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HomeMy WebLinkAboutGREAT WESTERN RECLAMATION, INC.- A-2002-082 A-2002-082 THIRD AMENDMENT TO AGREEMENT FOR COLLECTION AND HANDLING OF SOLID WASTE GENERATED AND OR ACCUMULATED IN THE CITY OF SANTA ANA tr �. THIS THIRD AMENDMENT, made and entered into this 7 day of Time, 2002, by and between USA Waste of California, Inc, formally Great Western Reclamation, a division of Waste Management Collection and Recycling, Inc ("Contractor") and the City of Santa Ana, a charter city and municipal corporation duly organized and existing under the Constitution and laws of the State of California ("City"), collectively re rred to herein as "the Parties". RECITALS. en W 1. The Legislature of the State of California, by enactment of the California Integrated Waste J W! , Management Act of 1989, Division 30 of the California Public Resources Code, o g commencing with Section 40000 ("CIWMA"), declares that it is within the public interest to ®EL v authorize and require local agencies to make adequate provisions for Solid Waste handling z g z I w within their jurisdictions. WSJ Y g c fico4 vat 2. In the opinion of the City Council of the City of Santa Ana, the public health, safety and well being require that the collection, transportation, and recycling, diversion by means of composting, mulching and/or transforming, and disposal of Solid Waste, including, but not limited to, the frequency and means of such collection, transportation and recycling, yard waste diversion or disposal, and the charges and fees therefore, be provided by contract to a qualified contractor. 3. On June 30, 1993, CITY and CONTRACTOR entered into an agreement for such Solid Waste collection and handling (the "Original Agreement"). 4. On June 19, 1997, CITY and CONTRACTOR entered into a Second Amended and Restated Agreement(hereinafter referred to as "Second Amended Agreement"). 5. Since execution of the Second Amended Agreement the CITY and CONTRACTOR have met to develop alternatives for improving the cleanliness of the City. 6. The City experiences a substantial increase in debris/garbage and litter on parkways and alleys on days following garage sales as well as the first day of each month when move-outs generally occur. 7. CITY and CONTRACTOR have jointly concurred that it would be in the best health and safety interests of the CITY and the residents therein that the Second Amended Agreement be revised to provide for additional solid waste collection,recycling and disposal to remove excess trash and debris after garage sales and after the first day of each month when move- outs generally occur. 8. In order to remove additional garbage and debris introduced into the parkways and alleys, CONTRACTOR will be required to expend additional resources. 9. The CITY expends substantial amounts of money and resources in order manage the 1 collection of Solid Waste within the City. Currently, the Second Amended Agreement provides for an administrative fee that the City may recover from CONTRACTOR to pay for the City's cost to administer the Solid Waste Collection program. 10. CITY and CONTRACTOR have jointly concurred that the City's administrative costs to manage the Solid Waste Collection program have risen. Currently, there are no provisions in the Second Amended Agreement that allow the City to increase its administrative fee. 11. CITY and CONTRACTOR have jointly concurred that it would be in the best health and safety interests of the CITY and the residents therein that the Second Amended Agreement be revised to provide for a mechanism whereby the CITY may increase its administrative fee to follow the CPI. WHEREFORE, in consideration of the mutual and respective covenants and promises hereinafter contained and made, and subject to all of the terms and conditions of said Agreement as hereby amended, the parties hereto do hereby agree as follows: 1. Section 7, the "FREQUENCY OF COLLECTIONS"" term of said SECOND AMENDED AGREEMENT is hereby amended to include: "CONTRACTOR shall provide additional collection services as set forth in Exhibit G and incorporated herein by reference." 2. Section 14, the "COLLECTION, RECYCLING, YARD WASTE DIVERSION AND DISPOSAL REQUIREMENTS" term of said SECOND AMENDED AGREEMENT is hereby amended as follows: (e) PARKWAY CLEAN-IIP FOTT,OWING GARAGE SATES: CONTRACTOR shall in addition to the aforementioned services, provide 2 employees in a front-loader vehicle that will devote 60 hours each six working days following the quarterly garage sales to canvass Santa Ana neighborhoods in order to identify and remove debris left in the parkways after garage sales. (f) AT J FY CT PAN-T TP FOT J OWING THE l st OF EACH MONTH: CONTRACTOR shall in addition to the aforementioned services, provide 2 employees in a front-loader vehicle that will devote 60 hours each six working days following the 1st day of each month to canvass Santa Ana neighborhoods identified in Exhibit G attached hereto and incorporated herein by reference in order to remove debris left in alleyways following tenants relocating. (g) DTSPOSAT; CONTRACTOR shall be required to dispose of any and all Solid Waste which is not recycled or diverted by means of composting,mulching and/or transforming pursuant to the terms of this Agreement, at a legally authorized Disposal Site(s) as designated by the CITY. If CONTRACTOR is directed to dispose of said Solid Waste at a location other than the County of Orange's Disposal Sites, both parties agree to meet and confer regarding any potential rate adjustments which may be necessitated thereby. Should Disposal Sites become unavailable in Orange County at any time during the term of this Agreement, CONTRACTOR hereby guarantees disposal at its Los Angeles County landfill. Additionally, CONTRACTOR hereby agrees and guarantees to the CITY that the CITY will be indemnified for CERCLA liability for any Solid Waste collected by the CONTRACTOR in the CITY which is delivered to CONTRACTOR'S landfill. (h) CONTRACTOR will act as the contracting body and lead agency with the MRF and 2 Composting Facility with respect to this Agreement and shall be responsible for, and insure that, both facilities act so as to meet the requirements of both this Agreement and CIWMA. (i) CONTRACTOR hereby agrees and guarantees to the CITY that CONTRACTOR will do each, every and all things required to ensure that all Solid Waste generated, produced or accumulated in the CITY which is collected by CONTRACTOR will at all times be in full compliance with all of the provisions of the CITY'S SRRE, CIWMA, and amendments thereto adopted hereafter, and will protect, indemnify, pay, save, defend, and hold the CITY harmless from any and all loss, expense, damage, fines, penalties and liability of every kind and nature whatsoever by virtue of any non-compliance with such CITY and statutory requirements, provided, however, that CONTRACTOR shall not be responsible to the extent Solid Waste is generated in the CITY and collected or disposed, or both, by other than CONTRACTOR. Further, CONTRACTOR agrees to protect, defend, with counsel approved by the CITY, and indemnify CITY against any and all fines and/or penalties imposed by the California Integrated Waste Management Board in the event that the diversion quantities delete spaces contained in the CITY'S SRRE, or any other requirement of CIWMA, are not met. 3. Section 22, the "CURBSIDE SERVICE PAYMENT" shall be increased by $.04 per month for parkway clean-up. 4. Section 23, the "RESIDENTIAL BIN SERVICE RATES" term of said SECOND AMENDED AGREEMENT is hereby amended to include: (c ) Rates for residential bin service rates to pay for alley clean-up shall be increased by the amounts provided for in shown on Exhibit D and shall be considered hauling and processing charges. Such rates shall include a one (1%) percent charge based on Gross Receipts which shall be paid to the CITY by CONTRACTOR on a monthly basis and which shall be due and payable on or before the last calendar day of each month for the previous month. Said charge shall be used to offset a rate reduction approved by the CITY for senior citizen and mobile home park Curbside Service Units. CONTRACTOR shall make records containing Residential Bin Service available to the Executive Director at any reasonable time. 5. Section 24, the "COMMERCIAL/INDUSTRIAL BIN SERVICE RATES" term of said SECOND AMENDED AGREEMENT is hereby amended to include: (c ) Rates for commercial/industrial bin service rates to pay for alley clean-up shall be increased by the amounts provided for in Exhibit D and shall be considered hauling and processing charges. Such rates shall include a one (1%) percent charge based on Gross Receipts which shall be paid to the CITY by CONTRACTOR on a monthly basis and which shall be due and payable on or before the last calendar day of each month for the previous month. Said charge shall be used to offset a rate reduction approved by the CITY for senior citizen and mobile home park Curbside Service Units, CONTRACTOR shall make records containing Residential Bin Service available to the Executive Director at any reasonable time. 6. Section 27, the "ADJUSTMENTS TO CHARGES' term of said SECOND AMENDED AGREEMENT is hereby amended to include: (d) ADMINISTRATIVE COST: The ADMINIS IRATIVE COST for curbside service shall be adjusted annually, if at all, beginning on July 1, 2003. The Administrative Cost shall 3 be adjusted using the CPI set forth in subsection (a)(1) above; provided, however, that adjustments shall be calculated at one hundred(100%) percent of the CPI. 7. Except as hereinabove modified, the terms and conditions of Second Amended Agreement remain unchanged and in full force and effect. IN WITNESS WHEREOF,the parties hereto have executed this Amendment to said Agreement the date and year first above written. ATTEST: CITY OT SANTA A / / -/:--1 \J ; r: v. PATRICIA E. HEALY DAVID N. REAM Clerk of the Council City Manager APPROVED AS TO FORM: JOSEPH W. FLETCHER City Attorney .. By Mi. V,;•k.73/K-- Michael Vigliottaa Deputy City Attorney �� CO TR _ / RA OR C R --1.1 r.. COMME i 1 ED FOR APPROVAL: � tas_ '`l1 E(,/, i- - 0 -; ae2 1 5 zi mployer ID #or Individual SS JA' ES G. •ISS fr., Executive D. ector Public Works Agency 4 EXHIBIT "D" Increased Costs for Alley Clean-up The increased costs for Alley clean-up effective July 1, 2002 are as follows: COMMERCIAL BIN RATES Increase with Monthly Alley Surcharge and Clean-up Senior/Mobile Increase Discount 1 YARD BIN X 1 /WEEK 0.09 0.10 1 YARD BIN X 2/WEEK 0.17 0.19 1 YARD BIN X 3 /WEEK 0.26 0.29 1 YARD BIN X 4/WEEK 0.35 0.39 1 YARD BIN X 5 /WEEK 0.43 0.48 1 YARD BIN X 6/WEEK 0.52 0.58 2 YARD BIN X 1 /WEEK 0.17 0.19 2 YARD BIN X 2/WEEK 0.35 0.39 2 YARD BIN X 3 /WEEK 0.52 0.58 2 YARD BIN X 4/WEEK 0.69 0.77 2 YARD BIN X 5 /WEEK 0.87 0.97 2 YARD BIN X 6/WEEK 1.04 1.16 3 YARD BIN X 1 /WEEK 0.26 0.29 3 YARD BIN X 2/WEEK 0.52 0.58 3 YARD BIN X 3 /WEEK 0.78 0.87 3 YARD BIN X 4/WEEK 1.04 1.16 3 YARD BIN X 5 /WEEK 1.30 1.44 3 YARD BIN X 6/WEEK 1.56 1.73 4 YARD BIN X 1 /WEEK 0.35 0.39 4 YARD BIN X 2/WEEK 0.69 0.77 4 YARD BIN X 3 /WEEK 1.04 1.16 4 YARD BIN X 4/WEEK 1.39 1.54 4 YARD BIN X 5 /WEEK 1.73 1.92 4 YARD BIN X 6 /WEEK 2.08 2.31 5 RESIDENTIAL BIN RATES Monthly Increase with Alley Clean- Surcharge and up Senior/Mobile Increase Discount 1 YARD BIN X 1 /WEEK 0.09 0.10 1 YARD BIN X 2/WEEK 0.17 0.19 1 YARD BIN X 3 /WEEK 0.26 0.29 1 YARD BIN X 4/WEEK 0.35 0.39 1 YARD BIN X 5 WEEK 0.43 0.48 1 YARD BIN X 6/WEEK 0.52 0.58 2 YARD BIN X 1 /WEEK 0.17 0.19 2 YARD BIN X 2/WEEK 0.35 0.39 2 YARD BIN X 3 /WEEK 0.52 0.58 2 YARD BIN X 4/WEEK 0.69 0.77 2 YARD BIN X 5 /WEEK 0.87 0.97 2 YARD BIN X 6/WEEK 1.04 1.16 3 YARD BIN X 1 /WEEK 0.26 0.29 3 YARD BIN X 2/WEEK 0.52 0.58 3 YARD BIN X 3 /WEEK 0.78 0.87 3 YARD BIN X 4/WEEK 1.04 1.16 3 YARD BIN X 5 /WEEK 1.30 1.44 3 YARD BIN X 6/WEEK 1.56 1.73 4 YARD BIN X 1 /WEEK 0.35 0.39 4 YARD BIN X 2/WEEK 0.69 0.77 4 YARD BIN X 3 /WEEK 1.04 1.16 4 YARD BIN X 4/WEEK 1.39 1.54 4 YARD BIN X 5 /WEEK 1.73 1.92 4 YARD BIN X 6/WEEK 2.08 2.31 6 BUSINESS CALENDAR RESOLUTION 55.A. SANTA ANA PUBLIC LIBRARY MEMBERSHIP TO THE LIBRARY OF CALIFORNIA ARROYO SECO LIBRARY NETWORK Motion: Adopt resolution. RESOLUTION NO. 2002-044 - A resolution of the city council of the City of Santa Ana authorizing the Santa Ana public library to join the library of California Arroyo Seco Library Network - Library Services MOTION: Alvarez SECOND: Bist VOTE: AYES: Alvarez, Bist, Christy, McGuigan, Solorio (5) NOES: None (0) ABSENT: Franklin, Pulido (2) 55.B. ACTIONS MODIFYING REFUSE ADMINISTRATIVE FEES Motion: 1. Adopt resolution. RESOLUTION NO. 2002-045 - A resolution of the City Council of the City of Santa Ana increasing the amount of the solid waste program surcharge established pursuant to Section 10 of the second amended and restated agreement for the collection of solid waste generated and/or accumulated in the City of Santa Ana - Public Works Agency 2. Direct the City Attorne to prepare and authorize the City Manager and Clgritsao ' Cuncil to xecute agreement. GMT NO. 2002-082 - Ex cute an amendment to the agreement with aste Managementific establishing a method for adjusting the City's a ministrati a fee for curbside service - Public Works Agency MOTION: Bist SECOND: Alvarez VOTE: AYES: Alvarez, Bist, Christy, McGuigan, Solorio (5) NOES: None (0) ABSENT: Franklin, Pulido (2) CITY COUNCIL MINUTES 186 MAY 20, 2002 CONSENT CALENDAR Motion: Direct the City Attorney to prepare and authorize the City Manager and Clerk of the Council to execute agreement. AGMT NO. 2002-080 - Execute an amendment to the agreement with Waste Management, Inc. in the amount of $76,800.00 to provide alley and parkway clean-up - Public Works Agency 25.P. MINNIE STREET FAMILY RESOURCE CENTER Motion: 1. Direct the City Attorney to prepare and authorize the City Manager and Clerk of the Council to execute agreement. AGMT NO. 2002-081 - Execute an agreement with the Orange County Social Services Agency and service partners, including Child Guidance Center, Human Options, Cambodian Family and the Santa Ana Unified School District to provide additional funding and services for the Minnie Street Family Resource Center for the period of July 1, 2002 through September 30, 2003 2. Approve appropriation adjustment. (Requires five affirmative votes.) APPROPRIATION ADJUSTMENT NO. 02-225 - Recognize $427,000.00 of Orange County Social Services Agency funds in the Minnie Street Family Resource Center revenue account and appropriate funds in the Minnie Street Family Resource Center expenditure account - Parks, Recreation, and Community Services Agency MISCELLANEOUS BUDGET 29.A. LEAGUE OF CALIFORNIA CITIES ORANGE COUNTY DIVISION ANNUAL DUES Motion: Authorize the City of Santa Ana% membership with the League of California Cities Orange County Division in the amount of $40,148.00 - City Manager's Office *** END OF CONSENT CALENDAR *** CITY COUNCIL MINUTES 185 MAY 20, 2002 REQUEST FOR COUNCIL ACTION Ed„cauo" 's° CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: MAY 20, 2002 TITLE: APPROVED ❑ As Recommended ACTIONS MODIFYING REFUSE ❑ As Amended s ❑ Ordinance on 1 Reading ADMINISTRATIVE FEES 0 Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO v.Gc_—� FILE NUMBER A-2002-082 CITY M AGER e) r oD<- 0V RECOMMENDED ACTION 1 . Adopt a resolution modifying the City' s refuse program surcharge on business and apartment service. 2 . Direct the City Attorney to prepare and authorize the Clerk of the Council and the City Manager to execute an amendment to the agreement with Waste Management Inc. establishing a method for adjusting the City' s administrative fee for curbside service. DISCUSSION Pursuant to the agreement with Waste Management, the City currently receives seven and one-half percent of the business and apartment refuse charges to pay for the costs of administering the refuse collection and recycling enterprise . That percent (referred to as the refuse program surcharge) has remained at the same level since 1997 . Any change in the surcharge must be established by Council resolution. At this time, it is recommended that the surcharge be increased to nine percent to support increased costs of the enterprise. Other cities charge similar fees that range up to 19 . 4 percent . Due to decreases in other components of the business and apartment rates, there will be no increase in the total rates charged to the customers . The agreement with Waste Management also establishes the rate for curbside service and a methodology for adjusting the disposal, hauling and processing components of that rate. A method for adjusting the administrative component was inadvertently omitted from the agreement. As a result, the City' s administrative fee has remained the same for the past 12 years . The proposed amendment to the agreement will restructure the method of calculating the fees to accommodate future increases in this administrative component based on the consumer price index. The new Page 197 55 • B • Actions Modifying Refuse Administrative Fees May 20 , 2002 Page 2 method of calculation will be implemented during the 2003-2004 fiscal year; the proposed action will not create an increase in rates during either the current or 2002-2003 fiscal year. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT The increased program surcharge on business and apartment service will generate approximately $250, 000 for fiscal year 2002-03 and will be deposited into the refuse collection fund (account no. 69-01-5112) . Given the method by which the fee is structured, there will be no direct impact to the rate payers in fiscal year 2002-2003 as result of this action. APPROVED AS TO FUNDS AND ACCOUNTS : I r /e4 Jai -s G. Ros Rod R. Coloma 9 E ecutive Director Executive Director •ublic Works Agency Finance & Mgmt . Services Agency 55. B • Page 198 MV 05-14-02 RESOLUTION NO. 2002-045 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA INCREASING THE AMOUNT OF THE SOLID WASTE PROGRAM SURCHARGE ESTABLISHED PURSUANT TO SECTION 10 OF THE SECOND AMENDED AND RESTATED AGREEMENT FOR THE COLLECTION OF SOLID WASTE GENERATED AND/OR ACCUMULATED IN THE CITY OF SANTA ANA BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds,determines and declares as follows: A. The City of Santa Ana is currently engaged in a contract with Waste Management Collection and Recycling Inc.(Contractor) whereby Contractor is the exclusive provider of the collection, transportation disposal of solid waste within the corporate limits of the City of Santa Ana. B. Pursuant to the exclusive contract, Contractor pays to the City of Santa Ana a solid Waste Program Surcharge based upon the gross receipts received by contractor. C. The program surcharge revenue is used to pay for the cost to administer the refuse and recycling program. D. Administrative costs include but are not limited to salaries of staff and fixed costs. The estimated costs of the program are set forth in Refuse Collection Resource Sheet Exhibit A located in the Public Works Agency and is incorporated herein by this reference as though fully set forth. The fee established by this resolution is estimated to collect $1.5 million per year. E. The amount of the program surcharge is currently set at seven and one half (71/2%) percent of gross receipts of Contractor for business and apartment service. F. The surcharge percentage has remained the same since 1997. G. The cost to provide administration of refuse and recycling program has increased above the cost currently collected pursuant to the program surcharge. Resolution No. 2002-045 Page 1 of 3 H. The money collected by the refuse program surcharge has been conservatively set; the fee will not pay for all the costs of the. The increase in the refuse program surcharge established by this resolution is estimated to collect $250,000.00 per year. I. The increase in the program surcharge will not increase the total rates charged to the customers. J. The City Council incorporates herein, as though fully set forth, the Request For Council Action accompanying this resolution, and all background information and studies presented to the City Council. Section 2. The City Council hereby increases the following refuse program surcharge on business and apartment services. A. The refuse service surcharge increasing the amount of the solid waste program surcharge established pursuant to section 10 of the second amended and restated agreement for the collection of solid waste generated and/or accumulated in the City of Santa Ana is hereby increased from seven and one half (71/2%) to nine (9%) percent. B. The Contractor shall commence collecting this refuse program surcharge effective July 1, 2002. Section 3. That without further action of the City Council this increase in program surcharge shall be incorporated into the City's Miscellaneous Fee Schedule. Section 4. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this 20th day of May, 2002. St-Miguel A. Pulido \ Mayor APPROVED AS TO FORM: Joseph W. Fletcher, City Attorney • By: U lyijk---, Michael Vigliotta Deputy City Attorney Resolution No. 2002-045 Page 2 of 3 AYES: Councilmembers: Alvarez, Bist, Christy, McGuigan, Solorio (5) NOES: Councilmembers: None (0) ABSTAIN: Councilmembers: None (0) NOT PRESENT: Councilmembers: Franklin, Pulido (2) CERTIFICATE OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2002-045 to be the original resolution adopted by the City Council of the City of Santa Ana on May 20, 2002. Date: , � ClerIof the Council City of Santa Ana Resolution No. 2002-045 Page 3 of 3