16 Laguna Nills $ 112.10 516060 Launa Beath $ 14098 San Clemente 14198 5130.N Median S 105.96 S106.a0 5105% $1mm — 560.60 — $60.60 MOM — $20M S Xantl�o5ants Sanluan Di.PdM U{una Niguel Nno Yrcp Iagwa NMs Mauna BeaA Sanpemenle Rrer;e Meflan MatgaMa bpNtnno Readen<iatrate - wrr Santa SAar adr, Is n14 1 South Orange County 2011.12 Residential " "i N1PS 1595 15.21 solid waste rates comparison wrevdna Afm 15.$6 $tom m Mach 1721 sa Oemmte 17.n $16m Ni N $ 856 Mebat $ 1566' $1615 $16-01 Slfim Slam 515ap $em - $6. — $<.00 $i.GO i $' WrtMLma 4Niu N0a para Print Niw'h}a Hnlwn �reEurAi Sn tlmeMe UNre Ntuel Auerale MMan 61arpM 4Pp6+�ra WResidential rate Wood: s 10.00 Countywide residential 2011-12 solid waste rates comparison $ 11.81 $ 11.98 MOD Vieo $ 12.11 mitos 12.28 5aWa Ma rita $ 13.24 rest $ 13.76 inster $ 14.75 $ 14.81 $20Hills $ 14.95 517.30 Dana Point $ 15.11 6.69 Aliso Vie. $ 15.16 516.15 Buena Park $ 15.62 San Juan Capistrano $. 16.15 $1500 - - La Palma $ 16.55 Laguna Beach $ 17.22 Seal Beach S 17.30 San Clemente $ 17.73 Fountain Valley $ 18.16 Brea 5 18.21 $to lq - La Habra $ 18.40 Fullerton $ 18.51 Laguna Niguel $ 18.56 Santa Ana $ 18.73 Hi ntm on Beach $ 18.82 SSM - - Ynrba Linda $ 19.45 Anaheim $ 19.53 Villa Park $ 19.55 Costa Mesa $ 19.95 Cypress $ 19.97 S- Garden Grove $ 19.99 �s Stanton 5 3 z0.64 Placentia S 21.72 ,S $ 16.69 ., 41oc9 v°3 �,z O c 04TH y.�y �o•NS y6S'S��b"Oyo G OA Metllan 5 17,30 e F'e 32400 PASEO ADELANTO . MEMBERS OF THE CITY COUNCIL SAN JUAN CAPISTRANO,CA 92675 !ice, (949)493-1171 LAURA FREES (949)493.1053 FAx { ao[!u[ru LAURAFREESE lllAlp![!1 LARRY((RAMER www.sanjuancapistranoxrg 1"6 DEREK REEVE • • JOHN TAYLOR NOTIFICATION OF MEETING OF POTENTIAL INTEREST OF THE SAN JUAN CAPISTRANO CITY COUNCIL The City Council of San Juan Capistrano will meet at 6:00 p.m. on Tuesday, June 5, 2012, in the.City Council Chamber in City Hall, to consider: "Consideration of the Solid Waste Rates and an Amendment .to the Integrated Solid Waste Collection Agreement (CR&R, Inc.)" — Item No. G3a. If you have specific thoughts or concerns regarding this item, you are encouraged to participate in this decision making process. You can communicate with the City Council through correspondence addressed to the Council and/or by attending the .meeting and speaking to the Council during the public meeting. Correspondence related to this item must be received at the City Clerk's office by 5:00 p.m. on Monday, June 4, 2012, to allow time for the Council to consider its content. If you would like to speak at the meeting, please complete a yellow "Request to Speak" form found inside the entrance to the Council Chamber. This form is turned in at the staff table, just in front of the Council dais. You will be called to speak by the Mayor when the item is considered. You have received this notice at the request of the City staff member Ziad Mazboudi, PE, Senior Civil Engineer. You may contact that staff member at (949) 234-4413 with any questions. The agenda, including agenda reports, is available to you on our web site: www.sanivancapistrano.org. If you would like to subscribe to receive a notice when agendas are posted to the web site, please make that request by sending an e-mail to: cityclerkO-sanjuancapistrano.org. Maria-Morris, CMC City Clerk cc: Dean Ruffridge, CR&R, Inc. Sari Juan Capistrano:Pre-serving the Past to Enhance the Future 6/5/2012 City of San Juan Capistrano G3a A Review of the Franchise Agreement including Consideration of the Solid Waste Rates and an Amendment to the Agreement e �m Agenda Item Purpose : • Receive and file 2012-13 rates • Review of Franchise Agreement • Consider the approval of the Sixth Amendment to the Integrated Solid Waste Collection Franchise Agreement What is Being Presented : • Franchise Agreement History and Highlights • Presentation of the rate increases taking effect July 1 , 2012 • Rate Comparison — Countywide and South County • Sixth amendment to the Franchise Agreement City's Solid Waste and Recycling 2011 Data : • 9,364 residential accounts • 346 commercial accounts • 22 multi-family accounts • Total residential diversion: 43.99% • Total commercial diversion: 74.34% • Total const. & demo. diversion: 71 . 13% • Total 2011 diversion: 67.84% > 50% (AB 939 requires 50% diversion) Franchise Agreement History : • Dec 17, 1996: City enters into an Integrated Solid Waste Agreement (Franchise Agreement) with Solag Disposal to provide exclusive collection, transportation, recycling, composting and disposal of all solid waste within the City. • February 5, 2002: 1st Amendment: Transfer of Agreement from Solag Disposal to CR&R. • October 1 , 2002: 2nd Amendment: Establishment of new services and corresponding rates. • August 19, 2003: 3rd Amendment: Extension of the Agreement term for an additional seven years and six months in order to comply with SCAQMD Rule 1193, and not affect the rates. Expansion of the commercial recycling services to include residential barrel services and mixed waste processing due to space constraints. Franchise Agreement History (Cont) : • April 21 , 2009: 4th Amendment: - Extension of the term of the Agreement to automatically extend for a five year extension unless provided a notice of termination five years in advance. This was necessary in order to develop, permit, and construct a Material Recovery Facility to facilitate recycling options for the City and South County municipalities. Facility started operating in January 2010. - Amendment obligated CR&R to accept annually 800 tons of green waste, tree trimming and street sweeping debris without cost impact to rate payers. - Modified franchise fees to be based on Gross receipts. • September 7, 2010: 5th Amendment: Align the effective date of rate increases with the City's fiscal year. Review of CR&R Provided Services : • CR&R has been a very professional company in the quality of services provided. • Over the past 10 years, CR&R helped the City achieve and exceed the mandated 50 % diversion requirement. • CR&R staff works closely with City staff to provide programs that meet the needs of the community. During a recent CalRecycle audit, State staff told the City: "This is a model recycling community." Franchise Term of Agreement : • The 4th Amendment provided for an automatic five year renewal of the Franchise Agreement, unless a Party has provided a notice of nonrenewal. • The 4th Amendment provides that either Party may give the other Party a written notice of termination in December of any year prior , to the July 1 automatic renewal date. • Summary: If notice of termination is provided, the Agreement shall expire on July 1 no less than five years later. • Current term expires July 1 , 2019. Franchise Term of Agreement (Cont) : • Agreement original term: Jan 1 ,1997- Jan 1 , 2007 (10 years) • Third Amendment term extension: Jan 1 , 2007 — July 1 , 2014 (7.5 years) • Fourth Amendment term extension: July 1 , 2014- July 1 , 2019 (5 years) - Then annual Automatic +5 years, unless termination notice provided as per the following example: Notice provided Term expires Today until Dec 2013 July 1 , 2019 Jan 2014 until Dec 2014 July 1 , 2020 Jan 2015 until Dec 2015 July 1 , 2021 And so on .. . .. • Current term expires July 1 , 2019 Rate Increase Process : Franchise agreement provides for an annual increase based on the following: Total Rate = Base rate + Tipping fee - Base rate is adjusted annually by the November twelve- month Producer Price Index (PPI), provided by the Bureau of Labor Statistics, with an annual cap of 4%. - Tipping Fee is adjusted by the Consumer Price Index (CPI) applied to the Landfill Tipping Fee (provided by Orange County Waste and Recycling). New Rate Increase : • Base rate is adjusted by PPI increase - Actual PPI increased 5.6% - Cap on PPI increase is 4% = PPI adjustment used for 7/1 /2012 • Tipping Fee is adjusted by CPI - Orange County Waste and Recycling provided the City with a notice of 3.53% CPI adjustment effective July 1 , 2012. Residential Customers New Rates : Current Rate (eff. 7/1/2011) New Rate (eff. 7/1/2012) Base Total Rate Tipping Total Total Residential Base Tipping Monthly Inc. Fee inc. Monthly Rate Customer Classes Rate Fee Rate (4.00%) (3.53%) Rate Increase (2) 35 Gallon $13.19 $1.91 $15.11 $0.53 $0.07 $15.70 3.93% (3) 35 Gallon $13.61 $2.55 $16.15 $0.54 $0.09 $16.78 3.90% (2) 67 Gallon $13.29 $3.18 $16.47 $0.53 $0.11 $17.12 3.94% (3) 67 Gallon $13.83 $3.63 $17.46 $0.55 $0.13 $18.14 3.89% (2) 90 Gallon $13.61 $4.44 $18.05 $0.54 $0.16 $18.75 3.88% (3) 90 Gallon $13.96 $4.95 $18.91 $0.56 $0.17 $19.65 3.89% Additional 35 Gal $1.32 $1.91 $3.24 $0.05 $0.07 $3.36 3.79% Additional 67 Gal $1.32 $3.18 $4.50 $0.05 $0.11 $4.67 3.70% Additional 90 Gal 1 $1.32 $4.44 $5.771 $0.05 $0.16 $5.98 3.66% Note: Rates for all customer classes are included as an attachment to the staff report and are posted on the City's webpage. Franchise Fees : • The Franchise Agreement defined the franchise fee to be equal to five percent of the gross annual receipts minus the landfill tipping fees, commonly referred to as "Net revenues." • Effective April 2009, following the fourth Amendment, the Franchise fee became equal to five percent of the gross revenues. This change did not result in any rate increase. • Franchise fees are discretionary and are allocated to the General Fund to provide general services Citywide. Franchise Fees (Cont) : The following are the franchise fees received over the past 4 years: • 2008-2009: $163, 100.39 • 2009-2010: $207,856.64 (increase resulting from the 4th Amendment) • 2010-2011 : $222,318.52 • 2011 -2012: $197,710.37 (up through April) 2011 -2012: $217,000.00 (projected through June 30, 2012) Rate Comparison Analysis : r Countywide Commercial solid waste rates 3 cy x 1/week j 5i5o.00 5ma m I - -- - - --- - 533E.63 530DW $93J5 - SW 00 5w.00 ... __ 54000 - -- - 5000 ,e SP ed e, *p W`''a'd' 4S 9 01 e aP ` ad` a Ta `l e �vw s+'4���,trdpy h ` Ss o � Sw c OOs Rate Comparison Analysis : South County Commercial 2011-12 solid waste rates 3cy x 1/week 51so.aO 51Ao.00 5120.00 5ss s 5106.40 5105.96 5100.00 SW-00 50000 5An.0O 520.00 r Ibndio Santa San AM DanaPWt LagWNg" Aliso Viejo L2Pna HillS La61mi6Nsh San Clemente Average Median Magenta Capistrano Rate Comparison Analysis : C oun"-wide residential 2011-12 solid waste rates comparison ;co.v 511.30 516.69 Safi.ss sas.M �io.00 ss.Oo 5- r�S¢'Sy F�1�e- •`c`����FsS¢5��. ¢�6��0tf' -Sc N •`" a``« Cts' eS J'�v 3`��:.`•�'y3'.✓? �> ¢3 :�9°�.4,0�" ��v w� .f � �� �d�2 JQ' ��•���S.e' r� �. P vim, J �.���� 4�' ee .� `aa� Rate Comparison Analysis : South Orange County 2011-12 Residential solid waste rates comparison :IDW ,law :16 35 ,l6 DD '+16 of a.m zmm .0 ao 410.00 Saw '6 Oo J,Do �=oD a Pantlro Zana {aSuna KIV Dana Vd+e Ncp Vroja San Juan uNna peaen San pexme laPuna N:Nel >ve Mea.an lJa ea•4a 4aaerane '+Le Proposed Sixth Amendment : • Annual Administrative fee of $30,000 with annual CPI adjustment due July 1 . Benefit: Provides funds to offset staff costs charged to the General Fund. • Development and Implementation of a Universal Waste Collection Program at Six locations. Benefit: Reduces General Fund costs, provides additional convenient locations for residents, helps City comply with law. • Establishment of at least one household sharp drop off location. Benefit: Reduces General Fund costs, helps City comply with law. Proposed Sixth Amendment (Cont) : • Offering of food waste collection to food facilities at commercial recycling cart rate. Benefit: Provides the City a path to achieve future diversion requirements. • Offering of four annual bulky item pick to single family customers. nes"it: =,u�itionai service io residents at no additional cost. • Exchange of damage, stolen or graffitied carts once a year to customers requesting the exchange. Benefit: Additional service to residents at no additional cost. Proposed Sixth Amendment (Cont) : • Annual residential audit of minimum of 10% of single family customers. Benefit: Provides the City a path to achieve future diversion requirements. • Indemnification of compliance with Assembly Bill 341 . Benefit: P!-r)t-cts the City from potential fines and/or penalties. • CR&R shall provide within 24 hours a contingency plan of its operation during natural disaster or emergencies. Benefit: Provides additional emergency response services to the City. Proposed Sixth Amendment (Cont) : • Collection of abandoned items in City's right of way and public properties within 24 hours of notification. Benefit: Reduces General Fund costs and keeps the City looking beautiful. • CR&R will provide non-profit groups with roll-off or storage bins at rates not to exceed the cost of transportation Benefit: Reduces r jnn-pro ii r" PS. ps. • CR&R will accept all clean dirt resulting from City operation at no cost to the City. Benefit: Reduces Utilities Enterprise Fund costs, increases diversion rate. Staff Recommends by Motion : • Receive and file the proposed 2012-13 solid waste rates • The approval of the Sixth Amendment to the Integrated Solid Waste Collection Franchise Agreement, currently expiring July 1 , 2019, to include: - Annual administrative fee of $30,000 plus CPI - Universal waste collection at six locations - One household sharp drop off location - Food waste collection at recycling rate to food facilities - Four bulky item pick up to single family customers - Exchange of damaged, stolen or graffitied carts once a year - Annual residential audit of minimum 10% of single family customers - Indemnification of compliance with AB 341 - Natural disaster or emergency contingency plan - Collection of abandoned items in City's right of way and public properties - Non profit roll-off or storage bins reduced rate - Acceptance of clean dirt from City operation at no cost to City Questions mn:wo � 1961 1776 Christy Jakl From: Christy Jakl Sent: Thursday,June 07, 2012 4:28 PM To: Ziad Mazboudi Subject: CR&R Amendment Attachments: 12-0605 CR&R Sixth Amendment.pdf Hi Ziad, Attached is the Sixth Amendment for the CR&R contract. Thanks! Christi Jaki Deputy City Clerk City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 (949) 443-6310 1 (949)493-1053 fax 1