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HomeMy WebLinkAbout60B - 1 YEAR EXTENSION OF CONSTRUCTION AND DEMO DERISREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: MARCH 17, 2020 TITLE APPROVE A ONE-YEAR EXTENSION OF THE CONSTRUCTION AND DEMOLITION DEBRIS SERVICES AGREEMENTS WITH WASTE MANAGEMENT COLLECTION AND RECYCLING INC. AND WARE DISPOSAL, AND HOST FEE AGREEMENT WITH MADISON MATERIALS /s/ Kristine CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 111 Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager to execute the proposed extension of the Agreement for Collection and Handling of Construction and Demolition Debris with Waste Management Collection and Recycling, Inc. (dba Waste Management of Orange County), extending the expiration date to June 30, 2022, at the current terms, with an expected revenue of $150,000, subject to non - substantive changes approved by the City Manager and City Attorney. 2. Authorize the City Manager to execute the proposed extension of the Agreement for Collection and Handling of Construction and Demolition Debris with Ware Disposal, extending the expiration date to June 30, 2022, at the current terms, with an expected revenue of $14,500, subject to non -substantive changes approved by the City Manager and City Attorney. 3. Authorize the City Manager to execute the proposed extension of the Host Fee Agreement with Madison Materials, extending the expiration date to June 30, 2022, at the current terms, with an expected revenue of $22,000, subject to non -substantive changes approved by the City Manager and City Attorney. DISCUSSION Construction and demolition (C&D) debris hauling services in Santa Ana are contracted separately from solid waste services. The two authorized haulers are Waste Management of Orange County and Ware Disposal (Exhibits 1 and 2). In addition, for maximum recycling diversion, all processing of C&D debris is contracted directly to Madison Materials through a Host Fee agreement (Exhibit 3). These agreements, established October 3, 2005, and extended to June 30, 2021, are co -terminus with the Solid Waste Services agreement. Approve Two-year Construction and Demolition and Host Fee Agreement Extensions March 17, 2020 Page 2 City Council is considering a one-year extension of the Solid Waste Services Agreement with Waste Management of Orange County to June 30, 2022. The agreement extensions will achieve the objective of continued service until a new solid waste services Request for Proposals process can be completed, which will determine ongoing C&D services contractors. As such, staff recommends continuing the co -terminus status by extending the C&D and Host Fee agreements through June 30, 2022, effective upon the effectiveness of the Solid Waste Services extension agreement. STRATEGIC PLAN ALIGNMENT Approval of these items support the City's efforts to meet Goal #4 — City Financial Stability, Objective #1 (maintain a stable, efficient and transparent financial environment). ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. However, increased recycling activity will divert materials from the landfill, thus extending the life of the landfill system and recovering valuable recyclable resources. FISCAL IMPACT The C&D Collection and Handling and the Host Fee extension agreements maintain customer service rates without increases, other than the standard, annual rate adjustment as detailed in the current agreements. Revenues from the C&D Collection and Handling agreements are deposited into the Refuse Collection Enterprise Maintenance Revenue Account No. 06917002- 53718. Host Fee agreement revenues are deposited into the Residential Street Improvement Revenue Account No. 05817002-53730. Based on revenues to date for Fiscal Year 2019-20, annual receipt of revenues during the one-year extension period are projected as follows: AGREEMENT FY 2021-22 C&D Collection and Handling $150,000 Waste Management C&D Collection and Handling $14,500 Ware Disposal Host Fee $22,000 Madison Materials TOTAL PROJECTED REVENUE: $186,500 �. 1 Approve Two-year Construction and Demolition and Host Fee Agreement Extensions March 17, 2020 Page 3 APPROVED AS TO FUNDS AND ACCOUNTS: Nabil Saba, PE Kathryn Downs, CPA Acting Executive Director Executive Director Public Works Agency Finance and Management Services Agency NS/MLM/CK Exhibits: 1. Extension of C&D Agreement — Waste Management of Orange County 2. Extension of C&D Agreement — Ware Disposal 3. Extension of Host Fee Agreement — Madison Materials EXHIBIT 1 SECOND EXTENSION OF AGREEMENT FOR COLLECTION AND HANDLING OF CONSTRUCTION AND DEMOLITION DEBRIS GENERATED, PRODUCED, AND/OR ACCUMULATED AT TEMPORARY CONSTRUCTION SITES IN THE CITY OF SANTA ANA This SECOND EXTENSION OF AGREEMENT FOR COLLECTION AND HANDLING OF CONSTRUCTION AND DEMOLITION DEBRIS GENERATED, PRODUCED, AND/OR ACCUMULATED AT TEMPORARY CONSTRUCTION SITES IN THE CITY OF SANTA ANA ("Second Extension") is made and entered into this 17th day of March, 2020 by and between 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") and Waste Management Collection and Recycling, Inc., a California corporation dba Waste Management of Orange County ("Contractor"). RECITALS A. City and Contractor entered into Agreement No. A-2005-259, dated October 3, 2005, by which City granted to Contractor a non-exclusive right to collect, recycle, divert, and transport to appropriate facilities any construction and demolition debris generated, produced, and/or accumulated at temporary construction sites in the City ("Agreement"). B. The original term of the Agreement continued through June 30, 2008, subject to extension. C. On April 3, 2006, the Agreement was amended to extend the tern through June 30, 2018 by the document entitled "First Amended and Restated Agreement for Collection and Handling of Construction and Demolition Debris Generated, Produced, and/or Accumulated at Temporary Construction Sites in the City of Santa Ana," Agreement No. A-2006-076. The rate structure was amended as well. D. On December 19, 2017, the Parties entered into Extension No. A-2017-366 by which the tern of the Agreement was extended through June 30, 2020, with provision for a one- year extension that was later agreed to by the Parties. E. The Agreement remains in effect through June 30, 2021, and the Parties now wish to further extend the Agreement through June 30, 2022. The Parties therefore agree: 1. The tern of the Agreement shall be extended through June 30, 2022. 2. This Second Extension shall take effect only upon the effectiveness of the "Second Amendment to Fourth Amended and Restated Agreement for Collection and Handling of Solid Wastes Generated, Produced, and/or Accumulated in the City of Santa Ana," by and between City and Contractor and dated March 17, 2020, Page 1 of 2 60B-4 3. Except as extended and modified by this Second Extension, and Agreement No. 2006-076, all terms and conditions of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Extension on the date and year first written above. ATTEST Daisy Gomez Clerk of the Council APPROVED AS TO FORM Sonia R. Carvalho, City Attorney By: D/W lam. Ain M. Funk Assistant City Attorney RECOMMENDED FOR APPROVAL Nabil Saba Acting Executive Director Public Works Agency Page 2 of 2 60B-5 CITY OF SANTA ANA Kristine Ridge City Manager CONTRACTOR 20&R-CQLZAAJ ame Title: i0a:u 310 SECOND EXTENSION OF AGREEMENT FOR COLLECTION AND HANDLING OF CONSTRUCTION AND DEMOLITION DEBRIS GENERATED, PRODUCED, AND/OR ACCUMULATED AT TEMPORARY CONSTRUCTION SITES IN THE CITY OF SANTA ANA This SECOND EXTENSION OF AGREEMENT FOR COLLECTION AND HANDLING OF CONSTRUCTION AND DEMOLITION DEBRIS GENERATED, PRODUCED, AND/OR ACCUMULATED AT TEMPORARY CONSTRUCTION SITES IN THE CITY OF SANTA ANA ("Second Extension') is made and entered into this 17th day of March, 2020 by and between 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") and Ware Disposal, Inc. ("Contractor"). RECITALS A. City and Contractor entered into Agreement No. A-2005-242, dated October 3, 2005, by which City granted to Contractor a non-exclusive right to collect, recycle, divert, and transport to appropriate facilities any construction and demolition debris generated, produced, and/or accumulated at temporary construction sites in the City ("Agreement'). B. The original term of the Agreement continued through June 30, 2008, subject to extension. C. On April 3, 2006, the Agreement was amended to extend the term through June 30, 2018 by the document entitled "First Amended and Restated Agreement for Collection and Handling of Construction and Demolition Debris Generated, Produced, and/or Accumulated at Temporary Construction Sites in the City of Santa Ana," Agreement No. A-2006-077. The rate structure was amended as well. D. On December 19, 2017, the Parties entered into Extension No. A-2017-367 by which the term of the Agreement was extended through June 30, 2020, with provision for a one- year extension that was later agreed to by the Parties. E. The Agreement remains in effect through June 30, 2021, and the Parties now wish to further extend the Agreement through June 30, 2022. The Parties therefore agree: The term of the Agreement shall be extended through June 30, 2022. 2. This Second Extension shall take effect only upon the effectiveness of the "Second Amendment to Fourth Amended and Restated Agreement for Collection and Handling of Solid Wastes Generated, Produced, and/or Accumulated in the City of Santa Ana," by and between City and Waste Management Collection and Recycling, Inc. and dated March 17, 2020. [signatures on following page] Page 1 of 2 �. 1 3. Except as extended and modified by this Second Extension, and Agreement No. 2006-077, all terms and conditions of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Extension on the date and year first written above. ATTEST Daisy Gomez Clerk of the Council APPROVED AS TO FORM Sonia R. Carvalho, City Attorney By: V,7yv. I.w-4, J i M. Funk Assistant City Attorney RECOMMENDED FOR APPROVAL Nabil Saba Acting Executive Director Public Works Agency Page 2 of 2 CITY OF SANTA ANA Kristine Ridge City Manager P.O. BOX 1318 1 •� / 1 ►��'rIJ'/J� �. 1 EXHIBIT 3 SECOND EXTENSION OF HOST FEE AGREEMENT BETWEEN MADISON MATERIALS AND THE CITY OF SANTA ANA This SECOND EXTENSION OF HOST FEE AGREEMENT ("Second Extension") is made and entered into this 17th day of March, 2020 by and between Madison Materials ("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"). RECITALS A. City and Contractor entered into Agreement No. A-2005-243, dated October 3, 2005, by which City agreed to direct construction and demolition debris and incidental waste generated at temporary construction sites in the City to Contractor's facility in exchange for a "host fee" as further described therein ("Agreement"). B. The original term of the Agreement continued through June 30, 2008, subject to extension. C. On April 3, 2006, the Agreement was amended to extend the term through June 30, 2018 by the document entitled "First Amended and Restated Agreement for Madison Materials and City of Santa Ana Host Fee Agreement," Agreement No. A-2006-078. The rate structure was amended as well. D. On December 19, 2017, the Parties entered into Extension No. A-2017-368 by which the term of the Agreement was extended through June 30, 2020, with provision for a one- year extension that was later agreed to by the Parties. E. The Agreement remains in effect through June 30, 2021, and the Parties now wish to further extend the Agreement through June 30, 2022. The Parties therefore agree: The term of the Agreement shall be extended through June 30, 2022. 2. This Second Extension shall take effect only upon the effectiveness of the "Second Amendment to Fourth Amended and Restated Agreement for Collection and Handling of Solid Wastes Generated, Produced, and/or Accumulated in the City of Santa Ana," by and between City and Waste Management Collection and Recycling, Inc. and dated March 17, 2020. 3. Except as extended and modified by this Second Extension, and Agreement No. 2006-078, all terms and conditions of the Agreement shall remain in full force and effect. [signatures on following page] Page I of 2 �. 1 IN WITNESS WHEREOF, the parties hereto have executed this Second Extension on the date and year first written above. ATTEST Daisy Gomez Clerk of the Council APPROVED AS TO FORM Sonia R. Carvalho, City Attorney By: J n M. Funk Assistant City Attorney RECOMMENDED FOR APPROVAL Nabil Saba Acting Executive Director Public Works Agency Page 2 of 2 CITY OF SANTA ANA Kristine Ridge City Manager CONTINIAT49,4N MATERIALS P.O. BOX 1108 NTA ANA,, CCA92702 Nam Title: