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CC - Item 5A - Consideration of 3rd Amendment to CDS Contract• TO: HONORABLE MAYOR AND MEMBERS ROSEMEAD CITY COUNCIL, FROM: L CROWE, CITY MANAGE DATE: OCTOBER 4, 2005 • RE: CONSIDERATION OF THIRD AMENDMENT TO CONSOLIDATED DISPOSAL SERVICES (CDS) CONTRACT TO INCLUDE AUTOMATED RECYCLING AND YEAR ROUND BULKY ITEM PICKUP In order to assist the City in meeting the 50% diversion goal set by AB 939, and to improve community appearance through more frequent bulky item pickups, staff is recommending the attached third amendment to the contract that will increase the monthly residential charge from $12.44 to $15.24. The rate would be effective the first of the month after all the new services commence. Staff, the city attorney and our solid waste consultant met with CDS representatives to develop the amendment. We are recommending changing the current manual recycling program to an automated system using a 64 gallon blue bin. It would also include changing the quarterly bulky item pickups to an all year round pickup on the regularly scheduled trash pickup day. Each household would have four (4) pickups per year with five (5) items per pickup. Electronic waste (E-Waste) would be included as part of the bulky item pickup. The cost of picking up the "abandoned bulky items" would be covered by CDS. "Abandoned" bulky items would be collected by CDS within 24 hours of reporting by residents or staff. CDS has requested the deletion of its requirement to share 25% of net revenue from the sale of recyclables with community non-profit groups. The proposed $15.24 monthly rate already includes this deletion. Continuance of the program to share the net revenue would add .14 cents to the $15.24 monthly rate, increasing it to $15.38 per month. COUN~!~. ACE`ADO% 0 C T 112005 FM M No. =.A - • • Although the Council has the option of including automated green waste, CDS will offer a discount to the City if the Council chooses to automate both green waste and recycling for an additional monthly charge of $.31 bringing the total cost to the resident to $15.55. Attached are copies of the CDS letter summarizing their proposal and the CDS contract with the proposed Third Amendment. RECOMMENDATION It is recommended that the City Council approve the third amendment which includes an automated recycling program and a year round bulky item and a-waste collection and deletes the requirement that CDS share recycling revenue with the City. A public hearing will be scheduled in the future to confirm the rates approved as part of the Third Amendment. • CONSOLIDATED DISPOSAL. SERVICE A st:bsldlary of tT PEPUBLIC BEAYICES, INC. October 5, 2005 Mr. Bill Crowc City Manager City of Rosemead 8838 Valley Blvd. Rosemead, CA 91770 Dear Mr. Crowe: 2405 E. 98th street Long Beech, CA 90805 Faoelmlle (M) 581.4710 In response to the City's interest in automating its curb-side recycling program from a 18 gallon manual recycling tub to a 64 gallon fully automated container and improve its Bulky Item Program Consolidated Disposal is pleased to present to the City Council the following proposal. S' le Famil Residential Rate ~As of Au 1 2005 44 1-64 Gallon Blue ReMlinp- Container per resident 2.23 Bulky Item Collected on collection day 4 times per year 5 items per pick up with E-Waste collected on collection day and Abandoned Bulky Items picked up within 24 hours 5 Total Monthly cost to resident $15.24 Mr. Crowe, with your permission, Consolidated will be prepared to make a presentation to the City Council and staff at the Study Session on October 11, 2005. We will cover your current curbside program, the proposed program listed and other programs that might be of interest to the City. We look forward to answering any questions you or the Council may have when we meet. Very Tru1 Yours, Richard Fierro Director of Community Affairs lI $ KNT60 ON A&CYCLEO.APER J C~ THIRD AMENDMENT TO EXCLUSIVE REFUSE COLLECTION AND RECYCLING FRANCHISE AGREEMENT This Agreement made and entered into this 11 th day of October, 2005 by and between the CITY OF ROSEMEAD, a municipal corporation, hereinafter referred to as "City" and CONSOLIDATED DISPOSAL SERVICE, a subsidiary of REPUBLIC SERVICES, INC., hereinafter referred to as "Contractor" hereby amends that certain agreement made and entered into effective August 1, 1991 and amended effective January 11, 1994 and June 25, 1996 between the parties, hereinafter referred to as "Agreement". NOW THEREFORE, the City and the Contractor agree as follows: 1. Paragraph 2 of Section T - RECYCLING is hereby amended to read as follows: RESIDENTIAL CUSTOMERS' RESPONSIBILITIES. A. Contractor shall deliver, at no additional cost to City or customers, to all residential dwellings on regular curb (i.e. all residences not on bin service) and to all residential dwellings on backyard (handicapped) service two (2) plastic containers for the collection and placement for removal of recyclable materials (newspapers, glass, cans, P.E.T. plastic beverage containers and green waste as follows: 1 minimum 64-gallon container for commingled recyclable materials (glass, aluminum cans, plastic beverage containers and newspaper) 1 minimum 32-gallon container for green waste (already in use) B. Residents shall place their recyclables and green waste, in the collection containers, at curbside (or backyard for qualified handicapped residents) on their regular scheduled day for trash collection. 2. The following Paragraph 3 of Section T- REVENUE FROM SALES OF RECYCLABLE MATERIALS is hereby amended to read as follows: • 0 3. REVENUE FROM SALES OF RECYCLABLE MATERIALS. Contractor shall maintain records of the amounts of materials collected and sold and the revenue received for same. Contractor, in partial consideration for the series rendered hereunder, shall be entitled to retain 100% of the revenue from the sale of recyclable materials. 3. The final paragraph of Section Z, currently providing: "THESE RATES INCLUDE FOUR (4) CITY-WIDE PICK-UP DAYS FOR LARGE BULKY ITEMS, SUCH AS APPLIANCES AND FURNITURE, WHICH SHALL BE PICKED-UP AND DISPOSED OF PM THE DESIGNATED DAYS, WITHOUT ADDITIONAL CHARGE TO THE CUSTOMER OR CITY." is hereby deleted. 4. A new section CC is hereby added to the Agreement to read as follows: CC. BULKY ITEM PICKUP 1. Definitions. Bulky Items shall mean discarded household furniture, furnishings or appliances, including white goods; carpets; mattresses; large branches; limbs of trees in bundles not exceeding eighteen (18) inches in diameter or four (4) feet in length and other items the size and weight of which precludes or complicates their handling by normal collection, processing or disposal methods and which can be loaded onto a collection vehicle by not more than two (2) persons. E-Waste shall mean certain electronic waste defined in California state law and regulated by the California Integrated Waste Management Board as non-hazardous and unavailable to municipal landfills. 2. Effective on January 1, 2006, Contractor shall implement the following Bulky Item collection program: On an as-needed, on-call basis, the Contractor will respond to up to four (4) requests per year from single-family units on residential service for collection of Bulky Items on the regular collection day each week at no extra charge. The number of collections for residential properties on commercial collection service shall be determined on a case by case basis as agreed to by 0 the Contractor and City Manager. Each bulky item collection will be limited to a maximum of five (5) bulky and or e-waste items. The customer must call Contractor at least twenty-four (24) hours in advance prior to the regular collection day to schedule a bulky item pickup. Within 24 hours of notification to the Contractor, the Contractor shall also pick up and dispose of bulky items that are placed curbside or abandoned in the public right of way 5. Rates. Subject to confirmation at a public hearing, the rates specified in Exhibit A shall take effect on the first day of the month following the Contractor's implementation of the bulky item pick up plan and delivery of the new, automated recycling containers. 6. Except as provided for in this Third Amendment, the provisions of the Exclusive Franchise Agreement, as amended, shall remain in full force and effect. IN WITNESS WHEREOF, the City by order of its City Council and the Contractor by order of its Board of Directors, have caused this Third Amendment to Agreement to be executed on October It, 2005. CITY OF ROSEMEAD ATTEST: City Clerk By: Jay T. Imperial, Mayor CONSOLIDATED DISPOSAL SERVICE, a subsidiary of REPUBLIC SERVICES, INC. By: • EXHIBIT A City of Rosemead (Proposed) Rates 2005 - 2006 Residential Rates: u Category Current Rate New Rate Single Family Dwelling - Residential Curbside (one 100 Gal Cart) $ 12.44 $ 15.24 Multiple Family Dwelling-Detached Units On A Single Lot: First Unit $ 12.44 $ 15.24 Each Additional Unit $ 10.05 $ 11.90 Multiple Family Units - Attached Units ( Apartments and Condos) And Mobilhome Parks: First Unit $ 12.44 $ 15.24 Each Additional Unit $ 8.18 $ 9.69 Special Qualified Senior Citizen Hardship Rate / For Residential Curbside Service $ 8.28 $ 9.80 Special Qualified Handicapped Citizen / Backyard Collection Rates For Single Family Residences: $ 12.44 $ 15.24 Additional 100 Gallon Cart $ 2.14 $ 2.14 Special One-Time Pick-Up Cost For Pick-Up And Disposal Of Appliances, Furniture And Bulk Items $ 15.89 $ 15.89 Residential - Special One-Time Drop-Off And Collection of A 3-Cubic Yard Bin Pick U / Delivery Charge $ 54.98 $ 54.98 Each Dump $ 22.18 $ 22.18 Total $ 77.16 $ 77.16 Residential - Special One-Time Drop-Off And Collection of A 10 to 40 Cubic Yard "Roll-Off' Container $ 430.19 $ 430.19 Overweight 7 Ton Limit $ 52.66 $ 52.66 Dail Rental After Seven Days Without A Dump $ 15.00 $ 15.00 Dead Run $ 75.00 $ 75.00 Commercial Rates 3 Cubic Yard Bins CURRENT RATE Without Forklift Forklift 1 Da P/U 100.27 110.29 2 Da P/U 152.20 167.38 3 Da P/U 206.48 227.11 4 Da P/U 261.16 287.26 5 Da P/U 322.65 354.92 6 Da P/U 369.59 406.58 1 1/2 Cubic Yard Bins CURRENT RATE Without Forklift Forklift 1 Da P/U 68.39 74.22 NEW RATE Without Forklift Forklift 1 Da P/U 100.27 110.29 2 Da P/U 152.20 167.38 3 Da P/U 206.48 227.11 4 Da P/U 261.16 287.26 5 Da P/U 322.65 354.92 6 Da P/U 369.59 406.58 NEW RATE Without Forklift Forklift 1 Da P/U 6839 74.22 0 • Category Current Rate New Rate Commercial - One-Time Drop-Off And Collection Of A 3-Cubic Yard Bin Pick U / Delivery Charge $ 67.30 $ 67.30 Each Dump $ 35.13 $ 35.13 Total $ 102.43 $ 102.43 Commercial - Special One-Time Drop-Off And Collection of A 10 to 40 Cubic Yard "Roll-Oft' Container $ 392.35 $ 392.35 Overweight 7 Ton Limit $ 50.12 $ 50.12 Dail Rental After Seven Da Without A Dump $ 15.00 $ 15.00 Dead Run $ 75.00 $ 75.00 Commercial - Special One-Time Drop-Off And Collection Of A 30 Cubic Yard Compactor Container $ 519.72 $ 519.72 Overweight 9 Ton Limit $ 50.12 $ 50.12 Dail Rental After Seven Days Without A Dump $ 15.00 $ 15.00 Dead Run $ 75.00 $ 75.00 Commercial - Special Barrel Service for Qualified Commercial, Limited Use Customers. Max 2-35 gallon cans 1 time per week $ 68.27 $ 68.27 Rate Change Calculation Landfill Dump Fees Old Weight Effective Rate Puente Landfill $ 20.88 0.0% - South Gate Trans $ 32.98 77.6% 25.58 Commerce $ 39.00 22.4% 8.75 PH Greenwaste $ 11.00 0.0% - 100% 34.33 New Weight* Effective Rate Puente Landfill $ 22.65 0.0% - South Gate Trans $ 34.77 55.0% 19.11 Commerce $ 42.00 45.0% 18.92 PH Greenwaste $ 12.10 0.0% - 100% 38.03 ` Per YTD 2005 Tonnage Adjusted for Commerce Burner activity %change Jun-04 May-05 CPI 200.7 200.7 0.0% Total 0.0% Residential Old New %change Change in Effective Rate 31.43 $ 31.43 0.0% 0 0 Residential Rate Weighted CPI Adjustment Value Increase Percentage Increase to cover a-waste change 0.0% Increase to cover automation of Recyc program 18.4% Consumer Price Index 0.7 X 0.0% = 0.0% Disposal Tipping Fee 0.3 X 0.0% = 0.0% Increase in Resident ial Rates 18.4% Commercial Old New %change Change in Effective Rate 36.40 36.40 0.0% Commercial Rate Weighted CPI Adjustment Value Increase Percentage Consumer Price Index 0 X 0.0% = 0.0% Disposal Tipping Fee 0.3 X 0.0% = 0.0% Increase in Commercial Rates 0.0% = Rate proposed requires cancellation of 25% recycling rebate to City of Rosemead (or beneficiary).