CC - Item 2D - 3rd Amendment CDS Contract Automated Recycling0
TO: HONORABLE MAYOR
AND MEMBERS
ROSEMEAD CITY COUNCIL
FROM: BILL CROWE, CITY MANAC
DATE: NOVEMBER 22, 2005
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RE: PUBLIC HEARING: CONSIDERATION OF THIRD AMENDMENT
TO CONSOLIDATED DISPOSAL SERVICES (CDS) CONTRACT
TO INCLUDE AUTOMATED RECYCLING AND YEAR ROUND
BULKY ITEM PICKUP
At the October 11" Council Study Session, Consolidated Disposal Services (CDS)
presented two proposals that would help the community do a better job in keeping the
city clean and assist the city in meeting the AB 939 diversion goals. The first proposal
would change the quarterly pickups to year round bulky item pickups and automate the
recycling program. The bulky item pickups would have been limited to four times a year
with five items per pickup. This proposal would increase the current household rate from
$12.44 to $15.24. It would also include the deletion of the requirement that CDS share
25% of net revenue from the sale of recyclables with the city. Staff recommended this
proposal.
As an alternative, CDS made a power point (slide) presentation which stated that for an
additional 30 cents they would automate the green waste. This option would require that
in the event the city changes trash contractors, CDS would be allowed to call for a
"buyout" of the new blue and green container carts supplied by CDS. The household rate
under this proposal would total $15.54 per month.
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NOV 2 2 2005
• i
Although staffs recommendation at the October 1 Ph meeting was to select the $15.24
monthly rate option, several members of the Council discussed the automated green
waste option and its impact on the AB 939 diversion goals. In response, staff met with
CDS representatives and the city's solid waste consultant and developed three options for
the City Council to consider.
OPTION 1: Amends the contract to include automated recycling using a 64 gallon blue
container, manual green waste using existing 32 gallon containers and year round bulky
item pickups on the regular scheduled trash day with a limit of 25 items per year. It
would also include pickup of E -waste and tires. The new household rate would be
$15.24 per month. An additional recycling container will be provided at no cost.
OPTION 2: hnplements a fully automated trash pickup program to include:
maintaining the existing 96 gallon black container, a 64 gallon recycling container, a 64
gallon green waste container, and year round bulky item pickup on trash day for a
maximum of 25 items per year. It would include pickup of abandoned bulky items, and
E -Waste and tires. In the event the city changes refuse haulers, CDS would receive a
"buyout" of the cost of the blue and green containers. The household rate under this
proposal would be $15.54 per month. Additional recycling or green waste containers
would cost each household an additional $1.00 per month.
OPTION 3: This proposal is identical to Option 2 with the exception that it does not
include the "buyout" of the blue and green containers. The monthly household rate under
this proposal would increase by $1.69 to $16.93. Additional recycling and green waste
containers would be provided at no additional cost.
All options include the deletion of the requirement to share 25% of net revenue from the
sale of recyclables with the city.
Attached is the letter dated October 25, 2005 from Consolidated Disposal, the third
amendment and a copy of the CDS power point presentation from the October l la'
meeting. Depending on the option selected, the year round bulky item would commence
January 1, 2006 and the automated recycling and/or green waste programs would
commence May 1, 2006.
RECOMMENDATION
After receiving public comment and closing the public hearing it is recommended that the
Rosemead City Council approve the third amendment which includes the programs and
rates in Option 1.
0
C<6NSOLIDATED DISPOSAL SERVICE
A Subsidiary of t- REPUBLIC SERVICES, INC.
October 25, 2005
Jay Imperial
Mayor City of Rosemead
8838 Valley Blvd.
Rosemead. CA 91770
Dear Mayor Imperial:
i
12949 Telegraph Road
Santa Fe Spnngs, CA 90670
Telephone (562( 663 -3400
Facsimile (562) 906 -0251
Thank you for the opportunity to appear before the City Council on September 27, 2005. The purpose of
this letter is to respond to the Council's questions on the proposal we made that evening to automate the
recycling portion of the residential curbside service.
As you and the Council review the questions and answers, you will note that we also address a broader
range of environment issues currently facing the City. Because State Environment Laws continue to evolve,
placing ever greater responsibilities on all Cities in California. Consolidated feels that it is timely and
appropriate to present a more comprehensive plan to assist the City in meeting the additional obligations it
now has to the State and its citizens.
Ouesrions by Councilmembers.
• Councilman Taylor — What is the cost to Automate Green Waste?
To add Green Waste to the current proposal the cost will be $1.68 per resident bringing the total
monthly cost to $16.36.
(Current Rate - $12.44 + Automated Recycling - $2.23 + Automated Green Waste $1.69 = $16.36)
• Councilman Nunez - Trainin¢ of Customer Service Employees.
Back in November of 2004, we hived a consulting firm to help us develop a World Class Customer
Service Center. A portion of the initiative was to identify specific tasks that through training and
continuous improvement would separate us from the rest of our competition. These are just a few of
the tasks that were reviewed and implemented as part of our extensive C/S training.
People Tasks:
Projects -
The implementation of Competency based hiring and training.
The overhaul of the existing training program to reflect Competencies and Universality.
The implementation of tiered job descriptions with meaningful performance metrics that are directly
tied to the attainment of corporate and center goals.
Process Tasks:
The delivery of effective `World Class' service requires that processes are in place within the center
and that work that crosses between the center and other departments is streamlined. To attain these
goals the following project tasks must be completed;
Quality Assurance -
This task group includes:
The Development of an overall Quality Assurance Program;
Revised coaching process and procedures.
Revised monitoring process and procedures,
An on -going Customer Satisfaction benchmarking process.
Redesigning processes to reflect maximum efficiency and effectiveness. This process is completed in
the implementation of a new telephone system.
Corporate Service Standards
Missed Pick Up Process
Roll Off Process
Customer Satisfaction Process
We continuously monitor our reps for quality and professionalism in handling of our customers,
through our "Voice of the Customer" program and if need be, discipline accordingly.
• All Councilmember's have a problem with Bulky Items. Some don't like the fact that all
residents will be paving for abandoned bulky items picked up. Also, some do not like the
reduction of amount bulky items a resident puts out.
Though we feel that 20 bulky items per resident per year is more than any resident will ever need. We
are prepared to allow an increase in total bulky items picked up per year to 25 per year. Pick - ups will
be available to all residents through out the year on their scheduled pick -up day. Resident must calf to
schedule pick- ups and the limit will be held to 25 per year. Abandoned bulky items will be picked up
as proposed once CDS has been informed by City (Code Enforcement) CDS will pick up all bulky
items with 24 hours. The cost to implement this service will be 5.57 per resident. This cost also
includes pick up of all E -Waste and tires throughout the City of Rosemead. To ensure that we have
the necessary equipment to pick up bulky items and E- Waste, CDS will need to purchase two
additional vehicles.
(Current Rate - $12.44 + Automated Recycling - $2.23 + Automated Green Waste - $1.69 + Bulky
Item — $0.57 X16.93 per month per resident.)
With the above mention program we feel that you will see a cleaner Rosemead with bulky items not
littering your alleys or streets.
In closing, please be aware that it is Consolidated Disposal Service personal commitment to fulfill your
expectations in all respects. Thank you for entrusting us with the responsibility of delivering these
important services. It is a pleasure serving you and the citizens of Rosemead.
Thank you for considering our proposals. Should you or any members of the Council or Staff have any
questions please do not hesitate to call me at (562) 663 -3453.
Respectfully Su
Richard Fierro
Director of Con
Cc: Rosemead City Council
Bill Crowe, City Manager
Bill Stansberry, General Manager
• •
r• 1 . 1 •
EXCLUSIVE REFUSE COLLECTION AND RECYCLING
FRANCHISE AGREEMENT
This Agreement made and entered into this 22nd day of November, 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:
2. 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 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
B. Residents shall place their recyclable 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:
1.
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 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, WITHOUR 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, fumishings 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, tires 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 no more than
twenty-five (25) requests per year from single - family units on residential
service for a total annual collection of no more than twenty-five (25) Bulky
Items on the regular collection day each week at no 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 the Contractor
and City Manager. Each bulky item collection will be limited to a
maximum of five (5) bulky and or a -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 pick -up.
2.
5. Rates.
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 and green waste containers.
6. Except as provided for 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 November 22, 2005.
ATTEST:
City Clerk
3.
CITY OF ROSEMEAD
Jay T. Imperial, Mayor
0
EXHIBIT A
City of Rosemead (Proposed) Rates
2005-2006
Residential Rates:
0
Category
Current
Rate
100.27
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
Each Additional Unit
$
$
12.44
10.05
$
$
15.24
11.90
Multiple Family Units - Attached Units ( Apartments and Condos)
And Mobilhome Parks: First Unit
354.92
6 Da P/U
$
15.24
$ 12.44
Each Additional Unit
$
8.18
$
9.69
Special Qualified Senior Citizen Hardship Rate / For Residential
Curbside Service
$
9.80
$ 8.28
Special Qualified Handicapped Citizen / Backyard Collection Rates
For Single Family Residences:
$
15.24
$ 12.44
Additional 100 Gallon Cart
$
2.14
$
2.14
Special One -Time Pick -Up Cost For Pick -Up And Disposal Of
Appliances, Furniture And Bulky 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 Dum
$
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
Daily 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
NEW RATE
Without
Forklift Forklift
Without
Forklift
I Forklift
1 Da P/U
1 68.391
422
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 Day P/U
322.65
354.92
6 Da P/U
369.59
406.58
NEW RATE
Without
Forklift
Forklift
1 Da y P/U
1 68.39
74.22
9
Category
Current
Rate
New
Rate
Commercial - One -Time Drop-Off And Collection Of A 3 -Cubic Yard Bin
-
South Gate Trans
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 -Off' Container
$
$ 392.35
$ 392.35
Overweight 7 Ton Limit
$ 50.12
$ 50.12
Daily Rental After Seven Day 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
Effective Rate
$ 519.72
$ 519.72
Overweight 9 Ton Limit
$ 50.12
$ 50.12
Daily 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
42.00
$ 68.27
$ 68.27
Landfill Dump Fees
CPI
Rate Change Calculation
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
$
1210
0.0%
-
100%
38.03
Per YTD 2005 Tonnage
" Adjusted for Commerce Burner activity
%change
Jun -04
200.7
May -05
200.7 0.0%
Total 0.0%
Residential Old New %change
Change in Effective Rate 31.43 $ 31.43 0.0%
0
Residential Rate
Weighted CPI
Value Increase
Increase to cover a -waste change
Increase to cover automation of Recyc program
Consumer Price Index 0.7 X 0.0%
Disposal Tipping Fee 0.3 X 0.0%
increase in Residential Rates
Commercial
Change in Effective Rate
Commercial Rate
Consumer Price Index
Disposal Tipping Fee
Old New %change
36.40 36.40 0.0%
Weighted CPI
Value Increase
0 X 0.0%
0.3 X 0.0%
increase in Commercial Rates
9
Adjustment
Percentage
0.0%
18.4%
0.0%
0.0%
18.4%
Adjustment
Percentage
0.0%
0.0%
0.0%
"' = Rate proposed requires cancellation of 25% recycling rebate to City of Rosemead (or beneficiary).
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