HomeMy WebLinkAboutGREAT WESTERN RECLAMATION, INC. A-86-204 A e'+6 �� � INSURANCE 9� . .�� EJC :adg-3
WORK MO PROCEED 08/27/86
CLERK OF COUNCIL Rev. 10/31/86
/ATE: 4, /Ty2r 7 Rev. 11/6/86
202J-
�j2 Rev. 11/12/86
Rev . 1/20/87
C074721/
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AGREEMENT FOR COLLECTION AND TRANSPORTATIOt NAe44)Z:C: 0- 14-
OF SOLID WASTE REFUSE PRODUCED OR J
ACCUMULATED IN THE CITY OF SANTA ANA
THIS AGREEMENT, made and entered into this 17th day of
November, 1986 , by and between the City of Santa Ana , a
municipal corporation of the State of California, hereinafter
referred to as "CITY, " and Great Western Reclamation , Inc. , a
corporation organized under the laws of the State of California,
hereinafter called, "CONTRACTOR,"
WITNESSETH
Recitals :
1 . The Legislature of the State of California, by
enactment of California Government Code Section 66755 et seq. ,
declares that it is within the public interest to authorize and
require local agencies to make adequate provisions for solid
waste handling within their jurisdictions .
2 . In the opinion of the City Council of the City of
Santa Ana, 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 transpor-
tation, level of services , charges and fees , nature , location
and extent of such services be provided by contract without
competitive bidding.
1.
3 . The City Council of CITY further declares its intention
of maintaining reasonable rates for collection and disposal of
solid waste refuse for residential units.
4 . The parties hereto previously entered into that certain
agreement dated December 27 , 1982 , entitled "Agreement for Collec-
tion and Transportation of Solid Waste Refuse Produced or Accumu-
lated in the City of Santa Ana, " ( "said agreement" ) and have
generally been satisfied with performance under said agreement.
5 . The City Council of the City of Santa Ana, having
determined that CONTRACTOR by demonstrated experience , reputa-
tion and capacity is qualified to continue to provide for the
collection of refuse within the corporate limits of the City of
Santa Ana 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.
6 . The parties hereto desire to replace said agreement by
this new agreement effective January 1 , 1987 .
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 :
CITY hereby grants to CONTRACTOR, for the term herein-
after set forth, the contract, right and privilege to collect and
transport to any legally authorized disposal site or sites, all
refuse (as herein defined ) produced, kept and/or accumulated in
2.
t„
the City of Santa Ana, and CONTRACTOR, subject to all of the
terms hereof, hereby accepts and agrees to faithfully perform
such contract and obligation.
2 . Definitions :
As used in this Agreement, the following words and
phrases shall have the meaning assigned in this section, unless
the context at the point of usage clearly requires a different
meaning.
A. Auditor shall mean the certified public account-
ant firm retained by CITY for auditing services.
B . Bin Service shall mean collection service
pursuant to an agreement between CONTRACTOR and his customers
by which bin containers (dumpsters ) are rented to the customers .
C. Clerk of the Council shall mean the Clerk of
the Council of CITY .
D. CITY shall mean the City of Santa Ana.
E. City Attorney shall mean the City Attorney of CITY.
F . City Council shall mean the City Council of CITY.
G. City Manager shall mean the City Manager of CITY.
H . Code shall mean the Municipal Code of CITY,
both codified and miscellaneous ordinances.
I . Contract shall mean this agreement , entered into
between CITY and CONTRACTOR.
J . CONTRACTOR shall mean Great Western Reclamation,
Inc. , a California corporation and a wholly-owned subsidiary
of Waste Management of North America, Inc.
3 .
K . Customer shall mean a user of CONTRACTOR' s bin
service.
L . Disposal Site shall mean any legally authorized
site for the receipt and disposition of refuse collected by
CONTRACTOR pursuant to this agreement.
M. Executive Director shall mean the Executive
Director of Public Works of CITY , or his or her designate.
N. Garbage shall mean and include all animal and
vegetable kitchen waste, all household waste which has resulted
from the preparation of food , all table refuse or offal , and
every accumulation of animal , vegetable or other matter that
attends the preparation , consumption, packing , canning,
storage and decay of meats, fish, fowls , vegetables and fruit
intended for human and animal consumption.
0 . Refuse means garbage and solid waste, as such
terms are defined herein. However, the term "refuse" , for
purposes of this agreement, shall not be deemed to refer to
or include the items listed on Exhibit "A" , attached hereto
and incorporated herein by reference . Refuse shall include,
but not by way of limitation, all demolition and/or construction
debris and wastes generated in the ordinary course of a business
on a permanent site.
P. Service unit shall mean each of the following
which receives standard service : Each single-family dwelling,
each dwelling unit within a duplex , triplex or multi-family
residential building , each apartment or condominium unit
within an apartment or condominium building . Any business or
4 .
professional user which does not reasonably require bin service
shall also be deemed a standard service unit.
Q . Solid waste shall mean combustible and noncombust-
ible waste materials not included in the term "garbage" , and
shall include tree and shrubbery trimmings , lawn renovatings ,
grass, weeds , leaves, chips, paper, pasteboard , magazines , books,
rags, rubber, carpets, clothing , boots , shoes, hats, furniture ,
bedding , bottles , cans, metals, mineral matter, glass , crockery,
dirt , dust, packing boxes and cartons, crates , packing material
and all other kinds of rubbish, trash or waste material which
ordinarily accumulates in the operation of a household or a
business.
R. Standard service shall mean curbside collection
service required for all service units not arranging with
CONTRACTOR for bin service nor required by CITY to obtain bin
service from CONTRACTOR.
3 . Scope of Service :
CONTRACTOR shall furnish all labor, material and
equipment necessary for the collection of all refuse originating ,
generated and/or accumulated within CITY boundaries as they
now exist or may hereafter exist and disposal of such refuse
at any legally authorized disposal site.
4 . Collection Hours :
All collections from residential areas shall be
made betweeen the hours of 5 :00 A.M. and 8 :00 P .M. , and
collections from commercial and industrial locations , other
5 .
than multi-family residential units or locations immediately
adjacent to residential units, may start at 3 :00 a.m. ,
provided , that if the Executive Director determines that the
commencement of collection in residential areas or commercial
or industrial locations immediately adjacent to residential
units between the hours of 5 :00 a.m. and 6 :00 a.m. unduly and
unnecessarily disturb the residents thereof , he may direct that
collections in such areas shall be made between the hours of
6 :00 a .m. and 8 :00 p.m. ; and in that event CONTRACTOR agrees to
comply with such order.
5 . Holidays :
Where, on given route, the day of collection would be
a legal holiday, CONTRACTOR shall collect along said route on
the work day next following said legal holiday. Legal holidays
for the purpose of this agreement shall be New Years Day,
Memorial Day , Independence Day, Labor Day , Thanksgiving Day,
Christmas Day and such other days as may be mutually agreed
upon in advance by the parties.
6 . Frequency of Collections :
The Contractor will collect all refuse from all areas
of the CITY at least once each week; and in addition, will provide
more frequent service for those customers using the bin service
supplied by CONTRACTOR as requested by a customer or as required
by the CITY .
6 .
7 . Maintenance of Schedules :
Presently existing routes , schedules, and times for
collection of refuse shall be maintained, but may be changed
by authorization of the Executive Director and after at least
one week ' s advance notification by CONTRACTOR to occupants of
the buildings in the area where the changes are to be made .
8 . Exclusiveness of Contract :
The CONTRACTOR shall have the exclusive duty, right
and privilege to collect , remove and retain all refuse originat-
ing within the CITY as herein defined , except as follows :
(a) This Agreement shall not prohibit the actual
producers of refuse, or the owners of the premises upon which
refuse has accumulated , from personally collecting , conveying,
and disposing of such refuse, provided such producers or
owners comply with any governing law or ordinances.
( b) This Agreement shall not prohibit collectors of
refuse originating outside the CITY from hauling such refuse
over CITY streets, provided such collectors comply with any
governing laws or ordinances.
( c ) CONTRACTOR' S right to collect and/or dispose of
refuse shall not be exclusive in the event of a failure to
collect under section 10 during which CONTRACTOR fails to maintain
substantially complete regular collection services pursuant to
this Agreement and the collection schedules then in effect , for
any reason , including a strike by CONTRACTOR' S employees or
similar labor dispute. The CITY may provide for collection and/or
7 .
disposal by persons other than CONTRACTOR during such periods and
may permit the public to obtain collection and/or disposal
services from persons other than CONTRACTOR during such periods,
including CONTRACTOR' S bin service customers .
(d) CONTRACTOR shall not have the exclusive right to
collect and dispose of any specified type of refuse for which
the City Council establishes a recycling program, designed to
direct the disposal of such refuse for purposes of reuse of
the materials therein, unless CONTRACTOR complies with all the
terms and conditions established by the Council for the collection
and disposal of such refuse . 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.
(e ) CONTRACTOR shall not have the exclusive right to
collect and dispose of refuse by providing bin service if the
conditions stated in section 22(g) are applicable .
9 . Collection Points and Requirements :
CONTRACTOR shall not be required to collect refuse
from any service unit receiving standard service unless the
same is placed on the curb along a public or private street,
or along an alley having street access at both ends , and is
placed in containers , packaged and otherwise prepared for
collection in a manner prescribed by the CITY' S regulations
covering the same .
8 .
Under no circumstances shall CONTRACTOR be required
to pick up and collect any material or matter which is not
refuse as defined in this Agreement , or to pick up and collect
any refuse from service units receiving standard service which
does not comply with the following standards and limitations :
All refuse shall be placed in containers adequate to
eliminate overflow or contamination of surrounding areas. Individ-
ual containers must not weigh in excess of 15 pounds empty or
have a capacity exceeding 35 gallons. The total combined weight
of the container and its contents shall not exceed 50 pounds.
Cardboard or wood cartons acceptable as temporary containers will
be considered as refuse and not be returned. Any cardboard or
wooden carton not specifically used as a temporary container must
be broken down , flattened down and tied in bundles with strong
cord or wire heavy enough to act as a handle , or shall be placed
in otherwise acceptable containers. Cardboard , paper, magazines,
palm fronds , tree limbs , brush, weeds and similar dry materials
must also be tied in bundles with a heavy cord or wire strong
enough to act as a handle , or be placed in other acceptable
containers. Any such bundle or items shall not exceed four feet
in length, eighteen inches in thickness, or weigh in excess of
40 pounds. Oil drums, grease drums and similar metal containers,
paper grocery bags , broken wooden boxes and crates, broken or
wet cardboard boxes , any container with sharp, rough, or jagged
edges which may hamper or injure the handler, are not acceptable
as refuse containers and will not be picked up or emptied. Dis-
carded household items , broken down and packaged in a size and
9 .
to a weight easily handled by one man will be considered as
refuse; however, large , heavy items not so broken down , including,
with limitation of the generality thereof , water heaters, couches ,
tables , refrigerators, stoves and other large pieces of furniture
or household equipment and similarly bulky items , will not be
under this Agreement ( except insofar as disposed or under the
provisions of section 17 ) . All kitchen waste, ashes , hair
clippings, floor sweepings and similar light materials must be
well and securely wrapped to prevent spillage and to protect
the public health and safety. Hot ashes will not be collected.
CONTRACTOR shall not be required to pick up and collect more
than 200 pounds ( including containers ) for each service unit
stop except at single-family dwellings , duplexes and triplexes.
10 . Failure to Collect:
Should the CONTRACTOR fail to collect and/or dispose
of refuse in accordance with this Contract and the collection
schedules then in effect pursuant to section 7 , the CITY, after
written notice to the CONTRACTOR, may collect and/or dispose of
all or any part of such refuse , or initiate services to cause or
promote its collection and/or disposal , using CITY employees
and/or independent contractors , and the CONTRACTOR shall be
liable for all reasonable expenses thereby incurred by the CITY.
The CITY may give such notice for any specified individual omission
by CONTRACTOR, in which event CONTRACTOR shall be allowed a
reasonable time, not to exceed the close of the following workday
to remedy such omission. In the event of substantial nonperformance
10 .
by CONTRACTOR, for any reason, including a strike of CONTRACTOR' S
employees , the notice shall continue in effect with respect to
refuse originating thereafter as long as the omission continues .
In addition to any other lawful means of effecting reimbursement
from the CONTRACTOR, such expenses may be deducted by the CITY
from money due or which may become due the CONTRACTOR. In addition,
CONTRACTOR shall allow CITY the use, without charge , of any of
CONTRACTOR' S collection vehicles , containers , and other equipment
not then in actual use by CONTRACTOR which CITY shall deem necessary
to provide collection and/or disposal services pursuant to this
section. The right of the CITY to enter upon and use facilities
and equipment as specified herein shall extend for a period of
ninety ( 90 ) days.
11 . Default :
(A) In the event that any party hereto shall be in
material default of any term, condition or covenant hereunder,
the nondefaulting party may give specific written notice of same
to the designated agent of the other. The defaulting party shall
have a reasonable period within which to cure or remedy such
specific material items of default. Upon the failure of either
party to substantially cure or remedy within a reasonable period ,
the nondefaulting party may cancel the Contract, after giving the
defaulting party reasonable prior written notice of such cancel-
lation. Upon such cancellation , all obligations of the parties
under this Contract shall cease except as provided in this section
11 .
and section 12 . A "reasonable period" as used herein shall be
deemed to be not less than seven ( 7 ) calendar days, unless
the material default endangers the public health and safety.
CONTRACTOR' S failure to perform by reason of an employee 's strike
or similar labor dispute shall not be deemed a default entitling
the CITY to cancel this Contract.
B . In the event CONTRACTOR claims default by CITY
in the payment of any money due or alleged to be due to CONTRACTOR
pursuant to this Agreement, CONTRACTOR shall not be entitled to
cancel this Agreement if the CITY, within seven ( 7 ) days after
receipt of notice of the claimed default , deposits the amount
in controversy into an interest bearing account in a commercial
bank or lending institution and maintains such deposit until such
time as a final judicial decision or agreement between the parties
determines the rightful disposition of the said amount in contro-
versy; provided that CONTRACTOR shall be deemed to have waived
all claims to the said amount if no agreement is reached nor any
legal proceedings initiated within ninety ( 90 ) days of the
CONTRACTOR' S service of notice of default on the CITY.
12 . Use by CITY of CONTRACTOR' S Equipment :
Upon cancellation of the Contract by either party for
any reason prior to the end of the period specified herein as
the term of the Contract , the CITY shall have the exclusive right
to rent or lease and operate any or all trucks, trailers , tractors
and other items of equipment used by CONTRACTOR in the performance
of the work specified in these specifications. The right of the
12 .
CITY to enter upon and use facilities and equipment as specified
herein shall extend following the date of cancellation of the
Contract for a period of ninety ( 90 ) consecutive calendar days.
The rental prices to be paid the CONTRACTOR under this section
shall be such to adequately reflect the most current rental prices
prevailing in the County of Orange at the date of termination.
Any moneys due the CONTRACTOR for rental of the equipment
under the provisions of this section may be withheld by the CITY
and used by it for the purpose of paying any outstanding liens
or payments due and unpaid upon the said equipment.
13 . Complaints and Damages for Minor Breach :
A. The CITY shall record all complaints and communica-
tions received by the CITY from persons and businesses being
served under the provisions of this Agreement and all other in-
cidents of failure to perform in accordance with this Agreement
noted by the CITY. CONTRACTOR shall likewise record all complaints
received by CONTRACTOR and shall make available such records to
the Executive Director or his representative at any reasonable
time . At least once each week , the CONTRACTOR or its agent shall
contact the Executive Director or his representative , and shall,
whenever requested to do so, personally appear at the office of
the Executive Director for the purpose of receiving such records.
The CONTRACTOR shall promptly report in writing to the Executive
Director as to the action taken or other disposal made of each
complaint.
13 .
B . In the event that the Executive Director determines
that the CONTRACTOR has failed to render performance in accordance
with the requirements of this Contract , other than failures to
collect refuse as specified in section 10 , he may assess reasonable
damages against the CONTRACTOR as provided herein. The CONTRACTOR
shall in all cases be given a reasonable opportunity to remedy
the defect in performance prior to such assessment of damages .
The Executive Director shall promptly notify the CONTRACTOR of
any such assessment and CONTRACTOR shall have ten ( 10 ) calendar
days thereafter in which to request a hearing by the City Council ,
which may affirm, modify , or revoke the decision of the Executive
Director. Such damages, unless revoked or revised by the City
Council , shall thereafter be set off against moneys due or to
become due the CONTRACTOR. It is agreed that in the event of
a minor breach by the CONTRACTOR of its performance requirements
under this Agreement , it would be impractical or extremely diffi-
cult to fix the actual damage and therefore the CONTRACTOR agrees
that upon such a minor breach, it will pay to the CITY as liqui-
dated damages and not as a penalty the sum of One Hundred Dollars
( $100 .00 ) for each business day during which such breach continues
after receipt of actual notice thereof . Such sums represents a
reasonable compensation for the loss incurred because of such
minor breach.
14 . Standards for Collection, Equipment and Noise :
Equipment used by CONTRACTOR for the collection and
hauling of refuse shall be used so as to assure, in the reasonable
14 .
opinion of the Executive Director, that adequate standards of
collection will be maintained. It is the declared interest of
the CITY that the CONTRACTOR be able to provide a variety of
sizes of bin containers to meet the capacity requirements of
commercial and multiple-family residential users . No material
shall be permitted to leak, fall or be spilled on City streets,
alleys or highways. Any such leakage or spills occurring shall
be immediately corrected and the area cleaned. The equipment
used must be maintained in good mechanical condition and must
employ adequate safety conditions for the operating personnel.
All collections shall be made as quietly as possible
and no unnecessarily noisy trucks or equipment shall be used.
Employees of the CONTRACTOR who are unnecessarily noisy or who
violate the provisions of the State Motor Vehicle Code and/or
any applicable CITY ordinance in the collection of said
materials shall be dismissed.
15 . Containers :
Containers used in bin service shall be of a design
and size to contain , at all times, the contents therein in such
a manner as to promote best possible housekeeping conditions .
Bin service containers supplied by the CONTRACTOR shall , at all
times, be maintained by it in a well-kept appearance and shall
be marked with reflectorized material where such bins are or
may reasonably be expected to be located in the public right-
of-way. Users shall be responsible for the cleanliness, sanita-
tion and deodorizing of such containers; provided, however,
15 .
CONTRACTOR shall provide in its bin rental contracts for a bin
cleaning service to be performed at the request of the customer
or the CITY for a fee specified in such contract .
The containers receiving standard service shall be
replaced where found . Containers and lids thereof shall not be
left in the street or on neighboring or adjoining premises.
Trash containers shall not be thrown from the truck to the pavement
or in any way damaged by unnecessarily rough handling. The CITY
reserves the right, upon submission of proof by the owner, to
withhold sufficient compensation under the Contract to adjust and
pay any claim for refuse containers damaged by the willful or
careless acts of the employees of the CONTRACTOR.
16 . Supervision :
Performance of each of the provisions of the Contract
shall be under the direction and supervision of the Executive
Director. The CONTRACTOR shall furnish the Executive Director
every reasonable opportunity of ascertaining whether or not the
work is performed in accordance with the requirements of the
Contract. The CONTRACTOR shall designate a person to serve as
agent and liaison between its organization and the CITY and shall
maintain a telephone and a means for contact at all times during
periods of strike or other emergencies. The Executive Director
may inspect the CONTRACTOR' S operations and equipment at any
reasonable time and the CONTRACTOR shall admit him to make such
inspections at any reasonable time and place.
16 .
17 . Collection of Bulky items :
In order to promote public sanitation and reduce fire
hazards, CONTRACTOR shall provide to all residential service
units the service of curbside collection of bulky items such
as couches , refrigerators , rugs, water heaters, and other
items of solid waste which CONTRACTOR is not required to collect
under section 9 because of size or weight , as follows :
( 1 ) Upon the written request of the CITY , and not more
than twice each year , on a date or dates to be agreed upon in
advance between CONTRACTOR and the Executive Director, CONTRACTOR
will provide large collection bins , to be left in a place to be
determined by the Executive Director, in which residents of CITY
may place large objects and other refuse which, under the pro-
visions hereof , are not required to be picked up and disposed of
by CONTRACTOR as part of the basic refuse collection service. At
the conclusion of the period during which such bins are to be
made available to City residents, CONTRACTOR shall remove such
bins and transfer the contents thereof to the designated disposal
site. It is understood that such service need not be accomplished
in any single week but may consist of a series of clean-ups taking
one designated section of the CITY at a specified time to be agreed
upon by CONTRACTOR and the Executive Director. The CITY shall re-
imburse CONTRACTOR for one-half ( 1/2 ) the actual costs incurred
by reason of such extraordinary collection.
( 2 ) CONTRACTOR shall provide such service to any
residential service unit requesting the same within five ( 5 ) days
17 .
after receiving such request, for a fair and reasonably consistent
fee per collection , to be paid to the CONTRACTOR directly.
18 . Fees and Gratuities :
CONTRACTOR shall not, nor shall it permit any agent,
employee or subcontractor employed by it to, request, solicit,
demand, or accept, either directly or indirectly, any compen-
sation or gratuity for the collection of refuse otherwise re-
quired to be collected under this Agreement , except such compen-
sation as is provided for in this Agreement. However , CONTRACTOR
may make available to bin service users special services not
provided for in this Agreement. CONTRACTOR may make a direct
charge in each instance for such service under a written agreement
which shall be subject to the approval of the Executive Director
and at such rates as are reasonable , just and uniform for all
persons requesting such additional services. All such charges
shall be collected by CONTRACTOR. Nothing in this section or in
this Agreement shall be construed , however , to require CONTRACTOR
to render services of any kind to any person to the extent such
services are not specifically required by the provisions of this
Agreement , or to require that CONTRACTOR, having rendered special
or additional services not provided for herein to one or more
persons , to offer or render the same services to any other person
or entity.
19 . Title to Refuse :
Title to all refuse collected pursuant to this Agreement
shall be vested in CONTRACTOR upon being placed at the curb for
18 .
collection or in the bin for collection. CONTRACTOR expressly
hereby reserves and is granted the right to retain , dispose of and
otherwise use such refuse, or any part thereof , in any fashion and
for any lawful purpose desired by CONTRACTOR, in lieu of disposing
of such refuse at a legally authorized disposal site, and to retain
any benefit or profit resulting therefrom. In the event, however,
that the CITY establishes a recycling program for any specified
type of refuse and the CONTRACTOR retains the exclusive right to
the collection of such specified type of refuse pursuant to section
8 (d) , the CONTRACTOR shall collect and dispose of such refuse only
in accordance with the terms and conditions established by the CITY
for such recycling program.
20 . Legal Relations and Responsibilities
A. Applicable Laws: CONTRACTOR shall at all times
comply with all applicable provisions of the Code , as now in
effect or hereafter enacted , as well as all other applicable
County, State and Federal laws and regulations ; provided, however,
no amendment of the Code shall operate to change CONTRACTOR'S
right to decline to pick up and collect any material or matter
which is not refuse as defined in this Agreement or to decline
to pick up and collect refuse which does not comply with the
standards and limitations set forth in this Agreement , or other-
wise operate to materially impair the rights and privileges of
CONTRACTOR hereunder.
19 .
B . Personnel :
No employee of CONTRACTOR shall continue to be employed
on any work under this Agreement who is intemperate, discourteous,
disorderly, inefficient or unduly noisy.
C. Permits and Licenses :
CONTRACTOR shall obtain all permits and licenses required
of it by City, County, State and Federal agencies.
D. Workers ' Compensation Policy :
CONTRACTOR shall maintain in full force and effect
during the term of this Agreement, a workers ' compensation policy
and such other forms of insurance as shall be required by law.
E . Public Liability Insurance :
CONTRACTOR shall obtain , at its sole cost , and file
with the City Clerk of CITY , prior to exercising any right or
performing any obligation pursuant to this Agreement , and
maintain for the period covered by this Agreement , a policy or
policies of liability insurance , or certificate of insurance,
satisfactory to the City Attorney of CITY , naming CITY , its
officers , agents and employees, as insured or additional insured,
which provides coverage for liability for any and all claims and
suits for damages or injuries to persons or property resulting
from or arising out of the performance by CONTRACTOR, its officers ,
agents, or employees , or by CITY , its officers, agents, or
employees pursuant to section 1 of this Agreement, of CONTRACTOR' S
covenants hereunder , or any failure or omission thereof. Said
policy or policies of insurance shall provide coverage for both
20 .
bodily injury and property damage in not less that the following
minimum amount : One Million Dollars ( $1 ,000 ,000 ) combined single
limit. Said policy shall also contain a provision that no termina-
tion , cancellation or change of coverage of insured or additional
insured shall be effective until after thirty ( 30 ) days notice
thereof has been given in writing to CITY. CONTRACTOR shall give
CITY prompt and timely notice of any claim made or suit instituted.
F . Indemnification:
CONTRACTOR shall indemnify and save harmless CITY, its
officers and employees , against any and all damages to property
or injuries to or death of any person or persons , including
property and employees or agents of CITY and shall defend , in-
demnify and save harmless CITY, its officers and employees , from
any and all claims, demands, suits , actions or proceedings of
any kind or nature, including, but not by way of limitation,
workers ' compensation claims, of or by anyone whomsoever , directly
or indirectly caused by , or arising out of a breach of a requirement
of this Agreement by the CONTRACTOR, or any negligent or willful
act or omission of CONTRACTOR, or any negligent or willful act or
omission of the CONTRACTOR, its employees or subcontractors in the
performance of this Agreement. CONTRACTOR shall procure and main-
tain , at its own cost and expense , any additional kinds and amounts
of insurance which, in its own judgment , may be necessary for its
proper protection in the performance of the work.
Insurance coverage specified in this Agreement shall
in no way lessen or limit the terms of this indemnification.
21 .
G. Waivers :
No acquiescence, failure or neglect of either of the
contracting parties to insist on strict performance of any or all
of the terms hereof shall be considered as or constitute a waiver
or any term or condition of the Contract or any performance re-
quired thereunder, or any remedy, damage or other liability
arising out of such refusal , neglect or inability to perform at
any time .
21 . Payment for Services - Standard Service :
A. As compensation for the performance in each
calendar month by the CONTRACTOR of the standard service work
described in this Contract, CONTRACTOR shall receive from CITY,
on or before the fifteenth day of the following calendar month,
an amount equal to the service unit rate multiplied by the total
number of service units then in effect under Paragraph B below.
B. The total number of service units is stipulated
to be 41 ,136 as of July 1 , 1986 . Such number shall be re-
determined on January 1 and July 1 of each subsequent calendar
year by the Executive Director. If CONTRACTOR disagrees with the
determination of the Executive Director, CONTRACTOR may appeal such
determination to CITY' S City Manager, whose decision shall be
final.
C . The service unit rate shall be equal to the average
of the monthly rates paid by or in the six cities of Anaheim, Costa
Mesa, Fullerton, Garden Grove, Huntington Beach, and Orange for
22 .
similar curbside residential services performed once per week .
Such standard service unit rate shall be calculated on July 1
of each calendar year and shall be in effect for each ensu-
ing twelve ( 12 ) month period ending June 30 of the following year.
The service unit rate shall be calculated by the CONTRACTOR subject
to the approval of the Executive Director. The information used by
the CONTRACTOR in the development of the rate comparisons and
calculations of the average rate and related adjustments shall be
submitted by the CONTRACTOR to an independent certified public
accounting firm ( "Auditor" ) for its review and confirmation to the
Executive Director as to the accuracy of the rate determination.
The rates to be compared in each of the aforesaid cities on each
July 1 shall include all disposal fees and costs. In the
event the Auditor is not able to validate the rate within thirty
( 30 ) days after July 1 , the rate, when finally validated, shall be
adjusted and paid retroactively to July 1.
D . In any of the six cities where the refuse col-
lector 's service includes and is limited to residential and
apartment buildings only , the rate of such city will be adjusted
to compensate for the variation from services performed by the
CONTRACTOR in Santa Ana. Such adjustment shall be in accordance
with "Exhibit E , " attached hereto and incorporated herein by
reference. If any city changes its method of compensation for
refuse collection, such city shall be excluded from the deter-
mination of the service unit rate unless the auditor recommends a
method of adjustment for such city' s rates and the parties agree to
accept the Auditor' s recommendation.
23 .
F. The standard service unit rate shall be Five Dollars
and Eighty-two cents ( $5 .82 ) as of January 1 , 1987 , and it shall
be effective from the beginning of the term of this Contract
until July 1 , 1987 .
F . The method and procedure for determining the
compensation due CONTRACTOR from CITY for standard service is
more fully described in "Exhibit B , " attached hereto and in-
corporated herein.
G . Notwithstanding the above, in the event at any
time that some action by a governmental unit, beyond the control
of CONTRACTOR, causes an increase of ten percent ( 10% ) , or more in
disposal fees or a significant or drastic change in landfill oper-
ation costs which is not reflected in the standard service unit
rate as calculated in subsection C , then CITY and CONTRACTOR
agree to meet and confer regarding the impact of such increase
and the possibility of increasing the standard service unit
rate to offset such increase in disposal fees and/or landfill
operation costs.
22 . Payment for Services - Bin Service :
A. The CONTRACTOR shall receive compensation for
supplying bin service by direct billing of the customers receiv-
ing such service by means of separate agreements for the rental of
bins entered into between the CONTRACTOR and each such customer.
A copy of every such agreement shall be filed with the Executive
Director by CONTRACTOR. The CITY shall not collect any fee for
refuse collection services from CONTRACTOR' S bin service customers.
24 .
B. The bin service monthly rates charged by CONTRACTOR
shall ( except for additional or special services referred to in
Paragraph E hereinafter) be set pursuant to a schedule approved
by the Executive Director. The schedule shall be such that the
average cost of one collection of one cubic yard of refuse by
CONTRACTOR pursuant to such schedule is equal to the average cost
per cubic yard of collection in the four cities of Anaheim,
Fullerton , Huntington Beach, and Orange which would occur if the
rates in effect in those cities for similar bin services were to
be charged to CONTRACTOR' S bin service customers in Santa Ana,
and is to be determined in accordance with "Exhibit C , " attached
hereto and incorporated herein by reference.
C . The average cost per cubic yard shall be calculated
on July 1 of each calendar year and shall remain in effect for
each ensuing twelve-month period ending June 30 . Such average
cost shall be calculated by the CONTRACTOR in accordance with
"Exhibit D , " attached hereto and incorporated herein by
reference , and shall be subject to the approval of the Executive
Director. The information used by the CONTRACTOR in making such
calculation shall be submitted by the CONTRACTOR to the Auditor
for his review and conformation to the Executive Director as to
the accuracy of the average cost determination. The rates in
effect in each of the aforesaid cities as of July 1 shall be
independently verified by the Auditor and CONTRACTOR shall be
authorized to collect fees from its bin service customers
retroactive to July 1.
25 .
D. In any of the four cities where the refuse col-
lector' s bin service includes all apartment collections , the cost
figure for such city shall be adjusted to compensate for the
variation from bin service performed by the CONTRACTOR in Santa
Ana, in accordance with "Exhibit E . "
E . The CONTRACTOR may enter into agreements with bin
service customers for special collection services different from,
in addition to , or greater than the minimum collection services
required by this Agreement . Charges for additional bin capacity
and/or special services shall be based upon the schedule established
under subsection B hereinabove . Subject to the reasonable approval
of the Executive Director, the CONTRACTOR may also impose additional
surcharges on customers to cover increased costs incurred due to
special collection problems. Not by way of limitation of the
foregoing , but rather by way of example, CONTRACTOR may apply
approved surcharges to bin customers who use trash compactors .
F. The method of determining the average cost per
cubic yard of collection is more fully described in "Exhibit D, "
attached hereto and incorporated herein.
G . In the event the CONTRACTOR is unable to provide
temporary service to any customer within five ( 5 ) calendar days
from receipt of a call by such customer, the Executive Director
may permit any other licensed hauler to provide temporary service
to such customer if , but only if , CONTRACTOR has not provided
such service within twenty- four ( 24 ) hours after reasonable
notification by the Executive Director to CONTRACTOR.
26 .
23 . Minimum Service Levels -
Multi-family Residential Buildings :
CITY shall require that all residential buildings with
four or more dwelling units be served by bin service , except that
CITY may waive such requirement for any residential building
existing on January 1 , 1972, upon a determination that no lawfully
usable space is available for such container within the boundary
lines of the subject property.
The CONTRACTOR shall provide bin containers of such
capacity and collections of such frequency for residential build-
ings required to have bin service by this section as to provide
for refuse collection of not less than one-half ( 1/2 ) of one ( 1 )
yard of refuse collection per dwelling unit per week. In all
cases, collections shall be made at least once per week .
In the event that the City Council determines that any
specified area of the CITY containing several residential build-
ings receiving bin service has evidenced a need for more frequent
collections than are required by the abovesaid minimum and imposes
such higher requirements on CONTRACTOR' S customers therein for
sanitation or health reasons by appropriate ordinance or resolu-
tion, CONTRACTOR shall furnish such additional collections and
shall be entitled to compensation from the customers to the same
extent as if the customer requested such additional collections
from the CONTRACTOR.
CONTRACTOR shall also comply with any request by the
Executive Director to change the scheduled collection days for
residential bin service customers which is designed to promote
27 .
conformity of bin service collections in any specified area of
the CITY to improve sanitation or reduce noise.
24 . Prohibition Against Effecting Average Rate Increases :
CONTRACTOR shall not enter into any agreements or
arrangements with refuse collection firms in any of the cities
whose rates affect CONTRACTOR' S compensation under sections 21
or 22 for the purpose of increasing the rates paid in such cities.
25 . Compensation Reduction During Strike Period :
In the event that there occurs any period in which
CONTRACTOR fails to maintain substantially complete regular
collection services pursuant to this Agreement and the collection
schedules then in effect , by reason of a strike or CONTRACTOR' S
failure to pay his employees, and only if such period includes
more than ten ( 10 ) normal collection days (weekdays ) , then the
following shall apply:
( a) The City Council may assess damages against the
CONTRACTOR in an amount which does not exceed the sum of the
following :
( 1 ) The expenses incurred by the CITY in
providing collection and/or disposal services pursuant
to section 10 ; and
( 2 ) Fifty percent ( 50% ) of the amount by
which CITY revenue from fees collected for standard
service by the CITY from the public is reduced due to
any reduction or refund of such fees granted by the
City Council to compensate such fee payers for the
inconvenience experienced by them due to CONTRACTOR' S
28 .
failure to furnish full performance during such period .
( b) In assessing damages, the City Council shall take
into account the CONTRACTOR' S efforts to mitigate the inconvenience
to the public receiving standard service . In particular, CON-
TRACTOR shall be given credit for standard service unit collections
made by CONTRACTOR by having damages assessed, subject to the
abovesaid maximum, in approximately the same proportion to the
compensation due CONTRACTOR for standard service during the subject
period as the number of service unit collections which CONTRACTOR
failed to make bears to the total number of service unit collections
which should have been made pursuant to this Agreement .
( c ) In addition to any other lawful means of effect-
ing recovery of the damages assessed against CONTRACTOR, the
amount thereof may be deducted by CITY from money due or which
may become due to the CONTRACTOR, either in single sum or in
installments . In the event CONTRACTOR objects to such assessment
or set-off, it shall nevertheless maintain full performance under
this Agreement , reserving all rights to subsequently litigate
the propriety or amount of the damages assessed.
(d) Refunds or reduction of payments of CONTRACTOR' S
bin service customers shall be the sole responsibility of CON-
TRACTOR. CONTRACTOR covenants for the benefit of each such
customer to grant a reasonable and fair refund or reduction or
compensatory service; provided, however , that the CONTRACTOR
may condition such refunds or reductions or compensatory service
upon the customer ' s filing of a claim for the same with the
CONTRACTOR. To the extent bin service collections are made at
29 .
CITY' S expense in the absence of CONTRACTOR' S performance ,
CONTRACTOR shall be liable to CITY for a proportionate amount of
the customers ' payments due to the CONTRACTOR.
26 . Term of Contract:
A. The term of this Contract shall begin on January 1 ,
1987 , at which time the previously existing contract between the
parties hereto shall be of no further force and effect as to any
rights or obligations which have accrued to either party pursuant
to said previous contract prior to such date . The term of this
Agreement shall extend to June 30 , 1993 ; and thereafter to June 30
of such subsequent year as the parties may mutually agree upon.
B . In 1992 , and in any other calendar year preceding
a year in which any renewal of this Agreement terminates , the
parties shall meet and confer during the period July 1 through
December 31 of each calendar year, concerning renewal, with or
without amendment , of this Agreement. In the event that the
parties fail to reach agreement on renewal of this Agreement
during such period , this Agreement shall terminate June 30 of
the following calendar year.
No increase in the compensation due CONTRACTOR other
than under sections 21 and 22 shall be made unless CONTRACTOR
demonstrates to the satisfaction of the Auditor that CONTRACTOR
has become subject to substantial cost increases for reasons
beyond CONTRACTOR' S control to the point that it is no longer
profitable for CONTRACTOR to continue in business without a
compensation increase. In such event , the increase in compensa-
tion shall not exceed an amount necessary to allow CONTRACTOR
30 .
the recovery of such cost increases as determined by the Auditor.
27 . Subcontractors, Management , and Stock Transfers :
A. The CONTRACTOR shall not assign, transfer, or
subcontract the Agreement nor any part thereof without first
obtaining the consent of the City Council , except that the
CONTRACTOR may sell or otherwise dispose of refuse and salvaged
materials after the same have been collected.
B. CONTRACTOR shall retain Thomas K. Blackman in a
position of management of the CONTRACTOR' S operations as long
as the said person is able and willing to continue in such
service , except insofar as a change in management may be pre-
viously approved by the City Council.
C . The CITY may cancel this Agreement pursuant to
Section 11 above , in the event of a breach of the covenants in
subsections A and B hereinabove, or in the event that a majority
of the shares of stock in CONTRACTOR are sold or otherwise trans-
ferred, without the prior consent of the City Council, by Waste
Management of North America, Inc. , or by any subsequent owner(s ) of
such shares who acquire ownership pursuant to such consent .
28 . Accounting and Auditing :
A. The CONTRACTOR shall maintain financial records
in accordance with generally accepted accounting principles.
B . CONTRACTOR shall make its records, reports, and
methods of accounting available to the Auditor during normal
business hours to allow the Auditor to review CONTRACTOR' S
method of determining the comparison rates determined pursuant
to Sections 21 and 22 .
31 .
29 . Bond :
The CONTRACTOR shall , prior to the initial date of the
term of this Agreement , execute and file with the City Clerk a
surety bond in the penal sum of One Hundred Thousand Dollars
( $100 ,000 .00 ) conditioned upon the faithful performance of this
Agreement by the CONTRACTOR and its subcontractors , if any.
Said bond may be written for a term of one year, and may there-
after be renewed by certificate, provided however, that the
CONTRACTOR agrees to maintain such bond or bonds in force for
the complete term of this Agreement.
30 . Notices :
Any notice required by this Agreement shall be suffi-
ciently served if personally delivered or if deposited into the
U .S . Mail , postage prepaid, and if addressed as follows :
If served by CONTRACTOR upon CITY :
Executive Director of Public Works
City of Santa Ana
20 Civic Center Plaza
Santa Ana, California 92701
If served by CITY upon CONTRACTOR:
President
Great Western Reclamation
1800 South Grand
Santa Ana, California 92705
31 . Gender and Number :
As used herein, the masculine gender shall include
the feminine and neuter , and the singular shall include the
plural .
32 .
32 . Validity :
The invalidity in whole or in part of any provision
of this Agreement shall not void or affect the validity of the
other provisions of this Agreement .
33 . Governing Law:
This Agreement shall be governed by and construed in
accordance with the laws of the State of California.
IN WITNESS WHEREOF , the parties hereto have executed
this Agreement the day and year first above written.
CITY OF SANTA ANA, a municipal
corporation of the State of
California
ATTEST:
/�/' By r ° �u
__ACt
i _ Dan Young
'n re C . Guy ('� Mayor
lerk of the Councir
APPROVED AS TO FORM : GREAT WESTERN RECLAMATION , INC .
a California Corporation
sl'isr•-.. P',/4111. e__ �
Cooper Edwar• J . Co _ �
City Attorn-y By al
President
f / By 4w 1 • _
¢Fa 6a 5i // + ;
Secretar
/f tee®..=
City Manager
33 .
r
EXHIBIT "A"
EXCEPTIONS TO THE DEFINITION OF "REFUSE
A flammable waste.
A containerized waste ( e .g. , a drum, barrel , portable tank , box
pail , etc. ) .
A waste transported in a bulk tanker.
A liquid waste .
A sludge waste .
A waste from an industrial process .
A waste from a pollution control process.
Residue and debris from the cleanup of a spill or release of
chemical substances , commercial products or any other special
wastes .
Contaminated soil , waste , residue, debris and articles from the
cleanup of a site or facility formerly used for the generation,
storage , treatment , recycling , reclamation or disposal of any
other special wastes.
Dead animals .
Manure.
Sewage waste .
Waste water.
Explosive substance.
Radioactive materials.
Materials which have been exposed to highly infectious or
contagious diseases.
Hazardous materials.
34 .
EXHIBIT "B"
STANDARD SERVICE
GENERAL COMMENTS
1 . The Residential Average Rate shall be determined
using the prevailing rates , as adjusted , in the cities of Anaheim,
Costa Mesa, Fullerton, Garden Grove , Huntington Beach and Orange .
2 . The prevailing rates to be used in this procedure
shall be the published rate for determining contractor payments
regardless of the base unit to which it applies. The rate used
for this average procedure will be that which is to be effective
on July 1 of the corresponding year.
a. The base unit for residential rates varies
from city to city. For example, Anaheim uses electric
meters while Santa Ana has used water meters and other
cities use service units.
b. The city will provide contractor with the
total number of standard service units at July 1 of
the corresponding year.
3 . The prevailing rates shall be adjusted whenever a
city ' s residential contract includes apartment service .
a . This adjustment is to compensate for the effect
the apartment revenue has on the residential rates.
b. The basis for the calculation of the adjust-
ment shall be the actual apartment service being provided
in the City of Santa Ana as determined by the records
of the city ' s contractor.
35 .
c. The amount of adjustment shall be the differ-
ence between the total income from that service under
Santa Ana rates and the total income from the same
service under other cities ' rates.
d. The adjustment shall then be divided by the
total residential service units in Santa Ana and applied
to the appropriate city ' s prevailing rate.
4 . The contractor should have the schedules used to
calculate the Residential Average Rate available for review by
the city ' s auditor by July 25 of the corresponding year. The
Executive Director will provide contractor with written approval
of the rates within twenty-five ( 25 ) days after the schedules are
available for review by the city ' s auditor.
PROCEDURE
1 . Determine the prevailing rates of each of the
cities and record on a schedule.
2 . Determine which of the cities require an adjustment
for apartment service and determine the method and rates for pay-
ment in those cities . Summarize that information on a second
schedule.
3 . Determine the actual apartment service provided in
Santa Ana and record on a third schedule.
4 . Calculate the revenue amounts using the rates from
the second schedule and the service from the third schedule.
Record the revenue amounts as shown on the third schedule .
36 .
5 . Summarize the revenue difference and divide by the
total Santa Ana service units. The resulting rate per service is
the adjustment to be entered on the first schedule.
6 . Complete first schedule by adding the adjustments
to the prevailing rates and averaging the adjusted rates .
The above comments and procedures specifically define
the method of determining a Residential Average Rate . This pro-
cedure will be used to determine an average rate as of July 1 , 1987 ,
using rates that will be effective July 1 and each July 1 thereafter
during the term of this Agreement.
37 .
EXHIBIT "C"
BIN SERVICE
GENERAL COMMENTS
1 . The Commercial Average Rate Per Cubic Yard of
Service shall be determined using current average rates , as
adjusted , in the cities of Anaheim, Fullerton, Huntington Beach
and Orange.
2 . Apartment revenue, for some contractors , is
determined by separate rate schedules. The effect apartment
revenue has on the average rate per cubic yard of service shall
be calculated separately and included as an adjustment to the
current average .
3 . The contractor should have the schedules used to
calculate the Commercial Average Rate Per Cubic Yard of Service
available for review by the City ' s auditor by July 25 of the
corresponding year. The Executive Director will provide contractor
with written approval of the rates within twenty-five ( 25) days
after the schedules are available for review by the city' s auditor.
PROCEDURE
1 . Complete the attached procedure for the determination
of average rate per cubic yard of service.
2 . The result of that procedure is then recorded on
a Rate Summary Schedule in the column entitled, "Current Average. "
3 , Complete the above procedure for the adjustment
for apartment revenue defined in Exhibit "A" .
38 .
1 ,
4 . That procedure ' s result is then recorded on the
Rate Summary Schedule in the column entitled, "Apartment
Adjustment. "
5 . Add those two columns for each city and record
the sum as the "Adjusted Average . "
6 . Complete the Rate Summary by adding the adjustments
to the current average and averaging the adjusted rates.
The above comments and procedures, with the attached
procedures and schedules, specifically define the method of
determining a Commercial Average Rate Per Cubic Yard of Service.
This procedure will he used to determine an average rate as of
July 1 , 1987 , using rates that will be effective July 1 , and each
July 1 thereafter during the term of the Agreement.
39 .
EXHIBIT "D"
DETERMINATION OF AVERAGE RATE PER CUBIC YARD OF SERVICE
PROCEDURE
1 . Develop a single basis to which each contractor ' s
rates and service schedules can be applied. Use the actual service
being provided in Santa Ana for this base :
A. Develop a summary of actual Santa Ana apartment
service by reviewing the contractor' s records. Format shall be
the same as in previous year 's adjustments.
B . Develop a summary of actual Santa Ana com-
mercial bin service , excluding apartments, by reviewing the
contractor' s customer records . Format shall be the same as in
previous year ' s adjustments.
2 . Develop the service and rate schedules of each
contractor by contacting each city and verifying the information
with the contractor. Actual schedules offered shall take
precedence over contracted schedules.
3 . Develop the minimum service offered by each con-
tractor that would be required to meet the service needs of
Santa Ana. Then, determine the corresponding rates of each con-
tractor.
A. Enter the Santa Ana service and number of
containers.
B. The Santa Ana service requirement is the cubic
yardage determined by multiplying the size of the container by
the weekly frequency of service .
40 .
C. A contractor' s minimum service shall be the
minimum service offered by his service schedule that is at least
equal to the Santa Ana service requirement, with both expressed
in cubic yards.
D. All data necessary to determine each contractor' s
minimum service and corresponding rates will be provided.
4 . Calculate the total cost to Santa Ana customers if
their service was provided under the service and rate schedules
used in the cities of Anaheim, Fullerton, Huntington Beach and
Orange.
A. Multiply the number of containers by the
contractor ' s rates for each Santa Ana service level .
B . Total the results of the previous exercise .
5 . Calculate the average rate per cubic yard of
Santa Ana service for each contractor.
A. Divide the total cost to Santa Ana customers
by the total cubic yards of service required in Santa Ana.
41 .
EXHIBIT "E"
ADJUSTMENT FOR APARTMENT REVENUE
PROCEDURE
1 . Develop a single basis to which each contractor ' s
apartment rates can be applied. Use the actual service being
provided in Santa Ana for this base, a summary of actual Santa Ana
apartment service is included in the procedure for determination of
average rate per cubic yard of service.
2 . Develop the service and rate schedules for each
contractor by contacting each city and verifying the information
with the contractor. Actual schedules offered take precedence
over contracted schedules.
A. Contractors whose services include only resi-
dential and apartments shall be excluded from this calculation
and used in determining an adjustment to residential rates.
B . Record or explain the appropriate apartment
rates on a separate schedule.
3 . Calculate the total cost to Santa Ana apartments
if their service was provided under the service and rate schedules.
A. When required, the procedure for determination
of average rate per cubic yard of service to determine contractor' s
service minimums .
4 . Determine the necessary adjustment to the average
rate per cubic yard of commercial bin service.
42 .
40
A. Subtract the Santa Ana apartment revenue from
the potential apartment revenue under other cities ' rates. Santa
Ana ' s revenue is calculated in the residential average rate
calculation.
B. Divide the result by the number of monthly
cubic yards of commercial service as shown in the summary or
actual commercial bin service, excluding apartments.
43 .
,),4111'.17', , v : `Y`-a3
. REQUEST FOR ° ' '``
COUNCIL ACTION Il .
CITY COUNCIL
AGENDA DATE November 17, 1986 n , E OF COUNCIL ACTION 1///7(14
CONTRACT RENEWAL FOR REFUSE COLLECTION, / e , �.//r/z /ng y,•
TITLE _ W /
AND DISPOSAL BETWEEN GREAT WESTERN /021/5186 Approved_as - �S"" ((,,
.
RECLAMATION AND THE CITY OF SANTA ANA ,c1ct, f toraa as
PUB .I.G-WORKS AGE CY
_.
ci .)
.
tto ,' /7‘1. :24,---- A
` CITY MANAGER / -----
CLERK OF THE COUNCIL
RECOMMENDED ACTION That the City Council authorize:
a. The City Attorney to prepare, and the Mayor to execute, an agreement for
refuse collection and disposal services with Great Western Reclamation, Inc.
SG-lay�/
b. Approve a Resolution/for the new schedule of service charges for refuse
collection and removal service including the establishment of an arterial
bus stop cleanup program and continuation of the twice-annual large item
pickup program.
EXECUTIVE SUMMARY
After detailed negotiations with Great Western Reclamation, Inc. , the Public
Works Agency is submitting a new agreement for the collection and disposal of
refuse in Santa Ana. The term of the proposed agreement is from January 1, 1987
to June 30, 1993.
A significant feature of the proposed agreement is that collection charges and
disposal charges at the County landfills (gate fees) will no longer be itemized
on the resident's water bills. All collection and disposal costs will be
adjusted annually through a six-city fair market average.
In addition, the Public Works Agency is recommending that two additional services
be funded through the refuse collection charge. One, for $.20 monthly per
residential customer, would finance an arterial and bus stop cleanup effort.
Another, for $.10, would insure continuation of a twice-annual large item
pickup. The total proposed charge (from January 1, 1987 to June 30, 1987) to
residential customers can be broken down accordingly:
Current Pro osed opporfr
Refuse Collection and Disposal $ 4.95 6.20
Administration .5555
Arterial Bus Stop Cleanup -0- X20
Large Item Pickup -0- .10
TOTAL $ 5.50 $ 7.05
fir' ir
MISCELLANEOUS
60.A. GREAT WESTERN RECLAMATION CONTRACT AND REFUSE COLLECTION FEES
Miles Leach, 2025 West Tenth Street, spoke with regard to the Great
Western Reclamation Contract.
MOTION: 1 ) Authorize the City Attorney to prepare and the Mayor and
Clerk to execute agreement.
W 5TerzrJ
AGREEMENT WITH GREAT RECLAMATION for refuse collection services
,, for the period January 1 , 1987 through June 30, 1993.
A-86-2,o4
FILO 1•43
2) Adopt resolution.
RESOLUTION NO. 86-104 - A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SANTA ANA ESTABLISHING A NEW SCHEDULE OF SERVICE CHARGES
FOR REFUSE COLLECTION SERVICES.
MOTION: Hart SECOND: Griset
VOTE: AYES: Acosta, Griset, Hart, May, Pulido, Young
NOES: McGuigan
ABSENT: None Et I G g 4'3
MOTION: Rescind the previous action and vote on the contract and
resolution separately.
MOTION: Griset SECOND: Acosta
VOTE: AYES: Acosta, Griset, Hart, May, McGuigan, Pulido,
Young
NOES: None
ABSENT: None
MOTION: Authorize the City Attorney to prepare and Mayor and Clerk to
execute agreement.
MOTION: McGuigan SECOND: Griset
VOTE: AYES: Acosta, Griset, Hart, May, McGuigan, Pulido,
Young
NOES: None e•C.- ac -1
ABSENT: None X43
MOTION: Amend resolution to delete fees for Arterial Bus Stop Clean-up
and adopt.
MOTION: McGuigan SECOND: Griset
VOTE: AYES: Acosta, Griset, Hart, McGuigan, Pulido, Young
NOES: May
ABSENT: None
c�ovE Sr'#°3
CITY COUNCIL MINUTES 467 DECEMBER 15, 1986
RESOLUTION NO. 86-104
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SANTA ESTABLISHING A NEW SCHEDULE OF
SERVICE CHARGES FOR REFUSE COLLECTION SERVICES
WHEREAS , Article II , Chapter 16 of the Santa Ana
Municipal Code provided for refuse collection services in the
City of Santa Ana and authorizes the establishment of charges for
such services by Resolution of the City Council ; and
WHEREAS , increased costs to the City of Santa Ana for
the provision of refuse collection services now require an upward
adjustment in such service charges ;
NOW, THEREFORE , BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF SANTA ANA AS FOLLOWS :
1 . As used herein , "service unit" shall mean each of
the following :
Each single-family dwelling , each dwelling unit
within a duplex , triplex or multifamily residential building ,
each apartment or condominium unit within an apartment or con-
dominium building , and each business , professional , industrial or
other non-residential occupancy unit ; provided each such unit
which receives refuse collection services solely by means of the
mechanically unloaded bin service provided by the City' s refuse
collection contractor shall not be considered a service unit for
purposes of this Resolution.
2 . The service charge for refuse collection services
shall be billed once each two months . Each service unit having a
separate water meter and each combination of service units shar-
ing a common water meter shall constitute a single billing unit
for purposes of this Resolution. For each such billing unit
receiving water service be added to the charges for water Service
and billed with the bill for water service . Each billing unit
not receiving water service from the City of Santa Ana shall be
billed separately.
3 . The service charge for refuse collection services is
hereby imposed as follows :
CHARGE PER SERVICE
TYPE OF BILLING UNIT UNIT FOR TWO MONTHS
Single-family residence 13 . 70
Duplex ( 2 service units ) 11 . 60
Triplex ( 3 service units) 10 .90
Multifamily residential 10 .90
(4 or more service units)
Non-residential 13 . 70
RESOLUTION NO. 86-104
PAGE TWO
4 . All service charges shall be due and payable at the
Finance Department in the City Hall of the City of Santa Ana on
the date of billing therefor , and shall become delinquent fifteen
( 15) days from and after the date of such billing. A penalty of
ten per cent ( 10%) shall be charged on all unpaid bills for such
service charges thirty ( 30) days from and after the billing date .
5 . The service charges established by this Resolution
shall become effective on the first billing following adoption of
this Resolution according to the current billing dates of each
billing unit respectively.
6 . Resolution No . 84-136 is hereby repealed .
ADOPTED this 15th day of December , 1986
Daniel H. Y ng , Mayor
ATTEST :
Y•
ce C . Guy
Jerk of the Council
COUNCILMEMBERS :
Young Aye APPROVED AS TO FORM:
McGuigan
Acosta
Griset Aye
Hart Aye
May Nay . ward . . Coo 'er ,
Pulido Aye City Atto
MEMORANDUM
To: David Ream, City Manager Date: November 9, 1986
David Grosse, Executive Director UM
From: Public Works Agency
Subject: CONTRACT RENEWAL FOR REFUSE COLLECTION AND REMOVAL SERVICES
STATEMENT OF THE ISSUE
Contract Renewal
On December 27, 1982, the City entered into an agreement with Great Western
Reclamation, Inc. , a wholly-owned subsidiary of Waste Management of North
America, Inc. , to collect solid waste refuse in Santa Ana. This agreement is
due to expire June 30, 1988. In May 1986, Great Western Reclamation
approached the City requesting negotiations for a new agreement. This request
was in accordance with the present agreement. Great Western Reclamation,
Incorporated's request and the City's consent was motivated by a mutual desire
to clear up potential disputes over such matters as disposal costs, gate fees,
trash compactor rates and rate adjustments.
After five months of detailed discussions, staff submits for consideration by
the City Council a new agreement for services to be performed by Great Western
Reclamation. The new agreement resolves the disputes and contains the
following highlights:
1. The term of the proposed agreement is from January 1, 1987, to June 30,
1993.
2. The reimbursement rates to Great Western Reclamation for disposal and
collection have been combined. (Presently, customers in Santa Ana are
required to pay a $1.05 monthly surcharge representing disposal costs at
the County landfills. )
3. Using the six-city average specified in the present and proposed
agreements, Great Western Reclamation has submitted a single monthly
reimbursement rate for collection and disposal per customer. This
amount has been verified by Public Works staff and an auditor.
4. The level of service and the method of determining rates for residential
and commercial refuse customers remains substantially the same.
5. The agreement makes some adjustment in the operation of the twice-annual
large item pickup program for residents. Instead of picking up items at
the curb side, large roll-off boxes will be placed in neighborhoods at
specified locations. This change reduces visual blight on the streets,
yet still provides residents with a less costly alternative than going
to the landfills.
6. The proposed agreement would allow Great Western Reclamation to impose
additional surcharges on bin service customers utilizing commercial
trash compactors. These surcharges must follow specified guidelines
established by and approved by the Executive Director of Public Works.
%
rp
206 a
s
David Ream, City Manager 2 November 9, 1986
Consolidation of Collection and Disposal Costs
The key feature of the proposed agreement, as mentioned in item 3 above, is
the consolidation of the reimbursements to Great Western Reclamation of
collection and disposal costs. Presently, Great Western Reclamation receives
two checks from the City each month. One represents a reimbursement for
curbside residential collection. This is funded by a $3.90 monthly refuse
collection charge on the water bill. Disposal costs, consisting of gate fees
for Great Western Reclamation trucks at the County landfills, are paid from
invoices submitted monthly. These costs have been funded by a $1.05 monthly
gate fee charge on the water bill.
Under the present agreement, Great Western Reclamation's reimbursement from
the City for disposal cost is limited to the gate fees charged by the County
at the landfills. The proposed agreement removes that limitation and allows
the disposal cost portions of the reimbursement rate to be determined by the
six city average, thereby allowing Great Western Reclamation to use landfills
or transfer stations or any legally authorized disposal site. With the
pending closure of Coyote Canyon landfill, this flexibility is a necessity.
The proposed agreement will obligate the City to reimburse Great Western
Reclamation for collection and disposal services of $5.82 per water meter per
month starting January 1, 1987. This amount would be subject to adjustment
each July. Consistent with the present agreement, the reimbursement amount
will be determined by a six-city average (Anaheim, Costa Mesa, Fullerton,
Garden Grove, Huntington Beach, and Orange). The information on rates is
gathered by Great Western Reclamation, verified by an auditor, and approved by
the Executive Director of the Public Works Agency and City Council.
Annual Rate Adjustment
Each year, according to the present and proposed Agreements, the rates for
residential and commercial refuse collection are subject to adjustment. A
survey of the six specified cities is submitted by Great Western Reclamation
and verified by the auditor. The average of refuse collection and disposal
rates in these cities becomes the basis for the rate charged to each
residential customer in Santa Ana. Commercial bin service rates are similarly
established. Since July 1, 1985, residential customers in Santa Ana have been
charged $3.90 a month for refuse collection and $1.05 for disposal, plus $.5S
in administrative costs ($5.50 total).
Deloitte, Haskins $ Sells has determined that the household refuse collection
rate effective July 1, 1986, should have been $4.28 monthly. Under the terms
of the agreement in effect now, the City is obligated to retroactively
reimburse Great Western Reclamation that amount per month, per customer.
(Great Western Reclamation is now being reimbursed $3.90 per month, per water
bill. ) Disposal costs of $1.54 have also been determined effective January 1,
1987 for the six cities, resulting in a total cost of $5.82.
03011
207 ` -
David Ream, City Manage 3 November 9, 1986
In order to provide the retroactive payment of $4.28 for the first half of the
year and the new rate of $5.82 for the second half of the year, a residential
rate of $6.20 per month per water meter will be necessary effective January 1,
1987.
With regard to commercial bin service, a chart comparing the present (7/1/85 -
6/30/86) and the adjusted rates (7/1/86 - 6/30/87) is attached (Attachment
1). These rates have been approved by the Executive Director of Public Works
according to the terms of both the existing and proposed contracts.
Twice-Annual Large Item Pickup
As specified in the new agreement, Great Western Reclamation will provide a
valuable service to residential, curb-side customers. Twice a year, on a
Saturday in spring or fall, the contractor will make pickups in the
neighborhoods of large discarded items such as appliances and furniture.
According to the agreement, the cost of this program is evenly divided between
the Contractor and the City.
This service has always proven popular with residents. In fact, the most
recent large item pickup in April 1986, generated 254 trailer loads of
discarded items. The program was so successful that Great Western Reclamation
was unable to pick up all items in one day.
In prior years, the large item pickup was coordinated by the Neighborhood
Improvement Program and was paid for by supplemental sources of funding, such
as General Revenue Sharing or Community Development Block Grants. With the
reduction of these funds, the Refuse Collection Enterprise Fund must pick up
the cost or the program must be discontinued.
In order to continue this important program, the Public Works staff recommends
two changes. Instead of making curbside pickups of discarded items, Great
Western Reclamation will leave large drop off boxes at various public areas in
the neighborhoods, such as parks and municipal parking lots for receipt of
discarded items. Residents will still be spared the lenghty round trip to the
landfills and the gate fee cost.
In order to insure continued funding, Public Works recommends distributing
cost among all users through the Refuse Collection charge. With the modified
program, costs should be significantly reduced. A charge of $.10 per month
per customer will provide sufficient funding to cover all associated costs.
Arterial and Bus Stop Cleanup Program
In recent months, Councilmembers have expressed concern about growing litter
around bus stops along streets in Santa Ana. Public Works staff has
investigated and consulted with the Orange County Transit District. The
Transit District has nominal responsibility for maintaining bus stops, but has
only one position to handle the approximately 990 stops in Santa Ana. This
means that each stop is maintained at the rate of once every forty working
days. This may be adequate for many neighborhood stops, but for the high
volume bus stops along our arterial streets this low service is inadequate.
The litter problem is especially acute at those stops located near schools,
convenience stores, and fast food restaurants.
60A
tAlfi
David Ream, City Manager 4 November 9, 1986
Public Works proposes that City Council authorize an Arterial and Bus Stop
Cleanup component in the refuse enterprise program. Besides collecting trash
from receptacles and policing the area around the bus stops, personnel
assigned to this program will assist with litter pickup on arterials
throughout the City, similar to the service currently being provided downtown.
The program will require two additional positions and vehicles. Funding for
the program would derive from the refuse collection charges paid by property
owners who receive curbside trash pickup. Based on 41,136 customers billed,
the monthly cost per household for this service would be $.20.
The Arterial and Bus Stop Cleanup Program would be an effective, versatile,
and responsive method of dealing with a long-standing Council concern. A
proposed budget accompanies this document (Attachment 2).
Commercial Trash Compactors
The issue of Great Western Reclamation imposing a significant surcharge on bin
service customers under the present agreement for compactors has been in
dispute. The proposed agreement allows such surcharges subject to approval by
the Executive Director of Public Works. Guidelines for compactor rates were
established through negotiations. Small indoor trash compactors, commonly in
use at fast food restaurants, will be subject to a 50% surcharge (1.5 times
the bin service rate). Larger compactors, used at hotels and large office
buildings, will be charged a 100% surcharge (2.0 times the bin service rate).
These rates will apply to less than ten bin service customers in the City
currently. Charges for new compactors must be individually authorized by City
staff.
ALTERNATIVES
The City Council may consider implementing any portion of the program proposed.
The City Council may:
1. Approve the proposed Agreement with the entire rate adjustment package.
Each customer would pay $7.05 monthly.
2. Approve the proposed agreement and the adjusted rates for refuse
collection without approving the charges for Arterial and Bus Stop
Cleanup Program and the Large Item Pickup. The incidence of illegal
dumping will likely increase. The monthly refuse collection charge
would be $6.75 for each residential customer.
3. Approve the proposed Agreement, the rate adjustments with the Arterial
Bus Stop Cleanup Program, without the Large Item Pickup with the above
potential consequences. The monthly refuse collection charge would be
$6.95.
6
209
David Ream 5 November 9, 1986
4. Approve the proposed Agreement, the rate adjustments with the Large Item
Pickup without the Arterial Bus Stop Cleanup Program, leaving littered
arterials. The monthly refuse collection charge would be $6.95 per
customer.
5. Reject the proposed agreement and direct the City Attorney and the
Public Works Agency to conduct further negotiations, and approve the
annual refuse adjustment. The monthly collection and disposal charge
will be $6.26 for each residential customer.
COSTS
Current Proposed
Refuse Collection $ 3.90 $ 6.20 (includes retroactive
amount $ disposal costs)
Gate Fees 1.50 -0-
Administration .55 .55
Arterial Cleanup -0- .20
Large Item Pickup -0- .10
TOTAL $ 5.50 $ 7.05
RECOMMENDED ACTION
a. That the City Council authorize the City Attorney to prepare an
agreement for refuse collection and disposal services with Great Western
Reclamation, Inc. , and the Mayor to execute same.
b. That the City Council approve a Resolution for the new schedule of
service charges for refuse collection and removal service, including the
establishment of an arterial bus stop cleanup program and continuation
of the twice-annual large item pickup.
liegerat-Si—e
David Grosse
cc: Deputy City Manager, Development
Executive Director, Finance and Management Services
Maintenance Manager, Public Works Agency
Contract Services Manager, Public Works Agency
DHG/MB/am
6
IV Alt -
10, F
310
MONTHLY APARTMENT AND COMMERCIAL BIN SERVICE RATES
EFFECTIVE JULY 1, 1985 TO JUNE 30, 1986
Weekly Frequency
1 2 3 4 5 6
Bin Size
1 c/y $28.00
2 c/y 44.00 $ 65.00 $ 86.00 $107.00 $128.00 $149.00
3 c/y 57.00 81.00 105.00 129.00 153.00 177.00
4 c/y 75.00 103.00 131.00 159.00 187.00 215.00
EFFECTIVE JULY 1, 1986 TO JUNE 30, 1987
Weekly Frequency
1 2 3 4 5 6
Bin Size
1 c/y $30.00
2 c/y 46.00 $ 68.00 $ 89.00 $110.00 $131.00 $152.00
3 c/y 60.00 85.00 109.00 133.00 157.00 181.00
4 c/y 78.00 107.00 135.00 163.00 191.00 219.00
(attachment 1)
211
ARTERIAL BUS STOP CLEAN UP PROGRAM
PROPOSED BUDGET
EXPENDITURES
Annual Costs
2 Maintenance hbrker II's (Labor & Benefits) $ 64,000
2 1.5 Ton Trucks (Rental of City Equipment) 9,600
Miscellaneous
(uniforms, shoes, dump fees) 3,500
Capital Costs
Vehicles 30,000
Collection Bins ($130 ea. including installation) 32,500
Total 62,500
Amortization - 55,000/+10%/5 yrs.
Annual 12,500
TOTAL ANNUAL COSTS 96,700
FUNDING
Refuse Collection Change
41,136 water meters x $0.20 per mo. = $ 96,700
(attachment 2)
2i,;v
1
Waste Management of Orange County, Inc.
Nie
South Grand Avenue ' <
Santa Ana,California 92705 `
714/480-2300 Fax:714/568-6626
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October 14, 1998 ) �I I
ys {f •+ X e
Mr. Dave Ream '°t
City Manager b'
City of Santa Ana � ,3
20 Civic Center Plaza "1 " ,, ,
Santa Ana, CA 92701 ,,r
Dear Dave:
As you know, Bob Coyle has left Waste Management for a position with a new company in the
City of San Francisco.
His successor at Waste Management of Orange County is Mike Stephan. Mike has been in the
solid waste industry for 20 years working in Texas, Colorado and Los Angeles. Mike's most
recent assignment was the Division President of Waste Management's San Gabriel Valley
operations which provided residential and commercial waste collection services to the cities of
Baldwin Park, El Monte, Diamond Bar, San Dimas, LaVerne, Walnut, Bell Gardens and portions
of Los Angeles County.
Mike Stephan's name should be inserted on our Franchise Agreement for the primary contract.
His direct line is 714/480-2316. The mailing address remains the same.
Mike brings a wealth of experience to our division. He is committed to continuing the division's
high level of service and its community involvement..
Please feel free to contact me if you have any question.
Sincerely,
rt Gabrielle Soroka
\'
V.P. overnment Affairs _ CI 1
GS/teb
,„, Op rt
,...
:„ cc: Mike Stephan
U 1/47C ir \:' ,-t
RJC2445.DOC