CC - Item 8C - Direction on Process for Future Agreement for Solid Waste/Recycling ServicesROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: JEFF ALLRED, CITY MANAGER
DATE: JULY 26, 2011
SUBJECT: DIRECTION ON PROCESS FOR FUTURE AGREEMENT FOR SOLID
WASTE /RECYCLING SERVICES
SUMMARY
The City's current agreement for solid waste /recycling collection services will expire on
August 1, 2013. The scope of work includes providing solid waste and recycling
services for all residential and commercial properties in the City. On May 24, 2011, the
City Council directed staff to confer with Consolidated Disposal Services (CDS)
regarding potential terms to extend the contractual relationship for delivery of these
services. Representatives of the City and CDS have met and conferred in good faith to
identify various terms and conditions for consideration of the City Council.
Staff Recommendation
It is recommended that the City Council provide further direction regarding a future
agreement to provide solid waste /recycling services.
BACKGROUND /DISCUSSION
For many years Rosemead's solid waste /recycling collection services have been
provided by Consolidated Disposal Services, a subsidiary of Republic Services, Inc.
The current agreement with Consolidated Disposal Services (CDS) expires on August
1, 2013. In order to continue the existing service relationship with CDS it would be
necessary to develop a new agreement for solid waste /recycling collection — including
agreement terms (length of time, reporting requirements, franchise fees, and rate
adjustment criteria) and defined service levels (solid waste container sizes /colors,
collection days /times, disposal sites, recycling levels, customer service standards,
insurance levels, equipment requirements).
Council Direction to Confer with Consolidated to Continue the Relationshio
On May 24 the City Council directed staff to confer with CDS regarding the potential
for a continuation of the existing relationship for solid waste /recycling collection
services. Staff and representatives from CDS have met and conferred in good faith to
identify the following terms and conditions in the event that the existing relationship
were to be continued.
APPROVED FOR CITY COUNCIL AGENDA:
City Council Meeting
July 26, 2011
Page 2 of 5
• Term /Franchise Fee:
Proposal One
Agreement will run from August 1, 2013 through July 31, 2020
CDS provide franchise fees as follows:
0 2011:$500,000
0 2012: $500,000
0 2013 -2020: 10% of Annual Gross Receipts (Minimum of $500,000 annually)
Proposal Two
Agreement will run from August 1, 2013 through July 31, 2023
CDS provide franchise fees as follows:
0 2011: $800,000*
0 2012: $800,000*
0 2013 -2020: 10% of Annual Gross Receipts (Minimum of $500,000 annually)
*(For 2011 and 2012 CDS will make one lump sum payment of $1.6 Million in 2011)
Franchise fee will not be added to customer billing statements or passed on to
Rosemead residents /businesses.
Collection Levels CDS will collect refuse materials from each residence in
Rosemead on a weekly basis. Should a collection be missed, CDS must collect
materials by the end of the following day. Commercial /Industrial collection will
continue to be collected as regularly scheduled with customers.
Collection Times CDS will perform collection services between 7:00 A.M. and
6:30 P.M. Monday through Friday. Existing collection schedule shall not be
modified without City approval.
• Additional Collection Services: CDS will provide a bulky item pickup five times
per year for each single family and multi family residence with a limit of five items
per request. CDS shall also provide curbside collection of Christmas trees during
the first two weeks after Christmas Day.
CDS will provide a bulky item collection "rover" with flatbed truck to collect bulk
items 5 days per week. Schedule and route will be directed by the City and take
place during business hours, 6 AM to Noon each business day.
CDS will also enhance its existing trash collection services at bus stops within
the City.
City Council Meeting
July 26, 2011
Page 3 of 5
• Reports: CDS will submit a monthly report to the City, detailing all tonnage
collected in Rosemead for both trash and recyclable materials. CDS will also
provide a bi- annual customer service report to the City.
• City Facilities Collection: CDS will continue to provide collection for City
facilities, special events and cleanup activities at no cost to the City.
.. Disabled /Senior Resident Discount: CDS will continue to provide discounts in
accordance with criteria established by the City.
• Billing: CDS will continue to be responsible for customer billing and will provide
a 30 -day grace period prior to penalties /late fees being assessed. Bills will
continue to be sent on a quarterly basis in advance for 3 months of service
(Example: January invoice will represent service fees for January, February, and
March).
• Audit Requirements: CDS will allow the City to perform an annual audit/review
of accounts and gross receipts of Rosemead accounts by a City- designated
reviewer. All costs will be borne by CDS.
• Recycling Requirement: CDS will meet a recycling requirement of 50% in
compliance with AB 939. Agreement will include a provision that recycling levels
will continue to meet State - mandated recycling levels should they be increased.
• Fully Automated Alternative Fueled Vehicles: CDS will utilize only alternative
fueled fully automated collection vehicles to perform collection services (in
compliance with AQMD Rule 1193), with the exception of bulky item collections
starting August 1, 2013.
• Vehicle Maintenance Records: CDS will submit a quarterly report to the City,
detailing all California Highway Patrol 'BIT' inspection and citation records for
vehicles used in refuse collection services.
• Work Deficiencies: Should defined service levels not be met, the City will notify
CDS in writing. Upon first notification, the City will issue a written warning
notifying CDS of the deficient performance. Should subsequent violations occur,
CDS could be subject to fines of $250 per incidence and $250 per day that the
violation is not corrected. If violations continue to occur, the contract may be
suspended or terminated.
• Annual Consumer Price Index Adjustment: CDS shall be able to apply to the
City for annual rate increases. The existing billing practices and criteria for
annual rate adjustments will be maintained and continued. The formula for rate
adjustment will continue to be a factor of .70 of the CPI and a factor of .30 for
City Council Meeting
July 26, 2011
Page 4 of 5
disposal (tipping) fees will be maintained. However, allowable adjustments for
disposal (tipping) fees shall be based on the municipal disposal fees charged at
the Sunshine Canyon landfill or the Los Angeles County Sanitation District,
whichever adjustment is lower. The existing "cap" or limitation on an annual fee
adjustment would remain at five percent (5 %).
Indemnification of Waste Stream Diversion Mandates: The agreement will
include language whereby the City will be fully indemnified from additional
diversion requirements enacted by the State legislature.
OPTIONS FOR SOLID WASTE RECYCLING COLLECTION AGREEMENT
Essentially, the City has two available options, which are summarized below.
A. Extension of Agreement with Existing Service Provider
Direct staff to develop an agreement to continue solid waste collection services
through CDS to include the terms and conditions outlined above.
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B. Conduct a Competitive Bid Process
Direct staff to initiate and conduct a competitive bid process. In order to pursue
this option, several steps would need to take place, including an assessment of
existing residential /commercial accounts and service levels, the development of
a Request for Proposals (RFP) document, and a subsequent bidding process.
Recommendation
City staff recommends that the City Council provide further direction relative to the
options identified above for solid waste /recycling collection services.
If directed to move forward with a continued relationship with CDS, staff will develop a
comprehensive agreement and present it for the City Council's consideration at a future
meeting. Or, if the Council determines to pursue the competitive bid process, staff will
develop a RFP document and present it to the City Council for approval at a future
meeting.
Prepared by:
Prepared by:
ae6' f
Chris Marcarello Matt I awkesw h
Public Works Director Assistant City Manager
Attachments
1) Exclusive Franchise Agreement and Amendments with Consolidated Disposal Services
2) Historical City of Rosemead Solid Waste Disposal Rates
3) Proposal from Consolidated Disposal Services
City Council Meeting
July 26, 2011
Page 5 of 5
EXCLUSIVE REFUSE COLLECTION AND RECYCLING
FRANCHISE AGREEMENT
THIS AGREEMENT is made and entered into effective, the 1st day of August,
1991, by and between the CITY OF ROSEMEAD, a municipal corporation, hereinafter
referred to as City, and CONSOLIDATED DISPOSAL SERVICE, Inc., hereinafter
designated as Contractor.
The City and Contractor agree each with the other that, for a period of five (5)
years from after the 1st day of August, 1991, the Contractor shall have sole right to
collect, haul and dispose of all refuse and conduct a comprehensive recycling program in
the City of Rosemead in accordance with the following terms and conditions:
1. City shall mean the City of Rosemead, California.
2. City Attorney shall mean the Rosemead City Attorney.
3. City Clerk shall mean the Rosemead City Clerk or her authorized designee.
4. City Council shall mean the Rosemead City Council.
5. City Manager shall mean the Rosemead City Manager or his authorized designee.
6. Contractor shall mean Consolidated Disposal Service, Inc.
7. Handicapped shall identify a person who satisfies the Department of Motor
Vehicles requirements for the issuance of a handicapped parking permit.
8. H.D.P.E. plastic shall mean high density polyethylene such as milk jugs, liquid
detergent and motor oil bottles.
9. P.E.T. plastic shall mean poly - ethylene terephtalate such as plastic soft drink
bottles.
1.0. Recyclable material means any one or more of tile following categories of
materials collected and recycled from within the City:
A. Newspapers;
B. Aluminum cans;
C. Glass;
D. P.E.T. and H.D.P.E. plastic containers; and
E. Such other materials, as, from time to time, as may be commercially
reasonable to collect and reuse.
11. Refuse shall mean "garbage" and "combustible and non - combustible rubbish ",
"miscellaneous debris" and "combined rubbish" as those terms are defined in
Chapter IV, Article V of the Rosemead Municipal Code.
12. Resident shall mean the owner, occupant, tenant or manager -of private residential
property or other use of private residential property.
13. Senior Citizen shall mean a customer who is at least 62 years old.
14. Tipping charges shall mean the per ton charges, including any surcharges, imposed
by the Los Angeles County Sanitation District, for dumping waste.
The work to be done under this Agreement shall include the furnishing of all
labor, material, equipment and expenses necessary to perform the following
minimum services:
1. Collection, hauling and disposal of refuse from the premises of any and all
residents and businesses in the City, at the regularly scheduled intervals, and'at
the rates as provided herein. Said work shall include regularly scheduled pick -up
of refuse once a week from curb or alley. Contractor shall also provide regularly
scheduled and one -time special container (bin) service to any residence requesting
such service.
2. Collection from City facilities as follows:
(a) City Hall - Contractor shall, at no charge, furnish sufficient bins and shall
pickup and remove the contents of said bins on a schedule approved by the
City Manager.
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(b) Parks and Recreation Department - At the Community Center, Zapopan
Park, Garvey Park, Rosemead Park and the City Maintenance Yard,
Contractor shall, at no charge, furnish sufficient bins and shall pickup and
remove the contents of said bins on a schedule approved by the City
Manager.
(c) City Litter /Trash Receptacles - City owns approximately 3Z litter and trash
barrels, located on the sidewalk at fixed locations on major streets. A
listing of these trash receptacles was provided on Exhibit "E" to the request
for proposals, which is incorporated herein by this reference. Contractor
shall empty and remove the contents of said receptacles throughout the
City not less than three (3) times per week on a schedule approved by the
City Manager. Contractor shall replace the barrel liners at no cost to City.
Contractor agrees to pick up, on these terms and conditions, any additional
litter and trash barrels acquired by the City up to a maximum of 18
additional barrels (a total of 50), during the term of this Agreement.
3. The Contractor shall not be required to remove waste building materials and
other waste materials from the construction, alteration, repair, and moving or
demolition of buildings. However, owners and tenants of residential premises
may put out waste materials for collection by the Contractor if the alteration of
repair work is performed individually by the owner or tenant.
4. Unless otherwise directed by the City, the Contractor shall dispose of all
collections at a site located outside of the City limits.
5. All work required of the Contractor shall be done in a thorough and workerlike
manner to the satisfaction of the City.
C. LOCATION OF COLLECTIONS
Collection of residential refuse will be made either at curbside or backyard (in the case
of qualified handicapped residents).
D. COLLECTION HOURS AND DAYS
1. Unless the City Council determines otherwise, the collection of residential refuse
in the City shall be confined to Monday through Friday between the hours of 6:00
a.m. and 4:00 p.m. Collection may be made on Saturday if a holiday occurs
within the preceding six (6) days. Collection of commercial accounts on Saturdays
shall be scheduled so as to not disturb residential neighborhoods.
2. If, in the judgment of the City Manager, conditions warrant a temporary departure
from the regular days and hours of collection, the City Manager may authorize
collection of refuse on such days and during such hours as he deems appropriate.
Any permanent changes to the collection schedule must be approved by the City
Council.
3. To the extent reasonably possible, collections on each route shall commence at
the same point, at the same time and follow the same route each time collections
are made.
4. The Contractor shall provide sufficient workers and equipment to complete within
one day the collection of all refuse placed for collection in any mutually agreed
upon collection district within the City on the given collection day.
E. COLLECTION SCHEDULE
1. The schedule of collections shall be subject to the approval of the City Manager.
The Contractor shall prepare and file with the City Manager a. collection
schedule, together with a complete map of the refuse collection districts within the
City. He shall indicate thereon in an appropriate and easily understandable
manner the days on which collections. shall be made.
2. The collection schedule, when approved by the City Manager, shall be maintained
unless a change therein is first approved, in writing, by the City Manager.
3. Prior to the start of any new collection schedule, as approved by the City, the
Contractor shall, at his own expense, by written notice with postage prepaid and
forwarded through the United States mail or by personal service, notify each
customer of the day or days of the week on which refuse shall be collected. The
notice shall contain the day or days of the week upon which collections will be
made, the name, address and telephone'number of the Contractor, and other
information deemed necessary by the.City Manager. Said notice shall be posted
in the mail or by personal service to customer served not less than fourteen (14)
days prior to the change -of collection schedule. The Contractor shall also cause a
schedule of collections to be published twice in a newspaper of local circulation
once each week for two successive weeks immediately prior to the change in the
collection schedule in a district. The published schedule shall contain the same
information as the written notice outlined above, and shall clearly indicate the
precise area involved in the change.
4. For any given roadway, collections on both sides of the roadway shall be made on
the same day.
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F. C'OLLEMON RATES AND BILLING
1. The City and Contractor, as part of this agreement, fix and determine uniform
rates that shall be charged by the Contractor for the collection and removal of
refuse. The rates thus fixed and determined shall remain in effect for the period
prescribed or until changed pursuant to the provisions hereof The Contractor
shall not charge or collect any fees or rates other than the fees or rates thus fixed
and determined.
2. The City Council shall, not more frequently than once per year, authorize a rate
adjustment by application of the following formula and procedure to the then ..
current rates:
Contractor shall be entitled to no rate increases whatsoever until the first
anniversary of the franchise (August 1, 1992).
Effective August 1, 1992 and on subsequent anniversary dates during the term
hereof, Contractor shall be entitled to a rate adjustment based upon the following
formula:
.75 x increase in Consumer Price Index, All items, 1982 -84 = 100 (Los
Angeles- Anaheim - Riverside) from the base month (commencing June,
1991) to the following year's comparison month (June, 1992; June, 1993;
June, 1994; and June, 1995) plus 25 x the percentage change in tipping
fees to arrive at the percentage adjustment to be applied to all rates herein
authorized, PROVIDED HOWEVER that Contractor and City agree that
any increase authorized by the application of this formula shall be limited
to no more than a total of rive percent (5 %) for the scheduled rate
adjustments effective August 1. 1992 and August 1, 1993
Allowable adjustments,.based upon tipping fees, shall be based upon the
rates at the Los Angeles County Puente.Hills landfill as established by the
Los Angeles County Sanitation District.,
Example:
FACTOR % CHANGE PERCENT OF TOTALS
OVERALL COSTS
CPI 4.70% X .75 3.525
Tipping fees 10.00% X .25 2.500
Adjustment percentage 6.525
Thus, the otherwise allowable adjustment percentage of 6.5259o' is limited by the
overall cap of five percent (5 0 1o).
Contractor and City further agree that any allowable rate adjustments in the
fourth and fifth years of the franchise shall be based upon the rates effective
August 1, 1993 and August 1, 1994 respectively. Contractor shall not be entitled
to any increases to make up for otherwise allowable increases in the first three
years that were limited by the five percent (5 %) cap.
3. The Contractor shall not make or grant any preference or advantage to any
person, nor subject any person to prejudice or disadvantage with respect to rates,
fees, charges, service, facilities, rules, regulations, or any other respect.
Contractor is specifically authorized to charge a Senior Citizen Hardsbip rate and
a Handicapped rate for those accounts who meet the following eligibility criteria:
A. SENIOR CITIZEN HARDSHIP RATE - Those
customers, aged 62 and over, who meet the following income
limitations, shall be entitled to the Senior Citizen Hardship
Rate as listed in this Agreement:
Single Income not to exceed $985 per
month
Family (2 or more) Income not to exceed $1,971 per month
Contractor is authorized to require proof of age and an
affidavit of eligibility signed by the customer.
The "not to exceed" income levels listed above shall be .
increased to reflect cost of living adjustments on August 1
each year of the franchise.
B. HANDICAPPED RATE -Those customers, who meet
the eligibility requirements of the Department of Motor
Vehicles for issuance of a handicapped parking permit, shall
be entitled to backyard service, at the regular residential rate.
If the handicapped individual also qualifies for the Senior
Citizen Hardship Rate, he or she shall be entitled to
backyard service at the Senior Citizen Hardship Rate as
listed in this Agreement.
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4. Except as otherwise provided herein, Contractor will bill each customer directly
for service and will collect from such customer for same. City shall not be
responsible for collection or payment for such services.
5. Contractor may not suspend its collection and disposal services hereunder to a.
customer who has failed to pay a proper billing for services. Contractor shall
make all reasonable efforts to diligently pursue and collect all fees and charges
due Contractor for rendering such services. In the event of a delinquency, the
Contractor shall also notify the owner of the real property of the amount of the
delinquency and the possibility of property tax lien collection.
Contractor shall provide to City, not more frequently than quarterly, individual
letters, postage prepaid, which contain the names of the property owner and
occupant (if different from the owner), the address of the owner as shown on the
latest updated assessment roll, including the assessor's parcel number and
whatever other information is required by the Los Angeles County Tax. Collector..
Said letters shall state the amount of delinquency, penalties, late charge(s) and
collection costs. City shall allow Contractor to use the update assessment roll
records available at City Hall. City allows such use as an accommodation only
and does not warrant the accuracy of such records.
The only responsibility of the City pertaining to notice of and public hearing shall
be as follows: The City Manager or his designee shall notify property owners by
sending the letter designated in the paragraph next above. Such notice shall
further declare that the City Council shall at a regular meeting, review and
approve as an assessment against the property the amount delinquent and unpaid,
the amount of the penalty and late charge(s), collection costs, including
administrative costs incurred. If the total assessment determined and approved by
the City Council is not paid within ten (10) days after such determination, then
and in that event, there shall be recorded in the Office of the County Recorder a
statement of the total balance due together with the legal description of the
property affected. From and after the date of such recordation, the balance due .
shall be a special assessment against the real property. The assessment shall be
collected at the same time and in the same manner as are county property taxes.
and shall be subject to the same penalties and to the same procedure and sale in
cases of delinquency as provided for other taxes and assessments appearing on the
county property tax bill. All laws applicable to the levy, collection and
enforcement of county taxes shall be applicable to such special assessment.
Contractor shall be paid the amount actually recovered by the City on an unpaid
account less 10% (ten per cent). Said payment to Contractor shall be made
within thirty (30) days of the City's receipt of funds.
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6. The Contractor shall obtain the written approval of the City Manager as to the
billing periods used.
7. Each bill shall contain the name, address, telephone number and office hours of
the Contractor, the amount and period being billed, a statement that the
Contractor will provide, upon request, a complete list of the rates for the various
types of services provided by the contractor, a statement indicating how to file a
complaint and how complaints are resolved, as well as the possibilities of recourse
available to customers, the holiday schedule, and any other information necessary
to assist residents as determined by the City Manager. At least 30 days prior to
any rate change, the Contractor shall mail all customers notice of said rate
change.
G. OFFICE, INQUIRIES AND COMPLAINTS
1. The Contractor shall maintain telephone listings in the directories of the
telephone companies servicing the City in the name by which the firm is most
commonly known.
2. The Contractor shall have at all times during the hours between 6:00 a.m. and
5:00 p.m., Monday through Friday, an employee at the Contractor's office to
answer inquiries and to receive complaints.
3. The Contractor shall maintain a written record of all complaints received,
including the name and address of the customer, a description of the complaints,
the time the complaint was received, the action taken in response to the
complaint, and the time the responsive action was taken. The record shall be
kept at the Contractor's office, and shall be available for inspection or duplication
at all reasonable times by the City Manager or his designee.
4. In the event that any customer reports to the City Manager that a complaint or
claim for a damaged container has not been resolved to the customer's
satisfaction, the City Manager may require the Contractor to present a detailed
report outlining the nature of the complaint and remedies proposed or action
taken to resolve said complaint or claim. If it is the opinion of the City Manager
that the Contractor's remedies proposed and action taken are insnfficient to
adequately resolve the said complainant claim, the City Manager may require the
Contractor to carry out an alternative remedy process intended to resolve the
complaint or claim, Said remedies will be carried out at no cost whatsoever to the
City, unless otherwise specified by the City Manager.
5. The Contractor shall maintain a location, within the City of Rosemead, where
bills may be paid and service changes may be initiated.
H. VEHICLES AND EQUIPMENT
1. All trucks and other equipment used to collect, haul or dispose of refuse shall at
all times be kept clean, in. good repair, and well and uniformly painted, to the
satisfaction of the City Manager. Contractor shall utilize the equipment specified
in its proposal unless the City Manager approves in advance and in writing,
equipment substitutions.
2. Each truck shall be constructed, used and maintained so that refuse, oil or grease
will not blow, fall or leak out of the truck onto the street. All refuse shall be
transported by means of vehicles equipped with water -tight bodies fitted with
close fitting metal covers. Should any refuse be dropped or spilled in collecting,
transferring or transporting, it shall be immediately cleaned up. A broom and a
shovel shall be carried on each truck at all times for this purpose. Contractor
shall be notified of -and given a reasonable opportunity to cleanup any such spills
before the City incurs expenses for such cleanup. -All expenses incurred by the
City in the collection and disposal of any such spilled or dropped refuse shall be
paid to the City, on demand, by the Contractor.
3. All refuse- conveying truck or trailer bodies shall be cleaned thoroughly by flushing
with water after each day's use.
4. The Contractor's name and telephone number shall be painted on each side of
the body of each truck. The letters shall be in a color contrasting sharply with
color of the truck, and shall not be less that six (6) inches in height and four (4)
inches in width.
S. The brake system of each vehicle used for collecting, hauling or disposing of
refuse in the City shall be inspected and certified twice each year by the
California Higbway Patrol or by a brake inspection station licensed by the
California Highway Patrol. .`Notice of such certification shall be filed with the City
Manager each August and February. Failure to submit required notice of such
certification may be grounds for terminating this Agreement per the procedure
outlined in Paragraph P - Termination.
6. Each vehicle of three (3) or more axles used for collecting hauling or disposing of
refuse in the City shall be maintained in conformance with the Motor Carrier
Safety Regulations set forth in Title 13 of the California Administrative Code
(Motor Vehicles).
7. The City Manager may cause any vehicle used for collecting, hauling or disposing
of refuse in the City to be inspected and tested at any time and in such manner as
may be appropriate to determine that such vehicle is being maintained in
compliance with the provisions of the Rosemead Municipal Code and the
California Vehicle Code.
8. The City Manager may authorize the removal of any vehicle from service if said
vehicle is found to be in non - conformance with the Rosemead Municipal Code or
the California Vehicle Code. Vehicles shall not be returned to service until duly
authorized by the City Manager.
9. Each vehicle used for collecting, hauling or disposing of refuse shall be equipped
with an audible warning device that is activated when the vehicle is backing up.
10. No vehicle used for collecting, hauling or disposing of refuse shall be loaded in
excess of the manufacturer's gross vehicle weight rating or in excess of the
maximum weight specified by the California Vehicle Code, whichever is less.
Evidence of the manufacturer's name and gross vehicle weight rating shall be
maintained in, or upon, every vehicle.
I. REFUSE CONTAINERS
1. All refuse containers shall be replaced, upright, with the lids immediately beside
the containers. Containers and lids shall not be placed or thrown on the streets,
alleys, highways, or on adjoining property.
2. The Contractor, his agents and /or employees, shall not throw refuse containers .
from the truck to the pavement or parkway, shall not cause damage by striking
them against the truck to dislodge contents, or in any other way break or damage
or roughly handle the same.
3. All claims for damage of containers, by reason of the misuse or rough handling of
said containers by the Contractor, shall be presented to the Contractor by the
resident. The Contractor shall make a decision concerning settlement within 48
hours of receipt of such claims.
4. Any refuse container which will no longer hold refuse without spilling; which leaks
or is not water tight shall be replaced by the person from whom refuse is
collected, within ten (10) days after notice from the Contractor stating the
condition of such container. Such notice shall be made by attaching a tag to such
container and indicating thereon the defective condition thereof.
5. The Contractor shall collect and dispose of all cardboard boxes used for the
collection of refuse.
6. The Contractor shall provide large capacity containers (bins) for mechanical
loading wherever customers so request their use, and the use thereof shall be in
accordance with the rates established herein. Each container provided shall have
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the Contractor's name, or company name, placed and maintained on one or more
locations on the outside in letters not less than three (3) inches in height. The
Contractor shall regularly inspect all large capacity containers, repair or replace
any damaged containers, and maintain an inventory need to meet the demand of
customers. All such containers shall be maintained by Contractor so as not to
leak. All such containers utilized in Rosemead shall feature tight- sealing lids (the
Balanced Lid Systems (or equivalent) bins specified in Exhibit D to the
Contractor's proposal)
7. Residents electing to use large capacity containers for mechanical loading shall
use such containers exclusively and shall place such container for pickup where
they are readily accessible to the Contractor's equipment.
8. The Contractor shall provide sufficient workers and equipment so as to limit the
time that the bins are placed in the public right -of -way to a maximum of three (3)
hours.
STATUS OF REFUSE
All refuse collected pursuant to this Agreement shall be deemed to be the property of
the Contractor, as of the time the same is received by it, unless otherwise directed by the
City Council of City, in its sole discretion. In the event the City's directions regarding
disposal transfer or processing increases Contractor's costs, Contractor shall be entitled
to a rate increase to recoup these costs. City shall be authorized to require complete
financial data, which demonstrate conclusively the additional costs, before approving such
a rate increase.
K CONTRACTOR'S NAME
The Contractor shall not use the words "Rosemead ", "City ", "Municipal", "Community" or
other like words in his corporate name or on his equipment.
L. PERFORMANCE BOND
1. Upon being awarded approval for the collection, removal and disposal of refuse in
the City, the Contractor shall file with the City Clerk and shall thereafter during
the entire term of the Agreement maintain in full force and effect a corporate
surety bond or other adequate surety agreement in a form satisfactory to the City
Attorney in the amount of Three Hundred Thousand Dollars ($300,000) for the
Contractor's faithful performance of this agreement.
2. Said bond shall be so conditioned that in the event that the Contractor shall fail
to comply with any one or more of the provisions of the Agreement, then there
shall he recoverable jointly and severally from the Contractor and surety any
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damages or loss, or costs suffered or incurred by the City as a result thereof,
including attorney's fees and costs of any action or proceeding, and the full
amount of any compensation, indemnification, cost of removal or abandonment of
any property or other cost which maybe in default, up to the full principal amount
of such bond.
3. Said bond shall not be canceled, altered or allowed to lapse without at least thirty
(30) days' prior written notice to the City Clerk by the surety.
4. Failure to file or maintain such a bond shall be deemed a breach of the
Agreement, and shall be grounds to terminate the Agreement by the City Council.
M. INSURANCE
1. Contractor shall concurrently furnish to the City and file with the City Clerk, and
at all times during the existence of any franchise granted hereunder, maintain in
full force and effect, at its own cost and expense, a general comprehensive public
liability insurance policy, including coverage for premises - operations, explosion
and collapse hazard, underground hazard, contractual insurance, broad form
property damage, independent contractors; personal injury and comprehensive
automobile liability, comprehensive insurance in protection of the City, its officers,
boards, commissioners, agents and employees, with a company approved by the
City Manager in a form satisfactory to the City Attorney, protecting the City and
all persons against liability for loss or damage for personal injury, death and
property damage, occasioned by the operations of the Contractor under this
Agreement with a minimum of not less than Five Million Dollars ($5,000,000.00)
combined single limit for bodily injury, including accidental death and property
damage.
2. The City, its officers, boards, commissions, agents and employees shall be named
as an additional insureds in any of said insurance policies. Where such insurance .
is provided by -a policy Which also covers Contractor or any other entity or
persons, it shall contain the standard cross - liability endorsement. Such policies.
shall contain a provision that a written notice of cancellation or material
alteration in coverage of said policy shall be delivered to the City Clerk thirty (30)
days in advance of the effective date thereof.
Said insurance Policy shall contain the following endorsements:
(a) The naming of an additional insured, as herein provided, shall not affect
any recovery to which such additional insured would be entitled under this
policy if not named as such additional insured; and
12
(b) The additional insured named herein shall not be held liable for any
premium or expense of any nature on this policy or any extension thereof;
and
(c) The additional insured named herein shall not; by reason of being so
named, be considered a member of any mutual insurance company for any
purpose whatsoever; and
(d) The provisions of the policy will not be changed, suspended, canceled or
otherwise terminated as to the interest of the additional insured named
herein without first giving such additional insured thirty (30) days written
notice; and ,
(e) Any other insurance held by the additional insured shall not be required to
contribute anything toward any loss or expense covered by the insurance
which is referred to by the certificate.
3. Failure to file or maintain said policy of insurance shall
be deemed a breach of the Agreement, and shalt be grounds to
terminate the Agreement by the City Council.
N. CITY HELD HARMLESS
Contractor shall indemnify and hold harmless the City, its officers, boards, commissions,
agents and employees against and from any and all claims, demands, causes of actions,
actions, suits, proceedings, damages, costs and liabilities (including costs on liabilities of
the City with respect to its employees) of every kind and nature whatsoever including,
but not limited to, damages for injury and death, or damage to persons or property, and
regardless of the merit of any of the same, liability for environmental cleanup or
response costs related to the hauling and disposal of the waste and or recyclable .
materials that are the subjects of - this agreement, and against all liability to others and .
against any cost and expense resulting or arising out of any of the same including
any attorney fees, accountant fees, expert witness or consultant fees, court costs, per
diem expense, traveling and transportation expense or other cost or.expenses arising out
of, or pertaining to, the exercise or the enjoyment of this Agreement whether such
performance be by the Contractor, his sub - contractor, or anyone directly or indirectly
employed by him, and whether such damages accrue or are discovered before or after
termination of this Agreement.
O. AGREEMENT TERM AND RENEWAL
1. The Contractor shall have the exclusive right to collect, haul and dispose of all
refuse within the City for a period of five (5) years from the effective date of this
Agreement.
13
2. The Agreement may be renewed for successive five -year periods or any lesser
period if the City and the Contractor both consent thereto in writing.
Contractor's request for renewal must be submitted no sooner than 3 years and six
months after the effective date of this contract and no later than six months prior
to the expiration date of the contract. The City may establish conditions for
renewal and may require contractor to submit a detailed proposal describing
requested terms of renewal and other pertinent information as deemed necessary
by the City Council. This provision is not intended to confer any renewal rights to
Contractor whatsoever. The City retains the option to seek additional proposals
at the conclusion of this term.
P. TERMINATION
1. In addition to any other remedy herein provided, or provided by law, the City may
terminate this agreement if the contractor is in default of any term or provision .
hereof, including the requirements that performance shall be in a workerlike
manner and otherwise satisfactory to the City; provided, however, that before such
right of termination may be exercised by the City, the City shall give to the
Contractor written notice of such default, specifying the particulars in which the
Contractor is in default, and if such default is cured and satisfactory service
rendered by the Contractor as determined by the City, within 15.days after such
written notice, the agreement shall not be terminated by the City. During the 15-
day period, the contractor may request a hearing before the City Council and
submit evidence in accordance with Section 2 below or any other information
showing that no default has occurred. The City Council shall afford Contractor a
due process bearing during which it considers all pertinent information before its
final determination regarding termination or other remedies.
2. Acts of God or acts of other persons or combinations thereof over which the
Contractor does not have control are not subject to complaint as matters of
unsatisfactory or failure of by the Contractor. The Contractor is
responsible to show evidence of these conditions to the satisfaction of the City.
3. In the event the Contractor shall for any reason become unable to or fails in any
way to collect or remove refuse as provided herein, and Contractor is determined
to be in default of its contractual obligations after the opportunity for hearing
before the City Council, the City may declare the amount of the performance
bond described herein forfeited to the City.
4. Should this Agreement be terminated for any reason, all accounts receivable
records and route records shall immediately become the property of the City.
14
5. In the event of termination of this Agreement due to breach by the Contractor,
Contractor shall be liable to the City for all loss, damage or expense for which the
City may become liable or, indebted to provide replacement service to its residents
and businesses.
6. In the event Contractor is not awarded an agreement to continue to provide the
services required by this Agreement, at the end of the term hereof, or upon
termination for cause prior to the end of the term hereof, then Contractor shall
cooperate fully with City and subsequent Contractor to assure a smooth transition.
Such cooperation shall include, but not be limited to, the following:
A. Providing current and historical records as requested by
the City on customer billing (providing computer tapes of all
accounts); and
B. Maintaining and providing to City as requested Accounts
Receivable; and
C. Providing operating records needed to provide service to
all properties in City (both equipment and staffing
requirements).
Q
REPORTS REOUIRED
1. The Contractor shall provide the City Manager, at the times and in the form
prescn'bed by the City Manager, such reports with respect to the Contractor's
operations as may be reasonably necessary or appropriate to the performance of
any of the rights, functions or duties of the City in connection with this
Agreement.
2. Such reports shall include, but shall not be limited to the following, which shall be
submitted to the City Manager no later than sixty (60) days following the City
Manager's request for same:
(a) A detailed and complete certified financial statement, of the Contractor,
with an opinion prepared by an independent Certified Public Accountant,
for the preceding fiscal year.
(b) An up- to-date list of all vehicles used for collecting, hauling or disposing of
refuse in. the City including the make, type, year, license number,
identification number and ownership.
(c) The names, titles and addresses of the owners, officers, directors and
stockholders of the firm.
15
(d) The names and titles of all employees used in providing refuse service for
the City.
(e) A description of all Cases of property damage and personal injury that have
occurred while providing refuse service for the City in the last three years.
(f) A description of all traffic citations received in the past three years.
(g) . Workers' Compensation. Experience Modification Factor for the current
year.
(h) Any reports required in association with Section G (4) of this Agreement.
3. Within thirty (30) days after the end of each fiscal year, Contractor shall provide
the City with a written report which shall include:
(a) An accurate number of residents receiving curbside service.
(b) The total number of multi- family units and number of multi -unit dwellings.
(c) The total number of bins in use for both single - family and multi - family
units.
(d) The total number of bins in use for commercial accounts.
(e) The total number of roll -off containers delivered and collected during the
year.
(f) Total tonnage of refuse collected.
10
4. The Contractor shall cooperate with and provide all information sought by City in
connection with the preparation and implementation of the waste characterization .
study and its recycling and source reduction elements.
WORKERS' COMPENSATION INSURANCE
The contractor shall at all, times keep fully insured, at his own expense, all persons
employed by him in connection with the performance of this Agreement as required by
the provisions of the labor code of the State of California relating to Worker's
Compensation and insurance and shall hold the City free and harmless from all liability
arising by reason of injuries of any employee of the Contractor incurred in course of
employment hereunder. The Contractor shall file and maintain certificates with the City
Clerk showing said insurance to be in full force and effect at all times during the course
16
of the Agreement. No work shall be done by the Contractor during any period when he
is not covered by insurance as herein required.
S. EQUAL OPPORTUNITY EMPLOYMENT
In providing refuse service for the City, the Contractor shall not discriminate against any
employee or applicant for employment because of race, creed, color, sex, national origin
or physical handicap.
1. The Contractor shall take affirmative action to ensure such non-
. discrimination.
2. The Contractor shall post in conspicuous. places, available to
employees and applicants for employment, notices setting forth the
provisions of this non- discrimination clause.
3. The Contractor shall, in all solicitations or advertisements for
employees placed by or on behalf of the Contractor, state that all
qualified applicants will receive consideration for employment
without regard to race, creed, color, sex, national origin or physical
handicap.
T. RECYCLING
1. During the term of this Agreement, CONTRACTOR shall conduct a curbside
residential recycling program in the City of Rosemead. All residential dwellings
on regular curb, alley and backyard service customers for trash pickup shall be
part of the program. Such customers shall be provided a once -a -week pickup
from curbside of newspapers, glass, cans, P.E.T. and H.D.P.E. plastic containers,
placed for collection in the appropriate containers provided by the CITY.
Contractor's fees for this service are included in the rates for residential trash
collection.
Contractor shall provide a program for the separate collection of green
waste.
17
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 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 18- 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 recyclables and green waste, in the
collection containers, at curbside (or backyard for qualified handicapped
residents) on their regular scheduled day for trash collection.
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 services rendered hereunder, shall be entitled to
retain seventy -five per cent (75 %) of the net revenue from the sale of
recyclable materials. Contractor shall donate a minimum of twenty -five per
cent (25 %) of the net proceeds from the sale of recyclable materials,
collected in the City of Rosemead, to non - profit groups which have service
programs in Rosemead and have actively participated in the City's recycling
program. Contractor shall provide City with quarterly reports on the
program revenue and donations made to community groups.
4. PROMOTION. OF PROGRAM.
CONTRACTOR shall use its best efforts, in conjunction with CITY, to promote
public awareness of and utilization of the program. Contractor shall provide the
services of its Educational Resource Specialist as outlined in its proposal.
U. ASSIGNMENT
1. Contractor shall not assign any portion of the duties to be performed by it
pursuant hereto, to any person, without the prior written consent of the City being
first obtained. The City shall not unreasonably withhold its consent to any such
proposed assignment, provided that such consent shall not be deemed to have
18
been unreasonably withheld if, after a reasonable investigation, the proposed
assignee is found by the City not to be financially responsible , or not possessed of
sufficient experience or qualifications to perform the obligations of this
Agreement.
OvEff AR
1. At all reasonable times, the Contractor shall permit the City's authorized
representatives to examine all property of the Contractor, and to examine and
transcribe any and all records kept or maintained by the Contractor under his
control which pertain to this Agreement.
2. Neither this Agreement nor any provision hereof shall constitute a waiver or bar
to the exercise of any governmental right or power of the City.
3. The City Council may do all things which are necessary and convenient in the
exercise of its jurisdiction under this Agreement, and may determine any question
of fact which may arise during the existence of this Agreement.
4. The City Manager is hereby authorized and empowered to adjust, settle, or
compromise any controversy or charge arising from the operations of the
Contractor under this Agreement, either on behalf of the City, the Contractor, or
any customer in the best interest of the public. Either the Contractor, or any
member of the public, who may be dissatisfied with any decision of the City
Manager, may appeal the matter to the Council for hearing and determination
The Council may accept, reject, or modify the decision of the City Manager, and
the Council may adjust, settle, or compromise any controversy or cancel any
charge arising from the operations of the Contractor.
Vr�Jsiiil: 7�iIi11�i�1Ti�l `Yr.�7:��If.Yilelil/i►im[ilib ' : • Ti)►f.9
1. The Contractor shall obtain all permits and licenses required by the City, County,
State and Federal Governments. The Contractor shall fulfill all reporting
requirements to these agencies.
2. Contractor shall comply with all laws, ordinances, rules and regulations of
the State, County, City, and all political subdivisions thereof having
jurisdiction over work done or to be done under this Contract. Contractor
must conform to and abide by all ordinances of the CITY and of the
County and of cities through which waste and recyclables are to be hauled
or wherein such waste or recyclables may be sold or stored.
3. To the extent not superseded by the specific provisions of this Agreement, the
Proposal for The Exclusive Collection, Removal and Disposal of Residential,
19
Commercial and Industrial Refuse and An Integrated Recycling Program for the
City of Rosemead, submitted by Consolidated Disposal service on March 15, 1991
and modified by correspondence from Consolidated Disposal Service dated April
3, 1991, April 17, 1991, April 25, 1991, April 26, 1991 and April 29, 1991. Copies
of these documents are attached hereto, collectively referred to as Exhibit "A ",
and made a part hereof by this reference.
4. The provisions of the Rosemead Municipal Code relating to refuse collection and
disposal are hereby incorporated into and made a part of this Agreement, and
whenever the provisions of the Code conflict with the terms of this Agreement,
the terms of said Code shall supersede the provisions of the Agreement.
5. Tune shall be of the essence of this Agreement. The Contractor shall not be
relieved of his obligation to comply promptly with any of the,provisions of this
Agreement by any failure of the City to enforce prompt compliance.
6. All notices required to be given under this Agreement shall be given by placing
such notices in the United States mail, postage prepaid, addressed as follows: in
the case of notice to the City, City of Rosemead, City Hall, 8838 E. Valley
Boulevard, Rosemead, California, 91770 Attention: City Manager. In case of
notice to Contractor, CONSOLIDATED DISPOSAL SERVICE, INC., 12235 Los
Nietos Road, Santa Fe Springs, California 90670 Attention: John A. Telesio,
President /CEO.
7. This Agreement shall be binding on, and accrue to the benefit of the heirs,
executors, assigns and successors in interest of the parties hereto, subject to the
provisions of Section U above.
8. In the event territory is annexed to the City, and if for the three (3) years
immediately prior to such annexation, refuse collection services were provided by
a refuse collector authorized to perform such services by the local agency having
jurisdiction over such territory prior to annexation, then such authorized refuse
collector may continue to provide refuse collection service in the territory for up
to five (5) years from the date of annexation. Under such circumstances, the .
annexed territory shall not be deemed a portion of the City for the purpose of this
Agreement. If the refuse collector authorized to perform such collection services
prior to annexation is the Contractor, then such territory may become a part of
the City for purposes of this Agreement.
9. All disputes arising out of this Agreement shall be subject to binding arbitration,
conducted in accordance with the provisions of this paragraph. In the event of a
dispute concerning the provisions of this Agreement, City shall submit a list of not
less than five (5) retired California Superior Court Judges it deems qualified to
act as the arbitrator. Contractor shall select one of the retired judges who shall
20
act as the arbitrator. If the Contractor declines to accept any retired judge on the
City's list, the then Presiding Judge of the Superior Court of Los Angeles County,
or his or her designee, shall appoint a retired Superior Court Judge who shall act
as the arbitrator. The decision of the arbitrator shall be binding on the parties
and shall be enforceable as a final judgment of a court of competent jurisdiction.
Costs of arbitration incurred pursuant to this section shall be borne equally by the
parties.
10. Should litigation including arbitration be reasonably required to enforce any of
the provisions of this Agreement, the prevailing party in such litigation shall be
entitled to receive an award of the attorney's fees in such amount as may be set in
the discretion of the court or arbitrator. The provisions of this paragraph shall
survive the termination of this Agreement.
11. Contractor shall provide Cardio - Pulmonary Resuscitation (CPR) training to its on-
street personnel who serve Rosemead.
X. SEVERABILITY
If any section, subsection, sentence, clause or phrase of the Agreement is for any reason
held illegal, invalid or unconstitutional by the decision of any court of competent
jurisdiction, such decision shall not affect the validity of the remaining portions hereof.
Y. EFFECTIVE DATE
This Agreement shall become effective and operative on August 1, 1991, and on said
date shall supersede all prior agreements heretofore executed by and between the parties
concerning any portion of the subject matter hereof, and shall operate as a discharge of
all obligations incurred by either party under any agreements thus superseded.
Z. RAC
RATE STRUCTURE - EFFECTIVE AUGUST 1, 1991
1. SINGLE FAMILY DWELLINGS - RESIDENTIAL CURBSIDE'
SERVICE
Monthly cost per unit for regularly scheduled weekly curbside
collection and disposal of residential /household waste, weekly
curbside collection of recyclable materials (glass, newspaper,
aluminum cans, plastic containers) but excluding such items
as appliances, furniture.
$ 7.85 per month per unit
21
2. SPECIAL QUALIFIED SENIOR CITIZEN HARDSHIP RATE/
FOR RESIDENTIAL CURBSIDE SERVICE:
Monthly cost per unit for regularly scheduled weekly curbside
collection and disposal of residential /household waste, weekly
curbside collection of recyclable materials (glass, newspaper,
aluminum cans, plastic containers) but excluding such items
as appliances, furniture.
$ 5.21 per month per unit. [subject to .
verification of eligibility]
3. SPECIAL QUALIFIED HANDICAPPED CITIZEN/BACKYARD
COLLECTION RATES FOR SINGLE FAMILY RESIDENCES:
Monthly cost per unit for regularly scheduled backyard
collection and disposal of residential /household waste, weekly
curbside collection of recyclable materials (glass, newspaper,
aluminum cans, plastic containers) but excluding such items
as appliances, furniture.
$ 7.85 per month per unit
$ 5.21 per month per unit if the handicapped
individual also qualifies for the senior
citizen hardship rate. [subject to verification of eligibility]
4. SPECIAL ONE -TIME PICK -UP COST FOR PICK -UP AND
DISPOSAL OF APPLIANCES, FURNITURE AND BULKY ITEMS
Not to exceed rate for one -time special pick -up and disposal
of appliances furniture and other bulky items not eligible for
regular collection.
$10.00 per item.
5. RESIDENTIAL — SPECIAL ONE -TIME DROP =OFF AND
COLLECTION OF A 3 -CUBIC YARD BIN
Rate for one -time drop -off and collection of a 3 -cubic yard
bin at a residential address.
$50.95 per bin, provided bin includes one
collection and delivery to the landfill and rental
of bin for up to seven (7) days. Additional days
and collections require additional fees.
6. RESIDENTIAL - SPECIAL ONE -TIME DROP -OFF AND
COLLECTION OF A 10 1 40 -CUBIC YARD "ROLL OFF"
CONTAINER
Rate for one -time drop -off and collection of a 10 to 40 -cubic
yard bin at a residential address.
$ 143.59 per load (all sizes), plus tipping fees
(at actual cost). Loads exceeding seven (7) tons
net weight will be subject_to a $25 /ton
surcharge.
7. MULTIPLE- FAMILY DWELLINGS - DETACHED UNITS ON A
SINGLE LOT
Monthly cost per unit for regularly scheduled weekly curbside
collection and disposal of residential /household waste,
excluding such items as appliances, furniture.
$ 7.85 per month per first unit.
$ 6.33 per month per each additional unit
8. MULTIPLE FAMILY UNITS - ATTACHED UNITS
(APARTMENTS AND CONDOMINIUMS) AND MOBILEHOME
PARKS
Monthly cost per unit for regularly scheduled weekly curbside
collection and disposal of residential /household waste,
excluding such items as appliances, furniture.
$ 7.85 per month per first unit.
$ 5.14 per month per each additional unit
NOTE THAT CUSTOMERS IN MULTIPLE RESIDENTIAL
CATEGORIES MAY ELECT TO UTILIZE COMMERCIAL
SERVICES AND RATES IN LIEU OF RESIDENTIAL
SERVICES AND RATES.
23
9. COMMERCIAL ESTABLISHMENTS - REGULAR REFUSE
COLLECTION
Rate per month for regularly scheduled pick -up and
collection of refuse from business, commercial and industrial
establishments. Days refer to the number of pick -ups and
collections per week.
3 -CUBIC YARD BIN
1 DAY PICK -UP
2 DAYS PICK -UP
3 DAYS PICK -UP
4 DAYS PICK -UP
5 DAYS PICK -UP
6 DAYS PICK -UP
WITHOUT FORKLIFT WITH F/L
$56.44/mo.
$85.66/mo.
$116 22 /mo.
$1.47.00 /mo.
$181.62/mo.
$208.05/mo.
$62.09/mo.
$94.23/mo.
$127.84/mo.
$161.71/mo.
$199.78/mo.
$228.86/mo.
1 1/2 -CUBIC YARD BIN WITHOUT FORKLIFT WITH F/L
1 DAY PICK -UP $37.98/mo. $41.78/mo.
10. COMMERCIAL - ONE -TIME DROP -OFF AND COLLECTION OF
A 3 -CUBIC YARD BIN
Rate for one -time drop -off and collection of a 3 -cubic yard
bin at a commercial address.
$68.71 per bin, provided bin includes one
collection and delivery to the landfill and rental
of bin for up to seven (7) days. Additional days
and collections require additional fees.
24
11. COMMERCIAL -SPECIAL ONE -TIME DROP -OFF AND
COLLECTION OF A 10 TO 40 -CUBIC YARD "ROLL OFF"
CONTAINER
Rate for one -time drop -off and collection of a 10 to 40 -cubic
yard bin at a commercial address.
$220.86 per load (all sizes)
including tipping charges;
7 ton limit. Over 7 tons net per load,
subject to $25.00 per ton surcharge.
12. COMMERCIAL - SPECIAL BARREL SERVICE FOR QUALIFIED
COMMERCIAL, LIMITED USE CUSTOMERS
Indicate rate for once a week pick -up and collection of a
maximum of two not -to- exceed 35 gallon barrels. [Note:
Only 48 commercial establishments entitled to this reduced -
level service] .
$38.43 per month.
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 ON THE
DESIGNATED DAYS, WITHOUT ADDITIONAL CHARGE TO THE
CUSTOMER OR CITY.
IN WITNESS WHEREOF, the City by order of its City Council and the
Contractor by order of its Board of Directors, have caused this Agreement to be
executed on the day and year first written above.
CITY OF ROSEMEAD
By:
J, T. mperial, Mayor
25
Attest:
/ City Clerk
CONSOLIDATED DISPOSAL SERVICE, INC.
a California corporation
y
ohn A. Telesio, Presi ent /CEO
26
FIRST AMENDMENT TO FRANCHISE AGREEMENT WITH
CONSOLIDATED DISPOSAL SERVICE, INC.
THIS FIRST AMENDMENT to AGREEMENT is made and entered into
effective, the 11th day of January, 1994, by and between the CITY
OF ROSEMEAD, a municipal corporation, hereinafter referred to as
City, and CONSOLIDATED DISPOSAL SERVICE, Inc., hereinafter
designated as Contractor.
The franchise agreement dated August 1, 1991 between the
parties hereto is hereby amended as follows:
1. Section B Work to be Done, Paragraph 1, is hereby
amended to read as follows:
B. WORK TO BE DONE
The work to be done under this Agreement shall include the
furnishing of all labor, material, equipment and expenses
necessary to perform the following minimum services:
1. Collection, hauling and disposal of refuse from the premises
of any and all residents and businesses in the City, at the
regularly scheduled intervals, and at the rates as provided
herein. Said work shall include regularly scheduled pick -up
of refuse once a week from curb or alley. Contractor is the
exclusive franchise provider and the only hauler authorized
to provide regularly scheduled and one -time special
container (bin or roll -off) service to any residence or
business or construction site requesting such service,
provided however that any contractor or other person may
haul, in their own trucks, and properly dispose of any
debris from a jobsite in the City. If contractor or other
person utilizes a waste hauling service, he must utilize the
services of the City's franchisee.
2. Section L Performance Bond is hereby amended to read as
follows:
L. PERFORMANCE BOND
1. Upon being awarded approval for the.collection, removal and
disposal of refuse in the City, the Contractor shall file
with the City Clerk and shall thereafter during the entire
term of the Agreement maintain in full force and effect a
corporate surety bond or other adequate surety agreement in
a form satisfactory to the City Attorney in the amount of
One Hundred Thousand Dollars ($100,000) for the Contractor's
faithful performance of this agreement.
2. Said bond shall be so conditioned that in the event that the
Contractor shall fail to comply with any one or more of the
provisions of the Agreement, then there shall he recoverable
jointly and severally from the Contractor and surety any
damages or loss, or costs suffered or incurred by the City
as a result thereof, including attorney's fees and costs of
any action or proceeding, and the full amount of any
compensation, indemnification, cost of removal or
abandonment of any property or other cost which maybe in
default, up to the full principal amount of such bond.
3. Said bond shall not be canceled, altered or allowed to lapse
without at least thirty (30) days' prior written notice to
the City Clerk by the surety.
4. Failure to file or maintain such a bond shall be deemed a
breach of the Agreement, and shall be grounds to terminate
the Agreement by the City Council.
IN M� -'gBSS WHEREOF, the City by order of its City Council and
the Contractor by order of its Board of Directors, have caused this
Agreement to be executed on the day and year first written above.
t i
Attest:
City Clerk
CONSOLIDATED DISPOSAL SERVICE, INC.
a California corporation
John A. Telesio, President/CEO
SECOND AMENDMENT TO
EXCLUSIVE REFUSE COLLECTION AND RECYLCING
FRANCHISE AGREEMENT
This Agreement made and entered into this 25th day of June, 1996 by and between the
CITY OR ROSEMEAD, a municipal corporation, hereinafter referred to as "City" and
CONSOLIDATED DISPOSAL SERVICE, 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 between the parties, hereinafter referred to as "Agreement ".
NOW THEREFORE, the City and the Contractor agree as follows:
1. The second paragraph of the Agreement is hereby revised to read as follows:
The City and Contractor agree each with the other that Contractor shall
have sole right to collect, haul and dispose of all refuse and conduct a
comprehensive recycling program in the City of Rosemead for a term
commencing August 1, 1996 and expiring July 31, 2001, provided however, that
commencing August 1, 1997 and every year thereafter, automatic one year
extensions shall be applied to said Agreement so that the term of this Agreement
shall thereafter remain at a constant five years, subject to the rights of the parties
to terminate the Agreement set forth in paragraph P.
2. Paragraph F - Collection Rates and Billing is hereby revised to read as follows:
1. The City and Contractor, as part of this Agreement, fix and determine uniform
rates that shall be charged by the Contractor for the collection and removal of
refuse. The rates thus fixed and determined shall remain in effect for the period
prescribed or until changed pursuant to the provisions hereof The Contractor
shall not charge or collect any fees or rates other than the fees or rates thus fixed
and determined.
2. The City Council shall, not more frequently than once per year, authorize a rate
adjustment by application of the following formula and procedure to then current
rates:
The total rate paid by customers is comprised of two components:
A. Disposal Cost. The disposal cost component consists of tipping fees paid to
and established by operators of landfills. The Contractor has no control over the
tipping rates established by the County Sanitation District or private landfill
operators.
B. Collection Cost. The collection cost component consists of the Contractor's
costs for the collection and hauling of waste.
Collection Cost rate freeze Contractor agrees that there will be no increase in the
collection cost component for residential customers effective prior to August 1,
1997. Except for the rate freeze on the collection cost component for residential
customers, the following rate adjustment formula shall apply:
Contractor shall be entitled to rate adjustments, effective on the anniversary date
of the franchise (August 1) based upon the following formula:
.70 x increase in Consumer Price Index, All items, 1982 -84 = 100
(Los Angeles- Anaheim - Riverside) from the base month
(commencing June, 1991) to the following year's comparison
month (June, 1992, June 1993, etc.) plus .30 x the percentage
change in tipping fees to arrive at the percentage adjustment to be
applied to all rates herein authorized.
Allowable adjustments, based upon tipping fees, shall be based upon the rates as
established by the Los Angeles County Sanitation District.
Example:
FACTOR %CHANGE %OVERALL COSTS TOTALS
CPI 4.7% x.70 3.29
DISPOSAL 10.00% x.30 3M
Adjustment percentage 6.29
City and Contractor agree that the disposal cost component has been increasing as
a percentage of the overall costs of waste removal. If the Contractor's disposal
costs continue to escalate as a portion of the overall cost, Contractor may apply to
the City Council to increase the percentage of rate adjustment, currently 30 %,
assigned to disposal costs. Upon the commencement of commercial Material
Recovery Facility operations, a separate formula shall be set forth which takes
into account the disproportionate disposal costs associated with commercial
Materials Recovery Facility serviced accounts.
3. The Contractor shall not make or grant any preference or advantage to any
person, nor subject any person to prejudice or disadvantage with respect to
rates, fees, charges, service, facilities, rules, regulations, or any other respect.
Contractor is specifically authorized to charge a Senior Citizen Hardship rate
and a Handicapped rate for those accounts who meet the following eligibility
criteria:
A. SENIOR CITIZEN HARDSHIP RATE - Those customers,
aged 62 and over, who meet the following income limitations,
shall be entitled to the Senior Citizen Hardship Rate as listed in
this Agreement:
Single Income not to exceed $1,098 per month
Family (2 or more) Income not to exceed $2,198 per month
Contractor is authorized to require proof of age and an affidavit
of eligibility signed by the customer.
The "not to exceed" income levels listed above shall be increased
to reflect cost of living adjustments on August 1 each year of the
franchise.
B. HANDICAPPED RATE - Those customers, who meet the
eligibility requirements of the Department of Motor Vehicles for
issuance of a handicapped parking permit, shall be entitled to
backyard service, at the regular residential rate. If the
handicapped individual also qualifies for the Senior Citizen
Hardship Rate, he or she shall be entitled to backyard service at
the Senior Citizen Hardship Rate as listed in this Agreement.
4. Except as otherwise provided herein, Contractor will bill each customer
directly for service and will collect from such customer for same. City shall not
be responsible for collection or payment for such services.
5. Contractor may not suspend its collection and disposal services hereunder to
a customer who has failed to pay a proper billing for services. Contractor shall
make all reasonable efforts to diligently pursue and collect all fees and charges
due Contractor for rendering such services. In the event of a delinquency, the
Contractor shall also notify the owner of the real property of the amount of the
delinquency and the possibility of property tax lien collection.
Contractor shall provide to City, not more frequently than quarterly, individual
letters, postage prepaid, which contain the names of the property owner and
occupant (if different from the owner), the address of the owner as shown on
the latest updated assessment roll, including the assessor's parcel number and
whatever other information is required by the Los Angeles County Tax
Collector. Said letters shall state the amount of delinquency, penalties, late
charge(s) and collection costs. City shall allow Contractor to use the update
assessment roll records available at City Hall. City allows such use as an
accommodation only and does not warrant the accuracy of such records.
The only responsibility of the City pertaining to notice of and public hearing
shall be as follows: The City Manager or his designee shall notify property
owners by sending the letter designated in the paragraph next above. Such
notice shall further declare that the City Council shall at a regular meeting,
review and approve as an assessment against the property the amount delinquent
and unpaid, the amount of the penalty and late charge(s), collection costs,
including administrative costs incurred. If -the total assessment determined and
approved by the City Council is not paid within ten (10) days after such
determination, then and in that event, there shall be recorded in the Office of
the County Recorder a statement of the total balance due together with the legal
description of the property affected. From and after the date of such
recordation, the balance due shall be a special assessment against the real
property. The assessment shall be collected at the same time and in the same
manner as are county property taxes and shall be subject to the same penalties
and to the same procedure and sale in cases of delinquency as provided for
other taxes and assessments appearing on the county property tax bill. All laws
applicable to the levy, collection and enforcement of county taxes shall be
applicable to such special assessment.
Contractor shall be paid the amount actually recovered by the City on an unpaid
account less 10% (ten per cent). Said payment to Contractor shall be made
within thirty (30) days of the City's receipt of funds.
6. The Contractor shall obtain the written approval of the City Manager as to
the billing periods used.
7. Each bill shall contain the name, address, telephone number and office hours
of the Contractor, the amount and period being billed, a statement that the
Contractor will provide, upon request, a complete list of the rates for the
various types of services provided by the contractor, a statement indicating how
to file a complaint and how complaints are resolved, as well as the possibilities
4
of recourse available to customers, the holiday schedule, and any other
information necessary to assist residents as determined by the City Manager.
At least 30 days prior to any rate change, the Contractor shall mail all
customers notice of said rate change.
3. Paragraph I- Refuse Containers is hereby amended to read as follows:
•► .I►':
1. Contractor shall implement an automated residential container program by
December 1, 1996.
2. Each residence will be furnished, at no charge, one automated container with
approximately 100 gallon capacity. Additional 100 gallon containers will be provided
at a charge of $1.50 per month for those residents who require additional capacity.
Smaller containers will be made available for customers with special c ircumstance s
justifying a smaller container.
3. Contractor shall submit a detailed implementation plan of the automated collection
program to the City for advance approval.
4. Once the automated collection program is fully implemented, customers must place all
refuse in the automated container(s) provided. No trash bags, cardboard boxes, loose
debris or waste placed in other non - automated containers will be collected with the
exception of appropriately sorted and tagged green waste and disposal items on
designated quarterly "bulky item" citywide collection days.
5. All refuse containers shall be replaced, upright, with the lids immediately beside the
containers. Containers and lids shall not be placed or thrown on the streets, alleys,
highways, or on adjoining property.
6. The Contractor, his agents and/or employees, shall not throw refuse containers
from the truck to the pavement or parkway, shall not cause damage by striking them
against the truck to dislodge contents, or in any other way break or damage or roughly
handle the same.
7. All claims for damage of containers, by reason of the misuse or rough handling of
said containers by the Contractor, shall be presented to the Contractor by the resident.
The Contractor shall make a decision concerning settlement within 48 hours of receipt
of such claims.
S. Any contractor supplied refuse container which will no longer hold refuse without
spilling, which leaks or is not water tight shall be replaced by the Contractor upon
notification of the Contractor by the person from whom refuse is collected, within ten
(10) days.
9. The Contractor shall provide large capacity containers (bins) for mechanical loading
wherever customers so request their use, and the use thereof shall be in accordance
with the rates established herein. Each container provided shall have the Contractor's
name, or company name, placed and maintained on one or more locations on the
outside in letters not less than three (3) inches in height. The Contractor shall regularly
inspect all large capacity containers, repair or replace any damaged containers, and
maintain an inventory need to meet the demand of customers. All such containers shall
be maintained by Contractor so as not to leak. Upon customer request, containers shall
feature tight - sealing lids (the Balanced Lid Systems (or equivalent) bins specified in
Exhibit D to the Contractor's proposal)
10. Residents electing to use large capacity containers for mechanical loading shall use
such containers exclusively and shall place such container for pickup where they are
readily accessible to the Contractor's equipment.
11. The Contractor shall provide sufficient workers and equipment so as to limit the
time that the bins are placed m the public right -of -way to a maximum of three (3)
hours.
4. Paragraph O- Agreement Term and Renewal is hereby amended to read as follows:
The Contractor shall have the exclusive right to collect, haul and dispose of all refuse
within the City for a term commencing August 1, 1996 and expiring July 31, 2001,
provided however, that commencing August 1, 1997 and every year thereafter, automatic
one year extensions shall be applied to said Agreement so that the term of this Agreement
shall thereafter remain at a constant five years, subject to the rights of the parties to
terminate the agreement set forth in paragraph P. of Agreement.
Should either party desire that said automatic one -year renewal and extension term be
terminated, such party may give the other written notice of such not later than May 1 of
any year of the Agreement. Such notice will terminate the automatic one -year renewal
and extension provision, and the Agreement shall remain in effect for the balance of the
term outstanding.
5. Paragraph T- Recycling is hereby amended by the addition of the following at the
conclusion thereof:
5. Commercial recycling program. The Contractor shall undertake the program
described in its Waste Services Franchise Renewal Proposal. Prior to the
implementation of Phase R - Materials Recovery Facility, the Contractor and City shall
negotiate a rate to be paid by commercial accounts that will reimburse the Contractor
for the substantial additional disposal costs associated with Materials Recovery
Facilities. An implementation plan and initial rate schedule for commercial accounts
with Materials Recovery Facility service shall be subject to the City Council's review
and approval. Upon adoption of the initial rate schedule, a separate rate adjustment
formula shall be set forth which takes into account the disproportionate disposal costs
associated with commercial Materials Recovery Facility serviced accounts.
6. A new paragraph "AA - AB 939 Indemnification" is hereby added to the
Agreement as follows:
AA. AB 939 Indemnification. Contractor agrees to protect, defend, indemnify and
hold harmless the City against 90% (ninety percent) of all fines or penalties imposed by
the California Integrated Waste Management Board or its successor due to the failure
of the City to divert from landfills at least 25 % (twenty five percent) of the garbage
and rubbish including recyclable materials attributable to City, or, commencing no
earlier than January 1, 2000, 50% (fifty per cent) of such garbage and rubbish
including recyclable materials thereafter, or such lesser percentage equal to the landfill
diversion goals imposed on local governments by AB 939 as it may be amended from
time to time provided that the City's failure to accomplish the landfill diversion goals
shall not result from any negligent or willful act or omission of City.
A new paragraph "BB - Hazardous Materials" is hereby added to the Agreement as
follows:
BB. Hazardous Materials. Contractor shall adopt and adhere to a training program
that will assist their employees to identify and properly dispose of any hazardous
materials that may come into their possession. Contractor shall reasonably assist City
in dissemination of information regarding hazardous materials to local residents and
businesses.
IN WITNESS WHEREOF, the .City by order of its City Council and the Contractor by
order of its Board of Directors, have caused this Second Amendment to Agreement to be
executed on 6 /-? 6 1996.
i
CITY OF ROSEMEAD
B � C.en,.
Marga4t Clark, Mayor
ATTEST:
Ci lerk
CONSOLIDATED DISPOSAL SERVICE, INC.
c
By
John A. Tel io, President/CEO
8
Fy o' I i t •
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 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:
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 ON 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, tires
and other items the size and
weight of which precludes or
complicates their by
normal collection, processing or
disposal methods and which can be
loaded onto a collection vehicle
2
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 twenty -
five (25) 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 the Contractor and City
Manager. Each Bulky Item collection will be
limited to a maximum of five (5) bulky and
or a -waste items. E -waste and tire pick ups
shall not be counted toward the 25 item
limit. 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.
Contractor shall pick up Bulky
items, that are abandoned or discarded in
the public right of way and called in to
Contractor by a resident or City staff, by
the end of the next collection day following
the call to Contractor.
5. Rates.
The rates specified in Exhibit A shall take effect as noted
on the Exhibit.
3
6. Except as provided for in this Thad 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.
CITT OF •• rTI -LI
By: P
..
.
ATTEST:
•
CONSOLIDATED DISPOSAL SERVICE, a
subsidiary of REPUBLIC SERVICES, INC.
By:
3fG/06
Fl
FOURTH AMENDMENT TO
EXCLUSIVE REFUSE COLLECTION AND RECYCLING
FRANCHISE AGREEMENT
This agreement made and entered into this QA__ day of r)i , 2006, 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, June 25, 1996, and November
22, 2005, between the parties, hereinafter referred to as Agreement.
NOW THEREFORE, the City and the Contractor agree as follows:
The effective date of the annual rate adjustment provided for in Paragraph F(2) of
the Agreement is hereby changed from the August 1 anniversary date of the
franchise to January 1 of each year. This change shall be effective for the August
1, 2006 adjustment, which shall become effective January 1, 2007, and for each
subsequent rate adjustment.
2. The annual rate adjustment provided for in Paragraph F(2) of the Agreement may
be approved by the City Manager rather than the City Council provided that the
requested increase is computed in accordance with the formula set forth therein.
IN WITNESS WHEREOF, the City by order of its City Council and the Contractor by
order of its Board of Directors, have caused this Fourth Amendment to Agreement to be executed
on Or`-jz6bi- c�4 n)nc�
CITY OF ROSEMEAD
Gary Tay r, Mayor
A:
City Clerk
CONSOLIDATED DISPOSAL SERVICE, a
subsidiary of REPUBLIC SERVICES, INC.
LM
Rosemead Rate History 1991 -2011
Year
Residential
Rate
Commercial
Rate
1991 -92
$
7.85
$
56.44
1992 -93
$
8.18
$
58.82
1993 -94
$
8.33
$
59.83
1994 -95
$
8.49
$
61.06
1995 -96
$
8.75
$
62.94
1996 -97
$
8.75
$
63.47
1997 -98
$
9.10
$
66.01
1998 -99
$
9.67
$
70.21
1999 -2000
$
9.86
$
71.56
2000 -01
$
9.86
$
71.56
2001 -02
$
10.57
$
76.80
2002 -03
$
11.14
$
85.62
2003 -04
$
11.41
$
91.00
2004 -05
$
12.00
$
96.10
2005 -06
$
13.18
$
105.10
2006 -07
$
15.24
$
106.48
2007 -08
$
16.25
$
107.93
2008*
$
17.11
$
113.80
2009*
$
18.42
$
120.60
2010
$
19.01
$
124.47
2011
$
19.06
$
124.09
4.20%
1.83%
1.92%
3.06%
0.00%
4.00%
6.26%
1.96%
0.00%
7.20%
5.39%
2.42%
5.17%
9.83%
15.63%
6.63%
5.29%
7.66%
3.20%
0.26%
*Rate Aadjustment changed to calendar year
CONSOLIDATED DISPOSAL SERVICE
A Subsidiary of * REPUBLIC SERVICES, INC.
July 20, 2011
Mr. Jeff Allred
City Manager
City of Rosemead
8838 E. Valley Blvd.
Rosemead, CA 91770
Dear Mr. Allred:
Consolidated Disposal Service has been the City of Rosemead's franchised solid waste
collection provider for many years. Currently, we all find ourselves in difficult economic
conditions with additional financial demands created by continuing monetary obligations
and commitments, hampered by revenue shortfalls. CDS and the City of Rosemead has
developed a solid business partnership over the years and CDS desires now to offer for
the City's consideration some contract terms and conditions that would be beneficial to
both parties.
I would like to first list a few facts for your review that highlight several items of
importance regarding entering into a contract with CDS:
1. Consolidated Disposal Service is the long standing service provider in the City of
Rosemead with a proven track record of performance and contract compliance.
2. Because of our longevity in providing service to the community we are a known
quantity with an intimate knowledge of the City and the service needs of its
residents and businesses.
3. It is very hard to put a value on this tenured service especially as one might
consider the service interruption and confusion that usually arises during a
transition to another waste collection provider.
4. Consolidated has proven to have the operational and technical expertise to meet
the City's integrated waste management needs in the long term with a vast
network of resources and facilities to draw upon.
5. Consolidated with its Parent company Republic Services Inc. has unmatched
financial strength lending more value to the performance guarantees and other
protections afforded the City under our contract.
Beside those advantages that we currently offer as part of our commitment to the City,
today there are other important considerations that exist regarding future benefits through
securing a contract with a company that has positioned itself financially, technically and
politically in solid waste industry:
We are the owner and operator of Sunshine Canyon Landfill which has an
extended useful life well beyond that of Puente Hills Landfill and the term
contemplated here in these proposals. This fact of ownership cannot be taken
lightly as the disposal capacity for waste generated within the LA Basin is going
to cost more in the very near future and those who do not own a landfill will be
subject to the economics of supply versus demand.
2. We are also the owner and operator of the largest network of transfer stations in
the LA Basin which currently receives waste from the City of Rosemead.
3. As part of our network of operations we also own and operate one to the largest
Material Recovery Facilities in the United States thus insuring the ability to
process waste for maximum recycling recovery and landfill diversion.
4. With the legislators continuing to propose various Bills such as AB 32 and others
the City can rest assured that it will be working with a company that has the
necessary existing infrastructure and can guarantee the most cost effective
solutions for meeting the new requirements.
Here are the terms that we propose:
Proposal One
1. CDS to pay the City Franchise Fees in amount of $500,000 in the fiscal year
beginning 8/1/2011
2. CDS to pay the City Franchise Fees in amount of $500,000 in the fiscal year
beginning 8/1/2012
3. CDS to begin paying the City a 10% Franchise fee or $500,000 per year
whichever is greater starting in the fiscal year beginning 8/1/2013 and continuing
until the end of the new contact.
4. City to grant to CDS an extension of seven (7) years to the existing contract term
which currently is set to expire on 7/31/2013.
2495 E. 6e Street, Long Beach, CA 90805
Proposal Two
1. CDS to pay the City Franchise Fees in amount of $1,600,000 in the fiscal year
beginning 8/1/2011
2. CDS to begin paying the City a 10% Franchise fee or $500,000 per year
whichever is greater starting in the fiscal year beginning 8/1/2013 and continuing
until the end of the new contact.
3. City to grant to CDS an extension of ten (10) years to the existing contract term
which currently is set to expire on 7/31/2013.
Additional Service
We have met with Public Works Department and have agreed to canvass streets and
collect bulky items that have been illegally disposed of which are now being gathered by
the city crews. We will however continue our regular practice of citywide scheduled
bulky item collection. In addition, we will be increasing the service frequency of city
owned containers situated at bus stops and city's shuttle service stops that regularly
become overrun with trash. These additional efforts by CDS will replace time currently
being spent by city's employees which can now be deployed to other important
assignments.
Should you have any questions, comments or wish to discuss further please feel free to
call me at (562) 663 -3555.
Sincerely,
Russell F. Dix
General Manager
2495 E. 6e Street, Long Beach, CA 90805
el
Residential Street Resurfacing Program
Street List
STREET
LOCATION
PAVEMENT
CONDITION
INDEX
1
Ivar Avenue
From Garvey Avenue to Ramona Avenue
33
2
Bartlett Avenue
From Garvey Avenue to Ramona Avenue
24
3
Steele Street
From Rio Hondo Avenue to Ellis Lane
39
4
Fern Avenue
From Walnut Grove Avenue to Earl Avenue
29
5
Fern Avenue
From Earl Avenue to Angelus Avenue
67
6
Fern Avenue
From New Avenue to Jackson Avenue
25
7
Grand Avenue
From Rosemead Avenue to Walnut Grove
Avenue
29
8
Glendon Way
From Muscatel Avenue to Rosemead Blvd
38
9
Hart Avenue
From Ramona Blvd to Marshall Avenue
25
10
Temple City Blvd
Adjacent to Ellis Lane
60
11
Dequine Avenue
From Egley Avenue to Garvey Avenue
26