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HomeMy WebLinkAbout25K - ADJUSTING REFUSE RATESREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JUNE 1, 2009 TITLE: AMENDMENT TO AGREEMENT IDENTIFYING AND ADJUSTING REFUSE RATES >~ CITY MANAGER MENDED ACTION Direct the City Attorney to Council and the City Manager with Waste Management Inc. adjusting certain fees. DISCUSSION prepare an to execute identifying CLERK OF COUNCIL USE ONLY: APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 15f Reading ^ Ordinance on 2"d Reading ^ Implementing Resolution ^ Set Public Hearing For_ CONTINUED TO FILE NUMBER d authorize the Clerk of the an amendment to the agreement new services and fees and The agreement between the City and Waste Management identifies services and fees provided to the community. Over time Waste Management has determined that a number of additional services are needed and asked that they be identified and included in their agreement. These include services that were not provided when the original agreement was developed. Staff recommends adding them to their agreement. The agreement with Waste Management also identifies the components of the curbside service rate. The proposed amendment adjusts the City's administrative portion of the curbside rate by $.20 per month to support increased costs in providing administrative support and would allow future CPI increases to apply to the storm water portion of the fee. There will be no increase to the storm water portion in the 09-10 fiscal year. Further, the agreement indicates a fee of $5500 per month payable to Waste Management to provide curbside pick-up of used oil which has been paid from the City's used oil block grant monies. The City has been notified that the State is likely to reduce the used oil grant monies by approximately 40 percent. That will necessitate a reduction in the amount payable to Waste Management for curbside pickup and a restructuring of the used oil program. The amendment reflects a more 25K-1 Amendment To Agreement Identifying and Adjusting Refuse Rates June 1, 2009 Page 2 flexible cost reimbursement as determined by the Executive Director of the Public Works Agency. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT Money collected for the new fees identified in the amendment will have a minimal impact on the refuse collection fund. The increased curbside rate will generate approximately $100,000 in the refuse collection fund (account no. 69-O1-5112). There will no fiscal impact in FY 2009-10 associated with the storm water component of the fee. The decrease in the money paid to Waste Management for used oil collection will be determined once the State has determined the grant monies for FY 2009-10. James G. Ross Executive Director Public Works Agency APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez Executive Director Finance & Mgmt. Services Agency 25K-2 FIRST AMENDMENT TO RESTATED AGREEMENT FOR COLLECTION AND HANDLING OF SOLID WASTE GENERATED AND/OR ACCUMULATED IN THE CITY OF SANTA ANA THIS FIRST AMENDMENT, made and entered into this 1st day of June, 2009, by and between USA Waste of California Inc., a Delaware corporation dba Waste Management of Orange County ("CONTRACTOR") and the City of Santa Ana, a charter city and municipal. corporation duly organized and existing under the Constitution and laws of the State of California ("CITY"), collectively referred to herein as "the Parties". RECITALS 1. On December 5, 2005, the Santa Ana City Council authorized the City to enter into Agreement A-2206-071, Third Amended and Restated Agreement with Waste Management of Orange County (hereinafter referred to as "said Agreement") for collection and handling of solid waste generated and/or accumulated in the City. 2. Said Agreement provides for an Administrative Cost to be paid to CITY. Since the execution of said Agreement the CITY's costs in administering the hazardous materials program have increased over the CPI adjustment provided in said Agreement. 3. Said Agreement imposes an NPDES cost for which the parties inadvertently failed to provide a CPI adjustment. 4. Said Agreement identifies services provided by CONTRACTOR and fees for those services. The parties desire to amend said Agreement to include fees for services currently provided by CONTRACTOR but not identified in the rate schedule. Section 18(g) of said Agreement provides that CONTRACTOR shall be compensated for the collection of used oil filters and containers. Since execution of said Agreement, the California Integrated Waste Management Board has varied the funding level of the Used Oil Grant program from year to year. 7. The Parties hereto now desire to amend said Agreement in order to adjust the Administrative Cost, include a CPI adjustment for the NPDES cost, provide compensation for all services provided by CONTRACTOR and provide a fluctuating level of funding for used oil and gas curbside pickup. WHEREFORE, in consideration of the mutual and respective covenants and promises hereinafter contained and made, and subject to all of the terns and conditions of said Agreement as hereby amended, the parties hereto do hereby agree as follows: 1. Section 18, of said Agreement, "PUBLIC EDUCATION SERVICES", is amended to 25K-3 revise section 18(g), to read in full as follows: "(g) development and management of grants pursuant to the regulations contained in the CIWMA and/or adopted by the California Integrated Waste Management Board, including the Department of Conservation and other governmental agencies that offer grants related to collection and recycling services provided under the Agreement. ~ ~~,..,, o nc n~ rnir•rn n r-rnn .;» o ~ ~. Contractor shall be compensated $75.00 per hour for grant administrator's time to develop and administer the grant programs. Annually, on July 1, or as soon thereafter as the CIWMB determines the level of funding to be provided to Ci ,the City and CONTRACTOR will set the compensation and level of service to for collection of used oil containers and filters. " 2. Section 21 of said Agreement, "COLLECTION OF BULKY ITEMS" shall be amended to add a subsection (d), to read in full as follows: "(d) CONTRACTOR shall provide on-request bulky item collections for commercial and residential bin service customers, as set forth in subsection 21. (a) above. Each such request for ResidentiaUCommercial bulky item pick up shall cost thirty dollars ($30.00) per collection and shall be billed to the residentiaUcommercial bin service customer reauestin~ the additional collection by CONTRACTOR." Section 27, of said Agreement, "ADJUSTMENTS TO CHARGES" shall be amended by adding a subsection (e), which shall read, in full, as follows: " (el NPDES COST: Commencing July 1, 2010, the NPDES Cost for curbside service shall be adjusted annuallysing the CPI set forth in subsection (a)(1 above provided however, that adjustments shall be calculated at one hundred (100%) of the CPI." 4. Exhibit C, Section 1, of said Agreement, CURBSIDE SERVICE, shall be amended to increase the City's Administrative Cost for curbside service by $0.20, to support increased City costs in providing administrative support, including support for the hazmat program. 5. Exhibit C, Section 5, of said Agreement, SPECIAL BIN SERVICE RATES, shall be deleted in its entirety and replaced with the following: "5. SPECIAL BIN SERVICE RATES Subject to the provisions of this Agreement, the CONTRACTOR may charge no more than the following rates for Special Bin Services: (A) A bin which needs to be moved in excess of twenty-five (25) feet in order to be emptied maybe assessed no more than the following fees: 25K-4 (1) Moving of bins 25 to 50 feet: $1.00 per month times the number of times emptied each week. (2) Moving of bins 51 to 75 feet: $2.00 per month times the number of times emptied each week. (B) A bin which possesses casters may be assesses a caster charge of no more than $2.50 per month. (C) CONTRACTOR may apply a surcharge to bin Customers who use trash compactors of not to exceed a multiplier of 1.5 times the normal bin rate for said service. (D) CONTRACTOR may charge a special service charge of no more than $2.00 a month times the number of times a week a bin is emptied, for moving a bin out of an enclosure. (E) CONTRACTOR may charge a fee of no more than $54.83 per bin for an additional bin pickup when such pickup is requested by a Customer. (F) CONTRACTOR may charge a fee of no more than $2.00 per month to a Customer who requests a bin with a lock. (G) CONTRACTOR may charge a reasonable fee for six (6) cubic yard bin service (H) CONTRACTOR may charge a reasonable fee for plastic injection molded two (2) cubic yard container. (1) CONTRACTOR may charge a fee of no more than $61.82 per bin to persons who need temporary use of three (3) cubic yard bin. (J) CONTRACTOR may charge a reasonable fee for collection of Solid Waste on difficult to service streets. (K) CONTRACTOR may charge a fee of no more than $30.00 per occurrence for overflowing bins. (L) CONTRACTOR may charge a restart fee of $14.00 to restart commercial and roll off service when a permanent account has been terminated for non-payment (M) CONTRACTOR may charge a bin exchange fee of $40 00 for each of two or more bin exchanges in a twelve (12) month period whether due to damage or bin size change. (N) CONTRACTOR may charge a trip charge of $48 00 ner scheduled visit when the roll-off is not sezviceable. 25K-5 (O) CONTRACTOR may charge a return to service fee of $48.00 for two or more calls by a commerciaUresidential bin service customer to return to provide service (P) CONTRACTOR may charge a fee of $5.00 per bin times the number of service visits per week when stinger service is required for a commerciaUresidential bin service customer. (Q) CONTRACTOR may charge a customer a fee of $1.00 for copies of disposal tirlretc " 6. Except as hereinabove modified, the terms and conditions of said Agreement remain unchanged and in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Amendment to said Agreement the date and year first above written. ATTEST: Patricia E. Healy Clerk of the Council CITY OF SANTA ANA DAVID N. REAM City Manager APPROVED AS TO FORM: JOSEPH W. FLETCHER City Attorney By: Laura Sheedy Assistant City Attorney APPROVED AS TO CONTENT: JAMES G. ROSS Executive Director of the Public Works Agency CONTRACTOR DAVID ROSS General Manager 25K-6